I was planning to come back from vacation and explain that the small dip in net worth last month was just the start-up business costs and that surely net worth was not going to drop until the wedding. The business was doing so well, all of our big expenses were done, and life was looking good!
And then fiance stumbled on a heck of a deal.
A friend of a friend offered him a 20K discount on his used incredible luxury car for about 2 weeks of work. That made the car about 30K. Now, this is his dream car. This is probably anyone's dream car really. So, we did it.
He needed a new car in a year or two anyway. His old Toyota was worth about 5K. He just gave it to a family member in dire need. So, there's our charity for a while. That car will be the difference to that family member of being able to support her kids with a job. So, the Toyota went to good use.
This means we own (well, the banks own for us) about 75K in cars. Yipes. But I don't think this is unreasonable. I wouldn't be shocked if we pull in 300 this year together, and we might do even better. The business is really thriving.
And if not, then I guess we can sell the ridiculous car and get the 20K out of it. Right about now I wish we tracked the cars in our net worth, because this deal kind of increased our net worth. Now it just looks like an ugly 30K loan, along with 10K on the old car staring right at me.
9 comments:
May I ask what kind of car it is?
I am glad you were able to give your old car away, I wish I could have done that but it would have been more of a problem than a blessing to someone else.
Love your blog!
With your income, I'm amazed that you would need to take on any debt for a new car. You have $75,000 invested in cars, but I'm wondering how much you have invested in real estate or savings for a down payment on a home.
It also sounds like you are counting your chickens before they're hatched as far as your fiance's business goes. Just a post or so ago, you were lamenting the cost of health insurance for him, but now you've spent $30,000 on a new car for him. I don't think it's the dog who ate your finances, I just think your thinking about needs vs. wants is a little shakey.
Barb1954
Yeah I agree with Barb... I don't really believe a lot of the stuff I hear here...
How was vacation? And what sort of car was it?
So what do you owe on the car? $10k? I am totally confused, you bought it for $30k but had some money to put down?
Cars are never good deals, unless it's a vintage. But at least you're happy.
The new car is a truly ridiculous sports car--and a convertible. This is Texas, so the convertible is nice, and we don't drive more than 10 miles a day (very urban). The new car is worth at least 50K, the only one on eBay went for about 65K.
So, now (GULP) I have 12K on the old car loan and 32K on the new car loan. That's 42K in car loans. I think I can get that down really soon.
Wow, that's 44K in loans. Scary.
My dream car is a DeLorean. They don't make them anymore so they're very rare and would run me maybe 60k to have one. I won't be getting that any time soon because it's just a car and really not that important. Does having 44k in car loans bother you?
$32k isn't a huge amount for a car loan. Large to me is $75k. Nowadays it seems who doesn't have a $32k car? Or at least it seems that way to me.
I don't but I swear everyone has a larger car than my old corolla. And $30k is what a minivan costs. So if you had a minivan it's about there.
But the only person who can say if it's bad is you.
My rule - never, ever assume that you will need a car in a year or two because the one you have has little resale value.
My daily driver, a 1997 Ford, has a blue book of $2200. It runs perfectly well. If I had given up on it when it reached $5k in value, I'd have bought a new car years ago and probably be thousands of dollars poorer just so I could try to impress people who don't have a clue who I am...
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