June 22, 2013
The automobile is a wealth depleting asset. How can you reduce this effect? Example?
The automobile is a wealth depleting asset. How can you reduce this effect? Example?
Get away from the monthly payment mentality, don’t just show up at a car lot to “look around”, pay cash for your cars, buy an older car (avoid new cars), research the vehicle you are interested in, prepare a savings plan to buy the vehicle, buy from a private party (if at all possible), take the vehicle for a test drive, take the vehicle to a trusted mechanic, add up the problems on a negotiating worksheet and subtract the cost of fixing them from your asking price, be willing to walk, don’t try to screw someone, and detach your self-image from the automobile.
Beautifully stated, Katherine. Here is a bit more. The fewer vehicles you go through in life, the better off you will be. Buy wisely and as infrequently as you can. Drive that car for a LONG time. This will be easy when your self-image is detached and difficult when it is not. Self-image is the overarching theme here. When you totally detach who you are from that hunk of metal, you are FREE.
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