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Congratulations on paying off your car loan. Maybe you were worried that the car would be scrapped before the loan was paid off, but your car is not that bad. You have taken a big step ahead in finance. What should you do now?
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Follow these simple methods and you will never have a car loan again!
- 1. Keep driving old cars. Maintain the old car. You also want your old car to last for many years (if you haven’t said your car is your favorite recently, you can say it now).
- 2. Adhere to the deposit of automobile installment. what!? Deposit the auto deposit into the savings account. Save it to buy a new car.
- 3. Buy a “new” car. With cash and the money for selling used cars (as we all know, used cars are depreciating day by day), you can buy the car you want, and you can comfortably drive the car for many years (even a second-hand car).
- 4. Don’t lend. Never buy a car on loan. If you only have $5000 in savings, and you sold $5000 in used cars, you can either buy a used car worth $10000 or save more money to buy a car.
- 5. Continue to deposit the auto payment. what!? I know it has been mentioned before, but you have just bought a beautiful second-hand car with cash, and you may feel that you don’t need to save the car deposit any more. Don’t stop. Continue to deposit the auto payment into the savings account every month. Within five years, you will have the money to buy a beautiful used car or a new car that you can afford.
- 6. Don’t lend. You’re beginning to understand the pattern, aren’t you? Now that your car loan has been paid off, you don’t need to borrow money to buy a car. Restrain yourself from buying cars that cannot be paid with enough cash.
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Let’s use numbers as an example. If your car payment is $500, you can save $12000 in two years – and you can earn interest. If you need to pay off your new car loan in five years, your old car will last about seven years, and then it will still perform well. The old car may be worth $10000. You can buy a car worth 22000 dollars. Yes, it may be a second-hand car, but it may be very new. You can drive for another five years. In five years, you will have $30000 in savings and interest, and $10000 in used cars. You will be able to buy an equally beautiful car – or a more beautiful car than the one you bought five years ago – and still buy it with cash! Insist on saving $500 per month for your car, and in seven years, your neighbor will praise your car when you drive home.
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However, perhaps when you use your hard saved savings instead of bank loans to buy a car, you will lack interest in famous cars and feel that your savings will be used elsewhere. You have children who want to go to college. You want to retire. By following the above methods, you will control your accounting life and create a better life for your family.