Wednesday, December 23, 2009
Just under the wire...
We replaced my husband's car, meaning we achieved each of our goals for 2009! Sort of, that is. We had not planned on taking a loan out for the car, but we did.
Why would our frugal selves do that?
Truthfully, we did not have to, but we decided that spreading out the payments a bit may be a wiser choice for us right now. We qualified for an insanely low interest rate (1.9%- it was a promotion at the dealership) and we put down a decent chunk of money as a down payment. We also got a reasonable deal on the car. We're also getting the new car tax credit...just under the wire!
One of our 2010 goals is paying off this car ASAP. Since we have the money set aside already, I don't think it will be a problem- we're planning on paying it off in six large payments if all goes well.
We love our new Honda Fit! If it lasts as long as his last Honda, we'll be driving it for at least 20 years. Here's hoping!
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3 comments:
Sometimes, it's more frugal to finance than to pay cash. It's all about being able to crunch the numbers not only today but also several years down the line.
I financed my car at 0% for the cash price and put away the money I would have spent. I'm getting about a 5% return. By the time the car is paid off, I'll have made a tidy profit in interest by keeping my money in the bank and only doling it out to the dealership.
As for my motorhome, I financed it for about 1% less interest than I've been getting on my investments. My financial planner and I figured out that I'll be making at least a 5K profit between the interest I'll pay on the motorhome and the interest I'll earn by, once again, keeping my money in the bank and doling it out to the dealership.
Hondas are a great product, as you know. Sounds like a smart purchase.
Congratulations! We're thinking about getting the Fit when our Civic gives out. It's still going strong, though, after almost 14 years...
Yay! Congrats on the new car!
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