Testimony from Rachel of Intentionally Simple
A few years ago, my husband and I started a car savings account. Our cars were both approaching 10 years old and we wanted to have some money set aside for repairs as well as have enough money saved to pay cash for our next vehicle.
We saved for a few years, and during that time, paid for routine maintenance, repairs and new tires for one of the vehicles out of our car savings fund.
A few months after the birth of our second son, we started talking about purchasing a mini van. We had around $5,000 in savings for a new vehicle and we had the luxury of time to look for a good deal since we didn’t truly need a van at this point.
We decided to put most of our tax return into car savings. The plan was to use the money in car savings (around $8,000) plus the sale of the truck (we were hoping to get around $3,500 for the truck) to pay cash for a new vehicle. We set our budget at $12,000 or less and started researching vans.
We had been researching a few months when my father-in-law told us that a neighbor had a van for sale. The van was a 2004 Nissan Quest with 88,000 miles. It was in wonderful condition and had features like heated leather seats, power sliding doors and lift gate, and a DVD player. The best part about this van, it was well under our budget!
We paid cash for the van without even selling my husband’s truck!
A few weeks later, we sold the truck for $4,500 ($1,000 more than we were hoping, apparently trucks hold their value!) We then put all of the money from the sale of the truck back into the car savings fund so we’re nearly half way to paying cash for our next vehicle.
And, those power sliding doors really are amazing!
Rachel is a wife and mama of two boys. You’ll find her at Intentionally Simple where she blogs about choosing a life of simplicity. Her family lives minimally in a small home and lives debt free.
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