Are you one of those people who has to have a new car every few years? You're wasting a lot of money for a vehicle that depreciates the minute you drive off the lot.
A recent USA Today article mentioned that people are holding on to their cars longer. Well, finally! But did it take the possibility of a recession to make folks realize that trading in a vehicle every three years is a complete waste of money? Or is it the fact that cars simply last longer these days? Whatever the reason, this is a step in the right direction. Now, if we could only get consumers to pay cash for cars instead of finance, the debt load in America would be greatly reduced.
Problem is, the article states that while drivers are keeping their cars longer, they are also taking out longer loans. And with that they are paying for high priced extended warranties. Neither is a goog thing. My advice? Buy a quality late model used car and pay for it upfront. The salesman and the dealer won't be your biggest fans but you'll walk out a whole lot richer. Just think back on all the interest you've paid on car loans in the past.
Even though you won't impress anyone with a fancy new car every few years, you'll be proud of youself for saving interest and building wealth.
