Guest Post by Eric Peters
People used to actually buy new cars – as in paid for them, when they acquired them. Money and title changed hands. The car was theirs. Now people finance cars, which – interestingly enough – is probably the main reason why very few people can afford to buy a new car.
Or a used one, for that matter.
Continue reading “Why Car Payments Are Always a Bad Idea”
Guest Post by Eric Peters
One of the reasons – probably the main reason – people buy a new car is because their old car has gotten to the point that it is costing them too much to keep. Repair bills vs. monthly car payment bills. You reach that tipping point in a vehicle’s life when it makes more sense to spend money on a new car than to keep on spending money on the old car.
But what happens when that dynamic reverses?
The average monthly new car payment is currently an almost unbelievable $525, according to Experian – the credit reporting agency. And the average new car loan is now six years (72 months) long.
Four months of payments out of those 72 months is more than $2,000.