They All Do the Same Thing.

When it comes to paying for a vehicle, it pays to remember that they all do the same thing.

I first heard this statement on a YouTube video. And if I’m being honest, I’ll admit that I haven’t been able to get it out of my mind. The YouTuber in question was talking about car payments and why it’s stupid to direct so much of one’s hard-earned paycheque towards car debt. After all, they all do the same thing. She was referring to the fact that all vehicles get you from A to B.

Mind blown! It’s true, isn’t it? Whether you pay for your vehicle in cash, or you have a $700 monthly car payment, the fact remains that both of them will get you from one destination to the next. Everything else is a detail.

Now, I’m not telling you not to buy the vehicle that you want. We all have our idiosyncrasies and desires, so you do you. If your vehicle is your highest financial priority, then so be it.

What I am going to suggest is that you spend some time examining why you’re willing to pay hundreds of dollars a month of one vehicle when you don’t have to. I’ll be perfectly transparent. I paid cash for my current vehicle, which was a 5-year old SUV at the time of purchase. I hate car payments. My knee was giving me trouble so working the clutch on my previous SUV was becoming a problem. It was time for me to switch to something new. I’d always admired my cousin’s SUV so I decided to buy what she had. I would have easily qualified for financing for the current year’s model, but I realized that the current model wouldn’t do anything different than the used one.

Whether new or used, a vehicle has to get me from one spot to another. If both of them will do so, then why would I pay more for the new vehicle?

I don’t need to impress anyone with my vehicle. Those who love me will do so no matter what I drive. And those who don’t will not change their feelings based on which 4-wheeled money pit I own. The only people who really and truly care what I purchase are the financing companies who loan me the money to buy and the salespeople who make a commission on the sale. No one else is paying attention nor are they giving two hoots.

Once you’ve accepted that they all do the same thing, then you have to figure out why you want to pay more for one vehicle instead of another. Remember that money committed to a car payment is money that cannot be spent pursuing your other financial goals. It’s money that’s not going towards your emergency fund, retirement, your next vacation, a special celebration with family and friends, or starting your own business.

Most of the time, the desire to buy the more expensive vehicle is proof that marketing works. The advertisers have convinced you that you’re more worthy as a human being and definitely a lot more special if you spend your money on whatever they’re selling. This message isn’t financially damaging when they’re selling you a pack of gum. It’s a whole different financial wrecking ball when it means shelling out hundreds of dollars every month for a vehicle that does the same thing.

There are so many other things that you could be doing with your money other than paying a higher-than-necessary car payment. You’ll be doing yourself a favor if you can determine why you want to spend more than you have to on your vehicle debt when a less expensive option will do the same thing.