Frugal Chick and I drive an Eleven year old Altima and a Ten year old Mountaineer respectively. These cars obviously will not last forever. It is our plan to save up and buy one newish car by December. To this end we have been saving money every month to make this purchase.
If your car is paid for that is $400 plus dollars a month that can be used to pay down a mortgage or to invest in an IRA or to do something fun. Frugal Chick has not had a car payment since 2006 and I have not had one since 2004. Neither one of us could ever imagine going back to having to make a monthly car payment. If you see a car as an A to B mobile then believe me you do not want a car payment. I love not having to make car payments and look forward to the day when I can purchase my next vehicle with cash.