I’m getting ready to do a net worth update (which is looooong overdue) so I looked up the value of our car. Ouch. It took a hit of $1,000. Now that gas prices have went down, I think that pulled the value of our car down. For the longest time, it was above the $5K mark. Our car is small, but it is awesome with gas (over 30mpg – during trips it’s over 40mpg). I’m a little bummed about the value decreasing so much.
I also realized that it may be time to start thinking about our car’s replacement. We are a one-car household, and if possible we would like to pay as much cash as possible for our next vehicle purchase. Our car currently has 86,000 miles on it and we probably put about 7,000 miles a year on the car right now with our current situation. It’s a good car and it still has a lot of life. So now is probably a good time to start setting some money aside.
In a way, we want to reverse things when it comes to cars. Instead of spending a set amount a month to pay back a loan, we want to set aside that “payment” in a savings account to be able to pay for a car in cash. That’s a great way to avoid the interest charges. It’s a completely different way of thinking about big purchases than we are used to.