I want a new car. The 1992 Geo Prizm is getting kind of old. It is needing to get stuff replaced. It is loud and ugly and a little embarassing. But it is not time yet.
This year, my priority was to buy my first home. In order to do this, I had to do a couple of things. I had to take on some debt for the downpayment. I had to increase the amount I was paying monthly for housing.
I also had to put off buying a new car.
But it's not so bad, right? I have heard the Geo Prizm called "the ultimate frugal car." I have been told over and over again that it will "run forever." Even if I am putting a thousand dollars each year worth of maintenance into it (I'm not, yet) it will still be cheaper than buying a new car.
Besides, it gets me to work, and all the other places that I need to go.
My plan of action for a new car is familiar to most people who are frugal, but completely foreign to others. After my down payment debt is paid off, I will start making a monthly payment to myself. Depending on what else I have to save for and my motivation, I hope to put $200+ a month for the new car. If the old car craps out before this, I will take the money I have saved and put it toward a new (new-used, actually) car so that my payments will be lower and/or take less time to pay off. Hopefully, though. my little Geo will keep on going until I have enough saved.
I can't wait!