Comments on: The Hows and Whys of Our Car Purchase: A 2009 Toyota Prius http://www.thesimpledollar.com/2009/03/21/the-hows-and-whys-of-our-car-purchase-a-2009-toyota-prius/ Simple, applicable personal finance advice for the modern world Sun, 22 Nov 2009 01:08:33 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Dan http://www.thesimpledollar.com/2009/03/21/the-hows-and-whys-of-our-car-purchase-a-2009-toyota-prius/comment-page-4/#comment-735999 Dan Fri, 24 Jul 2009 13:27:23 +0000 http://www.thesimpledollar.com/?p=3312#comment-735999 The Prius is the best bang for your buck car out there. Consumer Reports absolutely loves it. The Fit is great too, but Prius tips it because of the gas mileage and a lot more space (especially important if you have kids). Don't worry about the batteries. Those fears are all a myth spread by hybrid haters. There's no record of the batteries having problems and they are guaranteed 8 years or 100,000. The Prius has incredibly low maintenance costs. I totally agree with Trent's decision on the financing. At such a low rate, he's essentially paying $100/year for a much healthier emergency fund. Good call. Totally disagree that waiting for the 2010 would have been a better option. This summer they were selling 2009 Prius for under 23K with 0% financing. No way Trent could have seem that though. All in all great decision by him. The Prius is the best bang for your buck car out there. Consumer Reports absolutely loves it. The Fit is great too, but Prius tips it because of the gas mileage and a lot more space (especially important if you have kids). Don’t worry about the batteries. Those fears are all a myth spread by hybrid haters. There’s no record of the batteries having problems and they are guaranteed 8 years or 100,000. The Prius has incredibly low maintenance costs. I totally agree with Trent’s decision on the financing. At such a low rate, he’s essentially paying $100/year for a much healthier emergency fund. Good call. Totally disagree that waiting for the 2010 would have been a better option. This summer they were selling 2009 Prius for under 23K with 0% financing. No way Trent could have seem that though. All in all great decision by him.

]]> By: Rinna http://www.thesimpledollar.com/2009/03/21/the-hows-and-whys-of-our-car-purchase-a-2009-toyota-prius/comment-page-4/#comment-701512 Rinna Thu, 18 Jun 2009 20:58:22 +0000 http://www.thesimpledollar.com/?p=3312#comment-701512 This is one of the first articles on this blog that i have read, but i have to say that i really disagree with your purchase of a Prius. My husband and i bought a car last year and settled on a new Honda Fit. Not only does it cost much less than the Prius, it also gets great gas milage and is remarkably roomy. There is even a video that I think you can find on uTube that compares the Prius vs. the Fit cost-wise and comes to the conclusion that taking into consideration the higher initial price of the Prius and the higher maintenence costs (those batteries are expensive, not to mention made out of lithium which is horrible for the environment when being mined and disposed of) that the higher gas mileage of the Prius doesn't really make up in gas savings, and in the long run the Fit comes out as the cheaper car to own. I'm not bashing your choice of car - Prius is a nice car and might be better suited to you for some reasons. I just want people to know that there are other options. Also I love my Fit and everytime I see someone else in one I smile a little. This is one of the first articles on this blog that i have read, but i have to say that i really disagree with your purchase of a Prius. My husband and i bought a car last year and settled on a new Honda Fit. Not only does it cost much less than the Prius, it also gets great gas milage and is remarkably roomy. There is even a video that I think you can find on uTube that compares the Prius vs. the Fit cost-wise and comes to the conclusion that taking into consideration the higher initial price of the Prius and the higher maintenence costs (those batteries are expensive, not to mention made out of lithium which is horrible for the environment when being mined and disposed of) that the higher gas mileage of the Prius doesn’t really make up in gas savings, and in the long run the Fit comes out as the cheaper car to own.
I’m not bashing your choice of car – Prius is a nice car and might be better suited to you for some reasons. I just want people to know that there are other options. Also I love my Fit and everytime I see someone else in one I smile a little.

]]> By: Michael G.R. http://www.thesimpledollar.com/2009/03/21/the-hows-and-whys-of-our-car-purchase-a-2009-toyota-prius/comment-page-4/#comment-672738 Michael G.R. Mon, 25 May 2009 05:09:04 +0000 http://www.thesimpledollar.com/?p=3312#comment-672738 Congrats on the Prius, good choice. Might have been better to wait for the new Prius to come out (2010 model), but aside from that you did well. Congrats on the Prius, good choice. Might have been better to wait for the new Prius to come out (2010 model), but aside from that you did well.

