We all like cars. But unfortunately, too many of us buy cars we can’t afford. I have written in earlier posts about how it’s stupid to try to keep up with the Joneses. Especially when they are trying to keep up with you as well. Buying a car you can’t afford is one of the worst ways to do this. Instead, buy a used car.
Now don’t worry. When I say used car I’m not talking about some 20 year old hunk of junk with a quarter million miles on it that won’t even start most mornings. I’m talking about a “slightly pre-owned” car that is only 2-3 years old and that has less than 25,000 miles. They’re much cheaper and still come with a great warranty. A brand new car loses about 30% of it’s value the second you drive it off the lot. Let someone else pay the depreciation.
In many cases you can get a great deal on a car that’s only a year old. Why? Because every year dealerships have to make room for their new inventory. To do that, they have to get rid of last year’s models lickety split. They are so desperate to do this, they’ll give you a great deal on a car with practically no miles. It’s also easy to find great miles on a low mileage car that’s only a year or two old that someone else was foolish enough to lease for a while. They paid a fortune to do that, now it’s your turn to do just the opposite.
Next month I’ll show you how to never have a car payment again and eventually drive free cars for life. Until then, check out my website at http://www.johnfloyd.com.