I Started a $450 a Month Car Fund

"Wobbles the Mind" (wobblesthemind)
07/22/2017 at 00:07 • Filed to: Updates

I have semi-ranted several times that I’m setting up a debt free lifestyle and will no longer purchase cars with anything other than fat stacks of cash money. I want to slide into the dealership and make it rain like Dave Ramsey up in there. In all seriousness, I’ve started setting aside $450 a month for the (currently) singular purpose of future car purchases. That cash flow is the same money that was going to subscriptions, payments, and debts that I’ve paid off over the last 8 months. Think about $5,400 a year that used to go to other people being redirected towards your future self.

Now, I’m planning my car purchases well in advance and I could blab on for a while longer but let me just fast forward to the next bit.

The 2011 Equus will be a $10,000 car purchase in another year. The 2015 Kia K900 is three years old and becoming more common under $25,000 which tells me that by 2019 — five years of existing on the road — a 2015 Kia K900 will be about a $15,000 car and the 2011 Equus will probably hold between $8,000 to $14,000.

For me personally, the actual age of a car means far more than the mileage and these V8, 87 octane, oversized, and overstuffed Korean cruisers may be even cheaper to buy and run as beaters than actual beaters. I’m going to keep watching this stuff but I like to keep a list of fun cars at every price point as well as a list of cheap appliances that can help you slub along without looking like a schmuck that’s simply being skimpy on the slinky, my hemmy.

There are plenty of other cars that are more interesting but all the premium Korean cars (including Cadenza and Genesis) are becoming great ways of having beater cars that keep that el jefe vibe alongside a cloak of invisiblility and frugality when you work with clients, bosses, or associates. I’m just the type of person that enjoys saying I own a Kia when I talk to new teammates but that car makes my bosses wonder why my Tommy Hilldigger knockoff is so darn charming when experienced as a passenger.

I still believe the Equus has serious untapped longevity and if I can stick to this plan then I think future me and the family will have a much easier time getting through adulthood than most. You know I’ll keep you all updated month to month as usual. There is still $9k to pay by February in order to keep on my fast track, but that is the only way I track, yo!

DISCUSSION (14)

Robert Belvin > Wobbles the Mind
07/22/2017 at 00:13

Kinja'd!!!

I recently did this with a Geo Storm. Regardless of the model, it definitely feels good rolling into a dealership and paying cash

His Stigness > Wobbles the Mind
07/22/2017 at 00:31

Are you choosing to not finance because you really don’t want to have any debt at all; because you don’t need a car so expensive it needs to be financed, or a combo of both?

I get not wanting to finance after becoming debt free, but I think if you are responsible enough to become debt free, then you should be able to buy yourself a car that either need or want but also need.

atfsgeoff > Wobbles the Mind
07/22/2017 at 00:42

If I started a $450/month car fund, I’d probably end up with 12 craigslist junkers in my yard by this time next year

MyJeepGetsStuckInTheSnow > Wobbles the Mind
07/22/2017 at 00:43

Don’t forget to max out your 401k and especially a Roth IRA. The debt free life is a pain to get to but extremely rewarding.

Wobbles the Mind > His Stigness
07/22/2017 at 01:20

It’s a lot of reasons but I’ll give you one thought that’s more unique. It’s the only way to own multiple cars.

Basically if I finance one car at $400 a month then it will end up costing me another $150 or $200 a month to insure it and an average of $100 to $150 a month to run it. One $400 a month car becomes $650 to $750 a month to actually own.

If that car is already paid off then the insurance can be half the price so we will say $75 to $100 and the upkeep would stay $100 to $150. Now Im spending $175 to $250 a month to own the same vehicle.

Super rough example but Im sure you can see the difference as you own more than one car at a time.

Alfalfa > atfsgeoff
07/22/2017 at 01:26

This. I’d buy another car at least every 3 months.

cluelessk > Wobbles the Mind
07/22/2017 at 02:40

I really noticed this after my car payment was gone. Seems like I always have a lot more money left over at the end of the month without any other changes to my spending habits.

Throwing $300 toward maintenance that I was avoiding because I was broke doesn’t seem so outrageous anymore.

cluelessk > Robert Belvin
07/22/2017 at 02:41

Those all rusted away where I live.

CRider > Wobbles the Mind
07/22/2017 at 03:13

Budget? Savings? What’s that?

davesaddiction @ opposite-lock.com > Wobbles the Mind
07/22/2017 at 04:58

Nice! Our cars are paid off and we do the same thing (currently funded at $11k). My car is an ‘08 w 100k, wife’s is a ‘12 with 70k, and I’ve got an ‘03 beater w 160k.

Flavien Vidal > Wobbles the Mind
07/22/2017 at 08:27

Don’t buy a new car with that money... Get yourself something you wouldn’t be able to get a loan for... A nice collectible car that won’t devaluate.

People don’t realize how easier it is to cope with a regular boring daily driver when you have something nice and fun parked in the garage.

Aaron M - MasoFiST > Wobbles the Mind
07/22/2017 at 09:12

Don’t keep cash around for anything you’re saving for more than six months in advance. As soon as you have around $3k open a Vanguard account and put it in index funds.

FTTOHG Has Moved to https://opposite-lock.com > Wobbles the Mind
07/22/2017 at 09:56

Dang is insurance in NM really that bad? I pay what works out to $110/mo ($1300/year paid up front) for my 2 cars together, full collision coverage with 100/300/100 liability.

f86sabre > Robert Belvin
07/22/2017 at 09:57

Props for diving into a Storm. Those cars should get more love.