]]> By: Ouida Vincent http://www.thesimpledollar.com/2009/03/21/the-hows-and-whys-of-our-car-purchase-a-2009-toyota-prius/comment-page-4/#comment-670823 Ouida Vincent Sat, 23 May 2009 09:37:53 +0000 http://www.thesimpledollar.com/?p=3312#comment-670823 I bought a 2006 Prius new. Basic package. The car it replaced was a Toyota 4 Runner 10 years old and $250,000 miles. At the time I made the purchase, Emigrant direct was paying 5% on savings accounts, my interest rate through the credit union was 5.85% therefore I chose to keep the cash cushion and make payments. 18 months after I bought the Prius, gas prices shot up to over 4 dollars per gallon. I live in truck country and I cannot tell you the number of people who stopped to ask me what my mileage was. There is a 10% difference between winter and summer gas mileage with the Prius. In the Summer I get over 46 mpg in the winter it is 42-43 mpg. Other than and air filter changes it has not required any significant maintenance. Total mileage? $80,000. One final word about Toyota, my Toyota dealer is also a GM dealer. Toyota issued a service advisory to replace the engine gaskets at Toyota cost in about year 6. I walked into the dealers garage to check on my vehicle as the engine had to be disassembled. I love to see how things work and seeing my engine in pieces was something I just could not pass up. The mechanic said something I will never forget: "look around, you see GM cars and trucks, yours is the only Toyota here and there is really nothing wrong with it." I bought a 2006 Prius new. Basic package. The car it replaced was a Toyota 4 Runner 10 years old and $250,000 miles. At the time I made the purchase, Emigrant direct was paying 5% on savings accounts, my interest rate through the credit union was 5.85% therefore I chose to keep the cash cushion and make payments. 18 months after I bought the Prius, gas prices shot up to over 4 dollars per gallon. I live in truck country and I cannot tell you the number of people who stopped to ask me what my mileage was. There is a 10% difference between winter and summer gas mileage with the Prius. In the Summer I get over 46 mpg in the winter it is 42-43 mpg. Other than and air filter changes it has not required any significant maintenance. Total mileage? $80,000. One final word about Toyota, my Toyota dealer is also a GM dealer. Toyota issued a service advisory to replace the engine gaskets at Toyota cost in about year 6. I walked into the dealers garage to check on my vehicle as the engine had to be disassembled. I love to see how things work and seeing my engine in pieces was something I just could not pass up. The mechanic said something I will never forget: “look around, you see GM cars and trucks, yours is the only Toyota here and there is really nothing wrong with it.”

]]> By: Rob http://www.thesimpledollar.com/2009/03/21/the-hows-and-whys-of-our-car-purchase-a-2009-toyota-prius/comment-page-4/#comment-661112 Rob Wed, 13 May 2009 12:37:41 +0000 http://www.thesimpledollar.com/?p=3312#comment-661112 If you really want to purchase a new car and get the most "bang for your buck," consider doing it like Frank did. http://milkyourmoney.com/2009/05/12/why-i-purchased-a-used-vehicle-and-you-should-too/ If you really want to purchase a new car and get the most “bang for your buck,” consider doing it like Frank did. http://milkyourmoney.com/2009/05/12/why-i-purchased-a-used-vehicle-and-you-should-too/

]]> By: Andrea http://www.thesimpledollar.com/2009/03/21/the-hows-and-whys-of-our-car-purchase-a-2009-toyota-prius/comment-page-4/#comment-653333 Andrea Wed, 06 May 2009 01:49:02 +0000 http://www.thesimpledollar.com/?p=3312#comment-653333 People just have different points at which they trade in cars. My sister and BiL trade in like clockwork every 2-3 years, whereas I am driving my 2000 Subaru that has only 161,000 miles on it. Unless something goes horribly wrong or it really gets unreiiable (I teach night classes and am often in lonely parking lots rather late at night), I thoroughly expect to drive it to 250K or more. People just have different points at which they trade in cars. My sister and BiL trade in like clockwork every 2-3 years, whereas I am driving my 2000 Subaru that has only 161,000 miles on it. Unless something goes horribly wrong or it really gets unreiiable (I teach night classes and am often in lonely parking lots rather late at night), I thoroughly expect to drive it to 250K or more.

