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Why Buying a Toyota Sienna Was One of Our Best Decisions

August 24, 2020 By MelissaB 1 Comment

Almost 16 years ago, my husband and I had one child—a four-month old—and we decided our Toyota Echo was too small for our growing family.  We found a Toyota Sienna and made the leap.  That car was by far our greatest financial commitment at the time as it cost $25K.  (We didn’t own a home then.)  While paying so much back then made us nervous, there are several reasons why buying a Toyota Sienna was one of our best decisions.

Why Buying a Toyota Sienna Was One of Our Best Decisions

The Benefits of a Toyota Sienna

There are so many benefits to this vehicle for our family!

Reliability

When I was young, I owned a Ford Escort.  I only owned it for two years, yet it left me stranded three times because it randomly broke down.  One time it broke down after a high school dance.  I was stranded at midnight when I was just 16!

In all the years we’ve had the Sienna, it has not broken down once.  I’ve never been stranded.  Considering I often drive alone with young children, this is a definite plus!

Sure, it’s needed regular maintenance and repairs, but that is to be expected.  Its reliability can’t be beat, especially when we’re on long family trips like from Chicago to Boston or Chicago to Tucson.

Durability

Why Buying a Toyota Sienna Was One of Our Best Decisions
Photo by Jessica Furtney on Unsplash

Honestly, when we bought our Sienna when our child was four months old, I never, ever thought I would still own that vehicle when the baby we had then was old enough to drive.

However, this vehicle has been so durable!  It’s still going strong even though it has 225,000 miles on it.  Our mechanic says he’s seen some Toyota Siennas that are well maintained last until 300,000 miles.

I have no plans to get rid of this minivan until it costs too much to repair or it dies.  This is much to my children’s chagrin because they find the vehicle embarrassing now.  But my wallet loves it!

Versatility

The Sienna is so versatile.  It’s a comfortable vehicle for our family of five.  However, it can also take the place of a truck or a full-size van when it comes to hauling things.  We’ve been able to buy large pieces of furniture and fit them in this vehicle.  It’s also great when we buy a month’s worth of groceries.

When we used to travel 2,000 miles to visit family, we could easily pack all of our suitcases, two coolers worth of food, and our pets comfortably in the vehicle with us.

Final Thoughts

Sure, our vehicle is old and is starting to wear out.  For instance, our car came with one manual sliding side door and one electronic sliding side door.  The electronic door wore out more than five years ago, and we never fixed it because it would cost too much money.  Thankfully, we still had the manual side door.

Also, the engine isn’t quite as powerful as it used to be.

Despite these minor issues, there are many reasons why buying a Toyota Sienna was one of our best decisions, especially because many vehicles with 225,000 miles aren’t even on the road anymore!

Read More

Is a Car an Asset or a Liability?

Haggling or No Haggling When Buying a Car?

How Much Car Insurance Coverage Do You Need?

Filed Under: Cars Tagged With: buying cars, cars

Does Your Car Insurance Pay for These Items?

April 6, 2020 By MelissaB Leave a Comment

Do you know what benefits your car insurance has?  Sure, we all know if we get in a car accident, we pay our deductible and get our car fixed thanks to insurance.  But did you know there are several other items your car insurance might cover without requiring you to pay a deductible?  Does your car insurance pay for these items?  I recently learned that these free services are included as part of my car insurance.

Does Your Car Insurance Pay for These Services?

Changing a Flat Tire

I wish I was making this up, but I’m not.  I was driving my child home from school when I saw in my path a metal rake lying completely across my lane.  On my right was a curb, and on my left was a full lane of traffic, so there was nowhere to go.

I tried to avoid the rake, but it punctured my tire.  When I woke up the next day to take my son to school, the tire was completely flat.  Did I mention my husband was out of town?  My son and I tried to get the old tire off, but, thanks to snowy Chicago winters, it was rusted on.  Our neighbor tried to help, but he couldn’t get it off, either.  He then mentioned that I should call my insurance.

