How I Bought A $150,000 Car With Cash I Made In My Spare Time

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BUYING A CAR – I LIED

If you have read through other posts, it should have been a shock to see such a title of spending $150,000 on a car! No, I have not bought a car for $150,000. However, so many of us have seen ads which promise these exact claims. They will elude to great wealth, luxurious toys, amazing vacations, and so much more. The truth is, this is NOT practical. Although, yes, it would be nice to have, it is not likely to happen for you every time. Most of us will have to think about getting a car the old-fashioned way. This will be through paying cash (ideal), or through using that lovely “tool” we call a loan. Although these hyped claims of using a set system to build profit to purchase nice things is a way to catch your interest and keep it there for their scam to take root. In the immortal and wise words of a famous Admiral Ackbar, “It’s a Trap!”.

BUYING A CAR – FOR REAL THIS TIME

Due to recent problems with my current vehicle, I have been thinking about getting a new car. Now, I will be honest here. I DO drive a nice Audi. I love it, and it actually hurts to think about getting rid of her (Yes, it’s a her, deal with it). When I bought her, I was overjoyed. I had always wanted a new Audi since I was a kid. They look, sound, and drive like a dream. Unfortunately, they are not a practical car always. The maintenance, tires, and gas are ridiculously expensive. Even with these flaws, I still love having her around. As they say though, all good things must come to an end. This idea came screaming at me this weekend when on a date with the Mrs. I blew a piston through normal driving. I am now getting a completely NEW engine. Thank goodness for warranties, otherwise, this would have been the death of me for this car. Luckily, it was good news, and it will live to drive another day.

Now, we have discussed car buying before, along with the Do’s and Don’ts. To prove I am serious about this whole budget ideology and practicing what I am telling you, I wanted to bring you into the fold about my process of getting this new vehicle.

THE PROCESS

The process of buying a new vehicle is slightly different for me, as it will be for you. Aside from thinking about all cash or using a loan, it mainly comes down to the need. I have been looking at trucks for over a year, and have finally narrowed it down to two. The reason I am looking at trucks instead of another sedan is due to my hobby, woodworking. It is very difficult to fit 4×8 sheets of ½ inch plywood in an Audi. I want to have the ability to use a truck for the hauling feature. There are many projects I have had to put off doing due to the inability to get all of the supplies needed. I add all of this color for you to understand this is not a frivolous desire or future purchase.

THE REASONING

There have been so many other variables I have had to consider this decision. To name a few: gas mileage, length, width, how many passengers, long-term care, resale value, insurance cost, possible change of jobs, possible moving, etc. These are all things I have to contend with and also contrast/compare to the current Audi. For example, the Audi will technically cost less a year in gas. However, the size of the tanks are different and the types of fuel are different as well (unleaded vs. premium). Both have great resale values and both would support changes in jobs. The downside with the truck is it might be too big to fit in the garage and the combined MPG is less than that of the Audi. Again, I mention this information to you so you understand there is much more to purchasing or finding a car than as a simple “Can I afford it?”

THE COST

The cost to purchase a truck is absurd. To buy the truck I want brand new would have been $50,000+! Remembering cars and trucks lose about 20% of their value within the first year of driving, this would bring the value down to approximately $40,000 if I were to buy last year’s model used. Unfortunately, there is not a huge drop after the one-year mark. Thus, most of the used trucks are sitting around $35-$40K. Needless to say, I will need to save cash for the next year to be able to buy it flat out, without a loan. It can be done  and will be done. This is also keeping in mind any potential trade-in or private sale value I will be able to get out of my Audi at that time. Thus, I will not be getting my wonderful truck anytime soon!

THE PRINCIPLES ARE BASIC

The thought process and analysis for thinking about getting a new truck is quite simple. It is not something new which I created, rather it is something most of us know how to do. The problem many of us face is the inherent desire to for instant gratification. We see something we really want, but not something we necessarily need. The feelings of desire and want tend to overwhelm the logical and practical part of our minds. In turn, this promotes poor decisions being made. This is why it is so important to stay strong in what you are wanting out of the decision being made. For this, I want a truck, but I want to remain financially smart more. With the latter being more important, I will continue to wait and plan.

You can do this too!