]]> By: mapgirl http://www.thesimpledollar.com/2009/03/21/the-hows-and-whys-of-our-car-purchase-a-2009-toyota-prius/comment-page-4/#comment-603856 mapgirl Wed, 01 Apr 2009 01:53:19 +0000 http://www.thesimpledollar.com/?p=3312#comment-603856 Trent, I don't care if you financed the car or not. I'm concerned that you didn't look at the broader car market. If you were going to get a new Prius, why didn't you wait a year for the 2010 model which gets much better mileage? I don't think from what you've described that your car was in imminent peril. You could have bought a beater for a few thousand dollars to tide you over till September when the new models are available. The 2010 is considered a category killer and a huge improvement over the 2009. I think you've just shot yourself in the foot over resale values. Trent,

I don’t care if you financed the car or not. I’m concerned that you didn’t look at the broader car market.

If you were going to get a new Prius, why didn’t you wait a year for the 2010 model which gets much better mileage? I don’t think from what you’ve described that your car was in imminent peril. You could have bought a beater for a few thousand dollars to tide you over till September when the new models are available. The 2010 is considered a category killer and a huge improvement over the 2009. I think you’ve just shot yourself in the foot over resale values.

]]> By: Mark http://www.thesimpledollar.com/2009/03/21/the-hows-and-whys-of-our-car-purchase-a-2009-toyota-prius/comment-page-4/#comment-601306 Mark Mon, 30 Mar 2009 13:26:22 +0000 http://www.thesimpledollar.com/?p=3312#comment-601306 Hi Trent, The great part about your blog is that it gets people thinking... The not so nice part is that everyone seems to take everything you write as face value... People need to take a breather when it comes to pointing the finger; if you feel that Trent didn't do "what he usually preaches" then hey, don't read his blogs!! I believe every situation brings upon itself its own particular solutions no matter how you look at it - I understand that Trents decision may sound less "frugal" than what he usually does but hey, I believe he's not only earned a right to change his type of decisions - i.e. "spend" less frugally - but also to not receive rants from peoples who seem to convey a "greater than thou" attitude!! I would like to see the financial situations of all the peoples who placed a derogatory remark about his decision - I'm sure many are not in a financial situation to point a finger... I believe that Trent has earned the right to change his way of spending his money AND how he saves it... Trent, continue giving us some great reads; I for one and in this case, take them as food for thought for my future car purchase decision. More importantly, thanks for showing to me that however and whatever financial decisions we have taken in the past can & should be changed with an updated financial decision... i.e.: you need to save & pay off your debts when you've got them but this attitude changes when all of them have been paid & you've got money saved up!! Hi Trent,

The great part about your blog is that it gets people thinking… The not so nice part is that everyone seems to take everything you write as face value…

People need to take a breather when it comes to pointing the finger; if you feel that Trent didn’t do “what he usually preaches” then hey, don’t read his blogs!!

I believe every situation brings upon itself its own particular solutions no matter how you look at it – I understand that Trents decision may sound less “frugal” than what he usually does but hey, I believe he’s not only earned a right to change his type of decisions – i.e. “spend” less frugally – but also to not receive rants from peoples who seem to convey a “greater than thou” attitude!!

I would like to see the financial situations of all the peoples who placed a derogatory remark about his decision – I’m sure many are not in a financial situation to point a finger…

I believe that Trent has earned the right to change his way of spending his money AND how he saves it…

Trent, continue giving us some great reads; I for one and in this case, take them as food for thought for my future car purchase decision.

More importantly, thanks for showing to me that however and whatever financial decisions we have taken in the past can & should be changed with an updated financial decision… i.e.: you need to save & pay off your debts when you’ve got them but this attitude changes when all of them have been paid & you’ve got money saved up!!

]]> By: Shey http://www.thesimpledollar.com/2009/03/21/the-hows-and-whys-of-our-car-purchase-a-2009-toyota-prius/comment-page-4/#comment-596697 Shey Fri, 27 Mar 2009 21:30:27 +0000 http://www.thesimpledollar.com/?p=3312#comment-596697 I think the problem here is not that Trent bought the car; it's that he (a popular finance blogger many of whose readers are personal-finance beginners) is making a questionable argument that buying the car was a good decision from a financial standpoint. It's one thing to say, as J.D. has with respect to the Mini Cooper, that a purchase might be extravagant and unnecessary but he wants it so he's going to go for it. In fact, I think that's the kind of balance that is necessary in personal finance: We save on some things so we can splurge on others that are more important to us. Fine. But then own it. Justifying an unnecessary purchase as somehow being a good investment does a disservice to readers who might mistake it for actual financial advice. I think the problem here is not that Trent bought the car; it’s that he (a popular finance blogger many of whose readers are personal-finance beginners) is making a questionable argument that buying the car was a good decision from a financial standpoint. It’s one thing to say, as J.D. has with respect to the Mini Cooper, that a purchase might be extravagant and unnecessary but he wants it so he’s going to go for it. In fact, I think that’s the kind of balance that is necessary in personal finance: We save on some things so we can splurge on others that are more important to us. Fine. But then own it. Justifying an unnecessary purchase as somehow being a good investment does a disservice to readers who might mistake it for actual financial advice.

