young-fab-broke

This is for you Robert Nashville!

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I would first like to say thank you for CIC! My new year's resolution was to repair my credit and thanks to this website I'm actually doing it.

So like any life change, there is always a test of will. Last week my beloved 92' Honda Accord started stalling. Basically my transmission is about dead. At that time I thought the best thing to do would be to just buy another car. Now let's keep in mind I'm not rich by any means. And only have a few extra $$ left and the end of the month after saving, paying household bills, and reducing my debt. So I applied for 5 loans in 2 days! All denied... I was totally discouraged. After 9 months of hardwork I still can't get anything!!! Then I went to a suzuki dealership, and of course I was approved... But then it hit me. Buying a car is such a waste of money. Why would I take on 10's of thousands of debt, when I haven't paid the debt I have now? Is my income about to skyrocket just b/c i got a new car? Of course not! Which is only going to put me back a square 1.

I walked off the car lot feeling completely liberated! I am in control of my finances. From now on I will use my income and credit wisely.

I know you may be wondering well how are you going to get around? Well until I can get my car fixed or purchase another older model Honda. I will be using public transportation. Which cost approx. $13 per week. So I'm saving almost $34 a week from not having to buy gas!

Thanks Robert Nashville! I've read many of your posts. But the one about taking the car payment money and investing it over 3 years was amazing!

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Thanks for the kind words...just remember, you did it; all I did was offer advice.

I used a city bus for over a year after loosing my car (following my divorce and a bankruptcy)...it wasn't fun; in fact I hated it, but it got me through a very low financial period of my life.

Real success, financial or otherwise, usually requires sacrifice.

:twothumbsup:

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Is it a manual or auto tranny? Just to tell ya and I know this is off topic...anyways you can get a good used tranny from a junk yard for around 350 450 bones, and putting trannys in those cars is a real walk in the park. You dont need to take it to a shop. I have fixed and repaired my cars my whole life. It might seem intimidating at first but you can do it. I was just trying to give helpful advice. But that takes a lot of ballz to walk out from a deal like that congrats for not being a sheep!!! I am proud of you....:)++

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As someone who did public transportation for 5 close to six years without any ride, I will tell you, Y&F, that you did the wise thing. Not necessarily correct OR wrong, just wise. As someone with experience in public transportation, it takes balls to do what you did. I would dare say I might not have had that testicular fortitude. I do now, but not then.

It is my hope that I get out of the auto payments I have now, but should that not happen, I will continue to make my payments. Just know that there is no shame in public transportation. I dunno if you're in Fairfield County or not, but from my personal experience with CT, I can tell you that that's probably the only area of CT that resembles where I call home (except of course for Greenwich....but hey, we need to quibble over dollars and cents...lmao!). But point being, the public transportation situation in those areas are not terribly bad from what I remember.

You'll be ok, my friend.

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I’m in a similar boat as you- only mine’s a 97 accord. My credit’s drastically improved since I started rebuilding in early 07 and my EQ’s nearing 700. I probably could get financed somewhere, but the thought of expensive car payments makes me ill. Also, I'm self-employed and income fluctuates quite a bit and w/the economic uncertainty, really, I don't know where things are going.

I have some cash to make a downpayment and I’m selling my Honda for some more cash, but it’s not quite the amount I want…so for a few months, I will be hoofing it. Fortunately I work @ home. The only downside is I’m not in a very public transit friendly area (so calif), but I can bike/walk to most of my 'essential' errands like the market, post office, etc. Hopefully by early 09, I’ll have plenty of cash to either buy the car (getting another used Honda- LOVE em) outright or at least pay a good chunk of it.

It’s hard rebuilding, but sometimes you have to keep your eye on the long-term prize.

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Hopefully by early 09, I’ll have plenty of cash to either buy the car (getting another used Honda- LOVE em) outright or at least pay a good chunk of it.

Hondas are probably the most reliable cars the Japanese have ever made and also the easiest to fix. Unfortunately, car thieves know this and that's why Accords/Civics are so expensive to own in NJ. They are always top 5 of most coveted cars by them....which has always prohibited me from owning one, as I have no access to a garage and plus I don't want to worry about missing headlights, etc. Even in "good" neighborhoods, those are always problems.

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Hondas are probably the most reliable cars the Japanese have ever made and also the easiest to fix. Unfortunately, car thieves know this and that's why Accords/Civics are so expensive to own in NJ. They are always top 5 of most coveted cars by them....which has always prohibited me from owning one, as I have no access to a garage and plus I don't want to worry about missing headlights, etc. Even in "good" neighborhoods, those are always problems.

Yeah, there have been some thefts of Hondas in calif (people were even stealing the H off the hood lol), but knock on wood, I’ve been lucky. only bad thing is used hondas are PRICEY...ex., 2006s go for $15-20k here. Maintenance costs have been minimal (esp. compared to other cars), but @ this pt, what it would cost to fix mine (trans, cv joints, timing belt, etc.) would be pretty much what I could sell it for, so I think it’s time to get a new (used) car. Having your own car is ‘freedom,’ but really, I can bike/walk/take the bus (so cal doesn’t have subways like the east coast)/have friends pick me up for nearly everything I do. Also, if push comes to shove (say I get a 3 wk contract job outside the home), I can rent a car.

