Could use some advice on financial situation.

[Jim Watson]

Consumer Reports said there is no good time to trade in a running vehicle. As long as it provides reliable transportation, you are money ahead. So keep the present vehicle and sock the equivalent of a monthly payment so that when you NEED a new vehicle, you can pay for it, or most of it.

I am somewhat in that fix now; neither my Toyota van nor my BMW convertible are optimum transportation but they are paid for, the van is roomy but bulky, the convertible is fun except for getting my arthritis in and out. A CRV would be my most useful single new choice, but until and unless one of the others fails completely, it is not on the shopping list.

[Borderland]

Mostly they don’t anymore. Most dealers won’t sell you a car at the lowest price anymore when they know you’ll pay cash as they make most of their profits from financing and insurance. The haggling model isn’t the same post-internet either. The best way is to keep your mouth shut about having cash and get the absolute lowest price (most purchasers are trying to get a monthly payment they can afford). Ensure there is NO penalty for early payoff and then pay the full amount about a week later (however long it takes for the dealerships banks to set up the account) to whomever holds the loan. You get all the benefits of the absolute lowest price and don’t have to pay the extra interest. I’m always having to remind my mother in law that, in the low margin world where the model has profits in the financing- cash sometimes isn’t king (which is pretty much her mantra; why I bought her up)

Perfect example of my point. Although accidental!

Makes sense. Probably why the sales person asks how you will be paying for the vehicle up front.

[TGS]

One of the things mentioned by a few people in the thread just far is the, "Life is short, buy what you want" mentality.

Some thoughts on this:

This is what leads to lifestyle inflation, which is a vicious cycle due to the psychological concept of hedonic adaption. Basically, you see some measure of lifestyle that attracts you, you reach that lifestyle, and then it becomes the norm and you start over again. Saying, "Life is short, buy what you want" feeds this psychological cycle.

While fun toys and nice things can certainly bring us happiness, happiness in life shouldn't be measured by how many nice/fun things you are buying. Now, I'm not saying that everyone needs to convert to Faith of the Seven and join the Sparrows, and by all means I like my nice things too. I'm not a minimalist, I'm not someone that practices nor advocates detachment from all materialism. However, if you can't be happy without constantly buying things, that's a problem, and the people doing that when they adopt a, "life is short, buy what you want" mantra end up chronically under-saving for retirement and don't build the retirement they want, or run out of retirement savings early and become reliant on family. This describes the vast majority of Americans, but of course most people will deny it.

Personally, I'm a hedonist. I'm of the belief that we are actually all hedonists...people just direct their hedonism into different pursuits unique to themselves to bring fulfillment, whether that be materialism, religion, athleticism, service to society, or whatever. So, I've got a theory that good financial habits can usually be attained by a person redirecting their hedonism from materialism/consumerism into financial independence and security.

In short, get excited by saving money, "being your own bank", being able to take care of yourself/your loved ones, weather financial disasters that would destroy others, etc. In this theory, you don't need to feel the need to constantly buy shit because you instead receive gratification from making yourself more financially independent. In the end, you can still pounce on materialistic opportunities when they come up, and you will...but you're doing it from a place of abundance. Notice that this mentality is also fundamentally different than scarcity mindset, in which saving is driven by fear. Just like unchecked consumerism that I mentioned earlier in the post, that's a problem as well.

So, I just thought I'd break this down in my words even though some other people touched on it. The statement, "Life is short, buy what you want" is like nails on a chalkboard to me, and tying it back into the topic of guns (why we're all here), it stinks of the same bad-decision enabling as the phrase, "Better to have a 32 on your person than a 9mm at home!". I find it's generally just something people say to make themselves feel better about their willful decision to under-perform.

[Tensaw]

To add to TGS's post, I've suffered with a scarcity mentality most of my life. This leads to sort of cheaping out on a lot of things. I've learned/am still learning the hard way, that buying the best quality of most everything is the. way to go. The whole Buy Once, Cry Once thing. So, for the important things, cars, tools, houses, property, firearms, etc. - even clothes - stretching a little bit to buy the absolute best you can afford can be a very good way to go. But less/fewer things, but get good stuff. I look back at things I've owned for decades, and I can't remember what the items cost - but I sure know if it is quality. Just a quick example. I still have the first "good" knife I ever bought for myself. It is a Buck folder, you know, the one Duke Boy's style kickback with the brass bolsters. But I cheaped out and got the short version to save a couple of bucks instead of the longer one that I really wanted. Here I am almost 50 years down the road still wishing I would have spent the extra $5, or whatever it was, and gotten the other one. Don't be like me....

[Glenn E. Meyer]

I've tried to buy 'hobby' items that maintain value (and some have gained). Of course, that doesn't cover some hobbies like fine food - like cheese. But I do retain some of that for emergency food storage and flotation.

"Better to have a 32 on your person than a 9mm at home!".

Should the 32 be in cheap shoes or very expensive ones? Or a razor? My 32 HR 432 has been going out for some dress constraint visits.