Monday, April 20, 2015

How to Pay Cash for Cars - Lesson 1: America's Love Affair


How to Pay Cash for Your Car

Americans have a love affair with their cars. Where else can you find a broke couple, living pay check to pay check, with two shiny, new cars in the driveway. 85% of new car buyers sign up for a six year note for an average of $26,000 at a typical interest rate of 9.6%. This means that 85% of the new cars on the street are dragging an average car payment of $475 behind them.

Your cool new car loses about 25% of its value the day you drive it off the lot. After four years, it has lost about 60% of its value. After six years, you have paid almost $33,000 for your car, which is now worth maybe $6,000. At that point the “normal” person would get car fever again, get another new car loan, and the payments just keep going for their whole life.

Next...Thinking Differently
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Brian and Lisa Petersen, lead the Financial Peace University course at Autumn Ridge Church. Many concepts like the one discussed in this article are taught in FPU. Brian and Lisa want to help you be successful with “Paying Cash for Your Car”, and welcome your questions and dialog. They can be reached at brian@vegetablefreak.com.

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