Caring For the Car You Have
Having a nice vehicle can sometimes make us feel good about ourselves and in our own mind, creates value and importance. But just as important as having a new vehicle is taking care of the vehicle you have.
During these financially difficult times, buying a new car can be too costly and can even break us when we could simply take your existing car and have it fine-tuned. This can include making sure the engine is in perfect working order to checking out the vehicle's body and assessing whether it has dents or dings that could be repaired. A well-maintained car that is spotless can make you feel as good as a newly purchased vehicle.
Americans today are spending 15% to 20% of their take-home pay on car payments- this doesn't take into account the other costs of a vehicle like gas, insurance, tags and maintenance. Why do people spend so much to have a new car? Sometimes it is due to crafty car salesman, other times it is peer pressure. The problem is, once you have committed to a car payment, you are stuck with it- no cutting back on it as with other expenses such as eating out and groceries. You have to make the payments or let the lender repossess your car. The later is hardly an option, as you would still owe the difference between your loan balance and whatever the car brings at an auction, plus your credit becomes nearly ruined.
So what can you do to avoid becoming over your head in debt with a car payment? First, ask yourself whether you need a new car or can you make an investment in your existing car and bring it up to almost new condition. Remember how car loans work. The first part of the loan you are primarily paying the interest while the second half of the loan is applied to the principle owed on the car. What often happens though is that people will trade in their car in the middle of a loan when little has been paid toward the principle, which leaves them upside down. An upside down loan means you will owe more than the car is worth after up to three years, therefore if you try and trade it in, you won't get back as much as you owe. This is followed by the need to roll that debt into the new car purchase and the cycle starts again.
Another reason you should just keep the car you have and care for it is that cars are more dependable these days and can be driven past 200,000 miles. If you are tempted to try and justify the cost of repairs on your old car in order to buy a new car - do the math. If your new car is costing $7,000 a year or $530 a month - putting $1,500 into your car in one payment, even twice a year, is still cheaper. Most people's vehicles run fine; they just don't feel it looks as good as it used to. If this is the case, take your car into a body shop and ask for an estimate. There are new methods for repair small dents and dings in your car including what is called paintless dent repair. Such repairs don't have to cost an arm and a leg. Follow this up with having your car washed and waxed - this will make a world of difference. Last, have the inside cleaned and detailed. With just doing these few things your car will be as good as new and you will feel even better about yourself than what a new car might have to offer.
During these financially difficult times, buying a new car can be too costly and can even break us when we could simply take your existing car and have it fine-tuned. This can include making sure the engine is in perfect working order to checking out the vehicle's body and assessing whether it has dents or dings that could be repaired. A well-maintained car that is spotless can make you feel as good as a newly purchased vehicle.
Americans today are spending 15% to 20% of their take-home pay on car payments- this doesn't take into account the other costs of a vehicle like gas, insurance, tags and maintenance. Why do people spend so much to have a new car? Sometimes it is due to crafty car salesman, other times it is peer pressure. The problem is, once you have committed to a car payment, you are stuck with it- no cutting back on it as with other expenses such as eating out and groceries. You have to make the payments or let the lender repossess your car. The later is hardly an option, as you would still owe the difference between your loan balance and whatever the car brings at an auction, plus your credit becomes nearly ruined.
So what can you do to avoid becoming over your head in debt with a car payment? First, ask yourself whether you need a new car or can you make an investment in your existing car and bring it up to almost new condition. Remember how car loans work. The first part of the loan you are primarily paying the interest while the second half of the loan is applied to the principle owed on the car. What often happens though is that people will trade in their car in the middle of a loan when little has been paid toward the principle, which leaves them upside down. An upside down loan means you will owe more than the car is worth after up to three years, therefore if you try and trade it in, you won't get back as much as you owe. This is followed by the need to roll that debt into the new car purchase and the cycle starts again.
Another reason you should just keep the car you have and care for it is that cars are more dependable these days and can be driven past 200,000 miles. If you are tempted to try and justify the cost of repairs on your old car in order to buy a new car - do the math. If your new car is costing $7,000 a year or $530 a month - putting $1,500 into your car in one payment, even twice a year, is still cheaper. Most people's vehicles run fine; they just don't feel it looks as good as it used to. If this is the case, take your car into a body shop and ask for an estimate. There are new methods for repair small dents and dings in your car including what is called paintless dent repair. Such repairs don't have to cost an arm and a leg. Follow this up with having your car washed and waxed - this will make a world of difference. Last, have the inside cleaned and detailed. With just doing these few things your car will be as good as new and you will feel even better about yourself than what a new car might have to offer.
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