Maintainig present car & saving for its replacement

Good friend and I exchanged e-mails the other day. She is on track to pay off her credit cards by the end of March. She will then be debt free (she rents her housing).

But what concerns her is her 15 year old Honda Civic. The time to replace the vehicle is definitely on the horizon. Don’t believe she’s looking for a new car but instead a good used car.

But presently she has to pay periodically to maintain her 15 year old Honda Civic. And simultaneously how will she fund the purchase of the replacement vehicle? It’s difficult to do both, especially when one should be contributing to a retirement account, have an emergency fund, establish a college fund for one’s child/ren.

Taking public transportation is not available in all areas of the country. Thus having a car is definitely a necessity for some.

So how does one set aside money to cover maintenance of present car but also set aside sufficient money to pay for car with cash? It’s really tough! That’s why some people truly believe they will always have a car payment.

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