By Sarah in TX
My husband and I only have one car. One November afternoon, my husband slammed our paid-off car into a curb, crumpling the frame and causing about $2,500 in damage and the man hours to fix it.
While the car technically still got us from Point A to Point B, the driving stress and damaged area was slowly tearing the car apart. I was scared that the car would fall apart on the highway with my husband in it. This fear spurred us to go to a car lot and tell the salesman to sell me a car. Well, he sold us one! After he talked us out of a $5,000 Toyota that probably would have worked forever, we financed a shiny three-year-old SUV for a "great deal" at 6% on a 60-month note.
My husband and I drive a lot, so by the time we realized our mistake and tried to sell the financed car, a new year had passed, and the car had dropped over $4,000 in value. We are currently trying to buy an old car with cash so we can cut our losses and dump the financed SUV.
Take control of your money with a FREE Ramsey+ trial.
The funny thing is that we had $1,500 cash at the time, so if we'd only kept a cool head, we would have gotten something older that ran well and had no loan. Never buy a car while influenced by strong emotions!
Get Dave's car-buying tips before you go shopping.