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From Junker to Paying Cash for a Three Year-old Used Car Strategy
I picked this up from NOYB's blog on MMG. Smart lady. In theory this would really work.
From Junker to Paying Cash for a Three Year-old Used Car Strategy
I became a firm believer in buying used autos when I realized how much a new car depreciates the minute it is driven off the lot. Three year-old autos are the best buy, because they usually depreciate more than 50% of their original sticker price and are still in very good condition. Check out eBay autos!
1. Buy a junker if that’s what paying cash will get you. As an example, let’s say you pay $1,000.00 for this car. Maybe even $500.00.
2. Put money in a savings account just for automobile purchasing until you have $2,000.00. Let’s say you can save $500 a month. You will drive the junker for four months.
3. Find a good used car for $10,000.00 and put down $2,000.00. Finance $8,680.00 for three years at 10% or less interest. Your payments should be about $280.
4. Put $300 a month in your savings account and drive this car for three years. At the end of three years, you will have $10,800.00 in savings plus interest.
5. Three years down the road, you will need to purchase another used car. Find a good used car for about $10,000.00 and pay cash for it. No financing, no payments!
6. Put $600 a month in your savings account and drive this car for three years. Three years later, you will have $22,400.00 in savings plus interest.
7. After six years you may have enough money to pay cash for a very nice three year old car in good condition that you can drive for five years. At this point, you will be able to put $600.00 a month in savings for five years and you will have $36,000.00 plus interest. Every five years you will be able to buy a three year-old used car in good condition or you may have enough money to buy a new car!
You may not be able to save as much as the dollar amounts I have used above. If you can put more in savings, then by all means, do so. If you can’t save that much, then save as much as you can. You will still get there. It may take a little longer.
From Junker to Paying Cash for a Three Year-old Used Car Strategy
I became a firm believer in buying used autos when I realized how much a new car depreciates the minute it is driven off the lot. Three year-old autos are the best buy, because they usually depreciate more than 50% of their original sticker price and are still in very good condition. Check out eBay autos!
1. Buy a junker if that’s what paying cash will get you. As an example, let’s say you pay $1,000.00 for this car. Maybe even $500.00.
2. Put money in a savings account just for automobile purchasing until you have $2,000.00. Let’s say you can save $500 a month. You will drive the junker for four months.
3. Find a good used car for $10,000.00 and put down $2,000.00. Finance $8,680.00 for three years at 10% or less interest. Your payments should be about $280.
4. Put $300 a month in your savings account and drive this car for three years. At the end of three years, you will have $10,800.00 in savings plus interest.
5. Three years down the road, you will need to purchase another used car. Find a good used car for about $10,000.00 and pay cash for it. No financing, no payments!
6. Put $600 a month in your savings account and drive this car for three years. Three years later, you will have $22,400.00 in savings plus interest.
7. After six years you may have enough money to pay cash for a very nice three year old car in good condition that you can drive for five years. At this point, you will be able to put $600.00 a month in savings for five years and you will have $36,000.00 plus interest. Every five years you will be able to buy a three year-old used car in good condition or you may have enough money to buy a new car!
You may not be able to save as much as the dollar amounts I have used above. If you can put more in savings, then by all means, do so. If you can’t save that much, then save as much as you can. You will still get there. It may take a little longer.
posted by Karin @ 3:07 PM
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