Trading the Car in
Trading the car in: what makes financial sense?
A lot of people are trading their cars in every 4-5 years.
A car payment, stretched over 5-7 years, is not uncommon.
Unfortunately the situation known to dealers as “upside down,”
is not uncommon either. It means, that the person owes for his /
her car - more than the car is worth.
If the person keeps trading cars every 4-5 years, there s still 2-3
years of payments left, and the financial situation is just getting
worse…
How to avoid the situation like that?
A lot of financial experts agree that maintaining your present
vehicle makes much more financial sense. Contemporary
vehicles are more reliable and, with proper maintenance, can
serve reliably for 8 years or longer. After the car is paid off,
you can save about $2500 per year, including repairs,
maintenance, license, registration, taxes and insurance.
That s what we call “Return on Investment”….
If proper maintenance was done over the years, a repair bill
from time to time is a “drop in the bucket,” compare to the
regular monthly payments for the car. If a car was paid off
during the period of 5 years and has survived another 4 years,
it s the savings of $10,000,
Nice downpayment for the new vehicle, right?
Let me give you an example. When I ve purchased my 1994
Toyota Camry, the car was two years old and had 27,000 miles.
Five years later, it was paid off. For four years I am enjoying
not having payments on my car. Except for the regular
maintenance, I didn t have any unexpected breakdowns and
car is still very reliable, taking me and my family where we want
to go.
As you can see, I am preaching from my own experience.
It s not difficult and it can be done!
ABOUT THE AUTHOR
Mr. Naum Levinson was born in Eastern Europe. He holds a Masters Degree in Mechanical Engineering, specializing in automotive design. He has over 35 years of experience in vehicle research, development, maintenance, and repair.
On his website http://www.best-auto-repairs.com, he shares
his life experience with readers, and stresses the point
that the best repair is a preventive maintenance system.
His other interests are computers, travel, and maintaining a
healthy lifestyle. He lives with his family in La Mesa, California
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