I took Ramseys advice that a car should be paid for in cash. I agreed with this because I hate being in debt (my credit cards are paid in full every month, $0 in debt).
At the beginning of this year, I paid for a car outright for $3500 off Craigslist. Even had a mechanic friend look it over to give me the go ahead.
Not even A YEAR LATER, and I’ve spent THOUSANDS on repairs for this car. The worst part is the clutch started to slip along with major leaks. I’ve already spent around $2,000 on repairs. These next 2 repairs alone will cost more than I paid for the car. Every day I worry whether the car will turn on or not.
My first car was paid for outright and this same thing happened. Less than a year later, the repairs cost more than the car.
I could have used all this money as a down payment on a car that was actually reliable. I’m sick of cheap, high-mileage cars, but I hate being in debt. I don’t know what to do. I’ve had car payments I couldn’t afford once and I never want to experience that again. For a reliable car on the low-end it looks like it’ll be <$25,000. What should I do?