Should I buy a New Van? Need help with this decision!

[One Awesome Inch]

I have a fair amount of cash saved to the amount of over $10000. This has been earned thru working a temporary higher paying position that will end in a couple of weeks at my place of employment.

I am trying to decide if I should buy a new to me 'used' van or keep what I have. The van I am considering is a 2004 GMC Savannah with only 117,000 km or 72,000 miles. It looks pretty much new. Its a stock cargo van with the side door opening like a regular door rather than a sliding door (I would prefer not to have a sliding door).

The van that I have currenly has 217000 km or 135,000 miles and is pretty beat up physically with a large dent along the passenger side, lots of scratches, dings etc. Mechanically its fine and I am confident I could drive it for the next 5 years (at bare minimum) without issue. I only paid $2000cdn for this van I have. The big question for me was how much would it cost to insure the GMC more than what I am paying now and I just found out its not more than a $30 per month difference, which I can afford.

Now I could keep the $10,000, but I am concerned the money will (eventually) be spent over the years on a lot of little, 'unnecessary' items. If I bought the GMC I would have something tangible that would be reward for my hard work. I dont want to waste the money on "nothing" and have nothing to show for the work that I endured.

Its alot of money and I want to make a good decision.

Your input is appreciated.

 

[TMG51]

I'd put that money into a sweet strobe light interior. :idea:

I dunno, but I wouldn't buy a new van just to get rid of 3 dents. Sounds like mostly you're looking for something new maybe. Fortunately you live in a van and can experience new things any time you want!

 

[Gary68]

the if it was me answer is,keep the van,massage the fender,replace bumper,use $$$ on some empty land,here in oregon 10 will get you 2+ acres with a little bit life on it land,a couple hundred or less a year in taxes and you always have somewhere to go

 

[ahh_me2]

Today, you have over ten grand, tomorrow(a few years), you expect it will be gone.
Is it possible in a few years you could have more money yet?
Is it emotional shopping?
If your current vehicle is good for another 5 years, is there a guarantee that the new vehicle will last longer for the equivalent amount of money?
Are you trading a known for an unknown?
Could the current money be put to better use over the next 5 years?
Are you simply looking to validate the upgrade?

Questions I would no doubt NOT ask myself in your shoes! lol
Why? Because if I want something, I will rationalize it in my favor!
But, something to ponder...
And....I'm old school, I like old, worn, dented stuff....character!

Anyway, I didn't vote, sorry...Either way may be right for you, I had a nickel(rounding up the 2 cents) in my pocket, figured I'd throw it on the internet.

Re-reading what I just wrote, I'd keep the old van, put some money into it, be ahead for today, for who knows what tomorrow holds!

 

[One Awesome Inch]

the if it was me answer is,keep the van,massage the fender,replace bumper,use $$$ on some empty land,here in oregon 10 will get you 2+ acres with a little bit life on it land,a couple hundred or less a year in taxes and you always have somewhere to go

Thats a good idea. However land here in BC is outragous expensive unless you drive at least an hour outside of the city. My life is centred in the city. Something to think about though.

 

[One Awesome Inch]

Today, you have over ten grand, tomorrow(a few years), you expect it will be gone.
Is it possible in a few years you could have more money yet?
Is it emotional shopping?
If your current vehicle is good for another 5 years, is there a guarantee that the new vehicle will last longer for the equivalent amount of money?
Are you trading a known for an unknown?
Could the current money be put to better use over the next 5 years?
Are you simply looking to validate the upgrade?

Questions I would no doubt NOT ask myself in your shoes! lol
Why? Because if I want something, I will rationalize it in my favor!
But, something to ponder...
And....I'm old school, I like old, worn, dented stuff....character!

Anyway, I didn't vote, sorry...I had a nickel(rounding up the 2 cents) in my pocket, figured I'd throw in on the internet.

There are no guarnatees an anything.... thats for sure. But thanks for the insightful thoughts.

 

[GotSmart]

I agree with Gary.  Find a base where you can not worry about being made to move on.  

So much can be done on line today~~~

 

[Cammalu]

I've read the answers to your questions and find it uncanny that a couple of the answers have a lot in common with Bob's good blog today where he compares the differences in the amount of traveling time different people need. You have two answers that say buy land and have a permanent place to go.

One thing I didn't see you mention was if you are going to take off when the job ends or are you staying put? I'd rather have a newer vehicle myself as I'm always concerned with a break down and little mechanical failures. I don't particularly want to have a dented up eyesore either that would stand out.

