New car!

I just sold my old Toyota Camry, then purchased a used Lexus. I made money.

I'm new to YNAB and I'm not quite sure how to record these transactions. Do I add the sale of my old car to money to be budgeted and create a new category for Auto Purchase? It seems strange to create a new category then use it only once. Maybe I should put the new car in the "Stuff I Forgot to Budget For" category? Is that category best for one time purchases? Thank you.

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    • Khaki Storm
    • YNAB book topics online: https://support.youneedabudget.com/r/q5w48j
    • Khaki_Storm.1
    • 2 mths ago
    • 1
    • Reported - view

    That's up to you. You could hide the category after using it. You could also put it in a misc. category. It's up to you on how close you want to track it and find the info later. You could create a new category called Lexus and track and budget for the purchase price, regular maintenance, and repairs. Then you'd be able too see the total true cost of the car over time. Just an example of how you're in control of the level of details you want. 

    Reply Like 1
  • Either bring the inflow from the Camry in as TBB or directly categorized to the new car category. The former will show the full price for the Lexus in spending reports, and the latter will show the net price.

    I would do the former, but it really is a personal call.

    Reply Like 1
  • Don't worry about creating a category for the Lexus purchase. Personally, I would start saving now in that same category for the next car purchase, say, 10 years down the road. The longer the savings term, the less of a hit per month.

    Reply Like 3
  • Hi Binary Strategist !

    Congratulations on your new car! I second dakinemaui's suggestions. Categorizing the inflow as To Be Budgeted will allow you to include the car sale in your income reports and it's never too soon to start saving for your next vehicle! :)

    Reply Like 1
  • Happy for you :)

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  • Full disclosure: you hit a pet peeve of mine. But I'm just going to point out that nothing should ever be categorized to "stuff I forgot to budget for," especially a car. "Stuff" is for setting aside money for the true expense of "Whoops, I didn't know I needed a category for that." It was invented by seasoned YNABers and taught informally on the message boards. Then the company incorporated it into the software without ever explaining how to use it, so now people think it's a "miscellaneous" category and it's not. The goal is to have a chunk of money you can WAM from when you do realize you need a new category, but you create the category first, then move money from "Stuff." Most users find that after a year or so, they don't need the "stuff" category any longer as they've captured all their regular and irregular expenses. 

    I, too, would put the car inflow to TBB, budget what you need for the Lexus in "Auto Purchase" and then use "Auto Purchase" to save up for the next car. 

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      • HappyDance
      • YNABing consistently since 2014
      • HappyDance
      • 2 mths ago
      • 2
      • Reported - view

      and to tag on to what WordTenor wrote, I would recommend that you consider taking some of the extra/difference left over and putting it in a category for car repair, maintenance, and car emergencies.  I have $3K in mine: $2K for maintenance/repair (my car is 9 years old), and $1K for my insurance deductible, just in case the unthinkable happens and I am the at-fault in an accident.

      Reply Like 2
    • eloquentz
    • Numbers Wizard (Accountant), Acoustic Artist (Musician) and Jill of all Trades (Wife & Mother)
    • eloquentz
    • 2 mths ago
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    For something like a car, I would definitely create a new category for it. If you put everything you don't have a category for to "stuff I forgot", your reports and such will be of almost no use for future planning.

    Reply Like 1
  • Thanks for everyone's responses! It was more than I expected.

    I've put sale of the old car into inflow To Be Budgeted. And I created a new category called Auto Purchase for the new car.

    I've decided to create a new  category group called Auto (or maybe it should be called Lexus) with the following categories: Purchase, Fuel, Maintenance, DMV, Insurance, and Parking. This way I'll know the total cost of car ownership. Plus, I'll reduce the number of categories in my True Expenses category group (which has 20 categories). 

    I hid the "Stuff I Forgot to Budget For" category, but I have no idea how to unhide it. Does anyone know how to unhide a category?

    Thanks.

    Reply Like 2
    • I just discovered how to unhide a category. Scroll all the way down, and there's something that looks like a Category Group called "Hidden Categories." Clicking on it allows me to unhide a category. That wasn't exactly intuitive.

      Reply Like 1
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