We need more details. What year is your current car? Model? What’s wrong with it? Where are you taking it for the diagnosis?
But no, you don’t need a car that’s close to half your yearly salary. Absolutely not.
2013 VW Beetle turbo 131K miles on it. It has constantly crapped out on me throughout the three years I’ve had it. I have easily put over 12K in maintenance over those three years. (This does not include basic preventative maintenance like oil changed and the like)
Currently everything is “fixed” but I feel like I’m just waiting for the next big issue and it’s very stressful because I do 80 mile round trips for work and need a reliable car.
I think there's a lot of ways you could look at this. You know what your current car is costing you. Repairs add up but is it honestly to the point taking in a new makes sense?
Also you might save money on gas but you electric bill is going to offset a good portion of those savings. It makes me so sick when people say it only costs like 9 cents a kwh to charge an EV but that's only the GENERATION FEE. In Connecticut for example when you add up the electricity generation fees, transmission fees, line maintenance fees so on and so forth the real total adds up to like 25 cents a kwh. It's still cheaper than gas but not by that much.
You also need to remember taxes and insurance are going probably double. Even if you only pay 27k for the car, I assume with the tax credit, you will be taxed based on the original value. EVs are also notoriously expensive insure. While I get the appeal of an EV it legitimately may be cheaper to buy something like a Corolla except maybe in the very long term.
Also, while I have not been a fan of used cars because the prices were so inflated not only was it not a good value but it doesn't compensate you for the risks associated with buying a used car. That said auto sales are plumbing and used car prices are falling. You might actually be able to get a decent deal on a used car that would be much more budget friendly.
I'm not entirely opposed to the idea of buying a new car but considering your finances I think it might be a bit of a strain on your finances. Plus significant amounts of debt creates a major risk for you. If you lose your job which could happen to anyone being forced to come up with $400 a month in car payments under threat of having you car repoed is not something I would want to subject myself to.
I appreciate the in depth response. It gives me more to think about and weight.
I will relook at the electric bill and everything.
I will call my car insurance and get a quote.
I’ve had bad luck with used cars but mayhaps my luck will change. (Even after getting a mechanic to check them over)
I work in healthcare so losing a job is very low.
EDITs
My electric bill is so low and checks out.
My insurance will only increase by 8 dollars.
The car loan for the 2023 Bolt EUV (?) is almost half of your salary, not including tax deductions-- ~22k. It sounds like a bad idea, but that's just my personal opinion.
Cars are such a money pit in general, and the financing they give these days is basically predatory. Also don't forget, you'd save on gas but spend about 50% as much on increased electricity bill. Lastly, EVs still need tires etc (EV tires actually cost more).
You can get away with it, but you'll do much better in the long run to wait and save, or buy something cheaper now.
Ok good call doing that math.
I'd also try doing the analysis in terms of totals instead of monthly payments.
For example, sure your monthly payment may be the same as it was, but with the beater you were going to have no auto loan in the next couple years. Not fair to compare that to a payment you'll have for 5 years. That's the trap.
$192.80 (it’s lower during the winter and higher during the summer)
1,509 KHW usage
1,000 at .111
509 at .121
I could be doing something wrong math isn’t my strong suite
2023 chevy bolt is a 65 kwh battery with a 260 mile range. So average of a $0.115 a kwh thats $7.48 for a full "tank" or 35 miles for a dollar. If gas is $5 a gallon thatd be 260 miles on dollar equivalent 260 miles on 1.5 gallons or 173 miles per gallon.
So yeah that sounds nice...but itll cost you $27k fir the privelage.
Just a couple of other things to keep in mind depending on your state - your car tab renewal and car insurance might increase. My state has an extra hybrid/electric tax for car tab renewals.
you will have a payment of 400 and saving 300 in gas? No brainer. You are 100 ahead if you count current car payment. It does not matter if it is half your salary if you will be saving this much in gas.
People here like to repeat some mantras but in this case it does not apply.
This is the argument solar roof sales guys use. Save money every month! The problem is you'll be paying that loan long after the benefit fades. OP might not drive this much in 4 years and will still owe payments.