]]> By: David http://www.thesimpledollar.com/2009/03/21/the-hows-and-whys-of-our-car-purchase-a-2009-toyota-prius/comment-page-4/#comment-596687 David Fri, 27 Mar 2009 21:11:02 +0000 http://www.thesimpledollar.com/?p=3312#comment-596687 Great choice. Low emissions, great gas mileage, plenty of room (I fit in them too) and the durability of the Toyota brand. The first Prii are over 10 years old and going strong - you won't have to worry about it dying on you. And besides, batteries are only $1000. Who cares how you paid for it? Enjoy it; you work for your money like everyone else. I guess I don't understand all these comments hating you for buying a fuel efficient, popular, well-made car, and financing it as 90% of customers do. Glad to hear your purchase is working out for you! Great choice. Low emissions, great gas mileage, plenty of room (I fit in them too) and the durability of the Toyota brand. The first Prii are over 10 years old and going strong – you won’t have to worry about it dying on you. And besides, batteries are only $1000.

Who cares how you paid for it? Enjoy it; you work for your money like everyone else. I guess I don’t understand all these comments hating you for buying a fuel efficient, popular, well-made car, and financing it as 90% of customers do.

Glad to hear your purchase is working out for you!

]]> By: Meghan http://www.thesimpledollar.com/2009/03/21/the-hows-and-whys-of-our-car-purchase-a-2009-toyota-prius/comment-page-4/#comment-596345 Meghan Fri, 27 Mar 2009 16:49:47 +0000 http://www.thesimpledollar.com/?p=3312#comment-596345 The finances of your post make sense, but not the car you chose. The batteries of the Prius will lose much of the efficiency during the winter, not saying they won't work below freezing but they won't work well. Also how much does it cost to replace the batteries? I can't remember the figure but a friend decided against a hybrid for this reason. You may save 9K in fuel, but if you have to replace the batteries twice you'll end up spending more. The finances of your post make sense, but not the car you chose. The batteries of the Prius will lose much of the efficiency during the winter, not saying they won’t work below freezing but they won’t work well. Also how much does it cost to replace the batteries? I can’t remember the figure but a friend decided against a hybrid for this reason. You may save 9K in fuel, but if you have to replace the batteries twice you’ll end up spending more.

]]> By: Eli http://www.thesimpledollar.com/2009/03/21/the-hows-and-whys-of-our-car-purchase-a-2009-toyota-prius/comment-page-4/#comment-596319 Eli Fri, 27 Mar 2009 16:20:35 +0000 http://www.thesimpledollar.com/?p=3312#comment-596319 Trent, Ignore the haters. You did what you thought was the best thing for your family. A new, efficient, reliable car has tons of intangible benefits that don't show up on balance sheets. Everything from a feeling of eco responsibility to lessened tension and anxiety while commuting. After three solid years of improving my bottom line while letting the rest of my life suffer I have come to the realization that Dave Ramsey like intensity leads to wasting the better years of your life with very little enjoyment. So after putting up with my 1996 civic for 14 years and 212000 miles I went out the other day and gave the recession the finger and bought a new sports car! It didn't hurt that the new car was a 2007 left over with a full warranty that was discounted more than 10,000 off of msrp (a 36.2% discount). So basically I got a brand new car that the dealership had already taken the depreciation hit on. I bought it for less than what the used ones were going for so even with the loan it's still a net gain in my net worth. I plan to pay it off in 18 months or so so I will be cheating the bank out of most of their anticipated interest anyways. Anyways now I smile all the way to work. Frugality is great but if debt freedom starts to feel like the misery of slavery feel free to loosen the purse strings a little and enjoy your life. After all you could get run over by a bus the day after you pay off your last debt... I still don't know how you fit in a prius though. I am only six feet tall and I find them short on headroom. Trent,
Ignore the haters. You did what you thought was the best thing for your family. A new, efficient, reliable car has tons of intangible benefits that don’t show up on balance sheets. Everything from a feeling of eco responsibility to lessened tension and anxiety while commuting.

After three solid years of improving my bottom line while letting the rest of my life suffer I have come to the realization that Dave Ramsey like intensity leads to wasting the better years of your life with very little enjoyment.

