So this last week we made a big purchase. We are really trying to NOT add any debt to our lives. We are huge Dave Ramsey fans and just love the idea of just buying what you can afford NOW rather than what you can get credit for and pay off over time. So when we knew Mr. Deals and Steal’s car was on it’s last leg we knew we would buy a replacement cash.
(That is Mr. Deals & Steals striking a pose since his car is oh so cool!)
Once we paid off my car we started putting the money we used to pay our car payment into our ’100% down new to us car fund.’
So the good thing is – my hubby doesn’t give a care what anybody thinks of what he drives. He holds none of his self worth in his car – and that is one of the reasons that I love him. Honestly – if the radiator wasn’t cracked on his 1999 Camry – he probably would have continued to drive it. But alas, it really was time to let it go.
So our goal was to get the best upgrade we could for under $6,000 – out the door. And this would be before we sold the Camry – so we could put that money in the bank. But we would pay for the car with cash – no loan. I know that is probably what most people put down on a car – or maybe even more – but this is what we do now – and it is what is realistic in our little budget right now. Our thoughts are it is silly to add to our debt when we really don’t care what we drive – as long as it is safe and reliable – that is all we care about.
So when you are shopping for a car on that kind of budget – you pretty much shop on Craigslist. He knew he would have some negotiating power with cash. So he searched cars under $7,000 – and this is how it went down.
He found a 2004 Passat (I know that probably doesn’t impress many people – but again – he doesn’t care if it impresses anyone 
) with just over 100,000 miles on it – again – probably not impressed – but it is about 150,000 miles less than the car he is driving right now – so that is down right fancy. Listed for $6,500 – which they had already reduced.
Passats are good cars – solid German engineering (I seriously know nothing about cars – but this is what Mr. Deals and Steals tells me and I find him to be trustworthy on most occasions) – nothing fancy -but should last a long time.
We were told it was an awesome car with no issues at all – but on further inspection – Mr. Deals and Steals noticed what he thought was a cracked timing belt – which is about a $1000 problem (his estimate) – Owner “Oh, yeah, we just didn’t want to take care of that, but we can give you a break for what it costs.”
*side note* people are not very honest when they are selling their cars sometimes – had he known nothing about cars – this would have been a major bummer – if you are like me (know nothing) – you could very likely be taken advantage of. So just be careful.
So with very little ‘haggling’ the price went down to $5,400 since we had cash in hand and we were under the impression there was a $800 – $1000 issue – and who knows what else. Deal was done in a matter of minutes and we drove it to the mechanic.
Want to know something awesome? It wasn’t the timing belt that was the issue – it was the serpentine belt (don’t know what that means? Neither do I – but what I do know – the actual cost to fix was only $220 – booyah – don’t feel bad for the seller – they didn’t mention the problem and they could have easily researched it and fixed it or disclosed it)
Total cost for our new fancy shmancy car – $5,620 after purchase and it’s visit to the doctor.
Paid cash. No car payment – LOVE. IT.
Another thing I love – it is a smaller car – so the gas mileage is better – which is awesome considering it is really just for him to drive to work. He works pretty far away from home, so this is a great thing considering gas prices recently!
Then my hubby and son took a trip to CarMax to sell our old car. This is a fun story. My hubby told CarMax upfront that it had a cracked radiator – before they even drove it over – we weren’t even sure if they would take his hunk of junk. They said they would even if we weren’t planning on buying there.
As they got out of the car a worker came up and said to Brother S. “Wow, that is a nice car buddy!” (so nice at CarMax to not make fun of our car )
Brother S. “Thanks, but it has a broken engine.” #fail
Mr. Deals and Steals “It has a cracked radiator buddy, not a broken engine.”
#Embarrassed
Anyway – their appraiser checked it out and drove it around and took our disclosure into consideration and very quickly wrote us a check for $1,700. It took like 2 hours – if that. I get that is a sad amount for our car – but remember how we had $6000 to buy a new car – we spent $5,620 including repairs AND we got $1,700 back – woot!
Basically we upgraded to a totally decent commuter car that gets better gas mileage AND we put about $2,000 towards our three month emergency fund (which is nearly funded by the way!).
Sometimes I feel like we moving at a snails pace – and sometimes I wish I could just go out and finance a car like most people do – I really want a fancier car. But it sure does feel nice to feel like we are finally getting somewhere in our ‘Baby Steps’ – we both have completely paid for, reliable cars that should last us for several years – and by the time we drive them into the ground we will have saved enough for a new one cash as well. That is the plan anyway.
