Planning To Replace My Old Car

I own a 2001 Honda Accord.  It’s a great little car, and even though it’s a decade old, it still gets really great gas mileage.  The paint and the interior are both in pretty decent shape, despite the fact that the right-front panel was recently damaged and repaired.  I like the car, but with growing kids and the fact that it has nearly 200,000 miles, it’s time to think about replacing it.

It never hurts to plan ahead – even years ahead – so that’s what I’m doing.

I’ve already started to compile a list of used vehicles that I might want to purchase.  I want to buy something a little bigger than the accord, maybe a small cross-over or a mid-size SUV.  I’ll be comparing gas mileage, insurance cost, safety information, etc.

I have created a budget category labeled – car replacement – and I’ll fund it each month.  Instead of making payments to a finance company, and paying interest, I’ll be making payments to myself, and earning interest.  My plan is to save up 100% of the cost of the newer car and avoid financing.

I have a good relationship with my insurance agent.  When purchasing a newer automobile, it’s very important to know how much it will cost to insure the automobile.  I’ll take a list of four or five automobiles to him.  My agent will run the numbers and let me know how much it would cost to insure each.

The Accord is in good shape and I hope to keep it for a minimum of 3 years.  At that time, I’ll consider selling it, trading it, or keeping it.  My oldest daughter is almost 11 years old.  In just over 5 years, she’ll be ready to get her license.  It would be great if the Accord makes it that long, even if she just uses it for a little while, as she learns to drive.

Obviously, if I want the Accord to last 3 (or more) years, I need to continue to maintain it.  I’ve recently had new tires put on it.  I change the oil and have it serviced on a regular schedule.  Fingers-crossed, when I’m ready for the newer car in a few years, the Accord will still be in good shape, ready to be sold, traded – or kept.

Living the debt-free life, it’s imperative that I plan – plan – and then plan some more.  There’s always something to think about, something to prepare for, something that will need replacing.  Saving enough cash to pay for the things we want keeps us out of debt – and in the long-run – save us money!


NCN

http://www.ncnblog.com

No Credit Needed is a personal finance blog about debt reduction, saving money, and simple living. Thank you for visiting the site and please consider subscribing to No Credit Needed by Email. Have a blessed day!

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5 thoughts on “Planning To Replace My Old Car
  1. Randy Peterman

    We love our Honda CR-V (2006). We’ve got about 75,000 miles on it and I’m hoping to drive it until it dies. It only seats 5 (like your accord), but if you can get a used CR-V in the future the configuration, the reliability, and the handling are top notch.

    And awesome to have you back to blogging :)

     
  2. Kate

    Wow! How on earth did you get such a high milage on a car that’s only nine years old? Cars here generally last a good 25-30 years, and our 1994 Toyota Corona (not considered old by any means) has a huge 150,000 *kilometres* on it (considered a heck of a lot!). I know Americans drive a lot, but… 320000km? In a nine year old car? Whoa.

     
  3. finallygettingtoeven.com

    What a great plan of action you have being ready to replace something that you know will eventually wear out. It’s too bad that others can not think ahead, or maybe they do but are just not willing to put the effort in that it takes to plan ahead. Those of us that plan ahead, STAY ahead!

    Good luck on your present car and i hope you have not once ounce of trouble with it from now until it’s time to go on to another life.

     
  4. Mike

    A bigger car might just mean a newer Accord. I read recently that a 2010 Civic has the same amount of interior space as a 10-yr old Accord. Due to many new redesigns over the past decade, you can get a lot more car for a lot less money now!

     
  5. The Dude

    Time for 2 year old blog comment.. I don’t know where ‘Kate’ lives.. I had assumed Canada but her comments that she didn’t know Americans drive so much leads me to believe maybe the UK.. because here in Canada, people drive alot.

    I’ve got a 2006 Accord that’s got 150,000km on it at present. I average around 30 000km a year… and I’m not even an extreme commuter like alot of people I know.