Vehicles and cars are the average American fixation second only to owning a house. Not only does a vehicle offer you with transportation, it is a status symbol of beauty and individuality. Your car sends a message about your taste and financial stability to all who see it.
Cars and other vehicles take up a great deal of disposable income in North America particularly. Most Americans own at least one vehicle; many own more. This creates a great potential for a financial dilemma, especially for those who have a low disposable income.
If we were all sensible with our finances, we would follow the following tips when getting our mode of transportation:
- Pay cash for the vehicle or car. Never borrow money to pay for either a new or used car.
- Study your budget. If you can’t afford a brand new vehicle, buy a used one that’s in good running order.
- If your current mode of transportation runs well, keep it. Never buy another car unless it’s absolutely necessary.
In truth the majority of North Americans do not or cannot follow this advice. If you really must have that car that is beyond your means, buy a used one that is in good running condition. These days all makes of cars look much the same. No one will ever know that you purchased it used unless you tell them.
Whatever vehicle or car you choose, be sure to shop around for financing and take advantage of the best interest rates. Credit unions usually have the best deals. Avoid finance companies that charge and exorbitant interest rates or you will go into a financial dilemma.
Pay your loan off as fast as you can to save on interest charges. If you only pay the needed monthly payment, the interest will cost you thousands of dollars by the time the loan is paid off. In some cases it can cost you 50 percent more for the vehicle by the time the loan has matured.
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If possible, borrow the money to purchase a vehicle from a family member or friend who can give you a much better interest rate. This will allow you to save money while you drive the vehicle of your choice.