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Writer's pictureMelissa

Skid Happens- Back in the Debt Payoff Game!


When it rains, it pours. Literally. Last Sunday, I was in a wild car accident that ended with me climbing out through my passenger window like I thought I was a Marvel Superhero. Alas, my best laid plans and my cute little Fiesta, Fivel, were washed away in an instant, hydroplaning my debt free life along with it. As I had previously posted, I had a grand plan to continue making car payments into my car sinking fund until another 5 years had passed or I had enough to get a great used car, in cash.


Remember...I'm furloughed. How the heck am I gonna pay for all this?


While I'm totally fine now, I did decide an emergency room visit was in order the next day because...I decided better safe than sorry. I did flip my car after all. Luckily, I got a clean bill of health and some amazing muscle relaxers. Unluckily...I already know my emergency room visit BEFORE insurance comes out to 40,000! Thanks Broken Healthcare System! I'll keep you posted on what my actual bill comes to. Probably an arm and a leg. (Literally)


But what to do about the car? Luckily, I had Rental Insurance so I got a rental car until they could determine what to do about my lil Fiesta. And then...I got the call- TOTALED. I was not expecting that. I was expecting to pay my $500 deductible and be on my way, I was not ready for this.


Immediately, my stress level built up and I began a car search in earnest on the Autotrader app. I knew I wanted an mid-level SUV but I had no clue which one. The good news, my insurance gave me way more than I was expecting- $5500!! Add that to my sinking fund of $3700 and let's get shopping! I decided to go after the Toyota RAV4, Ford Escape and the Hyundai Santa Fe. After test driving and a fun day of dealing with car salesmen (ugh), I decided on the Hyundai Santa Fe.


After an evening of research, I found the perfect used Santa Fe about 30 minutes away. I called to confirm it's availability and set an appointment for the following morning. Made it to the dealership, where I closely inspected the car and determined that the ad was not too good to be true. When we sat down for paper work, the advertised $17,999 magically became $24,200 and then the negotiating began!


After a few back and forths, I was able to get the salesman to go down to $22,105. But I decided that wasn't good enough. Truthfully because, I could get a brand new one out the door at $24,500 with 0% financing. So, I walked away. It was painful...but I walked out. We drove to a gas station, parked the car and I started scouring the area for another car with similar specs. Found one 2 miles away! Let's head to the Lexus dealership! They had a same year used Santa Fe with only 1000 more miles on it.


We saw the car...it was a bit more dinged up than the other one. Didn't look nearly as shiny and new but I was willing to talk numbers! While the salesman was writing up an offer....I got a call from the other dealership. The new number on the table was $21,600 but I told him I'd think about it. At the current dealership, the offer came down to $21,000. Is $600 dollars worth happiness in my choice?


I decided to use my new favorite line- "You know what they say, don't make big decisions on an empty stomach! I'm going to go grab some lunch and think it over." So we went to lunch. After talking it out, I decided that I really did prefer the first car, so I called the salesman back and told him to start up the paperwork and as soon as I'm done with lunch, I'll head over to sign.


Now here's the kicker- even though I was willing to pay cash, financing would be the only way to insure this deal, because financing came with a $3500 dollar rebate. The loan terms state I can pay as much as I want, but I can't completely pay it off until 6 months have passed. We chatted with the finance guy and I went over my goals with him, he was elated! "Let's get you the best rate so that you can pay this sucker off quickly!". By putting $8500 down, I was able to get a rate of 3.49% (Shout out to my high credit score!). The finance guy put on the new Chromatica album by Lady Gaga and we danced through signing!


So here I am. LOVING my new to me 2019 Santa Fe! Stuck with a loan for $13,100 at %3.49 percent, with minimum payments being $240 but I'll hopefully be paid off completely in March (employment pending...lol). This is just another reminder for everyone that personal finance is PERSONAL! It's what works with your life to get the most out of your money!


Everyone- Meet Attila the Hyundai! (Tilly for short!)






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