So after putting up with my 1996 civic for 14 years and 212000 miles I went out the other day and gave the recession the finger and bought a new sports car!

It didn’t hurt that the new car was a 2007 left over with a full warranty that was discounted more than 10,000 off of msrp (a 36.2% discount). So basically I got a brand new car that the dealership had already taken the depreciation hit on. I bought it for less than what the used ones were going for so even with the loan it’s still a net gain in my net worth. I plan to pay it off in 18 months or so so I will be cheating the bank out of most of their anticipated interest anyways.

Anyways now I smile all the way to work. Frugality is great but if debt freedom starts to feel like the misery of slavery feel free to loosen the purse strings a little and enjoy your life. After all you could get run over by a bus the day after you pay off your last debt…

I still don’t know how you fit in a prius though. I am only six feet tall and I find them short on headroom.

]]> By: Virgil http://www.thesimpledollar.com/2009/03/21/the-hows-and-whys-of-our-car-purchase-a-2009-toyota-prius/comment-page-4/#comment-594538 Virgil Thu, 26 Mar 2009 17:31:53 +0000 http://www.thesimpledollar.com/?p=3312#comment-594538 Reading Mary's comment I can safely say this person will be a slave to the bank as long as she lives. To me, driving a slightly used car is preferable to not choosing to share certain life experiences, like buying ice cream, with my children. I just don't buy the justification of NEEDING a new car. As someone mentioned earlier, take a trip to another country. I can promise you that there are cars from the 80s and early 90s still running quite well in Mexico. You can make just about anything last forever if you choose to. Reading Mary’s comment I can safely say this person will be a slave to the bank as long as she lives.

To me, driving a slightly used car is preferable to not choosing to share certain life experiences, like buying ice cream, with my children.

I just don’t buy the justification of NEEDING a new car. As someone mentioned earlier, take a trip to another country. I can promise you that there are cars from the 80s and early 90s still running quite well in Mexico. You can make just about anything last forever if you choose to.

]]> By: CPA Kevin http://www.thesimpledollar.com/2009/03/21/the-hows-and-whys-of-our-car-purchase-a-2009-toyota-prius/comment-page-4/#comment-594451 CPA Kevin Thu, 26 Mar 2009 15:53:35 +0000 http://www.thesimpledollar.com/?p=3312#comment-594451 I do find it curious that you spent so much on a new car when your next one will need to be replaced so soon. Honestly, when I first read this post I thought you had replaced your F-150 with a Prius since you never mentioned the other car being that old...at least that I remember reading. I wonder how going from no car payments to 2 so quickly will affect your finances? I've had a 98 Jeep Cherokee since 2002 - paid $11,000 (probably closer to $13k with interest) for it and paid off my 60 month loan 14 months early. It has almost 150k miles now and hasn't skipped a beat. A set of new tires here, a new battery there and it's good to go. I plan to drive it until it dies - which I hope is 250k miles or another 6-8 years or more. I'm curious what happened to your 1999 Sable that caused it to degrade so fast. Maybe that speaks to the quality of Ford cars built around that time. Especially considering your F-150 is not that much older. I do find it curious that you spent so much on a new car when your next one will need to be replaced so soon. Honestly, when I first read this post I thought you had replaced your F-150 with a Prius since you never mentioned the other car being that old…at least that I remember reading. I wonder how going from no car payments to 2 so quickly will affect your finances?

I’ve had a 98 Jeep Cherokee since 2002 – paid $11,000 (probably closer to $13k with interest) for it and paid off my 60 month loan 14 months early. It has almost 150k miles now and hasn’t skipped a beat. A set of new tires here, a new battery there and it’s good to go. I plan to drive it until it dies – which I hope is 250k miles or another 6-8 years or more.

I’m curious what happened to your 1999 Sable that caused it to degrade so fast. Maybe that speaks to the quality of Ford cars built around that time. Especially considering your F-150 is not that much older.

]]> By: Sandy http://www.thesimpledollar.com/2009/03/21/the-hows-and-whys-of-our-car-purchase-a-2009-toyota-prius/comment-page-4/#comment-594380 Sandy Thu, 26 Mar 2009 14:32:09 +0000 http://www.thesimpledollar.com/?p=3312#comment-594380 I guess you've decided to only have the 2 children, then? If you have the 3rd, I guess the next vehicle will be a minivan? I guess you’ve decided to only have the 2 children, then? If you have the 3rd, I guess the next vehicle will be a minivan?

