My car is old, dinged up, scratched and has a bumper that’s almost falling off. And I may drive it for another 8 years. Or I may buy a new car tomorrow. Either way, I’m pretty happy.
Two years ago my transmission died and really left me in a lurch. I had to make a call to fix the transmission on an old car and risk having something else break in the near future or give up on it and buy a new car. The problem was that I was not in a great financial position to buy a new car. That ended up being the motivating decision in fixing the transmission, fortunately it worked out for me, but I decided I didn’t want to be in that position the next time something went wrong.
I figured out how much it would have cost me to lease a car, which is the position I would have been forced into if my car had died, and it would have been (at the very least) about 10% of my take-home pay. Starting with my next paycheck, I took that 10% and put it into a car account. Over the next two years, it has grown to the point that I could not buy outright a decent used car. I also use that for maintenance costs on my current car.
This is something I recommend. It offers a lot of piece of mind and is relatively painless. When small maintenance issues do come up, I don’t worry because it feels like I’ve already paid for them. And when my car does finally die, I will have the funds ready to get a new one.