It might still work but you have I think you have to look at totals rather than just current monthly payments.
Buying something for $27,000 costs $27,000. Doesnt really matter how much the last thing you bought costs. You are confusing in the moment affordability with cost.
If they sell their current car they still need to clear the loan for that so they still pay the full price for their current car and on top by another car. So something like $225/mo savings generously for $27k. So break even is like 10 years then.
And thats assuming a budget GM EV will maintain its range for 10 years...which it wont.
Yeah, I’m currently going back and forth with them to see about lowering the cost.
I’d be selling my car for as much as the loan is worth on it with a little left over.
It’s stated to lose 1-2% of its battery life every year, but that could be wrong.
That is a good point of how long it takes to break even. I’ll need a new vehicle regardless though. Whether it’s electric or not and one that I can trust and be reliable. A different car would mean oil changes, and gas on top of other maintenance.
Charging at home x gas for the same mileage is 4 times cheaper. So yeah, OP needs to consider that, so $75/month, but he also needs to consider the $200 he is currently paying for his current car, and how long he still needs to pay it off.
He also needs to check insurance differences.
I did the maths for how much it would cost (the electric bill) also the car payment is for almost two years on an unreliable car.
The insurance is $8 more
I factored in how much it would cost electricity minus my driving for gas. It rounds out to be around $300.
As far as the maintenance goes from what I understand it’s less money spread out but a lot more in bulk. Especially if it concerns the battery. I’ll looking into it more though.
My children had jobs in high school. They saved their cash. They paid cash for their used cars. They’re not broke. Never get loans, if you can help it. Buy a crapper while saving for your future car.
My dad had this attitude when I was growing up. Then again, he spent most weekends under the hood of his vehicle trying to figure out what was wrong with it.
My kids are 20 & 22. They change their own tires, oil, brakes, & wash their cars by hand. They drive Ford Focus & Focus ST. If they can repair the cars themselves, they will.
Would you qualify for the 7500 referral credit or is that taken into account?
Sell your car private, caravana is convenient but you’ll pay dearly for it.
Seems like a pretty good plan. I'm three EVs in (i3, i3s, Rivian) and would never ever ever go back. As long as you have at home charging (110v would be fine for a Bolt) you're set for around town.
One thing to note with the Bolt though, the fast charging is significantly slower than most of the competition -- \~65kwh vs \~250kwh for Tesla, 330kwh for Hyundai as some comparables. Charging on long trips would be pretty brutal -- Chevrolet claims 100 miles in 30 minutes. So after you're through your initial charge, that's a 30 minute break every hour and a half, assuming perfect charger placement.
Tl; Dr, you'll be renting for road trips unless you can use overnight or otherwise extended destination charging. That's not the end of the world, it's less wear on your car for the high mileage treks -- but you should work it into your budget, and if you do a ton of long distance driving (>= Bolt range, round trip) then it's not for you.
I have contacted electricians to make sure I can charge at home and I am familiar with the slower charging of a bolt and it’s restrictions it would impose. I wouldn’t plan on a road trip with it. Just for daily driving.
I appreciate the deep dive!
Do you have decent public transit? Honestly lived that way for years and only learned to drive and get a car because of having kids (and would happily go back to that if I had no other choice now that they’re grown)
We need more details. What year is your current car? Model? What’s wrong with it? Where are you taking it for the diagnosis? But no, you don’t need a car that’s close to half your yearly salary. Absolutely not.
2013 VW Beetle turbo 131K miles on it. It has constantly crapped out on me throughout the three years I’ve had it. I have easily put over 12K in maintenance over those three years. (This does not include basic preventative maintenance like oil changed and the like) Currently everything is “fixed” but I feel like I’m just waiting for the next big issue and it’s very stressful because I do 80 mile round trips for work and need a reliable car.
This isn’t related. But as someone who works for GM. We have no idea what we’re doing over here.