]]> By: CPA Kevin http://www.thesimpledollar.com/2009/03/21/the-hows-and-whys-of-our-car-purchase-a-2009-toyota-prius/comment-page-4/#comment-594247 CPA Kevin Thu, 26 Mar 2009 13:22:12 +0000 http://www.thesimpledollar.com/?p=3312#comment-594247 Unless you live in a no income tax state like TX, WA, FL, etc. the sales tax deduction is a moot point as your state income taxes will almost always be higher. It sounds like you got a good financing deal @ 4% - I probably would have taken it as well rather than fork out all that money at once and lose a ton of liquidity. For all those complaining about Trent's decision - he obviously did a ton of research. When the facts change, sometimes your mindset changes. I think there was a great quote about that somewhere... Unless you live in a no income tax state like TX, WA, FL, etc. the sales tax deduction is a moot point as your state income taxes will almost always be higher.

It sounds like you got a good financing deal @ 4% – I probably would have taken it as well rather than fork out all that money at once and lose a ton of liquidity.

For all those complaining about Trent’s decision – he obviously did a ton of research. When the facts change, sometimes your mindset changes. I think there was a great quote about that somewhere…

]]> By: Mary http://www.thesimpledollar.com/2009/03/21/the-hows-and-whys-of-our-car-purchase-a-2009-toyota-prius/comment-page-4/#comment-592755 Mary Wed, 25 Mar 2009 20:25:12 +0000 http://www.thesimpledollar.com/?p=3312#comment-592755 I've been reading this blog for about a year to get a better idea about finances, since I'm not 'yet' independent from my parents, and so I want to be prepared. I originally just wanted to say: "Hey, if your wife is lead-footing it, use cruise control whenever possible and you can get 48mph on the highway easy" said from a Prius driver. And then holy crap, read the emails and everyone's yelling. Holy crap! Really, I've read all of his other things as he decided that yes, they need another car, and then what he wanted in the car. I've heard that Prius batteries last at least 100,000 miles. We own two Priuses...Priai. I got my mom's 2004 one when she got a 2008. No problems have attacked us from the sky. Yes, he may have wanted something, and the want was at the tippy top of the need. And? The reason he "shares an ice-cream with his child to save one dollar" is so that he CAN buy a new car if he so chooses. It wasn't an impulse buy, it's not endangering his finances. It's not flaunting what he has over you have not readers still in debt. A while ago he was interviewing someone who scrimps and saves everywhere so that she can go on lavish traveling trips. She saved SO she could do that. If we only save, and don't ever do anything with it...what's the point of saving? Seriously. He's still comfortably living, no giant debt, and he got a new car. Get over it. I’ve been reading this blog for about a year to get a better idea about finances, since I’m not ‘yet’ independent from my parents, and so I want to be prepared.

I originally just wanted to say: “Hey, if your wife is lead-footing it, use cruise control whenever possible and you can get 48mph on the highway easy” said from a Prius driver.

And then holy crap, read the emails and everyone’s yelling.

Holy crap!

Really, I’ve read all of his other things as he decided that yes, they need another car, and then what he wanted in the car. I’ve heard that Prius batteries last at least 100,000 miles. We own two Priuses…Priai. I got my mom’s 2004 one when she got a 2008. No problems have attacked us from the sky.

Yes, he may have wanted something, and the want was at the tippy top of the need. And? The reason he “shares an ice-cream with his child to save one dollar” is so that he CAN buy a new car if he so chooses. It wasn’t an impulse buy, it’s not endangering his finances. It’s not flaunting what he has over you have not readers still in debt.

A while ago he was interviewing someone who scrimps and saves everywhere so that she can go on lavish traveling trips. She saved SO she could do that.

If we only save, and don’t ever do anything with it…what’s the point of saving? Seriously. He’s still comfortably living, no giant debt, and he got a new car.

Get over it.

]]> By: Bill in Houston http://www.thesimpledollar.com/2009/03/21/the-hows-and-whys-of-our-car-purchase-a-2009-toyota-prius/comment-page-4/#comment-592483 Bill in Houston Wed, 25 Mar 2009 14:15:51 +0000 http://www.thesimpledollar.com/?p=3312#comment-592483 Wow, all the carping about taking out a loan on a car. Folks, interest rates are at their lowest right now, and dealers are willing to deal (as I said in Post #98). Why not let the dealer money work for you? Yeah, I'd rather pay cash for a car, but this frees up other money (emergency fund, et cetera) that you might need now. For example, suppose you buy a car and pay cash, draining your rainy day fund. Two months later you lose your job. Your car is paid for but you have no savings. That isn't smart. It'd be different if you were paying 8 or 10 percent on a car note, but Trent is paying what, 4%? Not bad. I chose to go the loan route on my wife's Versa because of the 1.9% rate. Over 48 months compounded monthly, we pay 7.9% more than the cash price, but have the use of the principal for that time period. Trent pays 17% over the course of his loan. He put five grand down, too. Good things. Oh, and to paraphrase some dweeb on the Internet: "Leave Trent ALONNNNNNNNE!!" Wow, all the carping about taking out a loan on a car.

