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It can be tempting to run out and get a new car when something new comes along, or when you find out something is wrong with your car that you don’t want to fix. Though it may be tempting to buy a new car, it isn’t always the best option. Here’s why you should drive your car until it dies (unfixable). This is my number one tip for saving for a car!
Saving for a Car – Why You Should Drive Your Car Until It Dies
You Can Pay the Car Off
Let’s face it; car payments are not fun. When you have car payments, and then you try to get another car, you have the challenge of finding a car in your price range and covering the cost of whatever you have left to pay on your car. If you keep your car until it dies, you don’t have to worry about the car payments.
It is NICE not to have those car payments looming over your head. What is even better is taking what you were paying in car payments and putting it into a car fund, so you have a down payment for your next car, or maybe even be able to pay cash for it!
You Have Time to Save
As mentioned above, once you pay off your car, you have time to save all the money you would be spending on a car payment to buy a new car outright. Once you can buy a new car outright, the savings continue in a trickle effect. This means that you have even more time to save for a new car the next time to offer you many more options in the future.
No Car Payment Means Cheaper Insurance
Why not double the savings? Even if you want full coverage, your car insurance is going to be cheaper if you aren’t making payments. You see, a loan or lease on a car is a liability to your insurance company. This means they have to pay how much you owe on the car not just how much the car is worth. If you want cheaper insurance, you want to get rid of those car payments as quickly as possible.
Fixing a Car is Cheaper Than Buying One
If you think logically, fixing minor issues on your cars such as the brakes, the tires, or a leak is going to be much less costly than going out and buying a whole brand new car. Before getting your car repaired, determine how much your car is valued at, and how much it will cost to repair your vehicle. If repairs are more than the value of the car, it may be time for a new one.
How are you saving for a car? Let us know your tips!
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