We finally did something today that we’ve been wanting to do for quite a long time. We sold the car.
One of Dave Ramsey’s most often quoted phrases is “Sell the car.”Dave Ramsey believes, and I agree, that your car is often one of the biggest financial disasters that seemingly everyone falls for. We have this mistaken notion that we will always have a car payment. Well, sure, if you choose to live that way.
In a lot of ways, your automobile is more representative of your financial standing than you might realize, and contrary to popular belief, the common assumption is probably reversed. The nicer the car you drive, more often than not, the more precarious your financial situation. Let me explain:
Three of our friends are incredible car examples: Jeff and Nosurfgirl, Laurel, and Sarah and Ammon. And they all have one quality in common that I deeply admire; to a person, they all drive paid for cars and also pay for them in cash. And while you certainly will never see their cars in car shows, they are all, for the most part, solid cars with solid reputations that they’ve driven for many years.
On the other hand, there is me and Courtney. I love cars. I like nice cars. Let me emphasize that… I like nice cars. I used to justify the nice cars because I drove so far for work, but then it occured to me that I was driving a $30,000 Lay-Z-Boy which, in the grand scheme of things, I only spent, at most, about 10 hours a week sitting in. Even worse, that $30,000 Lay-Z-Boy was losing money faster than I could count. We bought the car 18 months ago, and honestly got a good deal (about $21,000) for a basically new car. We sold it today for $9,500. So, in the last 18 months, we basically “spent” $638.89 a month to drive that car. That’s roughly $160 a week. And that’s an average that, give or take a bit, everyone who buys a new car pays, especially if you lease or finance.
In the meantime, each of our three friends have continued to drive the same car with the exception of Sarah and Ammon (their car finally gave up the ghost, and believe me when I tell you they got every penny out of it). True, Jeff and Nosurfgirl admitted to me that they spend about $500 every three months on repairs, but still… I paid roughly $638.89 a month, while they paid about $167.00.
Who got the better deal?
So today, we proudly joined the ranks of people who pay cash for their cars and buy used, but nice, reliable vehicles. We took the money we got and bought a Ford Taurus Wagon. And believe me when I say I’m feeling it. I went from a luxury car to a station wagon…. But the fact that I still have $2,500 left over sitting in my pocket makes that all bearable. Completely.
Besides, we’re making better choices today so that we can have a better life tomorrow. And really… Would everyone that was impressed that we drove a luxury car please raise their hands…. No one?…
That’s what I thought.
Thanks for the great examples out there!