Folks, interest rates are at their lowest right now, and dealers are willing to deal (as I said in Post #98). Why not let the dealer money work for you?

Yeah, I’d rather pay cash for a car, but this frees up other money (emergency fund, et cetera) that you might need now. For example, suppose you buy a car and pay cash, draining your rainy day fund. Two months later you lose your job. Your car is paid for but you have no savings. That isn’t smart. It’d be different if you were paying 8 or 10 percent on a car note, but Trent is paying what, 4%? Not bad. I chose to go the loan route on my wife’s Versa because of the 1.9% rate. Over 48 months compounded monthly, we pay 7.9% more than the cash price, but have the use of the principal for that time period. Trent pays 17% over the course of his loan. He put five grand down, too. Good things.

Oh, and to paraphrase some dweeb on the Internet:

“Leave Trent ALONNNNNNNNE!!”

]]> By: morrison http://www.thesimpledollar.com/2009/03/21/the-hows-and-whys-of-our-car-purchase-a-2009-toyota-prius/comment-page-4/#comment-592473 morrison Wed, 25 Mar 2009 14:03:37 +0000 http://www.thesimpledollar.com/?p=3312#comment-592473 You people can attack me all you want. Re-read my post. I never said my Ford Focus was personally BUILT in America. I said I saved (and supported) an American Company: Ford Motors. Ford is an American company and they make fantastic cars. Here is an article today that Ford will expand the Focus to be electric and will knock the socks off anyone in 2011: http://tinyurl.com/cps3uo What we have here with Trent is a person, who is now starting to make money and he is making all of the common mistakes a person makes when they get back up in the red. He is buying himself fancy, expensive, unaffordable STUFF, such as the Prius, and remember those $2000 top-of-the-line washers & dryers he got for 50% off? Still expensive and beyond his wallet. But, I digress. Trent is turning into a has-been yuppie. He's taking out loans. As long as he has a lien on anything, he doesn't own it! Same with a mortgage on a home and a car loan. Miss a payment, and you will find out who really owns what. Trent is just renting out his lifestyle and because of this, in my eyes, he is no longer qualified to be giving out financial advice. I am a multi-millionairess and I continue to live on $50K a year. I enjoy being smart with my money. I could easily afford a brand new Mercedes and pay cash for it but it is NOT the smart way to be living ones life. Frugal is the new black. Being green and respectful of the environment, not wasteful of the earth's resources, has always been the 'in' thing for me and my way of life. And lastly, I strongly believe in supporting my country, America! Whatever it takes. I've already deleted The Simple Dollar out of my rss and probably won't be back here to read the other insulting comments Trent's readers will make about me. I couldn't care less. But I will say that, people, if you don't have the money/cash to purchase something outright, do not buy it. This is not a time in history to be taking out loans. Live within your means. This has been the worst financial crisis ever in America and I haven't lost one dime! Because I live totally debt free and well below my means. I love it! Support America as best you can. And God bless you. You people can attack me all you want. Re-read my post. I never said my Ford Focus was personally BUILT in America. I said I saved (and supported) an American Company: Ford Motors. Ford is an American company and they make fantastic cars. Here is an article today that Ford will expand the Focus to be electric and will knock the socks off anyone in 2011:
http://tinyurl.com/cps3uo

What we have here with Trent is a person, who is now starting to make money and he is making all of the common mistakes a person makes when they get back up in the red. He is buying himself fancy, expensive, unaffordable STUFF, such as the Prius, and remember those $2000 top-of-the-line washers & dryers he got for 50% off? Still expensive and beyond his wallet. But, I digress.
Trent is turning into a has-been yuppie. He’s taking out loans. As long as he has a lien on anything, he doesn’t own it! Same with a mortgage on a home and a car loan. Miss a payment, and you will find out who really owns what. Trent is just renting out his lifestyle and because of this, in my eyes, he is no longer qualified to be giving out financial advice.
I am a multi-millionairess and I continue to live on $50K a year. I enjoy being smart with my money. I could easily afford a brand new Mercedes and pay cash for it but it is NOT the smart way to be living ones life. Frugal is the new black. Being green and respectful of the environment, not wasteful of the earth’s resources, has always been the ‘in’ thing for me and my way of life. And lastly, I strongly believe in supporting my country, America! Whatever it takes.
I’ve already deleted The Simple Dollar out of my rss and probably won’t be back here to read the other insulting comments Trent’s readers will make about me. I couldn’t care less.
But I will say that, people, if you don’t have the money/cash to purchase something outright, do not buy it. This is not a time in history to be taking out loans. Live within your means. This has been the worst financial crisis ever in America and I haven’t lost one dime! Because I live totally debt free and well below my means. I love it! Support America as best you can. And God bless you.

