New Car, New Interest
Hah, no, not car loan interest. Frankly, I don’t plan on ever having a car loan if I can avoid it.
So, we ended up getting a “new” car after all. It’s a ‘93 Toyota Camry in fantastic condition. The best part? It only has 70,000 miles on it. And since I was used to our somewhat crappy Tempo, this new car is like a luxury sedan in comparison. It doesn’t shake like it’s going to fall to pieces when we drive on the highway! Awesome.
Also, I am pleased to announce that my current FD principal is $12,612.41, and my regular monthly payment still hasn’t been applied to account yet And it looks like I’ll have at least ~$50 left over from my budget to put towards debt at the end of the month. I’ve really gotten into the habit of asking myself, ” Would I rather have X or use the money to pay off my debt?” Most of the time, debt wins out.
However, my progress with be slowed next month when my Federal Perkins loan comes due. Of my first $121 monthly payment, ~$50 will be going towards interest. That means in March I’ll be paying ~$120 in interest, instead of the ~$70 I’m paying now. Due to my overpayment, that number has been decreasing at a satisfying rate, so it’s kind of disheartening to see it jump up again, even though I know the nine-month grace period on my FP loans was part of the reason I was able to get it down so quickly in the first place.
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Kaye said,
Wrote on February 14, 2008 @ 1:40 pm
Wow…how did you find a 93 camry with only 70K miles on it?! Those cars last FOREVER (mileage wise) and hold their value well. I happen to own one myself, but we are a traveling bunch, so I have like 130K on mine and it is only a 2002!
sally said,
Wrote on February 14, 2008 @ 2:18 pm
My roommate’s dad bought it; he buys and sells cars as a side business. I do know he goes to a lot of police auctions and that sort of thing. He bought it for only $1200, which is the other really amazing thing. He put $450 of work into it (new tires, brakes, a few other things) and then my roommate drove out to pick it up and switched out our old one.
We’ve been marveling at the low mileage too. We joke that it’s one of those “little old lady cars,” as in “The previous owner was a little old lady, only drove it to the grocery store and church on Sundays.”
tracy ho said,
Wrote on February 15, 2008 @ 1:51 am
Great to read your post,
keep up,
Tracy ho
wisdomgettingloaded