Date: Fri, 14 Jan 2005 12:39:34 CST
From: Tad Borek 
Newsgroups: misc.invest.financial-plan
Subject: Re: new car in cash or double the house payment?
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jbraly@gmail.com wrote:
> I feel kind of foolish now when I see it written out, but yeah, I guess
> I was putting too much worth in cars, and to be honest, Ive only talked
> about this with my wife, so talking about it with other folks helps out
> and lets me see it all in writting.
> 
> But what can I say, my dad and I take his 1957 chevy belaire to car
> shows, I used to owen a corvette, dad used to race a corvair... we are
> a 'car' family. Guess ill haffta break that mold (till I am older).

Heck don't feel foolish about that, it's a hobby, nothing wrong with 
that. At least you have an excuse, some people are paycheck to paycheck 
because of their cars and it's just from not thinking it through.

One thing is that you're talking about you transportation car not you 
weekend project car, and the more you put into the minivan the less 
likely it is you can get the, well, anti-minivan.

But I'm a closet car-guy too so I hear you on this. I definitely won't 
buy the cheapest way to get from point A to B but the way I look at it 
is getting the cheapest enjoyable car possible. Think of cents per mile 
and the differences are huge, comparing say the buy-new-3-yrs cycle to 
buying a three-year-old car coming off lease and keeping it till the 
wheels fall off. Over say ten years you'd easily spit off enough cash to 
buy a truly fun project car (which I'll take ANY day over being in a new 
family car every three years). So that's the way I see it, I'll take an 
overpowered VW or Subu plus a LOT of stuff & vacations & extra cash for 
who knows what, instead of an M5. At least for now...

> 1) continue to pay the $1,000 a month house payment, while still
> putting another $1,000 to the "imaginary car" or rather the "imaginary
> baby" fund... 
> 
> or
> 
> 2) double my house payment ... pay $2,000 towards the home each month
> (or maybe 1500 to the home, 500 to future baby/car repairs-replacement
> fund) until baby comes!

You could split the baby, and do both, and see how it goes - add some to 
your house payment while adding some to savings? People are different, 
some people like looking at a fat savings/investment account, some 
people like looking at a small or gone mortgage.

-Tad