Thursday, October 13, 2016

The New Car

Yes, we all love a new car. But is new worth it?  Most of the time, no. I found my van on a dealer lot with 8,000 miles on it. It still smelled new. And it was the current model year. But I saved $10,000 over a brand new one. That was 2009, and I am still driving the same van. It's been paid off for 2 years. I've been making the car payment to myself in the hopes of having cash to pay for the next car with no need for interest.

And let's talk interest.  Car dealers will loan almost everyone money for a car.  Be careful.  Shop your loan.  Check with your bank and credit union.  You may even want to shop for interest rates online.  Just remember, paying interest is that much money you don't have to save.  If you could eliminate interest, you would be able to save every cent you are no longer paying in interest.

It's truly about discipline. A friend once told me that to reach any goal you have to want your goal more than you want the immediate gratification of something else.
And so, if you want financial stability, you have to want it more than you want to buy ____.
I choose not to drive a new car.  Who cares anyway (well, besides my own kids who want me to have a sports car, regardless of the fact they can't fit in it)?  My identity is not defined by my car.


4 comments:

  1. Fabulous advice! So what if my.credit ain't so great but I need a vehicle like now?

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    1. I'm sorry I just saw this. I would recommend building your credit before purchasing a large ticket item. If you are desperate, find the least expensive used car you can. Shop credit rates (check credit unions and banks, as well as checking with buy here/pay here places). Shops for functional, not what you want. I want a Mercedes but have to settle for something much less expensive.

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    2. Because of how dealers do warranty offers on used cars, it is worthwhile to shop used lots from dealers. Personally, I wouldn't consider anything over 100k miles. In your situation, I'd go small and fuel economical.
      Look closely at your monthly budget and see how much you can afford. I don't recommend financing a used car for more than 3 years, as you may wind up with repair bills prior to having it paid off.
      And if repairing costs less than buying one, repair. It's cheaper in the long run.

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  2. Fabulous advice! So what if my.credit ain't so great but I need a vehicle like now?

    ReplyDelete