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23 Feb 2008 07:48:05 | Naum Levinson
Trading the car in:what makes a financial sense? A lot of people
are trading their cars in every 4-5 years. A car payment,
stretched over 5-7 years, is not uncommon.
Unfortunately, the situation, known to dealers, as "upside down"
is not uncommon either. It means, that the person owes for his/
her car more, than the car worth.
If the person keeps trading cars every 4-5 years, there still
2-3 years of payments left, and the financial situation is just
getting worth...
How to avoid the situation like that?
A lot of financial experts agree that maintaining your present
vehicle makes much more financial sense. Contemporary vehicles
are more reliable and, with proper maintenance, can serve
reliably`for 8 years or longer. After the car is paid off, you
can save about $2500 per year, including repairs, maintenance,
license, registration, taxes and insurance.
That's what we call "Return on Investment"....
If proper maintenance was done over the years, a repair bill
from time to time is a "drop in the bucket," compare to the
regular monthly payments for the car. If a car was paid off
during the period of 5 years and has survived another 4 years,
it's the savings of $10,000,
Nice downpayment for the new vehicle, right?
Let me give you an example. When I've purchased my 1994 Toyota
Camry, the car was two years old and had 27,000 miles. Five
years later, it was paid off. For four years I am enjoying not
having payments on my car. Except for the regular maintenance, I
didn't have any unexpected breakdowns and car is still very
reliable, taking me and my family where we want to go.
As you can see, I am preaching from my own experience. It's not
difficult and it can be done!
About Author :
Mr.Naum Levinson was born in Eastern Europe.
He holds a Masters Degree in Mechanical Engineering,
specializing in automotive design.
He has over 35 years of experience in vehicle research,
development, maintenance, and repair.
On his website www.best-auto-repairs.com, he shares his life
experience with readers, and stresses the point that the best
repair is a preventive maintenance system.
His other interests are computers and travel.
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