Rex B wrote:
My other car is a 2007 Mustang. It's worth today exactly what i paid for it 2 years ago, and will likely never depreciate beyond that.
I dont know the specifics about your mustang, but unless it is a limited edition that sits in the garage and never gets driven, it's depreciating daily. Mustangs in general are not exactly rare. They are available new and used in unbelievable quantities. The 2007 model year was not the first or the last of a design cycle, so there is nothing about them that would make it hold value, unless it is a limited edition that is not driven. If it is, pics please. ;)
As for the OP issue, I know it is not the smartest way to live, but I dont have kids (and am not going to have kids) so I have a tendency to look at my money differently than others do. That being said, while I dont buy new cars either (no sense in paying that ungodly mark-up), I would certainly be looking for another vehicle. preferably one a couple of years old with less than 30k on it. Being that you are talking about paying cash for a $12,000 vehicle, I would take half of that and put it down on a vehicle I WANTED, not a small economical vehicle I NEEDED. Again, this is not for everyone, and my situation may be different than yours. I by no means make a lot of money, but money is made to be spent, and you can always make more.