Car fund = $0
You guys! I’ve never owned a car newer than probably 6 years old. And now I have a Brand. New. Car. While not the sole reason, we pretty much bought Consumer Reports top rated car for 2010 – though the Honda Fit is rated as the current best value, the VW Golf is still recommended for good value.
We decided on the VW Golf were looking at 2-3 years old 4-door Golfs with < 30k miles. After getting kind of excited about a particular used vehicle, we ran some numbers for the “true cost to own” over 5 years. While the first year difference is pretty big, by T’s math (removing financing from the cost to own), the new car was actually CHEAPER over five years.
I know this isn’t usually the case, and the cheapest option would have just been a different model. I get that. I’m not trying to kid you, or myself.
We got a really good price, so much so that our sales guy got in trouble with his bosses. I know, I know, they all say things like this, it’s part of the game. But seriously, we had to write him a glowing thank-you note, also saying it was all our fault for being over researched and bargaining at multiple dealerships. (Thanks to Ramit for the tip: We got the vehicle for, I think, $100+ under invoice price.)
We were finally merging our savings, and we had more cash than I originally thought. I have to do some final adding up to give some more financial information on how exactly we paid roughly $10k more in cash than I had originally had in the car fund. It wasn’t exactly what was planned, but we’re both happy with our final choice!
But I’m in love!