Could use some advice on financial situation.

[GmanVP9]

So I guess this is A tad bit personal thread. But growing up, I was always a car guy. I had my fun in my 20s and once I turned 30 I bought a basic SUV (CRV). Its a 2019, 50K on it and shes paid off. The car gets great gas mileage, is pretty comfortable, starts everytime and is good in the New England winters. But part of me wants to trade it in while shes still worth something for a 4runner. Altho they carry an outrageous price tag, the "car guy" in me really likes them. But, here's where I'm torn. I love the idea of not having a car payment, I also know that my current car is pretty dang reliable (aside from the questionable CVT). But on the flipside you only live once and anything can happen. As far as bills and finances, I'm not rich, but I'm pretty comfortable and can definitely afford it if I wanted it.

What would you guys do?

[TGS]

If you're, 1) saving 20% of your gross income for retirement and can continue doing so with the new car payment, 2) have 3-6 months in liquid assets for emergencies, and 3) have no debt other than a mortgage, I say go for it.

If those three things aren't fulfilled, I'd take advantage of not having a car payment to either put into retirement savings, save for a house, etc, especially given the market conditions for vehicles and interest rates right now. Our 30s are critical for being set up well later in life, and can make the difference between retiring in your 50s with all the playtoys you want vs having to work into your 60s just to get by in retirement. Play with some investment calculators online and even just a few years of maxing a 401K in your 30s can have a dramatic effect on your retirement, even if you end up having to reduce contributions a few years from now.

I feel you regarding the want for a specific vehicle, although a different flavor. I bought a Porsche a few years ago, and I absolutely loved it. When my S.O. moved in with me, it broke my heart that I hadn't driven it in 2 weeks; she has a Toyota Venza, works 100% remote, so a second car just didn't have any use. While I could afford to keep the Porsche by most reasonable standards, it still just didn't make sense to carry such a large depreciating asset.

So, off it went. At the very least, you could look at it this way: if all other finances are good to go, put that money into a high yield savings, CD, MMA, cash account, etc and save for a couple years to buy a 4Runner outright in cash. In this course of action your money is working for you, instead of you paying the financial penalty known as "interest" on a loan.

[Outpost75]

Newer vehicles with lots of electronic gizmos are difficult to work.on yourself and expensive to maintain at the dealer. Their initial cost is high and rate of depreciation rapid.

I am driving a 2000 model year Jeep Cherokee Sport with 2.4 liter 6 cylinder and automatic transmission. At 120k miles when it was 20 years old I bought a new Mopar crate engine and had it dealer installed. This was about twice the cost of a Jasper rebuild, but the new Mopar crate engine came with a 5--year, unlimited mileage warranty on parts and labor from Chysler. As conditions of warranty they also replaced systems most likely to fail an a high mileage vehicle. New radiator, water pump, alternator, struts, ball joints, steering dampener etc. Transmission checked out OK as I never abused it towing trailer or anything.

Upgraded computer software enables me to use E15 gas and get 22mpg on the Interstate. No car payment, got 10 percent cash discount. Paid for everything from my minimum required IRA distribution. Older car I pay no personal property tax, lower insurance rate. Four years later no issues and at 170k miles I am money ahead.

Am glad I spent the money to refurbish the old vehicle rather than using it as a down payment on a new $60k vehicle which I would still be paying for on a government pension. No thanks.

I am 75 years old and Mr. Jeep will probably outlive me.

Our "other" car is a 2008 Toyota Matrix which is still going strong at 200k miles. We have zero plans on trading it for a hybrid.
It gets 32 mpg on E15 and runs like a scalded dog!

[BN]

I've been listening to Dave Ramsey videos.

A paid off car with 50K is a wonderful thing. You realize that Pistol Forum is filled with enablers don't you. Many will tell you to go for it. Me, I want a paid off car but I'm a Boomer.

[DMF13]

. . .love the idea of not having a car payment, I also know that my current car is pretty dang reliable . . .

That's why I drive a 24 year old pickup. It looks like crap, but I haven't made a car payment in 21 years.

If I was you, I'd keep the CRV, and set the payment amount aside, in a separate account. Eventually you can pay outright for another vehicle, or most of one at least, and avoid the current high interest rates.

That's what I did with my truck payment, and when my truck dies, I'll just pay cash for a replacement.

[GmanVP9]

First few replies already sued my decision. No car payment camp it is.

