Saturday, May 03, 2008

Car replacement fund back at $0 (That's Life)

I finally got my 1998 VW Beetle TDI running great again. Thank you so much Beechy's. You guy do wonderful work. The problem was I had a tremendous amount of carbon buildup in the air recirculation system. Basically, my car was chocking for lack of air.

With my car in my garage, and repair bills topping $1,500, the thought did cross my mind is it time to replace my car? The short answer is NO. See, I had roughly $1,000 in my car replacement fund. The other $500 for the repair work came out of our emergency fund. Now for the longer version of the story.

While my car was in the shop and I was begging for rides to and from work, I started thinking what a hassle this is. I should be looking for a replacement car and say goodbye to the bug. After all my parents and mother-in-law were telling me it was time for a new car. Then I woke up.

See, here's what really matters.

  1. The average car payment is now $350 over 60 months. In one year that's $4,200. Much more than the $1,500 I spent in repairs.
  2. I'm never, ever going to be a slave again to a car payment. It's just not worth it.
  3. My son will be behind the wheal in 6 short months. I don't want him to think a car payment is the way "dad buys cars".
  4. I believe God will reward me for staying out of debt.
So, starting this next pay, I'll be building back up my emergency fund to replace the $500. Once that's done, it will be time to start saving in the car fund. Someday, I will have to say goodbye to the Beetle and when that day comes, I'll be paying cash.

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