Does Your Car Insurance Pay for These Items?
Photo by Sebastian Huxley on Unsplash

I did call my car insurance, and within two hours, a tow truck driver was at our house.  He took off the flat tire, put on the replacement, and didn’t charge me anything.  This was a free of charge service included with our car insurance.  I had no idea.

Windshield Replacement

I was driving on the highway when I heard a loud crack!  I looked at the bottom corner of the passenger side of the windshield and saw that there was a crack forming.  During our 20-minute drive, the crack spread two feet.  During our drive back home, the crack slowly snaked itself halfway across our windshield.

I discovered that our insurance would replace the windshield free of charge.  The insurance company scheduled the appointment for me, and a day later, two men showed up at my house and replaced the windshield in less than 45 minutes.  Again, I didn’t have to pay anything or even do anything.  The insurance handled it all.  I just needed to be home.

Final Thoughts

I used to be hesitant to call my car insurance unless I was facing a major repair.  I didn’t want to pay a deductible AND face having my car insurance go up because of my claim.  But as I learned from recent experience, there are several things your car insurance might cover that doesn’t require you to pay a deductible.  My insurer told me as long as I’m not using these services frequently, the insurance company is happy to offer these services free of charge.  Does your car insurance pay for these items?  If you don’t know, try calling your insurance agency to see if they cover these types of repairs and if there are others they may cover free of charge.

Filed Under: Cars Tagged With: car insurance, car insurance coverage

Is a Car an Asset or a Liability?

January 9, 2020 By Susan Paige Leave a Comment

When it comes to determining assets and liabilities, there are only a few items that can divide the opinion of people like a car. While some people believe that a vehicle is a liability, others feel it is an asset. The split ideas occur because the maintenance of a car requires money from time to time. At the same time, it is still possible to sell a vehicle for a profit.

So, is a car a liability or an asset? Relax and read this article to understand everything about this subject.

First, let’s take some moments to understand the difference between an asset and a liability. This understanding will help us conclude whether a car is a liability or an asset.

What Is an Asset?

An asset refers to any item that a person owns and can get some value from it. Generally, your net worth increases based on the assets that you have. Retirement funds, cash, investments like bonds and stocks, and personal valuables such as collectibles and jewelry are all excellent examples of what an asset is.

What Is a Liability?

A liability, on the other hand, is an item, debt, or obligation owed to another person. Unlike the assets, your net worth will reduce when you have liabilities. Car loans, credit card debt, personal loans, mortgages, and students are examples of responsibilities.

The difference between these two terms is: anything you own outright can be regarded as your asset, whereas any item you need to pay a debt on is your liability. Your liability harms your net worth, while your asset has a positive effect on it.

Is a Car a Liability?

The answer to this question can be a little tricky because you can own your car but still need to pay money for its maintenance, fueling, and other things. The correct answer to this question is that your vehicle is an asset. However, it is a depreciating asset.

What Is a Depreciating Asset?

After answering the question “is a car a liability?”, we should shed more light on what a depreciating asset is. A depreciating asset is a form of asset that has the potential to lose value as time goes on. Unless you are using your vehicle for some types of business, it is most likely a depreciating asset.

If you purchased a car at a particular amount last year, that car’s equity would have reduced significantly today. However, it is still an asset as you can sell it to make some amount, albeit lower than its original value.

Is Your Car an Asset If There Is a Car Loan on It?

This is another point where it gets even more confusing. But the answer is still the same. Regardless of the car loan, your car remains a depreciating asset. When you sell the vehicle, you can even get value from it. Nevertheless, when you have a car loan, the ownership of a car will hurt your net worth. Therefore, the car loan itself is a liability, whereas the car is an asset. In simple terms, the burden is not about the car itself but rather depends on the car loan.

