Unreliable Car? Don't Think So!

by | Jun. 09, 2008


Dear Dave, My husband recently had his commissions cut in half at work. This has reduced our annual income from $100,000 to $50,000. Just before this happened, we bought a new car for $18,000 because he's on the road a lot and needs something dependable. Before this we were debt-free except for our house. How can we get back there and keep him safe? Donna Dear Donna, Are you trying to tell me the cheapest dependable car out there costs $18,000? I don't think so. I'll agree that he needs a reliable car - every road warrior does. With the miles he's racking up that $18,000 car is going to turn into a $4,000 car before you know it! But I wouldn't recommend he wear out an $18,000 car, even if you guys had a million dollars in the bank. I'd suggest he wear out a $7,000 car. And there are lots of solid cars with plenty of life left in them in this price range. You're not looking for a vehicle to make a statement, Donna. You're looking for dependable transportation - period. If I were you guys, I'd sell that $18,000 machine. Take out a small loan to cover the difference and buy a good get-around car. Then, pay the loan off as quickly as possible so that you can re-focus on knocking out your house and becoming debt-free! Dave
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