Join Date: Oct 2009
Location: Swarthmore, PA
Thanked 102 Times in 91 Posts
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And the amount you saved was what you had left over after your monthly obligations- taxes, mortgage, utilities. So you saved, monthly, to buy your car. It was still determined by your monthly budget, you just reversed the order- you made the payments, to yourself, before you bought the car, rather than buying the car and making the payments to the bank after.
So you're not different, just more responsible.
Everything you say is true - and I do think in terms of putting my savings into a "virtual capital fund" for replacing the cars at a later date when they wear out.
But what is different is that I do not think of any of my purchases in terms of a "monthly payment." Car dealers are notorious for trying to negotiate car prices based on monthly payments, because there is so much latitude for playing games with the term of the loan to make the car look cheaper. I refuse to engage in that gimmickry - in fact, I won't even do trade-ins because that's another opportunity for them to screw you by complicating the issues.
Rick S., Swarthmore, PA
USCG Certified Captain, 50 Ton Master and OUPV
ASA Certified 101/103/104/105/106
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2001 Catalina 34MkII Tall Rig Breakin' Away, Universal Diesel M35B, Mantus 35 lb. anchor, sailing out of Rock Hall Landing Marina