Living Not So FrugaLee… We Bought A New Minivan

After buying a new 2015 Subaru Outback in late 2014, I told myself we would only buy used cars and never have car payments again. Well, this past weekend, we bought a brand new 2019 Honda Odyssey EX-L (black). I blame my brother. It feels like every time he’s in town, we make a big purchase. Last time, he bought a new minivan, and the time before that, we bought a 65 inch TV. We didn’t buy a used car, but we did pay cash.

Related post: How Much Should You Spend On A Car?

I had been looking at used minivans on and off for a few months now. Our 2015 Subaru Outback was a great car, but it was getting a little tight with 2 car seats in there and a stroller in the trunk. On our last trip to New York, we squeezed 6 people on a ride from Manhattan to Jersey, and it wasn’t comfortable for my passengers. I also grew up with vans, and I think they’re awesome for family road trips.

Not So FrugaLee

With a blog called LiveFrugaLee and a goal to achieve a $1M net worth, I feel like I should probably explain myself. Most people would not consider buying a new minivan frugal. I recently read a post in the ChooseFI Facebook Group about a guy who sold his new car and downgraded to a $1,400 car. That’s definitely not us. Sorry to disappoint!

I’ll be honest. We’re not that frugal and aren’t on an extreme path to FI. I feel like most people that don’t know me and even those that do think I’m some super frugal guy. I used to be frugal when I was single and getting out of debt, but I’m married now and can’t force my wife to live the same lifestyle I once did. It’s more important that we’re on the same (or similar) page about money and life than to have a million dollar net worth.

I agree with Dave Ramsey’s philosophy on money. You need to give some, invest some, and enjoy some. If you do one or two, but leave the others out, you won’t have what he calls “financial peace.” Life is not about hoarding and piling up money. What’s the point of that? I don’t follow everything that Dave teaches, but he is the reason I got into personal finance about a decade ago. I give him credit for helping me get out of debt and for teaching me to save and make giving a priority.

Related post: Where I Agree and Disagree With Dave Ramsey and My Debt Story

Types of FI/RE (Financial Independence / Retire Early)

For those that aren’t familiar with the recent FIRE movement, here’s a quick rundown on the types of FIRE:
1. Fat FIRE – Financially independent with a very comfortable and sometimes extravagant lifestyle, usually including a lot of travel. Requires multi-million dollar net worth.
2. Normal/Regular FIRE – Financially independent with a reasonable, not too extravagant lifestyle. Still comfortable but don’t need a lot of extras. Requires $1-1.5M net worth for most.
3. Lean FIRE – Financially independent with a very minimal lifestyle. Most people would view these people as a little too extreme. Requires less than $1M net worth and sometimes much less than that.
4. Barista FIRE – Financially independent or almost FI. These people usually choose to continue working at a low-stress, enjoyable job (like Starbucks) for extra income, health benefits, or both.

I think I’m shooting for Barista/Normal FIRE. I’d like to be free to work at whatever I want, whenever I want. We are definitely not 3 (Lean FIRE). I also don’t want to retire early to be at home doing nothing. Anyway, let’s get back to car talk.

The Car Buying Process

I went to TrueCar to try to see what a reasonable price was for a 2019 Honda Odyssey EX-L. They quickly sold my information to multiple car dealerships. I instantly got multiple emails and some text messages. I even got what I considered to be very competitive quotes right away. I decided to go with the Honda dealership closest to me (Honda of Chantilly). Most people probably wouldn’t post how much they paid for a car, but I already post all my other financial information here, so why not? In the end, we paid $35,000 “out the door” (includes taxes and fees) and got all season mats, a trunk cargo tray, and 2 oil changes for “free.”

Rust on a New Car!

We bought the car at night, so we didn’t notice there was a little bit of rust near the weather strip on the passenger side sliding door. Rust on a new car! Come on! I had to bring the car back in, and they are repainting the whole door. In the meantime, they gave us a loaner (a silver Odyssey EX-L).

Some people were telling me to demand a new car, but they had already titled and registered my car. I knew they wouldn’t give me a new car after I already drove it off the lot. I’m happy enough getting a loaner and having them fix the issue.

Selling the Extra Car

As we were negotiating the new car, the dealership appraised our 2015 Subaru Outback (46,300 miles). I was expecting about $13,000-$14,000, but they offered $15,000 for it. I have sold 3 cars private party, so I decided to try to sell it on my own for more. However, I was really surprised at how reasonable their trade-in offer was. I posted it on Craigslist (they charge $5 to post a car now!) and Facebook Marketplace. I got a call from a dealership buyer (Sheehy) and eventually got an offer for $15,500, but payment would take 2-4 days. Here are the 5 offers I got:
1. Honda of Chantilly – $15,000 (in person)
2. Sheehy (Chantilly) – $15,500, but payment in 2-4 days; (offer over phone)
3. AutoNation – $14,385 (online)
4. Carvana – $15,184 (online)
5. CarMax – $14,000 (in person)

I was surprised that I was able to get offers online without even showing the car. Obviously, they would make sure everything works before taking the car, but we have come a long way with technology. I was also surprised that CarMax had the lowest offer by $1,500.

As I was waiting at CarMax for the appraisal, I looked through the old paperwork for the Subaru. We had paid $25,475 out the door, including dealer tinted windows and $900 shipping from Colorado to Virginia. Yes, we bought the car from a dealership in Colorado and had it shipped to Virginia. For some reason, Subarus are a lot cheaper in Colorado.

In the end, I drove back to Honda of Chantilly, where we bought the new minivan and asked them to match the highest offer ($15,500), and they agreed. I dropped off the Outback last night and am expecting the check today. We used the car for 4.5 years and put 46,300 miles on it. It dropped in value $9,975 in that time ($2,216.67/yr or 21.54 cents/mile). That’s not too shabby. I would say Subarus hold their value very well.

I normally would have been patient enough to sell private party, but I’m a lot busier now and didn’t like having 3 cars sitting at home. I decided to take a small loss and save some time. Time is money y’all!

Graphic: Canva / Jenny Hwang