Free Car Payment for Automating

My mom always said to me "Nothing in life is free" and I always agreed with her.  However, there are some things that do come damn close to being free!  Last month, my dad informed me that a person from a bank had left me a message on the house phone about opening up a checking account.  I blew it off because my current checking service was fulfilling my daily needs.  A few days later, the bank somehow obtained my cell phone number and offered me a deal I could not refuse.

I already had a vehicle loan account with this bank and they wanted me to open a checking account.  Every month I drop a check off at this bank and the teller asks me why I do not have a checking account with them.  I usually reply with some sort of excuse about how I don't mind manually paying it every month and how I am happy with my current checking account.

It is funny how $342 in free money can easily persuade you!  All I had to do to receive one free car payment was open up a checking account, set up automatic direct deposit, and set up an automatic bill pay every month for my vehicle loan.  The only catch here was that they would deposit the equivalent of one free car payment to me by February of 2010, pledging my loyalty to them for a minimum of a few months.  This is a no brain-er in my books.

Every pay period, I have $200 from my paycheck deposited into this new checking account and on the last day of every month, $400 is transferred towards the vehicle loan.  No other strings attached.  No contracts.  I looked for any other types of fine print and, so far, have found nothing.  So far it is not resembling a free credit report that is not too free. 

This is the first time I have automated my finances and I have avoided doing so for a long time, probably because of my fear of commitment (don't tell The Fiancee).  Maybe this is step one in the right direction, although it would be easier to automate everything if I did not have the Evil Sallie Mae in my life or a minor Credit Card problem.  One step at time.  Right now I will take this FREE money a run.

Cars Make Us Go Crazy

Many people have always stated that cars are the worst investment known to man. There are some that don't even consider a car an investment, after all, the moment you drive that baby off of the dealership's sales lot, it immediately depreciates in value! I can't think of anything else that loses value the moment you purchase it?

I for one fall into the group of people that feel that automobiles are guaranteed to cause stress in your life. My current car is beginning to drive me to the psych ward, as I am starting to tell myself that I am hearing noises coming from underneath my ride.

A little background on my car:

• It is a 2003 Mazda6 with approximately 85,000 miles on it
• I bought it certified pre-owned in 2006 with 22,000 miles on it
• I have a monthly car payment of $342 with about $6,500 left on it, but I pay $400 every month and at this rate it will be paid off by December 2010
• I have spent $1,500 this year on maintenance to the car (Engine coil problems, gas tank valve replacement) and $400 on brakes (expected costs)
• I just bought new tires in March that totaled $475
• The car is yellow, fast, and the sound system is banging

Over the last few months I have began to hear a very odd noise while the car is driving. The only way I can describe it is that it sounds like the creaking noise when you walk on old hardwood floors. Sometimes it is very audible and then there are other times that you do not hear it at all. I fear the worst that something is wrong with the frame of my car or something axle related underneath. My dad had our local mechanic take a look at it and could not hear any noise when driving it.

The car itself has a Kelly Blue Book trade-in value of $6,300, so if I did decide to trade it in it would knock down the price of any new/used car I would want. However, there is still the issue of the loan that I have yet to completely pay off that is acting as the thorn in my side. I really did mess up big time by not paying the car of quicker when I had the chance (Like when I BOUGHT IT!), but that is a subject for another post.

What are my options? Look for something else? But then I will be taking on an additional loan to finance that car since I do not have the cash to pay for one fully. I could try and sell it privately to pay down my current car loan, but then I will be stuck with a new loan since I will need a method to commute to work.

Every time I sit in my car I have this little premonition that it is just going to fall apart in the middle of the street like this video. If that does happen, I will be stuck with paying down the old loan as well as financing a new ride. Any mechanics out there? I need to get the car diagnosed properly first and evaluate whether there really is a serious problem. Once that is done then I can make a move with my taxi cab and figure out the next step. It would be pretty ironic if I end up being one of those people that instantly lose value the moment I drive a new/used car off the lot, hopefully my next car won't put me in a straight jacket like this one.