The truth is, on average, that new car you financed will lose 20%-25% of its value in the first year. It will continue to lose approximately 10%-15% of its value each year after that until it is basically worthless.
Since you’re already paying $400 a month for your vehicle, keep in mind that the air conditioner will go out – right after that factory warranty expires. Do you have a few hundred extra dollars lying around for that repair or will it go on the credit card?
Another game they like to play is to draw your attention away from the list price and have you focus on the monthly payment. They want you to ignore how much you are actually going to pay over those 60 months and instead focus on how much you are “only” going to pay each month.
If you took that $400 a month and saved it for a period of 20 years rather than spend it on new vehicles, you would have saved $96,000. Over a 20 year period that may not seem like that much money.
- Find A Vehicle In Your Price Range
- Vehicle History Reports Are Worth The Money
- Consider Taking The Vehicle To A Mechanic
- An Ugly Car May Be The Perfect Fit