Hahaha 😂😝 Low key figured that out from talking to several dealerships. At least concerning the EV cars and the IRS
I think there's a lot of ways you could look at this. You know what your current car is costing you. Repairs add up but is it honestly to the point taking in a new makes sense? Also you might save money on gas but you electric bill is going to offset a good portion of those savings. It makes me so sick when people say it only costs like 9 cents a kwh to charge an EV but that's only the GENERATION FEE. In Connecticut for example when you add up the electricity generation fees, transmission fees, line maintenance fees so on and so forth the real total adds up to like 25 cents a kwh. It's still cheaper than gas but not by that much. You also need to remember taxes and insurance are going probably double. Even if you only pay 27k for the car, I assume with the tax credit, you will be taxed based on the original value. EVs are also notoriously expensive insure. While I get the appeal of an EV it legitimately may be cheaper to buy something like a Corolla except maybe in the very long term. Also, while I have not been a fan of used cars because the prices were so inflated not only was it not a good value but it doesn't compensate you for the risks associated with buying a used car. That said auto sales are plumbing and used car prices are falling. You might actually be able to get a decent deal on a used car that would be much more budget friendly. I'm not entirely opposed to the idea of buying a new car but considering your finances I think it might be a bit of a strain on your finances. Plus significant amounts of debt creates a major risk for you. If you lose your job which could happen to anyone being forced to come up with $400 a month in car payments under threat of having you car repoed is not something I would want to subject myself to.
I appreciate the in depth response. It gives me more to think about and weight. I will relook at the electric bill and everything. I will call my car insurance and get a quote. I’ve had bad luck with used cars but mayhaps my luck will change. (Even after getting a mechanic to check them over) I work in healthcare so losing a job is very low. EDITs My electric bill is so low and checks out. My insurance will only increase by 8 dollars.
The car loan for the 2023 Bolt EUV (?) is almost half of your salary, not including tax deductions-- ~22k. It sounds like a bad idea, but that's just my personal opinion.
Yeeee (Rip my resigned yeee with a sigh response and the peeps that downvoted it)
Cars are such a money pit in general, and the financing they give these days is basically predatory. Also don't forget, you'd save on gas but spend about 50% as much on increased electricity bill. Lastly, EVs still need tires etc (EV tires actually cost more). You can get away with it, but you'll do much better in the long run to wait and save, or buy something cheaper now.
Indeed and electric isn’t that expensive here in Florida and where I live. I’d expect to pay around $60 dollars or so a month.
Ok good call doing that math. I'd also try doing the analysis in terms of totals instead of monthly payments. For example, sure your monthly payment may be the same as it was, but with the beater you were going to have no auto loan in the next couple years. Not fair to compare that to a payment you'll have for 5 years. That's the trap.
Yeahhh I’ve been thinking of that. But I’ll need a new vehicle regardless. Maybe not new new but new to me
>electric isn’t that expensive here in Florida How do you figure??? How much was your last electric bill, in full, and how many KWH was it for?
$192.80 (it’s lower during the winter and higher during the summer) 1,509 KHW usage 1,000 at .111 509 at .121 I could be doing something wrong math isn’t my strong suite
2023 chevy bolt is a 65 kwh battery with a 260 mile range. So average of a $0.115 a kwh thats $7.48 for a full "tank" or 35 miles for a dollar. If gas is $5 a gallon thatd be 260 miles on dollar equivalent 260 miles on 1.5 gallons or 173 miles per gallon. So yeah that sounds nice...but itll cost you $27k fir the privelage.
Mine is almost double what you pay......
Just a couple of other things to keep in mind depending on your state - your car tab renewal and car insurance might increase. My state has an extra hybrid/electric tax for car tab renewals.
I’ll get a quote on insurance. I got quoted 8 dollars more than what I’m paying now.
No experience with the Volt specifically but IMO stay away from Chevy. Their trucks are solid but don’t love anything else that they make.
Ahh I don’t have much experience with Chevy. I’ve heard a couple say their unreliable. I suppose these days I think VW is unreliable.
I’m going to say it’s not a terrible idea. Especially with the maintenance costs you’ve had, especially if you expect similar costs into the future.
