This writer wants a new car. Read on to see why she won’t get one.
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I’ve been driving my Honda Odyssey minivan for over nine years. And while there are plenty of things I like about my car, like the extra storage space and seating, there’s one big problem with it I encounter constantly — the darn sliding doors are constantly jamming.
To be clear, this issue isn’t so unique to my minivan. A lot of minivan drivers complain that in time, their sliding doors start to warp or come off their track slightly, leading to a daily battle to get them to close — so consider this if you’re in the market for a minivan yourself.
But at this point, I’ve been fighting with my minivan’s doors for way too long and have just about had it. But despite the fact that I really want to replace my car, I don’t see myself doing so in 2024. Here’s why.
1. Car prices are still high
Consumer Reports says that as of September, the average cost of a new car is over $48,000 — an increase of about $10,000 from September 2020. Now if it were just me, I’d buy any old inexpensive car and call it a day. But I need a car that’s big enough to fit my family, which means that my choices are basically limited to another minivan or an SUV.
Both options are likely to be expensive at a time like this. And I really can’t justify raiding my savings account for a new car that’s apt to be more pricey than usual when my current vehicle still runs.
2. Auto loan rates are high
When I talk about raiding my savings to buy a new car, I’m referring to the down payment portion. Like many consumers, I’m looking at taking on auto loan payments if I purchase a replacement vehicle.
But right now, borrowing rates are up across the board after a series of interest rate hikes from the Federal Reserve. And while the Fed may cut rates in 2024, we can’t say for sure that will happen. In fact, there’s a chance the Fed might continue to raise interest rates, making auto loans — and pretty much all loans, for that matter — more expensive to sign.
The one thing I do have going for me is good credit. So if you have no choice but to sign an auto loan in the near term, then it definitely pays to check your credit score and, if it needs work, try to boost it before applying.
Even a modest raise in your credit score could result in a lower interest rate on an auto loan you sign. But again, since my current vehicle still works, I can’t justify signing an auto loan at a time when I’m going to get stuck with a less favorable rate based on today’s borrowing environment.
3. I have another big goal I’m saving for in 2024
Although my kids are only in middle and elementary school, I’ve realized it’s time to get more serious about saving money to pay for their college education. Thankfully, I’ve been putting money aside since they were babies, and I highly recommend that everyone do the same. That way, you can invest your money early and give it time to grow.
But even though I’ve done a decent job of saving for college so far, I’ve decided I really want to buckle down and boost my kids’ education funds in 2024. If I buy a car and take on auto loan payments, that’s less money for college savings purposes.
As you might imagine, my 2014 car has been paid off for years. I don’t want to go from not having a car payment to having an expensive one at a time when there’s a financial objective I’m trying to meet.
If you desperately need a new car next year because yours is having issues, then you may have no choice but to buy at a time when it’s expensive. In that case, take your time to shop around — for vehicles and auto loans. But since the issue with my car is more of an annoyance than anything else, I figure I can cope with it a bit longer.
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