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.