[Tensaw]

Wife has a 2014 Civic with 230k on it. We bought it new. Minimal repairs, but very regular maintenance (done mostly by me). We will part ways with it this fall in favor of an AWD Rav4, but only because we need it for the winters in the mountains where we live. Other than that, we'd happily be driving the Civic till the wheels came off.

The other ride is a 2021 Ram 2500 with 6.4L. That was a $50k purchase. Having that note suuuucks. Worse, as was said upthread, I don't really trust it with all the tech and can't work on it like I could the 1997 F250 it replaced. (The servo for the transfer case took a dump at about 15k!. It was fixed under warranty, but still. Not confidence inspiring.) I bought that truck for its towing capacity and the reliability of a new vehicle as I was towing a large trailer on regular 20 hour round trips at one point. If I could swap even for a F250 with a Million Mile diesel in really good shape, I would do it. Point is, I bought a new vehicle, but only because I had too. Hate having the note. Not crazy about most current new cars.

[Welder]

Not counting one I bought for my ex-wife, I always paid for my cars with cash until I bought my most recent one which I bought straight off the showroom floor. It was a kinda-sorta impulse buy, only live once, missed the muscle cars of the 60's because I was born in the late '70's and the ones now won't be around much longer, type of buy. I've got 20% going to retirement and had a fair amount of cash on hand until I got hit with a surprise tax burden (accountant didn't figure my business taxes correctly), so now it's peanut butter and jellies for awhile to go along with the new car. I could live very comfortably if I cut back on retirement savings, but I had to get started over really late after the divorce a few years ago cleaned me out.

So I eat PBJ's and I don't drive my new car too much, which gets about 18 mpg and needs premium. But it has factory hood pins, a factory hood scoop, and air extractors, and so, I like my car. And when I'm 90, I won't regret either the PBJ's or having the car that I wanted (and worked dang hard to afford) when I was still young enough to enjoy it.

I'm not in the military or LE, and yet 3 guys I've worked with have been killed doing what I do. One of them on the same jobsite as me, I was just at a different end of it. I've put guys on stretchers, I've called ambulances for guys, one guy made me promise to take care of his family if he died (actually a really funny story and he wound up fine in the end). All this to say that we sometimes make those 'golden years' our focus to the total exclusion of enjoyment in the now, and we really don't have any guarantee of the time past now. The minutes we have right now, these are the Golden ones.

Whoops, kinda got side-tracked on this one.

Also, a 4Runner isn't nearly as irresponsible of a vehicle as what I bought, FYI.

ETA:

2 things:

1. While I was thinking and typing, I see that you've decided from the first few replies to hold off on the new car purchase. Only you know your situation, and I'm sure you're making the right decision. You'll know you did the right thing if you have peace about it afterwards.

2. I'm reminded of a bolt that I keep in my curio cabinet. It's a big, mangled up, nasty thing -- a 3/4" x 4" bolt with a nut on the end, smashed so heavily that the nut won't turn. Y'all do know what curio cabinets are, right? The glass things where you keep the knick-knacks that you look at from time to time, mementos from your past and such. So anyway, I have rows and rows of "JOE TEA" bottles because I collect them, and then I have this bolt. I was climbing up onto our 60-ton crane one day several years ago, working at a metal shredder....and as I reached for the door to slide it open, both side windows on the crane on either side of the operator seat absolutely exploded glass and there was a huge clang and the sound of something like a gunshot. All of this at once.

I opened my eyes up and there in the middle of the seat was laying this bolt. Probably weighs half a pound, it's heavy. It got ejected from the shredder about 100 yards away and went straight through the cab from side to side breaking both windows, bounced off the boom which was directly to the side, slammed back into something metal on the other side of the cab, and dropped into the operator's seat. It was hot enough that it was starting to melt the seat by the time I came to my senses, saw it, and swept it onto the floor with my hand. I was conservatively about 5 seconds from sitting in that seat when the bolt flew threw the area where my vitals would've been. I put it in my pocket after it cooled off, and now it's a reminder of how close eternity is.

I was thinking about that bolt when I bought my car.

[Tensaw]

To Welder's point, a 4Runner will hold its value *really* well; but so will that CRV.

Yeah, drive that CRV for a while and save up some cash, then get what you want.

[Clusterfrack]

My wife and I have never had a car loan, and that's been a significant financial advantage over the past 30 years.