Submitted by amanhasnoname54 t3_11ek5z0 in personalfinance
cattledogcatnip t1_jaehtti wrote
It still blows my mind that splurging on a depreciating asset is somehow “treating yourself.” The question in your title is moot since you’ve already purchased the car.
You didn’t mention how much your rent is or how much you have in emergency savings. 6 year car loans are notorious for putting you under water and you end up paying more interest. I personally would’ve kept the Camry and continued to save lots of money.
amanhasnoname54 OP t1_jaelyow wrote
Rent is around $2000, and I have about $14,000 set aside in an emergency bank account.
Would you mind elaborating on the dangers of 6 year car loans? My interest rate is fixed.
As for the Camry, it had 300,000 miles on it. I have to take several cross-country drives a year to visit family so that was the main reason I felt it was time to upgrade.
As for the depreciation, yes I agree. However, I'd argue that well-kept Civics tend to depreciate less than most cars.
Either way, I'm happy with the car so yes, the title was rather badly worded.
ElstoTD t1_jaeoblw wrote
First step is the emergency fund, which is done. Do you contribute to your retirement at all? Any house buying in the near future that you would need to continue saving for?
atlantadessertsindex t1_jaenl10 wrote
You’re going to wind up paying $31,500 for the car once it’s all said and done. You could have gotten a cheaper car. Like others have said, it is what it is. You can probably afford it but you could have spent less and probably been just as happy.
bowoodchintz t1_jaej8b7 wrote
I don’t get it either.
evantom34 t1_jaej8cf wrote
Lol I agree.
Go splurge on a ribeye steak and buy some VTI.
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