]]> By: kitty http://www.thesimpledollar.com/2009/03/21/the-hows-and-whys-of-our-car-purchase-a-2009-toyota-prius/comment-page-4/#comment-591372 kitty Wed, 25 Mar 2009 03:47:20 +0000 http://www.thesimpledollar.com/?p=3312#comment-591372 KCDesi - I am sure Trent can answer, but what most people who buy Hondas and Toyotas find out is they don't depreciate in value that much. 2008 or 2007 used Hondas and Toyotas aren't much cheaper than new Hondas and Toyotas. You can google for prices. As to "buy American" -- show me an American car that keeps its value as well as Japanese cars. I don't see that buying a lower quality item just because it is made in the US is patriotic. The US car manufacturers need to learn to compete. Plus, there are plenty of US companies that export to other countries. They need people in other countries to buy American products. We are a global economy. About debt. I think what people don't seem to accept is that there is a difference in taking a loan because you can't afford something and between taking a loan when you actually have money but for whatever reason you feel it makes sense for you financially. If someone who is struggling with debt asked me for advice, I'd suggest that they buy used too. Yet I buy new cars. It doesn't make me a hypocrite - what is the right decision for someone with my net worth isn't necessarily the right decision for someone who doesn't have money. Even what is a frugal choice is different. If one can easily afford a new Lexus, buying a new Prius is a frugal choice. For someone who has no savings and is in credit card debt, even a 3-year old car may be a luxury. As to saving money on small things while spending a lot on something else - everyone has different priorities. I can spend $200 on a single performance at the Met, and I bring my own lunch to work and hardly ever eat out. Everyone has different preferences. As to taking loans - my multi-millionaire friends take loans when they feel they can get more money on their investments or even because they believe in future inflation and feel that a low interest loan while investing money to protect against inflation is a good choice. They feel they may lose on interest now, but will gain in future. I don't necessarily agree, but only future will show if their choice was right. If not - they can afford a little extra expense. I don't know how much money Trent has, but from this and other posts it seems he is not exactly struggling. Plus, he explained why he changed his mind. Doesn't he have a right to change his mind? KCDesi – I am sure Trent can answer, but what most people who buy Hondas and Toyotas find out is they don’t depreciate in value that much. 2008 or 2007 used Hondas and Toyotas aren’t much cheaper than new Hondas and Toyotas. You can google for prices.

As to “buy American” — show me an American car that keeps its value as well as Japanese cars. I don’t see that buying a lower quality item just because it is made in the US is patriotic. The US car manufacturers need to learn to compete. Plus, there are plenty of US companies that export to other countries. They need people in other countries to buy American products. We are a global economy.

About debt. I think what people don’t seem to accept is that there is a difference in taking a loan because you can’t afford something and between taking a loan when you actually have money but for whatever reason you feel it makes sense for you financially. If someone who is struggling with debt asked me for advice, I’d suggest that they buy used too. Yet I buy new cars. It doesn’t make me a hypocrite – what is the right decision for someone with my net worth isn’t necessarily the right decision for someone who doesn’t have money. Even what is a frugal choice is different. If one can easily afford a new Lexus, buying a new Prius is a frugal choice. For someone who has no savings and is in credit card debt, even a 3-year old car may be a luxury.
As to saving money on small things while spending a lot on something else – everyone has different priorities. I can spend $200 on a single performance at the Met, and I bring my own lunch to work and hardly ever eat out. Everyone has different preferences.

As to taking loans – my multi-millionaire friends take loans when they feel they can get more money on their investments or even because they believe in future inflation and feel that a low interest loan while investing money to protect against inflation is a good choice. They feel they may lose on interest now, but will gain in future. I don’t necessarily agree, but only future will show if their choice was right. If not – they can afford a little extra expense.

I don’t know how much money Trent has, but from this and other posts it seems he is not exactly struggling. Plus, he explained why he changed his mind. Doesn’t he have a right to change his mind?

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