Anyway, I know it isn’t for everyone – but I don’t think there is a car that I want to drive enough to add several hundred dollars to our monthly bills – just sharing our attempt at debt free living – perhaps it will inspire some, perhaps it will just make you laugh at our silly attempt – I mean really – how far does a teacher and a blog at home mom really think they can get by not racking up credit? We shall see
Enjoy ~ Kate
You got a nice deal on that car, according to Kelley Blue Book. But.. I hate to say it but you could have just bought a new radiator at autozone for $100 up to $200, estimate $150 for labor, it wasn’t an expensive fix.
Good site to visit for estimates on vehicle repairs is http://www.driverside.com Just found the site not too long ago and its really helped us decide whether to keep our car or not.
Granted you said your Camry had really high mileage, so you really did trade up. BUT, your Camry was most DEFINITELY not a piece of junk. But neither is your NEW! Passat. We’re deciding to keep our car, despite it being totaled from two separate accidents that pretty much only resulted in body damage (thank God for insurance!), its a 1998 but it only has 90,000 miles on it and the engine is in really good condition with only 2 previous owners so we know it was taken care of. BUT your experience will help us in knowing how much we should probably save up for another car in the future as well, and what to look for! Congrats on such a NICE looking car.
Awesome story. Congratulations on your new purchase.
thanks so much!
Congratulations. What a great achievement. You both should be very proud of yourselves!!!
thank you! we are very proud!
We have an ’03 Jetta that is paid for, sitting in our garage, waiting for our 11 year old to eventually drive it. Best car ever. Has well over 100K miles on it….my husband drove it all over the nation……now, he has a company car. But, Volkswagens are awesome! And, we love the Passats!
very cool! I am glad to hear such good stories of VW!
I love the photo! And, great story. My husband also does not believe self worth should be tied to cars. He drives an old Jeep Cherokee because it was the first major purchase he ever made, he likes it and it runs fine. While it does have an occasional Taco Bell hot sauce stain (from his pre-me days) I do admire him for it. He’s ok with what I want to drive to a point – he doesn’t finance cars, but gives me a budget I can’t exceed. His tactic is that I am not with him when he negotiates the deal and the checkbook is always peeking out of his pocket for the sales person to see. We got a screaming deal on my current car. Cash makes any seller a bit weak. Congrats on the new ride!
good for you guys! Sounds like you have a nice balance – he sounds pretty self assured – driving around our neck of the woods in a late model car is a bit different than driving around in La Jolla in one! Good for him though – seriously!
Love reading how other people do it. We are also in the market for a “new” car and want to pay cash. My husband suggested one of those teeny tiny cars just to zip around town in and while my ego is not tied up in cars, I just can’t do small. Like could-kill-you-if-you-crash-small. So back to the drawing board.
Thanks for sharing this story. I really truly take heart knowing that others are where we are with how we think about money and etc.
XO-
Deb
Thanks Deb! Those teeny cars scare me too – but I bet they are great gas mileage! This one gets about 30 highway I think – which is better than his last and very safe!
Good luck!
We just did a 100% cash purchase on a car too! I love not having debt. In my husband’s research, he called Express Tire to see if they do a pre-sale inspection. They do it for FREE!!! Of course they want you to get everything fixed there – so that is how they make $. So when he talked to the person selling the car, he flat out asked them if they would do a pre-sale inspection & told them Express Tire does it for free. So there is a way to get your car checked out before you buy it. We usually go to Express Tire for car stuff so we probably would have given them them money to fix whatever, but you could also check with your mechanic to see if they will do free pre-sale inspections.
that is a great tip! Thanks for sharing – that is great – it might help people make sure the used car they are buying is legit =)
Thanks for this post. I do find it inspiring because my husband and I a are just starting out listening to the Dave Ramsey audiobooks and we are getting motivated to start our “debt snowball”!!! I had heard of him before, but when you mentioned him previously here on your blog, I started researching and yes, hearing other peoples’ triumphs over materialism is so refreshing! love it!
that is so cool to hear Berta! Seriously each ‘baby step’ hurdle seems a little bit easier – once you get thru that debt snowball do your very best to NOT get back in it and just slow and steady it gets easier! we back slid a bit and got a car loan for my car – but has been paid off now for months – and we are NEVER doing that again!! seriously – we are on a tight budget but I feel like we got a raise! Best of luck!
Hubby’s looking pretty hot next to that Passat! If only he was wearing his favorite college sweater! Haha!
haha Valerie! But seriously – that sexy car AND his sexy college sweater in the same picture?! this is a family blog – too hot to handle I am sure
This might have been your busiest comments post – but it also was one of your longest haha!
That’s great, Kate! We’re saving to purchase a car in cash too! Congrats on doing it!