Bradford and I just bought a new-to-us minivan, and we paid cash. Unbelievable? Amazing? Can’t be done? Well, let me explain.
When Bradford was laid off back in 2009, we lost a pretty substantial job perk: his company car. So we went down to one car. Sharing one car wasn’t so bad, especially once he began working from home. That made it easier, but I know of other families in different situations who share one car in an effort to save. It can be done, with careful planning.
THE BUILD-UP
During this one-car phase we let our savings build up. It’s a good idea to have 4-6 months’ worth of savings in place. Anything we saved over and above that, we earmarked for an additional vehicle. After about a year, we decided life would be a little easier if we had the flexibility of a second car.
We were praying that God would bring us not just any car, but the right car. While we waited, some friends in our neighborhood offered us their car any time we were in a tight squeeze. Every once in a while, we took them up on it. Just knowing we could rely on that as a backup kept us from being too hasty in a buying decision.
THE BEATER
Because we were still saving for what we really wanted, we used only part of our savings and got what Dave Ramsey likes to call a “beater.” It wasn’t gorgeous or sophisticated, but it definitely met our need. Bradford found the car on Craigslist. Turned out, the ad was actually placed by a guy in our neighborhood who worked with one of our extended family members! Small money-saving world!
The car was great, but after about a year and a half, it needed major repairs. It didn’t make financial sense to put more money into the beater. We knew it was time for us to go ahead and buy a car we really wanted.
THE BLESSING
We had been doing our homework for a while: talking with friends, researching online, and test-driving models we thought we would be interested in. We gave our dealer our budget and our preferences. I was very picky! Once again, patience came into play, and there was a lot of back-and-forth as we waited for a match.
Was it a perfect match? Well, we chose to compromise on a few things. For example, we chose to come down in total car value price because the perks inside the car were more important to us, especially having two kids and traveling a lot. So instead of getting a newer base model car, we got an older car with more features.
Here’s how we did it:
- Do without. Settle for a beater until you can get what you want.
- Be patient. We waited in order to get the car that we really wanted. If we had done it any other way, we would have gone into debt.
- Stay focused. I learned pretty quickly that you can’t be concerned about what other people think. Personally, I didn’t like being in the beater, especially when I saw other people driving newer, glitzy cars! LOL! It wasn’t my first choice, but I had to ask myself, What do I really want? Is it worth waiting for? Is it worth being different?
In this economy, times are tough. I know that everyone is not in a position to do this. But if you can, if you want to give it a try, then I just wanted to share this victory with you. I want you to know you can do it. For us, it all started with looking at where our money was going. Then there was the realization that we did not want debt hanging over us. This is simply our story. It’s why we make the choices we make.
I’d love for you to share your story today. Maybe you’ve made some tough sacrifices in order to make cash purchases. Maybe you’ve had some embarrassing moments in a not-too-glitzy car! Maybe you just want to say “thanks” to the folks, like our neighbors, that have supported you along the way. Please tell! We all love to be encouraged!
We are working on a Total Money Makeover right now, and are relying on our one car to keep running until we are out of debt. I don’t forsee being able to pay cash for our hoped-for van, but to have only that payment and no other debt is a small victory in itself. Right now we pack our 4 daughters into our ’98 Ford Taurus Wagon (with rear-facing back seat it sits 8!) and head out where we need to go. We love our 220,000-miles-and-counting car, but know it will die soon. Thanks for your sharing your story – it gives me inspiration to know that others are “living like no one else so that one day we can live like no one else” too!
In lieu of having any car payments, my hubby and I both drive our same older (think circa 1999) reliable cars while we pay off our credit cards that we ran up a few years ago when we were a little naive! While I am looking forward to getting a newer (not brand new) car in the future, we have paid off 2/3 of our credit cards and I know paying off this last one will feel so great and be worth driving my old car for.
Inspiring post. A few years back we needed a car. The engine blew in our one car and we couldn’t afford to replace it. We had $500. The husband found an old station wagon and the elderly couple who owned it sold it to us for $300. It required $100 for parts and another $150 for tags/inspection. Gotta say, it certainly wasn’t the best looking car by a long shot. It was a boat! But the kids thought it was great. Every time we went to church in that car we thanked God for giving us a vehicle so we could be in the house of worship.
That old car lasted for 5 yrs. Never put another dime into it other than maintenance. It gave us quite a few miles.
Now we’re back in the same place with car issues and a bad economy as well as my husband in desperate need of a serious back surgery. He’ll be off 3 months without a paycheck while he recuperates. Our beater car has died and a van has been offered to us for a cheap price. We will do the above scenerio and we will be thankful we have transportation once again :D. God is Good!
When my husband and I paid off our first car we continued to make the same payments to ourselves in a separate savings account. Within 2 years we were able to upgrade from a 2005 to a 2010 with our savings and the trade in for ZERO cash out of pocket and it feels great! Now we are continuing to do that still and are looking forward to upgrading hubby’s car (2003) in two more years.
Funny. I thought the beater (Volvo) was the nice car. I guess it is just a matter of perspective.
David – Yes, it looked great on the outside! It was the inside and the vibrating like a jackhammer at stop lights that was the problem! 🙂 LOL
Great post!!
So what van did you end up buying? We paid cash for our top of the line Odyssey and it feels great!
Kelly, Our paid-for “family car” looks great but when you’re turning left and hit a slight bump in the road the horn honks. The down volume for the radio makes it turn up. And, the windshield whipper delay only works when you’re not expecting it to. My wife is a saint for putting up with this car—and her husband that bought it. 🙂
Paying cash for a car is the best way to go! I paid cash for a gently used car in 1999 and vowed to always pay cash for a car. I drove that car for twelve years, saving up for the inevitable time when I would need to replace the car. Because of the economy and having my hours cut back at work, I was not able to save up as much as I would have liked. So I intended to keep this car for a while longer. Unfortunately, a few weeks ago my car was rear-ended, causing a total-loss to my car. I did not have enough cash on hand to buy a decent car with cash and still keep money in my emergency fund. However, the Lord intervened. The other driver’s insurance company offered me a settlement for more than I would have gotten on a standard trade-in. Between the settlement money and my savings it was enough to allow me to pay cash for another car. It’s my intention to begin saving again for the next car. Plan Ahead!!
We also paid cash for our “new to us” van last fall, but I did a Ramsy no-no and put $2,500 on our credit card, the max. allowed before fees- and as soon as I came home, online bill paid that amount to the credit card. So for a few hours, we had a hefy bill– and extra points to spend at hubby’s favortie store- Cabela’s!
Thanks for sharing! I have never had a car payment and think its the only way to go. I am selling my 03′ accord to my brother-in-law tomorrow and am paying cash for a 05′ Odyssey!!! Hondas sure do hold there value.
Hondas and Toyotas is all we drive in our family 🙂
growing up, my dad always bought cars from the “Auction” and fixed them up himself. That’s how he was able to afford to buy cars for all 3 kids + the 2 cars he and mom had. They weren’t fancy or expensive cars, but they ran good and we used them for years and years.
Now, being married with 2 kids myself, my husband also buys our cars from the auction (paying cash of course). We’ve been debt free for the past 3 years and I couldn’t be happier, even with a beater car :).
We started baby steps 4 years ago, as Dave Ramsey suggested and it worked miracles for us. Patience and sticking with the plan, pays off. 🙂