Progress to Date

  • Original Loan Amount: $204,000.00
  • Balance at Beginning of 5-year Goal (1/1/08): $188,983.82 @ 6.00%
  • Balance at Refinance in February 2009: $148,000.00 @ 4.625%
  • Outstanding Balance: $0.00 (PAID IN FULL!!!)
  • Latest Payment Date: April 2011
  • Latest Additional Principal Amount: $17,623.22
  • Amount Ahead of Schedule (since refinance): $121,462
  • Time Ahead of Schedule (since refinance): 7 years 10 months
  • Interest Saved Last Month: $23,972.48
  • Total Interest Saved: $28,435.55 ($1,037.74 on original mortgage; $27,397.81 on current mortgage)
  • Months Remaining in 5-year Goal: 20
  • Average Monthly Principal Needed to Meet Goal: N/A (Goal achieved)
  • Progress List Explained

Tuesday, May 20, 2008

Sold!

We are now OFFICIALLY a one-car family. Our second car sold yesterday. The buyers paid a little less than we were asking, but they did bring cash, and after a brief inspection of the interior and under the hood, they handed over $6,000 and left with the keys and the title. One one hand, it is a little scary to have only one vehicle between us, but on the other hand, we've been living the one-car lifestyle since February 1 of this year, so we feel that we're now ready to do it for real.

In addition to the sale proceeds, we expect to realize some significant savings over the next year by eliminating the second car from our lives:

  • I canceled the auto insurance on the car we just sold. This will save us almost $75 per month, or almost $900 per year.
  • In 2007 we spent $175 to register the car. We won't have this annual expense going forward.
  • We no longer have to pay for maintenance on the second car. At the very least, we avoid minimal routine maintenance. This might include four annual oil changes at $30 each, plus an annual tire rotation for another $30, and an inspection for another $30, to bring the total to $180. But our car was nearing 140,000 miles when we sold it, so it's likely that we would have paid for more expensive repairs in the future. And we don't have to pay for other minor maintenance like replacement wiper blades, washer fluid, air filters, and so on. My records show we paid a total of $2,250 for maintenance on both vehicles last year, so it's safe to assume that half of that cost ($1,125) could reasonably be applied to the car we just sold. I think this is a conservative estimate.
  • It's no coincidence that the vehicle we parted with was less fuel-efficient than the one we kept. Going forward, we should get better economy out of the gasoline we buy, especially if we continue to take more trips in the car together (as we've been doing for the past several months). It's hard to put a value on the fuel savings, but I don't expect it to be insignificant.
Total savings: Approximately $2,200 per year, plus the unknown savings from more efficient gasoline consumption.

Ordinarily my commute to work is about 8 miles (by bicycle or car), but today I was asked to go to an alternate office location in Boston. My company will pay for me to take a bus on those occasions, and I take advantage of that benefit. I woke up to a perfect spring morning here in New Hampshire, so I walked the two miles to the bus stop. I moved along at a casual pace, and made the trip in under 40 minutes, including the time I took to stop at the bank to deposit the cash from the car sale. I took the route through the park, listening to the bird calls and watching the flowers swaying in the breeze, and didn't miss the car at all.

As for the $6,000 sale proceeds: my wife and I decided yesterday that we would add $3,000 to our emergency savings, and use the other $3,000 to pay down the mortgage balance by the end of this month. That will put us back on track for our normal mortgage payment schedule, so the $1,000 planned additional principal payment I discussed in my last entry will be held back until June's mortgage payment.

We are masters of our own destiny.

We are on track to achieve our goal.

We will succeed because we are following through on our plan.

3 comments:

SavingDiva said...

Wow! Moving to one car will be difficult, but I'm sure it will work out...

The Executioner said...

So far it's worked out just fine. We are driving less, and when we do drive, we go out together.

Andy @ Retire at 40 said...

Selling a car is one of the best moves ever, for your finances, your lifestyle and your fitness :)

Last December I sold my one and only car and since then I have saved a packet, lost weight and can get around on my bike quicker than most public transport. I hire a car when I have to, which has so far been twice in 6 months.