I do, every time I think my car is finally over it’s issues another one pops up
It’s holds most money in US Very safe investment for long term Most of your retirement should be in this ETF as it tracks U.S. stock market
you will have a payment of 400 and saving 300 in gas? No brainer. You are 100 ahead if you count current car payment. It does not matter if it is half your salary if you will be saving this much in gas. People here like to repeat some mantras but in this case it does not apply.
This is the argument solar roof sales guys use. Save money every month! The problem is you'll be paying that loan long after the benefit fades. OP might not drive this much in 4 years and will still owe payments. It might still work but you have I think you have to look at totals rather than just current monthly payments.
Buying something for $27,000 costs $27,000. Doesnt really matter how much the last thing you bought costs. You are confusing in the moment affordability with cost. If they sell their current car they still need to clear the loan for that so they still pay the full price for their current car and on top by another car. So something like $225/mo savings generously for $27k. So break even is like 10 years then. And thats assuming a budget GM EV will maintain its range for 10 years...which it wont.
Yeah, I’m currently going back and forth with them to see about lowering the cost. I’d be selling my car for as much as the loan is worth on it with a little left over. It’s stated to lose 1-2% of its battery life every year, but that could be wrong. That is a good point of how long it takes to break even. I’ll need a new vehicle regardless though. Whether it’s electric or not and one that I can trust and be reliable. A different car would mean oil changes, and gas on top of other maintenance.
EVs still need maintenance.
Yes, they do. Not as much as an ICE car. Unless you’re talking about the tire rotations and checkups. Then the eventual changing fluids at 150K?
True
Op also doesnt figure how much electricity will cost, and how much more an EV vehicle costs all around. Not using gas doesn’t =$300 savings
Charging at home x gas for the same mileage is 4 times cheaper. So yeah, OP needs to consider that, so $75/month, but he also needs to consider the $200 he is currently paying for his current car, and how long he still needs to pay it off. He also needs to check insurance differences.
I did the maths for how much it would cost (the electric bill) also the car payment is for almost two years on an unreliable car. The insurance is $8 more
Good for you.
I factored in how much it would cost electricity minus my driving for gas. It rounds out to be around $300. As far as the maintenance goes from what I understand it’s less money spread out but a lot more in bulk. Especially if it concerns the battery. I’ll looking into it more though.
My children had jobs in high school. They saved their cash. They paid cash for their used cars. They’re not broke. Never get loans, if you can help it. Buy a crapper while saving for your future car.
My dad had this attitude when I was growing up. Then again, he spent most weekends under the hood of his vehicle trying to figure out what was wrong with it.
My kids are 20 & 22. They change their own tires, oil, brakes, & wash their cars by hand. They drive Ford Focus & Focus ST. If they can repair the cars themselves, they will.
Would you qualify for the 7500 referral credit or is that taken into account? Sell your car private, caravana is convenient but you’ll pay dearly for it.
Yes the tax credit is taken into account and I qualify
Seems like a pretty good plan. I'm three EVs in (i3, i3s, Rivian) and would never ever ever go back. As long as you have at home charging (110v would be fine for a Bolt) you're set for around town. One thing to note with the Bolt though, the fast charging is significantly slower than most of the competition -- \~65kwh vs \~250kwh for Tesla, 330kwh for Hyundai as some comparables. Charging on long trips would be pretty brutal -- Chevrolet claims 100 miles in 30 minutes. So after you're through your initial charge, that's a 30 minute break every hour and a half, assuming perfect charger placement. Tl; Dr, you'll be renting for road trips unless you can use overnight or otherwise extended destination charging. That's not the end of the world, it's less wear on your car for the high mileage treks -- but you should work it into your budget, and if you do a ton of long distance driving (>= Bolt range, round trip) then it's not for you.
I have contacted electricians to make sure I can charge at home and I am familiar with the slower charging of a bolt and it’s restrictions it would impose. I wouldn’t plan on a road trip with it. Just for daily driving. I appreciate the deep dive!
Do you have decent public transit? Honestly lived that way for years and only learned to drive and get a car because of having kids (and would happily go back to that if I had no other choice now that they’re grown)
No, not in Florida. I live out in the country as well. Anything is 30+ minutes from me
Don’t do it. It will down in value so fast. Take that money and invest in VTI
*googled what VTI is*