Cars

Let's get one thing straight: Cars are not investments they are depreciating assets - which means they lose value over time. For example, when someone buys a brand new car as soon as they sign the papers and drive off the lot they lose up to 2k dollars or more instantly!


Furthermore, cars require maintenance like oil changes, air filters, plugs and wires etc.. Also, the more expensive of a car the more your insurance cost will be. And if you have a nice new car you will also be spending money on it by trying to keep it clean all the time. This also cost more money. Some of the newer cars require oil changes that cost quite a bit more than the older vehicles.


So what is one to do? Well, the wise choice would be to find a good USED car. Used cars cost less and you can pay it off much quicker than a brand new one. If you get really ambitious and want to make the best most WISE decision get a much older vehicle that you don't care if it gets dings and dents. Who cares if it gets washed (less money spent)? Besides, don't let a car define who you are. Until you have that car paid off the car owns you anyhow.


One thing to keep in mind about brand new cars and their warranties is that they HAVE to be maintained or they will not honor its warranty. I once had a 2002 Hyundai Accent that I bought brand new - big mistake. Although it had a 100k mile warranty they didn't tell me that I had to keep records in order for the warranty to remain intact. At 76k miles the transmission went out 9.5 hours away from my home. It was a nightmare dealing with the dealership. They wanted me to fax all my records to them in order for them to fix it. Luckily I did have some of the records. But, the cost of getting the maintenance done is NOT CHEAP! Keep that in mind. Dealerships love to charge an arm and a leg for what they do.


Making good decisions comes down to being informed. Don't have "tunnel vision" by thinking only about the monthly payment. The only way to make a good decision on a vehicle is to research everything you can about it. How reliable it is, the insurance cost, maintenance cost, etc... Then and only then can you be wise in what you purchase.


After the Hyundai bit the dust I wised up and bought a 95 Toyota Corolla. It had hail damage so I got a really good deal with low miles. I have yet to wash it. It runs great and my insurance is only 26 dollars a month. It gets me to work and back and that's all that matters. Plus it's a gas saver with very low maintenance.


Toyota's have the reputation of being great cars. This is why they hold their value much better than other vehicles. Yes they are more, but most of the time in life you get what you pay for.  


Sometimes the best choices aren't the most popular ones. But, to become wise it pays to have an anti-consumerism mindset. My car doesn't define who I am. And the coolest part of all is that it is paid for!     

I seen this video on youtube by Mike and Lauren and just had to share. AMEN to everything he said!!!