Over the past several weeks we have been talking about car payments and how to avoid them. We’ve discussed the benefits of being without a car payment, the importance of keeping up with routine vehicle maintenance, and the real hurdle of preparing for the unexpected in terms of vehicle replacement. Now let’s talk about how to plan for a vehicle purchase in such a way that you are able to buy without remaining in a cycle of debt and car payments.
In our last post, we talked about the importance of vehicle maintenance in helping prolong the life of your vehicle. However, there are times where routine maintenance simply won’t matter. Major engine damage, theft, or accidents can happen at any time, and when they do, it can throw a wrench in your plans, and that assumes that you have a plan to begin with!
In continuation of our series on avoiding car payments, I wanted to talk about some of the important things we have had to keep in mind as vehicle owners, particularly when owning slightly older vehicles that we’ve bought with cash. In this part, we will talk about the importance of vehicle maintenance. If you missed the first part of our series, you can catch up here.
My wife and I abhor car payments. When we had been married just a little more than two years, we decided that we were financially sound enough to purchase a “new” vehicle. In this case that meant one that was already 3 years old, but it was certainly new to us!
Do a needs assessment. Look at the vehicles that fit what you need, not simply what you want. Review your budget. That means you have to have one! How much can (and should) you spend monthly including gas, payment, insurance, and maintenance?
Buying a car is a stressful event. Most people don’t get near enough experience doing it to be comfortable, and short of your home it is the largest expense most people have. So how should you do it? How can you get what you want while securing the best deal? We are going to break down the steps and get you through it, and when we are done, hopefully you’ll feel a bit more comfortable with the process.
In America, we like our cars. We like them so much that the average car payment is $503. The average loan term is 68 months. Did I say we like cars? I meant we like car payments. For most, a car payment is just the normal way of life. Most people don’t even question the idea of having one. But what if you could have a nice car with no payment? Wouldn’t that be worth pursuing?
