2 Car Payments?

[snowcraig2.0]

Anyone here carrying two car payments? We've got another little rugrat on the way and need to step up to a SUV to replace my truck. We'd be making a payment on the new suv and a payment on our 2013 passat. I've negotiated a pretty good deal on a leftover 2013 Durango. We should have the Passat paid off by roughly this time next year, so we'd be talking 14 months of this hopefully. Anyone here have any experience or thoughts with this situation?

 

[GrindingAway]

Not at the moment, but have done it before.

Currently carrying zero.

Also in before the jokes saying a bigger car isn't going to help since you'll forget the kids anyway.

 

[3TrueFans]

Isn't the only question if you can afford it or not? Definitely sucks to have 2 depending on how much they are. We're finally down to no car payments but we're planning on a new vehicle to accommodate baby #2.

 

[buf87]

Are interest rates similar?

 

[yler4cy]

My wife and I right after graduating college, May 2007, bought new vehicles due to not really having anything worth a darn to commute back and forth with. At this time we floated a car payment for a 2007 Impala and 2007 Silverado. It was tough at time, especially after Student Loans kicked in in December and my wife lost her job in the same month due to the company downsizing. It is very doable, you just have to make sure your finances are there.

I don't know if this is what you are asking, but this is my thoughts on floating 2 at the same time.

 

[CycloneErik]

We've done it and survived. It's not easy.

 

[Angie]

Isn't the only question if you can afford it or not? Definitely sucks to have 2 depending on how much they are. We're finally down to no car payments but we're planning on a new vehicle to accommodate baby #2.

Same here, but we're trading out the vehicle that currently has payments on it for a new, more family-oriented vehicle with payments, and just going to use the paid-off vehicle as backup.

 

[ISpyCy]

Wife and I just finished five years of two-car payments last November. We had plans to stockpile all of that money for a relocation back to Iowa (hopefully this year), but realized that we, too, needed something bigger for the two of us and our baby boy.....trying to cram all of our luggage, along with his, in my wife's G6 made for interesting travels.

If you budget properly, you'll get through it, no problem.

 

[GWad]

We buy cars with cash. No new cars until we have the cash. Hurts at times but helps to save for the future in the long run.

 

[snowcraig2.0]

Same here, but we're trading out the vehicle that currently has payments on it for a new, more family-oriented vehicle with payments, and just going to use the paid-off vehicle as backup.

This is kind of where we are heading, the Passat is a TDI, so we plan to pay it off and then just drive the wheels off it, and then rotate through vehicles with the Durango.

Mostly, I look at budgeting spreadsheets and they say, 'yes Craig, by the Durango', but then I look at the bank account which somehow never seems to work like the spreadsheet, and it says, 'no Craig, don't do it, continue to go out to eat 5 times a week!'

 

[MNCyGuy]

Pretty much in the exact situation as you. We should have my wife's car paid off by the end of the year. If you have a legitimate reason for the new car other than just wanting it, and you can budget for the 2nd payment, not sure what the issue is.

 

[buf87]

I alternate every 2 years if possible and pay for it if I can. My turn is next to replace my pickup

 

[DeereClone]

What is the truck worth?

I would just take that money and get into a used SUV for cash. Seems like a minor sacrifice to make up front so you don't have to worry about this for 14 months.

 

[capitalcityguy]

Have done it in the past. Won't do it again. Simply far from ideal to carry debt on a depreciating asset like a car.

 

[Gunnerclone]

We buy cars with cash. No new cars until we have the cash. Hurts at times but helps to save for the future in the long run.

That cash could be doing so much more for you than buying something like a car, especially if you are trying to save for something like retirement, college for kids, etc.

 

[cyhawkdmb]

Wife and I just finished five years of two-car payments last November. We had plans to stockpile all of that money for a relocation back to Iowa (hopefully this year), but realized that we, too, needed something bigger for the two of us and our baby boy.....trying to cram all of our luggage, along with his, in my wife's G6 made for interesting travels.

If you budget properly, you'll get through it, no problem.

Sometimes I think it would be cheaper to get rid of the wife, then upgrade vehicles.. especially when we pile a ton of **** into our car for one overnight... WTF!!!

 

[buf87]

If cash is tight and interest rate on 2nd vehicle is cheaper, you might be able to combine the 2 payments in one and spread it out over the duration of the Durango.

 

[Tre4ISU]

This far into the thread and no one has asked Craig why HE needs something to haul kids with? For shame.

 

[oldman]

I've paid as many as three in the past. Sucked. Down to zero, now. I would definitely consider used if I were you.

 

[DeereClone]

That cash could be doing so much more for you than buying something like a car, especially if you are trying to save for something like retirement, college for kids, etc.

Taking on debt to allocate too much of your money in depreciating assets sounds like a disaster. Cars/car payments are the biggest hurdle to financial success, IMO.

Keep the total value of your cars as low of a % of your annual income as possible and you will be wealthy.