What a week we've had, buying a new car immediately. This post could be under Blow That Dough or an example of being frugal. So I post here, as we have had a day.
We had an 18 year old Dodge Caravan. We used it to carry timpani, vibraphone, xylophone, and DH's entire keyboard, amplifier, keyboard stand, and staging set up over the years.
Monday evening, we had weird electrical failure. None of the gauges functioned-no speedometer, no odometer, no gas guage. All at zero. Took it to the shop the next morning, and the component that had failed was irreplaceable since the company no longer produced that part.
Meanwhile, online we found a perfect replacement. Chrysler Pacifica plugin hybrid. The dealer (5 miles from our house) had a 2023 model van that we needed with top of the line features, but they had failed to sell. List price ~$61K, based on many dealers online. They discounted $10K to get rid of the vehicle, plus the $12500 rebate including the plugin hybrid tax credit. So we paid $40K for a car retailing at $60+K. 4700 miles on it as a loaner vehicle. In great shape, with just enough scuffs for us to not be excessively ginger about a new car.
Regarding the rebate-we'll be reporting it as a tax credit of $7500 Our federal income tax this year would have been far less than the $7500. So what do we do? A freebie Roth IRA conversion!
It is weird that a dealership would throw so much money at us without our asking. But given how overloaded they are with cars, I can understand. And we are the recipients of a vehicle, bought free and clear using our nearly expired HELOC. We can pay it off soon or over the next 20 years. Our choice.
FIRE is amazing. It gives us options.