It is freezing cold and there are very high winds here in Canada today and I just got home from work. If you were driving down my street you would have recognized me immediately. I am the person who climbs in and out of the passenger door of her car on cold days because the driver’s door either refuses to open or, much worse, opens and refuses to close on really cold days.
I prefer the door to be stuck shut over stuck open so I will be climbing over the centre console all this week until the cold weather alert is lifted. I am watching The Weather Channel as I type and it looks like it will remain freezing for the next 7 days.
Which leads me to the major financial question of the day – maybe it is time for a newer car? My goal for 2013 is to reduce debt by 6 or 8 thousand dollars. If I want a newer car then I will have to take on more debt.
I was thinking about replacing the car this summer because I will need new tires, the door thing is frustrating and the windows always ice up on the inside as well as the outside. I don’t like scraping the inside of my car.
The car is a 2005. It still has a trade in value (on a warm day) but I don’t have any money saved for a new one.
I could get in to a brand new car with no money down and a payment schedule spread over 3 to 6 years but I don’t want to commit to monthly payments and new cars depreciate too much as soon as you drive them off the lot.
Monthly car payments must be met and avoiding monthly payments is the reason I have the HELOC (home equity line of credit) and the reason I like the HELOC is because I can make smaller payments on the months that my other expenses or emergencies are out of control. If I commit to a car payment I have to make it on time every single month.
The sensible thing to do is to start a separate savings account and start saving for a newer car. If I put money in to a savings account it will take away from debt repayment and retirement saving.
Replacing the car means an increase in debt.
I guess I will keep climbing in and out of the car and hope for an early spring or a lottery win.