buying a car, financial plan

When is it Okay to Buy More Car Than You Need?

So, we just ordered a new ar. 

A high in demand vehicle during the period of time during which -with my age of 50- the tightest inventory of new cars I’ve ever seen. Maybe if we wait a year we could pay less. It will be double the price we have ever paid for a vehicle. We view it as a luxury vehicle, although I suppose others may view it as “regular”. 

This is the first time we have bought a vehicle that our wants weighed more heavily into our choice than our needs.  This will be the tenth vehicle we have bought.  Everything else we bought were base models or so used, I mean “pre-owned,” that any “extras” didn’t seem all that wonderful. This new car has so many gadgets we’ve never used before that I think I’ll have to devote hours of study to understand what it can do. 

Why didn’t we buy “more” before? We certainly deserved it. The answer is simple. We had more important goals to achieve rather than owning a luxury car or even just a “better” car. Goals more important than receiving pleasure from an expensive product that loses value over time. Every financial situation is different and what is most important for us may be different than what is most important for you. But our choice of vehicle was always based on our comprehensive financial plan and yours should also.  

Why it is okay to buy more car/truck/SUV than we need now:

    1. We have a fully funded emergency fund. More than 6 months worth of expenses. 
    2. Our retirement investing, our savings, and our other investments are on track for our goals. 
    3. We saved up for the car – there will be NO loan. 
    4. We have no debt other than mortgage debt.
    5. We live well below our means, and adding this car, factoring in higher auto insurance costs- doesn’t change that. 
    6. The purchase is integrated into our long term financial plan into which we have put in a lot of time and effort. We can save for big purchases- and we do. This is the right time. 

Yes, we’ve come a long way from “Really, we can’t get manual roll-up windows to lower the price?” (there are a few models out there still I think, but for those of you who haven’t experienced manual windows click here). I’m not saying you shouldn’t buy “more” car without meeting our criteria. 

I’m saying you shouldn’t buy “more” car if it doesn’t fit your financial situation, your goals, and your comprehensive financial plan. And goals and plans take time and effort to develop. If you’d like help with your goals and plan you can reach us here.

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Photo by Maksym Tymchyk on Unsplash

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