DON’T INCUR NEEDLESS DEBT!

I drive my cars to at least 100,000 miles and if I can, my goal is 200,000 miles. Now I might not have the new, jazzy model that everyone is driving or the new convertible that the men in their 50’s are all driving with gold chains around their necks and earrings!

But guess what? I don’t have a monthly car payment. I bought a 2002 Mercury Sable that had 25,000 miles on it. I do a lot of driving in my business and I just past the 200,000 mile mark. Still runs good and looks good too!

I have a friend who bought a pickup truck for over $50,000 and his monthly payment is just under $1,000/mo. No way! It’s money down the drain. Vehicles are depreciating assets that depreciate very fast.

If it comes down to putting in $1,500 of repairs in your present vehicle versus buying another vehicle for $25,000, ask yourself which is the smaller number and you have your answer.

Here is what a consulting firm recommends about keeping your present car or buying:

“New car payments are the decisive factor. Even though the new model has a much greater trade in value after four years and you save money on repairs and maintenance, the monthly car payment more than counterbalances the other factors.” In other words, the car payments eat up any savings you’d have.

Since a car is not as asset but is taking money out of your pocket, even if it is paid for, it makes sense to take good care of it-inside and outside. I have ridden in other people’s cars that were so filthy that I would not even want a pet in it.

Again, don’t try to impress friends with a new vehicle. It’s too expensive.

Jacques
CreatingWealthThatLasts