For the past few weeks I’ve been thinking of buying a new truck - specifically a 2005 Chevy Avalanche. With all the incentives (employee discount, cash rebate, etc) right now, you can’t beat the price. It’s a $34,000 truck that they’re willing to sell for $25,600, plus give me $4000 for my current car (see right), a 2000 Chevy Impala. All the books say that’s the right price for my car. 
The question is, should I do it?
The Impala is paid off. It needs some work… to the tune of about $1200… but it’s paid off. The truck is *very* nice, and it is a *very* good deal… and the payment is $415 a month, which after insurance, and I’m sure the inflated gas prices I’ll pay, it’s not going to leave the nice cushion of almost an entire extra paycheck lying around every month.
So… readers, I need your advice…
Should I invest the $1200 in a car that’s worth $4000, or should I buy the new truck and deal with the payment?
27/09/2005 at 1:12 am Permalink
Dude, just keep the car.
Enjoy early retirement over the thrill of having a new car.
Bank the savings in gas alone to pad your accounts.
Clark Howard has a formula that shows how much you save for every year you keep your car past payoff. It’s ridiculously high.
I did this very thing that you want to do. It turned out to be a 35k mistake!
27/09/2005 at 6:00 am Permalink
As the accountant, I go with keeping the car. The husband and I have 2 car payments to the tune of 1K/month (granted that’s because we don’t finance for 48 or 60 months like a lot of people). While we can afford it, it’s ridiculous!! Once these suckers are paid off, we’re driving them until the wheels fall off. Enjoy your paid off car.
If you must have a newer car, don’t get the truck. My mother-in-law used to have an Avalanche - it was fabulous. It drove like a dream. However, it sucked gas like a fat girl with a milkshake. That’s not going to be pretty as gas prices continue to go up. Look at something more economical on gas if you have to get something new.
27/09/2005 at 8:16 am Permalink
Hmmm… something to think about. The Avalanche *does* drive like a dream, but gas would be an issue with the new job as I won’t be traveling as often. But what’s more economical that’s not a car and that’s made by GM? (I’m *NOT* buying something made by someone else, as I’ve got $2500 in GM Credit Card points, to give that up is just stupid!)
The Impala has been a good car… I’m just sick of driving cars. When I drive a company vehicle, it’s either a van or an Expedition. I like sitting up high, I like the roominess of the vehicles…. I won’t buy another car… unless it’s a Corvette and there’s no way I can afford the insurance on that until I’m 40.
27/09/2005 at 7:50 pm Permalink
Can’t really help there. I looked around at the GM products. I’m not impressed any of them, especially the cars.
Personally, I liked Ford products. We’ve had a Ford Escort station wagon (my favorite - that’s what I got when I traded in my Nissan), a Focus (fabulous!), a Ranger (not so great but C liked it.) and now we have an F-250 that C drives (I speak wisely about the gas - I KNOW how much it sucks!). I’m also happy with my Honda C-RV.
I still vote for keeping the Impala and driving it until the wheels falls off.
28/09/2005 at 2:11 am Permalink
My father bought a new truck recently Kyle, and personally they suck gas worse than ever. If you decide to go with a roomie vehicle, go with a SUV, not a truck, you save more in gas, and have something newer to drive.
30/09/2005 at 1:31 am Permalink
okay, you only live “once” so yes you should get it……….
is this a five year loan? what interest are they charging?
Maybe consider the scenario of you putting away 400/month and making that money earn for You.
The true cost is also your opportunity cost…….what else could you be doing with that money.