How 'You Gettin' There?

To eliminate credit card debt you need to have ways in which to save money and hopefully there have been some ideas presented that you could use. With the automobile daily in the news nowadays, perhaps we should explore buying a vehicle, after all, most people need one to get to and from work and to places in your life. If you are fortunate enough to live in a metropolitan area that has public transport, that can save a lot of money.

With a car being the biggest expense that one may make besides purchasing a home, you really should do some homework when buying a car.

*NEW vs USED - Nothing beats the feeling of having a new car that nobody else has driven. The challenge is that a new car immediately loses value the second that you drive it off the lot. Too often people look at how much a car costs per month instead of taking the time to figure out how much you will be paying over the long term. With today's financing options, you can blend in the insurance, taxes, and such into the loan. Back in the 1970s, a new car was often a three-year loan. Today, however, it is often a six year loan. You will always owe more than the car is worth usually up until the last payment. Woe is you if you happen to total the car and you have to come up with the money to pay it off.

Nowadays, I vote for used. Somebody else has already taken the hit for loss of value when they bought it new. You can always buy an extended warranty, but you really should take the time to explore the reviews of the car, research its usefulness over its life, and see what cars hold their value over time.

I drive an 11/12 year-old car. It looks nice and it serves the car's purpose: to get you from point A to point B. It is not an investment because there are a very minute number of cars that increase in value, so it is always a liability.

Always.

Sure, there are things that will wear out with a used car. We have had to replace the suspension, oxygen sensors, brakes, and tires. The costs for those (plus the loan payment) is still lower than the cost for a new car.

Use your head, have a GREAT day, and keep looking for ways to save money so that you can eliminate your credit card debt!