When my parents split my mom moved next door to a divorced mom and her 3 kids Michelle (oldest), Heather and Scotty (youngest). I went to the same high school as the two eldest and latter Scotty joined us. A couple years ago Michelle got married and bought the house form her mom. Than last year their dad died. Heather has recently bought a house with her long term boy friend, she's currently 25 turning 26 late this year. Because their dad died before he could draw on the Canadian Pension Plan (CPP), Scotty who is still in school gets the benefit of the unused money, as he's still seen as a dependent. He has decided that he will use the money to finance his first car. His GF who is moving in with him next door to me just bought/leasing a brand new Mazda 2. It's a cute car and in my favourite colour. Yesterday I was seriously envious of her for having it.
The strange thing is that most every post I have ever read written by someone older than me, when asked about the stupidest financial mistake they made, will say financing a new car right out of university. If this is the case I feel one should take the advice and not make the same mistake. Second, one of the few things my parents did teach me about money was that cars are a diminishing asset and not worth always buying brand new. Now I know all this but yesterday my rational side wasn't working.
This morning the first thing I did while still in bed was price out a Mazda 2. Than I priced out the Toyota Yarus just as a comparison. Even with $5,000 it would still have cost $15,000-16,000 to buy it straight up. I think this is when my rational side woke up because I thought to myself... ya know $20,000 is a lot of money to spend on a car, I could use that as a down payment on a house. After that I closed the window and got out of bed.
The thing is I still think its a 'sexy' car and of course green is a colour weakness for me, so part of me, I would say craves to be behind the wheel.
I wonder if I had graduated without any student debt would I be as finically conscious as I am today. Truefully I don't think I would be. I still crave a place of my own and my own set of wheels to get me from point A to B, despite my lack funds.
The strange thing is that most every post I have ever read written by someone older than me, when asked about the stupidest financial mistake they made, will say financing a new car right out of university. If this is the case I feel one should take the advice and not make the same mistake. Second, one of the few things my parents did teach me about money was that cars are a diminishing asset and not worth always buying brand new. Now I know all this but yesterday my rational side wasn't working.
This morning the first thing I did while still in bed was price out a Mazda 2. Than I priced out the Toyota Yarus just as a comparison. Even with $5,000 it would still have cost $15,000-16,000 to buy it straight up. I think this is when my rational side woke up because I thought to myself... ya know $20,000 is a lot of money to spend on a car, I could use that as a down payment on a house. After that I closed the window and got out of bed.
The thing is I still think its a 'sexy' car and of course green is a colour weakness for me, so part of me, I would say craves to be behind the wheel.
I wonder if I had graduated without any student debt would I be as finically conscious as I am today. Truefully I don't think I would be. I still crave a place of my own and my own set of wheels to get me from point A to B, despite my lack funds.
The Mazda 2 might look like a sexy car but it's not worth the debt!!! I only say this because 4 yrs ago I financed a Mazda 3. Ugh!!! When I was getting an oil change one day they let me take a 2 out for a test drive.... it's kind of like a tin box compared.
ReplyDeleteI sometimes get the "envy" bug too but more and more I think.... hmm lots of nice toys probably means lots of debt. That makes me feel better. :)
Plus, the more expensive the car, the more expensive the insurance. So there's that cost too.
ReplyDeleteMazda 2's are pretty but you can look but not touch and think of it as a care you will have when you're older!
ReplyDeleteI have to agree with your other commenters - HOLD OFF as long as you can and buy a car that's a year or two old instead of brand new. I know the temptation is there but believe me they are nothing but a money pit. There is NO savings to be had whatsoever! And your insurance will be high! And have ya checked the price of gas lately OMG!
ReplyDeleteHi there! I just started reading your blog, but I really enjoy it because you are in the same situation as myself...more student debt than income. (oh joy!) It's great to finally come across a PF blogger who is in a similar situation because then I don't feel so alone. :)
ReplyDeleteI totally feel you on the car envy. As much as I'd love to get my own car (we borrow the boyfriend's parents' car), it's just not feasible at all. It's hard because it would totally help my job search if I had a car, but I can't get a car until I get a decent job. Catch-22 much? Cars also double your budget, once you figure in gas, repairs, insurance and payments. Keep strong! lol.