Trading the car in:what makes a financial sense?A lot of people are trading their cars in every 4-5 years.A car payment, stretched over 5-7 years, is not uncommon.
Unfortunately, the situation, known to dealers, as "upside down"is not uncommon either. It means, that the person owes for his/her car more, than the car worth.
If the person keeps trading cars every 4-5 years, there still 2-3years of payments left, and the financial situation is just gettingworth...
How to avoid the situation like that?
A lot of financial experts agree that maintaining your presentvehicle makes much more financial sense. Contemporaryvehicles are more reliable and, with proper maintenance, canserve reliably`for 8 years or longer. After the car is paid off,you can save about $2500 per year, including repairs,maintenance, license, registration, taxes and insurance.
That's what we call "Return on Investment"....
If proper maintenance was done over the years, a repair billfrom time to time is a "drop in the bucket," compare to theregular monthly payments for the car. If a car was paid offduring the period of 5 years and has survived another 4 years,it's the savings of $10,000,
Nice downpayment for the new vehicle, right?
Let me give you an example. When I've purchased my 1994Toyota Camry, the car was two years old and had 27,000 miles.Five years later, it was paid off. For four years I am enjoyingnot having payments on my car. Except for the regularmaintenance, I didn't have any unexpected breakdowns andcar is still very reliable, taking me and my family where we wantto go.
As you can see, I am preaching from my own experience.It's not difficult and it can be done!
About the Author
Mr.Naum Levinson was born in Eastern Europe.
He holds a Masters Degree in Mechanical Engineering, specializingin automotive design.
He has over 35 years of experience in vehicle research,development, maintenance, and repair.
On his website www.best-auto-repairs.com, he shareshis life experience with readers, and stresses the pointthat the best repair is a preventive maintenance system.
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