$509 Per Month for a New Car!

A few months ago, my wife was pregnant.  Eight days ago the baby was born, a boy, currently he eats, sleeps and poops, and he’s perfect.  Anyway, when my wife is pregnant, which she was a few months ago, she crashes the car.  It’s not her fault; people hit her, mainly just because pregnancy isn’t lively enough on its own.  She is two for two with pregnancy and crashes.

So it was with knowing trepidation, that I answered my phone shortly after she left for work on a Saturday morning in April.  Soon, I was holding her hand, riding in the ambulance and praying everything would be okay.  Both she and the baby turned out to be just fine, the car however was a total loss.

I hate shopping for cars, mainly because I really don’t want one, instead of freedom on the open road, I see wasted resources, inspections, tire replacements, gas pumps, and insurance bills.  I don’t however see monthly car payments.  Apparently that makes me the oddball.  But after consulting with my neighbor I was informed that no one (except Joe) makes car payments in my new hometown of Scarlet Oak.  In fact, if you scan Brandt Blvd, to the east or west, you won’t find a new car in sight, all the vehicles are used.  I wanted to fit in, so the used car lots are where I headed.  It was a pleasure to find that nice cars could be had for a fraction of the price of a new one, plus, with my insurance payment and a bit of cash on hand I’d just write a check for the car, no interest charges for me.

My neighbor Tom, seeing the different vehicle out-front commended me for buying used.  “I see you didn’t yoke yourself into a monthly payment.  Average Joe around the corner pays $509 a month.  Personally, I would hate having all that debt,” Tom reported.  “Average Joe even stated he’d be making those payments for the next 5 years and 9 months.”

“He’ll pay an extra $4,528 in interest at the average rate of 4.87%,” I noted.

“He didn’t even know his interest rate,” Tom sighed.  “I tried to explain it, but he just changed the subject to focus on his new backyard project.”

“Well, I paid cash for these wheels, which I’ll use as sparingly as possible, and I’m going to divert that $509 a month payment towards my mortgage.  Based on my current balance of $111,300, I’ll have reduced it by $35,062 or nearly a third just by the time Joe pays off his car and at that loan length, he’ll want another one by then.”

“That’s the spirit, said Tom, just do things a bit differently then the heard, and in no time you’ll work for the joy of sharing knowledge and helping others, without having to worry about a paycheck.”

“I hear ya Tom, it seems like everybody in Scarlet Oak hates debt?”  I noted.

“This town isn’t like other places, but based on your car purchase, I think you’ll figure things out just fine.  Just remember, all the men in Scarlet Oak hate debt.”

“Oh I will, talk to you later Tom.”

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