How ironic that people buy a “safe and reliable” car for payments, to go to work, and work very hard, to pay for the car.
Only two decades ago, not everyone was released a car payment. Basically, to be given the financing, you were obliged to verify that you had the money to pay it and, only then, would you give it in installments. Things have changed in Latin America because banks and concessionaires realized that they can greatly expand their market if they lend to middle and lower class people. Today, car payment is what defines and keeps the middle and lower class where they are. The car payment comes to eat the little money that could be saved due to all the extra expenses that it includes: insurance, traffic taxes, new car ownership and agency maintenance.
I have nothing against cars
I am only against the car taking over you. No one, who is buying or considering buying a car for payments, can say that there is no other way to buy a safe and reliable car. Of course they can buy it; if they only save that monthly fee, in a short time they would have the money to buy it in cash and without being enslaved. It is not the same to save what your payment would be as to make a monthly payment. When it should, everything is at risk. If something changes with your job, for whatever reason, personnel cuts, health, etc., and you cannot pay, you lose your car and everything you have already given. Instead, your car paid in cash nobody takes it, and if a thief likes it … that’s why we pay for insurance.
If your goal is to earn money do what the rich do
Put more money on things that increase in value and less money on things that lose value. You already know that a car, since leaving the agency, is devalued thousands of dollars. Nor is it believed to be more expensive to have a used cart. A cart that you can buy for $ 5,000, even if you put about $ 2,500 in repairs, does not compare to buying a car for $ 25,000 plus interest. Protect yourself from repairs with your emergency fund the first time it happens and add the maintenance and repair category to the budget so you are not continuously draining your emergency fund.