Smart Ideas: Automobiles Revisited

Buying a Car – Why Used Is Better Who doesn’t love their cars. We probably even love them too much that we judge others and are judged by others based on what we drive. We put a lot of emphasis on driving only the best that we’re willing to buy anything and pay for value that drops like a bag of rocks. If you are searching for a way to become penniless and remain that way, stop thinking and just grab that new car at the dealership. If you want to be smart about it, better. Let’s start from the top. For the majority, a car is the second priciest item they’ll own in their lifetime (next to a house). Because you’ll likely spend tens of thousands of dollars to purchase and maintain a vehicle through the years, you have to be careful about what you buy and how you buy it.
Discovering The Truth About Cars
If you have no contingency fund and are deep in debt, think a dozen million times before you buy a car. Cleaning up your financial mess should come first. Until you’ve wiped out your debt, be happy to drive a beater car. The moment you are debt-free is the moment you can upgrade.
Finding Parallels Between Automobiles and Life
If you buy a new car, you will lose between 60% and 70% of its value on the first four years; don’t buy a new one if you want to save money – and this is on depreciation alone. Buying a $30,000 ride and selling it four years later for $13,000 isn’t smart. Technically speaking, only those who have net worth of at least $1 million should buy new cars. First rule of buying a car is, always pay in cash. Avoid car loan payments at all costs. Paying $400 for a car is ordinary. If you can do that, then you can also save the same amount monthly. Keep $400 for 10 months and you can get a $4,000 used car with zero debt and interest. While we’re on the topic of payments, don’t fall for the car lease trap. Apart from mileage, fees and surprise fees, it’s the priciest way to own and operate a vehicle. After you’ve saved the cash and selected a set of wheels you really like, do not allow yourself to be emotionally attached to it. Be objective and walk away. It’s just an automobile, and if the seller thinks you are desperate to buy, you won’t get a nice deal. Have your mechanic (or a friend or relative who is an expert) check the car’s condition. Quietly take your time examining the vehicle. Allow the seller to bring up the price. All of this may sound quite basic, which is exactly what it is. Buying a car need not be complex. Buy used and with cash. You will thank yourself later.