“To own small or pay big.”
When making the decision to purchase a car, this is a financial decision that must take time. Should I buy a used car outright? Or, should I have car payments over time? And to me, it makes sense to own one outright so you don’t have the financial burden. But to others, they would like a newer car with payments each month. Now, you might say to me, what about the car troubles you tend to have with a used vehicle. And that is true because you will have more troubles with a used than a newer one. And the newer one can be resold for more than the used one. The used one might have to go to a junk yard when it’s all said and done. Yet, which is the better financial decision?
The reason you might buy a used vehicle is because it gives you the ability to outright own your car without the payments. And even if it starts to give you problems, you spend less money repairing then buying new. Buying a $3,000 then putting into it another $2,000 fore repairs is worth it rather than making payments on one that cost $40,000. Because in the end, you will pay more than the $40,000 car. And by the time you’re done paying it off, it will be outdated. Money you save from buying the cheaper car, you can save. And by the time the person is done paying off their expensive car, you will have saved enough money for the newer car outright. But there are the benefits of owning that new car.
Something that is new, is not only ecstatically pleasing, but you also have less wear and tear that comes with the old car. Buying that new car, you have no mileage, besides the extremely low mileage that comes with the dealership having to move it around on the lot. It’s an investment that typically last longer and presents less of a problem than buying the used vehicle. And a plus for the newer car is that once you are done with it, there is higher trade in value for a better car. You’re never going to get full value, but you will get more than the car that is twice the age.
America is a nation where we like to run out and buy new things without even thinking what we can afford. We get that $75,000 a year job, and then think, “Hey, why not buy the new car for $40,000. That is thee craziest idea you could come conjure up. You never buy a car that much money, especially if it’s half your household before tax income. You should buy things like cars that have no value at a lower price. Homes are the only investments you make that are for spending a little more. Otherwise, you’ll have different bills overt the course of a month that are quite unnecessary.
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