I bought a new to me car, it is a 2002 Ford Focus. I paid $3000 which I considered to be a fair price, although the mileage of 181,000 is higher than I would like. Since the car gets about 30mpg compared to 16-18mpg for my van the car should pay for itself from gas savings in a little over a year based on my current driving habits.
I purchased the car with my credit card. I’ll earn a little cash back by using my card. I’m hoping that I can sell my van quick enough to pay the credit card off before interest starts accruing. If not then I might have been better off with different financing for the car. I’m thinking I should be able to sell the van for enough money to pay off the car plus put a little cash in my pocket. I’m also paying down the card as quickly as possible in case the van doesn’t sell as quickly as I hope. I have my 2000 GMC Safari up on Craigslist but so far the only responses I’m getting are from scammers. If any readers are looking to buy a van,contact me.
Now that I’m replacing the Safari with a Focus I no longer have the option of living in my vehicle. I still think I could live in a van if I were in a more suitable location. The Focus is a hatchback so I could sleep in it in a pinch but it wouldn’t be too comfortable. Sometime next year I’ll go camping in the Focus and see how well it works for sleeping.
Buying another car so soon after buying the van will cost me some money in depreciation, taxes, and fees. That money should be recouped fairly quickly from much lower gasoline spending though. I also saved a little money on rent during the months I lived in the van. I’m hoping that this car lasts for at least a couple years so that it will prove to a be a financially smart purchase.