Meh, if youre worried bout that, better never use your cell phone.
They're a constant collection device
Should I buy a new car?
- Thread starter SeaEagle
- Start date
They're a constant collection device
Meh, I believe in the "if you have to ask, you can't afford it" mentality with cars. At this point I'm lucky enough where I'm willing to enjoy my money a little bit on vehicles that I spend a lot of time in.
But if I couldn't afford it I'd say spending money on a car and having a note is 100 percent a surefire way to stay middle class or poor.
Think about a 800 a month car payment vs a 300 month and do the math on 10 years of those contributions in the market vs 2 cars.
Just some quick math.
$500/mo for 7 years (new avg car loan) invested into the market giving 8% return (very conservative, I've been getting +17% the last few years) is $66,567.07.
If you do it for 10 years as Choppa said, it's $108,074.56.
And this doesn't even factor in the devaluation of the car over time.
I am lucky enough not to have to own a car. I haven’t owned a car in 10 years. Where I live in my city I’m in a well located area and just go everywhere by bicycle. I get some exercise and save money.