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- Jan 15, 2012
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- 4,608
Only PB that comes in jars with name brand labels don't have expiration dates. Too much plastic (partially-hydrogenated hydrocarbons). Fresh ground peanut butter will go bad, especially if left un-refrigerated. (Don't ask me how I know this.)
OK, now for the "old-skinflint lecture" - just because you no longer have a car payment, don't go raising your lifestyle to equal the amount not being spent. Open a separate savings account called the "Car Replacement Fund". Each month, put in your car payment. The next time you buy a car, use what's in the fund to be your vehicle down payment. As soon as the vehicle is paid off, start refilling the Replacement Fund. After a couple or three purchases, you have enough in the fund to buy a new vehicle for cash.
My dad taught me this way back in 1962. Started it with my 1978 Ford Granada and my 1985 Dodge D1500. Paid cash for my 1991 Geo Prizm (sold it for $3k private sale and put that in the Replacement Fund), my 1998 Tahoe and my 2006 Prius (got $12k credit for the Tahoe that wasn't rolled over in the new note because there was no old note to roll over and I left the extra $12K in the fund). I put $400 / month every month into the fund and have since Oct 2006, so when the Prius dies, I'm ready.
You make the car payments to yourself, so technically, you are paying yourself the interest that you would normally be paying the bank or car finance company. You are also earning the savings account interest while it's sitting there (no much right now, but back when an account paid 4 or 5%, it was a chunk of change. And it damn sure feels good to be negotiating from a power of strength for the next car, because the dealer is sitting there thinking they're gonna get paid all this interest over time (which is where they really make a bunch of their money). You NEVER tell them you're gonna pay cash because they won't dicker as much. I really like the look on the finance guy's face when they ask "How many payments do you want to make? 48? 60? 72?" and you get to say "One" and pull out a check book.
This does not work with leases or if you plan on trading out cars every 2 or 3 years. It only works out really well if you buy a new vehicle, drive it into the dirt and then make a planter box out of it (or find some fool to buy it from you). My definition of "time to replace a vehicle" is when you have 4 repair bills in a 6 month period that equals or exceeds your "monthly car payment".
This is brilliant! Im gonna try it see how it goes. Great logic, thanks!
2002 BMW 535i? The inline 6 that BMW uses is RIDICULOUS! Nice trade up sir!
Wrong sir. Its the 540I. Got a 22mpg V8 and hauls some serious ass!