 

[One Awesome Inch]

In my situation the land purchase wont work, though i do think its a good idea for others. In my case, my career, kids, hobbies all elvove around the city. Even if I did retire (in 25 years) and move out to the land I would be bored senseless. I'm a city boy and love all the opportunities it offers. The land I could afford is way out in the sticks.

 

[NeedAnEscape]

Unless your current van is rusting out, I'd keep it and just save the money.

 

[Optimistic Paranoid]

If I remember correctly, you're divorced or separated, but still see your kids regularly?

Have you considered spending it on them?  A trip to Disney World, or a summer traveling around Canada with them taking in all the National Parks and important cultural sights?  Make some memories that you and they will treasure for the rest of your lives?

Regards
John

 

[wagoneer]

IT'S BEEN MY EXPERIENCE first impressions are a real thing. your appearance makes a difference. The reason I chose a window van is the mysterious cargo van syndrome, with the windows it gives the effect of hey people inside, although I have limo tint on most windows they are still windows. And yes OP take the kids I have many many times dragged the family through the southwest. they remember these trips.

 

[Almost There]

Shop around for someone to do the body work on the existing van so that it's fixed up all nice and pretty.

135,000 miles in not a lot of mileage, certainly not worth breaking the bank to replace.

If you're the type that money flows like water, then tie that money up in something where you can't touch it easily. I'm not recommending playing the stock market with it btw, but there are other investments that are a whole lot less risky.

An emergency fund is always desirable and 10G is just the start. You've got 2 kids that should need help to get through college/university sooner than you think - the years fly by quickly.

Since you earned it and are paying taxes on the earnings, think about putting it somewhere where you can at least get a tax break on it like an RRSP or RESP.

 

[GrantRobertson]

Don't just accept the fact that you will fritter away the money if you don't spend it on something big. Put it into a separate account. Heck, you could buy some certificates of deposit or some other kind of investment. If you tell yourself that the money will be spent one way or another, that becomes a self-fulfilling prophesy. If you pretend that you don't have the money at all and just pretend you are still broke, then you will continue to save more.

 

[29chico]

If you would supply the make model, year, engine, transmission and extended or not info about your current van, that would make a big difference in the quality of input that I could provide.  Also what shape is it in mechanically?  What do you know about it's maintenance history?  

The Savana/Express vans are a great platform to start with.  I recently bought one myself. 
If you could fill me in on the above requested info for the van under consideration that would help also.

 

[Wanderer]

I have a fair amount of cash saved to the amount of over $10000. This has been earned thru working a temporary higher paying position that will end in a couple of weeks at my place of employment.

$10K in the bank beats a "Newer" van that might require some TLC. I finally decided to simply wait till my van has a full blown engine destruction before replacing it (Or tranny) and even then I'll still debate it...10K provides for food for a lonnnngggggg time...gas too.

 

[LeeRevell]

Keep the money in the bank as your 'emergency fund'.  It will come in handy when your current van breaks or you need medical work.  The future is uncertain.  One certainty is that "stuff happens".

 

[nobodyG17]

Keep us updated for sure as the poll is very one sided at 12-0 for keep your van.

10K would let you travel for a long time if you were so inclined.  

We could make a better decision if we knew more about your current van.  Sounds like most of it is cosmetic?

 

[masterplumber]

Just from personal experience: I had a truck I loved, but it was needing a bunch of work and was costing $500 per month to keep running ( I drive a lot for work). In my area I couldn't find a used replacement with 100,000 miles or less, for less than I paid for a brand new truck. So 3 years ago I bought a brand new truck. Put $5000 down, and to date I have done $5000 in repairs. Newer is not always better and is no guarantee That you won't still have to spend more money on it. Like other's have said, I would have a little body work done, and stick the rest in a separate account that you pretend isn't there except for "real" emergencies.
I'd also take your kids on some trips when you can. I started taking each of my boys on their own camping trips each year when they were young. They're in their 20s now and we're still close, and they still want their camping trip each year.

 

[flying kurbmaster]

take a 1000 and go out and waste it on your kids, yourself, and your new girlfriend, do frivolous things, buy icecream cones, go skiing, go sailing, take sailing lessons, a new bathing suit etc, stick the rest into an rrsp make an extra 20% on tax savings( the 1000 you spent on your kids, yourself and your new girlfriend) then forget about it, sleep better at night knowing you are earning income from it, carry on with your life as it was. Congratulations on saving such a large amount in a short time celebrate that.