Financial Freedom of Used Cars

Is your car a “wealth slayer”?

A car payment may be killing your financial freedom. Experian reports that the average monthly payment for a new vehicle is over $700 – and $500 a month for a used one. Financing is now available for 84 months. Let’s look at the numbers. Suppose you buy a new car when you’re 25 and you finance it at $700 a month. If you trade it in at the end of the contract and keep financing one for 30 years at $700 a month, it’ll ultimately cost you $252,000. Now suppose you save that $700 each month. In 12 months, you’d have $8,40o without interest. In 2 years, you’d have $17,000, and in 3 you would have saved $25,000 plus interest that you could put towards a dependable car.

When you need a good used car, set a budget and abide by it. By restricting yourself to used car purchases, you could steward the cost of a car payment in ways that actually earn you money. You could build a sizeable Emergency Savings Account. Then, participate in a work-sponsored 401K. You could possibly start a family bank to help your children! It’s time to think long-term and to be practical! Cars depreciate unless you’re investing in rare models. They’re simply a mode of transportation. Buy a dependable model and be content. Do the routine maintenance and be grateful for what you have. Steady plodding builds prosperity and grants will grant you freedom that few in America are enjoying.

Are you burdened with car loans and credit card debt? Christian Credit Counselors will help. They’ll create a debt management plan specifically for your needs. For more information call the Crown Helpline: 800-722-1976 or visit online at crown.org/ccc.