VIDEO | When Should You Replace Your Old Car

Published on Sep 4, 2012

When it comes to making smart money moves, our family has never been a big fan of buying a new car. Read FULL ARTICLE Here – http://bit.ly/Te3HAf – In fact, the last new car that we bought was back in 1993 when we really did the math on how much smarter it is to buy a used car that is somewhere between two to four years old versus getting a new one. While getting a new car should be a well thought out planned purchase, it often falls into the camp of a spur of the moment purchase depending on when you get in the mood. In a sound financial plan, you should begin to save for the (new) used car purchase the moment that you pay off the old purchase. If you are like me and pay for your cars in cash, you should begin to immediately build a side fund so you can pay for that next automobile purchase in cash as well. So the real question is when is the right time to replace your old car for a new one, especially if you are going to make monthly payments?

The short answer in my mind is when the cost of upkeep and maintenance on the car is becomes more expensive than cost of a payment on a new automobile purchase. Let’s breakdown the analysis a little bit further so you can do some analysis on your own. There are more details to look at than you might imagine, so make sure you compare all of these side by side before you make the plunge.

 

About the author  ⁄ Ted Jenkin @ Your Smart Money Moves

Ted Jenkin @ Your Smart Money Moves

Hey!

My friends and family all think I’m a workaholic, but I say I’m just a guy that loves to help people do better in life.

My mother is still the only one that calls me by my real name Theodore Michael, my wife calls me Teddy, but for the rest of you it is just plain old Ted.

Ever since I was a little kid, I always loved money and being an entrepreneur. In fact, I still have cassette tapes of me talking to my grandmother at the age of five and my mother tells me all the time how much I played with money as a kid…

Read More About Ted Here

Ted Jenkin is a frequent guest columnist for the Wall Street Journal and Headline News Weekend Express. He is the co-CEO of oXYGen Financial. You can follow him on LinkedIn @ www.linkedin.com/in/theceoadvisor or on Twitter @tedjenkin.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice.

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor regarding your individual situation. 

Background and qualification information is available at FINRA’s BrokerCheck website.

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