One dicey situation is that if you sell the car and its value is lower than the car loan, is a car a liability in this case? In a real sense, it is still an asset that does not have a lot of value that can cover your debt. The car you sold has not reduced your net worth; it is the loan that could cut it. Of course, in some cases, you may sell the car and still have some money left. So, this makes it clear that the vehicle itself is not the liability.

How Can I Determine the Value of My Car?

Since your car affects your net worth, you will do a lot of good by determining the worth of your car. Here’s what to do:

  • Determine the value

A brand new vehicle loses over 20% of its initial value by the end of the first year of its purchase. It will continue to lose its worth by 10% yearly in the second, third, fourth, and fifth year of its purchase. By using this knowledge, you can calculate how much your car is worth on your own.

  • Go to Kelly Blue Book and other similar websites

Blue Book is a site designed to help people determine the current value of their car. If you have all the information about your car, this site will calculate the worth of your vehicle easily and quickly.

Here’s what you need to provide on Kelly Blue Book to know the value of your car:

  • Your car’s make and model
  • Year of its production
  • Its mileage
  • Its color
  • Its current condition

The site will offer you different value options based on the method you want to use to sell your car.

In most cases, the lowest value for your car will come in a trade-in. However, you can easily find a dealership that will allow you to add money to your vehicle to get a new car. If you are looking for the most significant value for your car, you will need to sell to a private party buyer. Nevertheless, it may be not very easy to find someone who has an interest in buying your car.

Are There Any Options to Kelly Blue Book?

Besides Kelly Blue Book, other websites that offer similar services include Edmonds and NADA. These websites also have an excellent database and system that can help you know how much your vehicle is worth instantly and seamlessly. Although the values from these websites will not be the same, you can use those estimates to calculate the average cost of your car.

Check out the values of cars that are similar to yours

Some people are using the same car model that you are using. So, you may be able to find others who have already determined the value of their cars. Take the time to visit Craigslist, CarGurus, AutoTrader, eBay Motors, and other similar websites to check the worth of your vehicle. When searching for the worth of your car on these websites, pay attention to the local listings as the values of vehicles can differ based on the location.

How Can I Calculate My Net Worth?

The calculation of your net worth is simple and straightforward. First, you should make a list of your assets as well as your liabilities. Remember that if you bought your car outright, you would add its value directly to the list of your assets. Afterward, it would help if you calculated your net worth by subtracting your total liabilities from your total assets.

It is worthwhile to note that your net worth can be positive or negative. It will be favorable if your total assets are more valuable than your total liabilities. Otherwise, it will be harmful if the total liabilities are worth more than the assets.

How Do I Calculate My Net Worth If I Have a Car Loan?

If you have a loan on your car, you need to remove the amount owed from the value of the vehicle. Let’s assume that the current worth of your car is $20,000 and your car loan is $14,000. Subtract the car loan from the current value of your car, and the remaining amount will be $6,000. You should add the remaining amount to your net worth.

What Is the Importance of Knowing Your Net Worth?

Your net worth refers to the strength of your finances. It is an all-important number that shows the difference between your current assets and liabilities. Positive net worth means that your financial health is great. In contrast, negative net worth may indicate that you are not doing okay financially.

However, you should note there are instances where a negative net worth does not necessarily mean that your finances are bad. For example, if you are using lots of your income to settle a student loan, your net worth may be detrimental in the meantime. Nevertheless, such an action will help you gain financial freedom in the future after you have settled the student loan.

Conclusion

Finally, is your car a liability or an asset? Yes, your vehicle is an asset, albeit a special one that depreciates. You should bear in mind that it will reduce in value as time goes on, but it will still retain some benefits as long as you own it. Nonetheless, this does not change the fact that it is still an asset. So when you are calculating your asset, you should add your car to your asset while you add any available car loan to your liabilities.

Image Source: Carolinqua.

Filed Under: Cars Tagged With: cars, electric cars, used cars

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