Over the past week, BF’s car (my old 1994 VW Golf) has been slowly dying. There are many things wrong with it. Because the repairs would cost about double what the car is actually worth, BF has found himself a used older model Jeep. He got a good deal, and says it’s in great condition and will last him for the next few years until I finish paying off my car loan – and then he’ll be able to buy something newer. That way we will still be able to easily afford a mortgage (our plan is to buy in 2 or 3 years).
That Golf really served us well, and we put a lot of KMs on her, driving her out to many different places to go hiking and camping. I thought she’d last longer than 15 months, but that’s the risk you take when you buy cheaper, older cars.
It will be nice to have a 4×4 vehicle, and it fits into BF’s active lifestyle. I personally wouldn’t have chosen a Jeep simply because it’s not the greatest on gas and it’s not that practical, but BF’s commute to school and most of his other activities is much less than mine and it’s his money so it’s his choice! :)
As for our old car? Because it will be very hard to sell a car that needs major repairs, we decided to go with the BC Scrap-It program, where I will be able to get a $500 credit towards a new bicycle (I doubt we’d get much more than that if we did end up selling the Golf on Craigslist or something). Since I don’t have a bike and he does, we both think that this is the best use of the Scrap-It program. The other option was $300 cash, which isn’t really worth it.
Has anyone else utilized the Scrap-It program before?
Well, as you can tell by my NetworthIQ, I’ve dropped a few thousand dollars this month. Which hurts a bit, because I worked my butt off to earn a lot of extra money this month. But I adjusted the value of my 2 vehicles (BF is buying my old Golf off me, so I adjusted for the amount still owing), and my Retirement Portfolio took a beating this month.
That being said, I was able to hit all of my savings targets that I set for myself in my February Goals. But I’ll have a re-cap of that sometime next week.
I’m also anxiously awaiting my tax papers. I made last-minute RRSP contributions since January 1, totaling about $2,000. I’m still really thinking about maxing out my TFSA this year instead of pouring all my money into my RRSPs – just to get a bit of diversity. I have less than 5% of my Retirement Portfolio in TFSA.
When I bought my car, my loan payments were scheduled to come out of my chequing account bi-weekly on Mondays (1st & 15th of this month). It was really annoying, having to remember and calculate payment times. So I called into BMO last Wednesday to get them changed to bi-weekly on pay day Fridays. They said they would send me some paperwork which I would have to send back to them before they could get authorization to switch the dates – meaning the next payment would be on the new date of the 19th, since I was too close to the 5th to receive and mail off the paperwork in time. So fine, that’s reasonable.
But they took a payment out on the 5th anyway! That means I will be making an extra car payment this month (1st, 5th, 19th). One of my goals for 2010 was to make 3 extra car payments. Not exactly planned, and it’s a good thing I had the money in my account, but that’s 1 extra payment down, 2 to go!