Both of the automobiles that we have are getting old and will soon need replaced!
So I don’t want to incur that cost of buying 2 cars as close together as we did the last time! So, I decided to think through it this time around.
My plan it to replace our minivan (wife’s primary car), sometime before 2015. My car, I’ll just keep driving until it totally disintegrates.
I don’t want to take out a loan, and had plan on going in and writing a check for our next “new” used car! But lately, I don’t want to spend the money on the car either. Once I spend that money, it’s gone!
What I would like to do is invest the money in dividend yielding stocks or bonds for the next 3 or 4 years, then use the money from the yield to make payments on the next car.
I would continue to invest money, building the principle, then use the money to make payments on my next car… and so on and so on…
Of course if there ever came a point where I would just be able to pay for the entire car in cash without affecting my wealth level, I would do so.
I would use the same process that I’m using for my lunch experiment. Saving up the money, invest it, then use it to support my purchase of future vehicles.
What do you think? Am I being delusional? Should I just pay cash for the cars and start over each and everytime?