How come no one called me out on this? In a recent post, I said we might need to finance a van to get what we want, and to be able to put enough down on a house. Maybe you all are too polite, or figure that if I want to take on debt, it’s my choice. :)
But anyway. We were thinking some more about our available cash, and we reasoned that we do NOT need a van right now. We only have two children. We don’t need to haul other people or large items or animals around. So for now, we do still need another vehicle, but it does not need to be a van. A 4-door car ought to serve our purposes just fine.
We are reasoning that our household really just needs one reliable vehicle, and the other one should be in good shape, but doesn’t need to be low-mile and newer. Shane’s commute from our new apartment will be 3 miles one-way. The areas where we are considering buying a house range from 6-10 miles one way.
No matter what, this second vehicle won’t collect a lot of miles.
Further, if it (or our current car) breaks down and is in the repair shop, we won’t be totally stranded. We’ll be able to use our “spare” car and I could take Shane to work on those days, or he could simply drive it himself. And if both cars are out of commission at the same time? We could rent one, or bribe Shane’s brother who lives nearby, to see if he could take him to work during those times. :)
We’re trying to look at the big picture here, and it just doesn’t seem reasonable for us to buy a van right now, and it definitely doesn’t make sense for us to finance a lot of money for it. We can keep on saving our cash for the time when we will need a bigger vehicle and we can sell off one of our cars at that time.
So our plan now is to pay cash for the most decent, most reliable 4-door car we can. We’ll probably add AAA when we register the cars in Indiana for added peace of mind. This might be the right decision, or it could be a big headache. Time will tell!
Because of this new development, I am considering our “house and car savings” fund complete. We now have enough saved to put 20% down plus closing costs on a house at the top of our price range, and we have enough to buy an older car. Geez, we are such a long ways from our days when we were thousands of dollars in debt with no savings!