Americans spend too much on their cars. This is because most Americans who buy cars use financing to make the purchase possible.
This means that they borrow the money to make the purchase, then must pay it back - usually with interest. But a car is a consumable in that it loses value. Unless you are buying a classic sportscar, you’ll end up with something worth less and less over time.
A car is conveyance, meant to get you from place to place. And pretty much all cars depreciate. It’s not smart to pay interest on something that is worth less and less, you end up wasting money. Follow these rules instead to make a wise purchase the next time you need a car:
Don’t finance. You are probably going to want more car than you can afford. At car dealerships, there is a loan officer there ready to help us get this car anyhow.
It doesn’t make a lot of sense but it doesn’t have to. Buying a car is often an emotional thing. People get very attached to their cars, they get proud of their cars, and they want cars that are nice and shiny and new. Because of these emotional reactions, we can be talked into taking out loans with horrible terms and extreme interest rates. We pay much more for our cars as a result.
Never lease a car. Leasing a car is like renting an apartment. You are paying to use something but not toward owning it. Plus, dealerships figure you won’t take care of a car you aren’t going to own so they add more cost to the lease to cover damage.
When you lease you have nothing at the end of your lease period to show for all of your money spent. It’s very poor value.
Never buy new. When you buy a new car, you are paying for the car but much of what you pay is for the ‘new.’ The minute you purchase the car and drive it off the lot the value drops very sharply, some say by up to half. This is because it can never be sold again as new. Your purchase loses value very quickly and if you need to resell it you will take a sizeable loss.
Refer to various other articles written by this same writer covering subject matters like jean shorts for men and mens white denim shorts.
Tags: ADVICE, auto, auto insurance, cars, cash, family, finance, home, insurance, investment, lifestyle, loans, men, money, travel