Bought a Car
Bought a Car
When we arrived at our new duty station and finally got settled, I decided to go back to work. We needed a second vehicle, so I started saving $200 from each paycheck to put aside for this purchase. Once we had a good chunk of money set aside, we started to shop around – price checking vehicles at several local dealerships, so we could get the best deal! We also got preapproval from our bank ahead of time, so we knew what we could afford.
We ended up getting a 2015 Chevy Cruz at a dealership for $9,000, and I was able to use $2,000 I had saved for my down payment, which made my monthly payment a more affordable $180. I continue to throw more than the minimum at the payment each month, so we are paying it off earlier than expected!
MilSpouse Money
Mission Response:
Great job! Sounds like you took all the right steps to make a smart car purchase. You planned ahead and saved money toward the goal, you shopped around instead of making an impulse or emotional decision AND you got preapproved before heading to the dealership. Excellent! Financial experts recommend keeping transportation expenses — including the car payment, insurance, fuel and maintenance — less than 15% – 20% of your pretax income. It’s also nice you have the flexibility to pay off the loan earlier than expected. That’ll certainly save you money by avoiding more interest charges.
If anyone else needs tips on making a major purchase like a new car or home, check out our section, Money Ready 301: Major Purchases.
