Riding Until the Wheels Fall Off

Have you ever heard someone say they're going to drive their car until the wheels fall off? While we know good and well that it's just a figure of speech, it makes great sense.

Automobiles are non-negotiable for most of us; we need them to get from point A to point B. That doesn't mean we need new ones every couple of years. A car note does not have to always be a part of one's life.

According to Edmunds,
 On average, a new car loses 11% of it's value the moment you leave the lot.
How crazy is that? So while some may consider their car to be an asset, in all actuality it is nothing more than a huge liability that loses it's value every day. The value of a car almost in all cases depreciates rather than appreciates.

This means we must appreciate our cars for just what they are, a necessary expense. This means it's important to be selective and thoughtful when making a car purchase. Look for a reliable vehicle, that has what you want and need, that you can afford. You don't want to buy too much car or too little car.

Too Much Car

Too much car is a car that costs way more than you can really afford. It will likely take a long time to pay off and costs you thousands of extra dollars in interests.

Too Little Car

This describes a car that you get out of need without much research or thought. It probably isn't reliable or is missing some important features that you desire. It'll be a car that you will end up being upside down on the loan (owing more than it's worth) then trading it within a year or two of purchase which puts you in even more debt.

Just Right

You really want the car that you've researched, planned for, and saved for. Then once you get it you keep it. This car you'll pay off in no more than 4 years, and then you're FREE! No car note, you'll take great care of the car and it'll take great care of you. You will go years without paying a car note and have more money to put towards other important things in your life.

Driving a car to the wheels fall off means getting the full value out of this depreciating liability. That means not going from car note to car note just because. It means accepting that it's okay not always have the latest and the greatest.

A car is a necessary expense for most of us, but it doesn't have to own you. Buy Just the right vehicle to fit your needs and your budget. You'll thank yourself later!