My husband and I are both pleased that our truck will be paid off shortly. We have worked hard paying the loan down and getting it done early. We have been asked whether or not we were planning to upgrade and trade our truck in, and the simple answer is no. It is not feasible for us at this time, and our financial situation is just beginning to really improve. These are the reasons we are avoiding upgrading our vehicle, and how much money we are saving by keeping it.
Car payments
We have been paying around $220 a month for our truck payments. There have been a few times the amount paid was significantly higher, but the $220 is what is budgeted in each and every month. With the truck being paid off, we are saving at least that a month. It is a lot of money to have back into our budget, especially with the rise in gas costs to and from work for my husband. If we decided to trade in the truck, we would be taking on another payment. We would need something bigger for our expanded family (we didn't have the boys when we bought the truck), and that may mean paying a higher payment. For now we will bank the $220, and use the vehicle we have grown to love.
Upkeep
We know the truck is in great condition. My husband has changed everything that needed to be changed in the last three years, and just put on new tires for the winter a few months ago. The vehicle is safe for our babies to ride in, and we know where all the work has been done. We spent just over $600 last year between the tires and anything else that needed to be altered or fixed. If we decided to get another vehicle we may run into issues with it, which could be costly. If it needed tires we would be out that expense as well, and it just isn't worth taking a chance when we know the truck is in excellent shape.
Insurance
We have already elected to keep full coverage on our truck after it is paid off, but changing or adding a vehicle could send our cost soaring. We currently pay just under $80 a month. I checked out what a 2008 Honda Civic would cost us to insure, and it was $113 a month for full coverage. That is a $33 difference. Add that to a new car payment and that could mean big trouble for our budget.
Right now we are opting to keep our vehicle in lieu of trading it in for an upgrade. At the very least it is saving us $220. That is an excellent start to the new year and putting us on track for our savings goal in 2013.
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