Pay off your car NOW!
This isn’t about getting a car loan. I am not going to tell you all the ways you can take out a loan or even talk about bank loans and the crazy interest. The thing that I am going to talk about is the true danger that sits behind that car note you have. I mean seriously, have you put any thought into the money you are pouring in a depreciating investment. A car is the only thing that we take such a big loan out on when the item is actually going to lose the amount we put into it. It is like a true moment where money is bleeding out of our investment. If you have ever wrecked your new car and talked to the insurance, I am sure you know what I mean.
I was looking at used cars near me in Houston when I realized how much better it is to look at a used car that I could pay off in a few months to a year. Money isn’t the issue. We all have retirement funds. We all have savings. We have investments. I could spend the money on a brand new car that would take up to ten years to pay off. However, I don’t really know what the future brings. Yes, I have a plan. Plans change. Things happen. Life happens. If I lost my job I could live off my saving for a while, but it would stretch a lot further if I didn’t have a car payment that was more than my mortgage every month.
Oh the Possibilities!
Think about it. If the stock market crashed, you would lose all of your investments instantly. Assets could possibly be frozen. Think about how you would stretch just your savings and just your bank account right now if you had no money coming in for the next several months to a year. Would you be able to say then that having the latest model car is going to be in the budget. If you could pay off your car note, you could put that money towards maintaining a lifestyle. If you went for a used car rather than a brand new one, you could potentially make your money last you for over a year.
Just Think About It
Yes, we all love our ride. The amenities might be hard to live without, except, you don’t have to live without them. Surround sound can be added. On star can be added. Hands free comes in devices we can plug into our car outlets. You don’t have to ditch anything except the high note. You know what else you ditch when you ditch the high note? You ditch the high insurance premium as well. Sounds nice, doesn’t it. It is completely possible.
Just think about it. You have all these measures set in place so that should the unforeseeable happens, you aren’t completely messed up. You should consider whether or not you could get out from under your car payment by either paying it off early or trading it in for something you can pay off.