Like I said, I prob could get financed now, but I’d like to save up more cash and make a large downpayment w/o having to hit my savings now. Never know where the economy’s going and so cal’s not pretty right now $ wise.

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Congrats on your smart decisions, I have been debt free for over 10 years and it's a great feeling...

BTW you are not only saving gas costs, but insurance and maintence costs too...

Good Luck8-)

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Good Job!!!!

Keep $50 on you always for a taxi in case you need something urgent. I've done public transportation on and off forever. :)++

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Good Job!!!!

Keep $50 on you always for a taxi in case you need something urgent. I've done public transportation on and off forever. :)++

Actually, keeping a $50 or a $100 tuked away somewhere in a billfold or purse is always a pretty good idea. :)

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...

Which cost approx. $13 per week.

...

I also either rode a bike or took public transportation for a long period of time.

However, that price you mentioned seems steep. I don't know if it is possible where you live, but you may want to look into buying a yearly or monthly pass as these generally offer siginificant savings if you use it often enough.

Even if $13.00/month is the best price you can get, IRS Regulation 132/TEA-21 more than likely lets you have this cost deducted pre-tax from your paycheck, up to $115.00/month in 2008.

http://totalben.com/CAP/Documents/tax_irs132f.htm

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Good job!!! New car payments are a total waste of money. :razz:

I too love reading robert's post. He has great insight into many things.

Of course, I live in the boondocks and we don't have any public transportation. Hence my options are ride my bike or get an older car that's in good shape.

I hope to have my leg muscles tones enough to ride my bike into town next summer. (Save on gas that way) I have to work on that one...or I'll fall over and die half way there.

Too bad I can't get a horse!! 8-)

I once bought a brand new car in 1991. It cost me 12 thousand dollars plus interest. I figured it out to 18 thousand dollars when I added up all my payments. I couldn't believe I spent that much money on a car. A vehicle I only owned 5 years. Sold the car for a thousand dollars. Lost 17 thousand total.

I could have saved that 18 thousand dollars and placed it in a money market account. Would have made money on that one.

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Actually, keeping a $50 or a $100 tuked away somewhere in a billfold or purse is always a pretty good idea. :)

I agree! :coffeecup:

A major disadvantage of public transportation is not being able to arrive quickly in an urgent situation, having cash for a taxi eliminates that. (You can still be on time for work if the bus breaks down, make it to the kid's school if they are sick, get grandma's Rx after work.)

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:surlove:Oh to live in a town where public trans was a real option!

I used to live in NYC and relied totally on public trans. I wish I had that option here.

I have a 2002 Dodge Grand Caravan which, lucky me, gets 20 MPG! I would love to trade it for something more reasonable. Unfortunately, it just isn't in the cards right now and public trans or cycling is not an option either. I will be the one trudging along and -> very soon <- paying for some serious maintenance :-(((.

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Thanks for the encouragement!! I really appreciate it:D

I had to come update you all with my progress. Well, the slimmy car salesman called and basically read some script about how his manager wants him to do whatever it takes to close potential customers. So I said no thanks I'm really don't want to buy a car right now. Then he replied with "So are you just gonna walk... or take the bus forever?" I have never had someone talk to me like that! Needless to say I hung up on him...

But good news:

1-The Honda is getting fixed next week for an affordable price- by a former dealership repair man (who only drives Honda's).

2-Got all the inquires from car shopping deleted (from all 3 bureaus) through the Fraud victim route.

3- EQ FICO went up 20 points after a negative acct was deleted.

And yeah the bus costs $13 weekly b/c it takes an Express Bus to get to my job. These cost a bit more b/c they take the highway and only make stops at a few businesses. But we have commuter benefits w/ my company.

Thanks again for all the advice you all have provided me with.

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And yeah the bus costs $13 weekly b/c it takes an Express Bus to get to my job. These cost a bit more b/c they take the highway and only make stops at a few businesses. But we have commuter benefits w/ my company.

Thanks again for all the advice you all have provided me with.

How much does a monthly pass cost? I used to take an express bus that only dealt with highway and my pass worked on it. Then again, each state's public trans might be different.

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Funny thing! Our fares just increased! So now the bus is $15 a week. And a monthly pass is $60. And I realized that I'm only paying the local bus fare instead of the express bus fare. The driver called it a 'reverse fare discount'.

But thank goodness my car will be ready tomorrow:)

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I also either rode a bike or took public transportation for a long period of time.

However, that price you mentioned seems steep. I don't know if it is possible where you live, but you may want to look into buying a yearly or monthly pass as these generally offer siginificant savings if you use it often enough.

Even if $13.00/month is the best price you can get, IRS Regulation 132/TEA-21 more than likely lets you have this cost deducted pre-tax from your paycheck, up to $115.00/month in 2008.

http://totalben.com/CAP/Documents/tax_irs132f.htm

In Philly the monthly cross-country pass was $85 several years ago when I was on public (carless for 9 months), I'm sure it's gone up. In other words, monthly passes can be pretty pricey. (Though $85 or even $90 is deal compared to spending $30-40/week for gas and maybe $50/month for car insurance).

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