A few months before the election, a couple I know bought a new car for one of the husbands' birthdays. And now that Trump has been elected, they are worried that their marriage will no longer be legal soon. And, I can't help but thinking, they also have a car payment to deal with.
One of my first thoughts when he was elected, other than wondering about LGBT rights, was about the economy. I have a feeling that he will do what is good for his many companies, not necessarily American workers. And that may lead to another recession. He may also repeal Obamacare, which some people are afraid of because they would lose health insurance--another situation where extra money would come in handy.
We had a major recession just a few years ago (though I'm not sure how much Obama controlled the banks and lending companies). And already people seem to have forgotten all about it. About 60-70% (my modest estimate) of cars I see on the road, around my home in southern Oregon, are quite new. And I wonder if it is the same everywhere else in the country.
Every time I am on the road, I cannot believe all of the waste of money and resources that I see. One would think that the recession would make everyone a little more frugal and a little more grateful for what they have--maybe even a little more environmentally conscious. But it has apparently taught us nothing. And it seems like these new cars have been popping up in droves, only in the past few years.
People felt "poor" during the recession, and as soon as they had a little bit of means again, they went out and bought new cars to feel better about themselves. But that is not the way to feel better about yourself, especially in the long term. You will only make things much harder on yourself, when the high of the new car inevitably wears off and you still have the high monthly payment (or a low monthly payment, for the next ten years!). There are other, much less burdensome ways to feel better about yourself. And there are ways to feel better, that don't make you eventually wonder why you did this to yourself.
And all of these people who are scared of uncertain times, now that Trump is elected, don't seem to make the connection to their finances, much less to their car payments. If times are really as bad as they think they're going to get, then you can't afford to burden yourself like this.
My hand-me-down car from my mom (which I absolutely love, for its memories and its free price tag) is about the same age as me--25 years old. A few years ago, my mom had a new engine put in it, for about $2,000. She says that we may need to put a new transmission in it soon, which she estimates would be about $300.
So we've got, basically, a brand-new car for $2,300. And $300 of it we didn't have to pay at first. If the guts of the car are new, the rest of it is probably fine. It's like different organs in the same human body. In a way, it's morbidly fascinating. My car is Frankenstein's monster.
It is much cheaper to buy a car at least ten years old, and have it worked over by a mechanic, than to buy a new, or newer, car. People say that they don't want to bother having work done, but they really can't afford not to. There is no way you can tell me that all of the people driving around new cars can afford them. I know my own family really can't, even though they still buy them. (My uncle regularly complains to my mother, "I just hate having this car payment!" but he never learns.)
I realized before the election that I wanted to stock up on extra food for me and all of my many animals. And it wasn't necessarily because of the upcoming election--I wanted to stock up even if Hillary won. Worst case scenario, nothing happens, and I have a store for personal hard times. I'm not wasting, either, since I buy only what I and my pets already eat, and plan to rotate everything.
And now I have more security, knowing that I will have that food insurance for, as I eventually plan, at least six months. And I also have no debt to worry about paying off. There are ways to make yourself feel more prepared for the coming months and years.
What I have, I wish the same for you. I would urge you, especially if you are afraid, to unburden yourself as quickly as possible. Sell or, if you can, return your new car to reduce or eliminate your debt. Or don't go into debt in the first place. If something happens, you will be glad you did this! If you fear something will happen, you will be glad you did. (And don't wait until the economy is already in trouble. If you are in trouble at that time, others probably will be, too.) And you would probably be glad you sold it anyway, when the high of having a new car wears off.
Unburden yourself, and free up as much money as possible to stock up and to save for a rainy day. And then you will not be as afraid.
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