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Home > Its possible to not have car payments.

Its possible to not have car payments.

December 16th, 2010 at 05:29 pm

For the year 2010 the average car payment was $492 over a period of 63 months. To me that just seems crazy. I can think of a lot better things to do with $492 a month beside put it into something that drops in value like a rock.

Lets say you were to take that $492 a month and save it up for a year. You would have almost $6000. Don't you think you could buy a pretty good used for car $6K? I believe you could.

A brand new car will lose 60% of its value in the first 4 years. That doesn't seem like a very wise purchase to me. If you buy a car that is at least 2 years old its already taken a majority of the price hit. And you can get a much better deal.

For example a car that costs $30,000 will be worth only about $12,000 in 4 years and you will still owe around $6,000 on it.

Try taking $500 a month and saving it for a year and purchasing yourself a good used car for cash. Your going to get a much better deal.

5 Responses to “Its possible to not have car payments.”

  1. Ideas Says:

    I wholeheartedly agree Ryan. My dad used to tell me that NOT having a car payment was the equivalent of getting a large COLA each year. I tend to agree.

  2. ltj2010 Says:

    I have no had a car payment in 2 years and it feels great.

  3. Ralph Says:

    You are probably preaching to the choir here! While I LOVE new cars (who doesn't?!), the depreciation and interest hit if you can't afford to pay cash is really not worth it. I haven't bought a new car since 1999, and it really hurt me to do it then! I am happy to report that 1999 vehicle is still going strong - with good maintenance it seems like new to me. My latest two purchases were a two year old car and an 11 year old car!

    The only problem will be the shock when I finally have to shell out for another car. And of course there is the trauma of wondering if you are buying a lemon when you buy used. It is especially bad for those of us who lavish care on out cars.

  4. Jerry Says:

    I know people who buy a new car every two years, and I can't imagine dumping that much money into car payments and insurance. Nice cars don't have to be new to lead to a nice ride...

  5. ltj2010 Says:

    I couldn't agree with you more Jerry. I have had the same car for over 10 years and I love it.

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