By the title of this blog I can tell what you are thinking. First shes paying cash for cars she must be rich, No! And this blog is not fashion. It could be.
I have a friend that I went to highschool with, Beautiful girl btw. She is nothing like me. She has a brand new car, and a 3-year-old house. A few of my friends from high school showed up with brand new cars in the pass couple of years. It hurt a little because I was doing good too, I was making money, and Aaron Had a great job. But we drove older cars, and Still lived in our one bedroom apartment. The time was coming the my 05 acura was taking a dump, One door wouldn’t lock, The leather seat had a tear, and there was no AC at 240,000 miles it was time for it to go. I Spoke to Aaron about the matter he is in charge of the savings, and the bank account (other wise id would spent every penny at TjMaxx.) I was thinking omg, look at me I’m going to get me a BRAND NEW CAR. No! We upgraded to a 2007 Nissan Altima. I was happy, But I was confused because it wasnt a new car we had the money to make payment, and I didn’t understand.
- Did you know, the average millionaire today will be driving around in a car that is 2-8 years old. Most people with a net worth of 1 million do not drive Brand new cars.
I asked Aaron about this. Like he bro what up., Why cant I drive a brand new car.
His response knocked me off my feet!!
He said, Did you know that we are in absolutely No DEBT, none!! I said no, I didn’t
He asked me if i knew that new cars lost 30% of their value just while you are signing the papers, and another 40% after just 4 years, You are still paying for the car in 4 years.
I HAD NO IDEA. We 100% could have bought a brand new car with cash but we didn’t we bought a 2007 for $3,500.00 and its clean, and smells good, had AC and push to start technology. We sold my old car for the same price we paid for my new car and lost nothing,. But I got a newer car.
A tip from Aaron. You can make a car payment. But make it to yourself. In the time span of 3 years, You will be able to drive that new car that you just bought and signed up to pay for, for 6 years in 3 years. Drive something small, don’t worry about the guy at the stop light you will never meet. Don’t get the lie in your Head that you need to buy and new car to have a nice car,. Make the $340 payment to YOUR savings account each month in 2 years that Over 8,000 dollars that you can buy a really nice car with. Sell your old car say you get 2,400 for it. That’s $10,400 for a new car, Keep doing this for the span of 5 years, and you will be driving brand new cars, every 2 years for the rest of your life!!
This program is a Dave Ramsey Debt Free program that we live by,
Thank for reading, Love Mercedes.