“Nobody said it was easy. No one ever said it would be this hard.”
That Coldplay quote sums up nicely what I am feeling about making adult decisions! Sometimes I wish I could be a kid again…with “important” decisions about what flavor ice cream to eat and what cartoon to watch on TV. Well, I can’t turn back the clock (and I really don’t want to!), so I guess it’s time to face these decisions head-on.
I’m sure you’re wondering what decisions I’m talking about.
Well…
I guess you all know we’ve been saving, saving, saving for a house. That’s one of the main reasons we’re thankful to be living with Baugay…because it’s letting us save faster. No apartment rent = more of our paychecks that can go toward that down payment. I’ve been looking at houses on ValleyMLS for months now, and we’ve gone to several open houses. We’ve been hounded by several realtors (yipee!), and we’re even meeting one on Friday afternoon who will be showing us 4 houses in Camden Cove. And, you don’t have to remind us that this is a great time to buy a house with the interest rates being so low.
So, what’s the problem?
Well, Travis’s car is in the shop AGAIN. Apparently, it’s the master cylinder this time that needs to be replaced. It will cost a little over $300 to fix. Last summer, we spent over $1000 getting new belts and other stuff fixed on it. The car is 15 years old and it has at least 210,000 miles on it. The guy at Bryan’s said that the next thing to go will be the clutch, which will cost over $900 to replace, and it probably won’t be too terribly long before that happens.
So, we told them to just replace the master cylinder (since the clutch is still working fine), and that will give us some more time to make a decision. Does it really make sense to spend another $900 on a 15 year old car that is worth only about $400 (according to Kelly Blue Book)? If not, then we need to be looking for another car. The best time to buy a new car from what I’ve heard is at the end of the year (last two weeks of December).
So, should we go ahead and just get Travis a new car now (a.k.a. before the end of the year), or hope that the clutch on the Honda holds out a while longer? If we do go ahead and buy a new car, should we pay for it all at once? I did some research on AutoTrader yesterday, and I found several 2-3 year old cars (Altimas, Accords, Corollas, etc.) with 25,000 miles or less on them that are under $16,000. So, we can definitely afford a new car, but paying for it all at once would pretty much wipe out our savings for a house, and we’d be back to square one. Or, should we just go ahead and keep house hunting while the interest rates are so low, and hope that the car keeps going for another year or two? I’m afraid that we’re going to find a house, buy it and move in, and THAT’S when his car will need to be replaced.
So…that’s what’s been on our minds this week, along with work, Bible class teaching, and planning for a big Alabama-LSU game party here at our place. (I’m making gumbo for the first time!)
If you have any advice about what we should do, I’d love to hear it! I want us to make the best decision possible, but sometimes it’s not always clear what to do…
I know one thing that will help…praying about it!
“Be anxious for nothing, but in everything by prayer and supplication, with thanksgiving, let your requests be made known to God” ~Philippians 4:6
Hope you’re having a fabulous week :)
2 replies on “BIG decisions!”
hmmmmm… Does it make sense to spend $ on a car to repair it when it's only worth $400 according to KBB? Well, it depends. Ordinarily I would say no but it depends on what your goals are, whether you have "other" reliable transportation, whether a car payment will fit comfortably in a new budget when the house is bought, and what buying a car would do to the money you have saved for the house. Lots to consider. If you had no other reliable transportation, I'd say that it would be necessary to get another car sooner rather than later. On the other hand, why not bend Tim's ear…and help and see if he can maybe help ya'll do it. He does most of our car work and the cost is only for the parts. I know he would be happy to help if he knows how and he would tell you if he had no clue what to do. :) hugs…
I’m with Bev – at some point it doesn't make sense to put lots of money into a car whose value is low AND may need more expensive repairs in the near future. On the other hand, it is always good to get a second opinion on "necessary repairs" – sometimes don't need to be done.
The question of whether to borrow money should probably take into account a couple of things having to do with the future – the likely future of interest rates and the stability of your income.
There are many who are predicting the onset of inflation in the near future because of the current monetary policy of the FED (printing money as fast as it can get the paper for it). Inflation will cause mortgage interest rates to go up. Same applies to car loans which can currently be gotten at very low rates, historically speaking.
Having a low interest rate on your loan(s) doesn't mean much if you can't depend on your income. If economic times get worse instead of better, how secure are your jobs? That's an important evaluation that can't always be made with certainty.
I don't have Tim's skill in car repair (or a lot of other areas, for that matter), but I would be glad to help him work on Travis' car (hold a wrench, hook up electrical current – 220, 221 – whatever it takes) to avoid a big repair bill.
Whatever you decide, working together and supporting one another in whatever circumstances is a sure plan for success!