Archive for the ‘Budget For a Car’ Category

Everyone wants to have an affordable auto insurance policy. This recession is tough for a lot of people, and it seems the bills just keep piling higher and higher. Many people who were used to living comfortably and being able to pay their bills on time each month are now finding that it is much harder to get everything paid when it is due. One of the things that will help is if we start trying to renegotiate our bills.

Yes, bills are negotiable. This is one thing that people simply do not realize. If you are someone who is paying a little more than you would like to on your bills I want to help you to find an affordable auto insurance rate that you will be able to pay each month.

One thing you might want to do is to get an Affordable Auto Insurance Quote. It’s free and it will give you a good idea of how much you should be paying your current insurance company or about how much you should be paying if you do not currently have any insurance. This will be a big advantage when you call your current insurer to negotiate your payments.

After you have gotten your Affordable Auto Insurance Quote you will want to write down the lowest rate that you came up with from the several companies listed.

The next thing you will want to do is pretty simple. Make sure that the lower rate you got from another company has the same kind of coverage you currently have. Next, call your current insurer and tell them that you have found a better rate with one of their competitor, and you wanted to give them a chance to match the rate before you went with the other company.

If you have been a long time customer they will not hesitate to match the lower rate. If they tell you that they will not match the lower rate then inform them that you will no longer need their service because you will be going with their competitor.

Getting an Affordable Auto Insurance Quote is one of the best things that a person can do when they are trying to negotiate some of their bills. Insurance companies know that in most cases they are making their customers pay way more than they should be in the first place and therefore will usually do all they can to keep their current customers. Do not let another second go by without getting your Affordable Auto Insurance Quote and negotiating for a better deal. You can Click Here to get your free auto insurance quote and get started with your negotiations today!

So you want to drive free cars? We in America love our cars. Where else do you think you can pull up and see a couple that is flat broke with two new cars in the drive way. The problem is our mindset. We have been taught that if we get a car we will have a payment that is due every month. The auto industry has beaten us into submission. When our cars start to show a little bit of wear we just run off to the dealer and sign over another $30,000 for a new car. Car payments are just a way of life right? Wrong.

That’s the normal way that everyone thinks. When you want the truth, the normal way of thinking about how we pay for our cars is damaging our chances for financial success.

Statistics show that about one-third of all car buyers sign up for a car loan with an interest rate of about 9.6%. Among these buyers the average price of the vehicle is about $26,000. That means that out of all of the cars you see driving down the road about one-third of them have a $475 car payment they have to pay every month.

Car dealers’ are sneaky too. They won’t tell you that the $26,000 car you just bought lost 25% of its value as soon as you drove it off the lot. After about 4 years that $26000 car you bought loses 70% of its value, and you still have to make payments on it for two more years!

That means that after six years you have paid $33,000 for your $26,000 car which is no worth about $6,000 if you are lucky.

This is the point where normal thinking gets you in trouble. The normal consumer would just run right out and sign over another $26,000 for another car. Thus, setting off a cycle of more $475 payments.

What if we stopped right there, put our foot down and said enough? What if we decided to stop sending off all of those $475 payments and started paying ourselves instead. What if we went really crazy and came up with a plan to make our money start working for us instead of the car dealers, finance companies, and banks.

According to the statistics if the average car payment is $475 a month right? Let us think outside of the box for a second. You want a brand new car and most likely that is what your payment is going to be. The car you are driving now is worth around $1500.

If you take that $475 payment that you were going to pay the car dealer and pay yourself with it. In ten months you will have $4750.00. Add that money to the $1500 that your car is worth and you will be able to pay $6250.00 cash for a car. That is a major upgrade in a car in just ten months you went from driving a car that was $1500 to a car that is worth $6250.00! The best part you don’t owe the bank or the finance company a dime! It’s yours free and clear.

Are you having fun yet? Let’s keep going and see what other cars we can get! If you keep saving the $475 every month then in another ten months you would have another $4750.00 right? Chances are by that time you can still sell your $6250 car for about what you paid for it. That means you can take that $6250 add it to the $4750 that you have saved up and pay cash for an $11,000 car! That could be you in just twenty months from today!

Wow! You just went from driving a $1500 car twenty months ago and now look at you in an $11,000 car! Aren’t you proud! You were fixing to go sign over $26,000 of your money for the next six years. Instead you are sitting in an $11,000 car and you could still have four more years of payments left at this point. You want to go a step further?

Okay. You are sitting in an $11,000 car; you have been paying yourself a $475 car payment every month for twenty months now. You don’t owe the bank or car dealer a dime. You are doing good for yourself.

So, just for fun let’s go a step further with our plan. Your $11,000 car should last you for quite a while. Let’s take that $475 payment that you have been paying yourself and put it into a mutual fund for the next 52 months and see what happens.

Now, we are six years into the future. You would have just now finished paying for that $26,000 car that you needed six years earlier. Now it doesn’t look as good and you want to upgrade to another car. You end up looking around until you find that perfect car and start the payment cycle all over again right? Wait we have a new plan now don’t we. We have our $11,000 car that is paid for, but it has just about worn out its welcome and it is time to get something new.

It’s no problem you have your mutual fund that you have been paying those $475 car payments to for the past 52 months. Do you know how much you have saved up by now? At the stock market average of about 12% you would have about $32,000.00 in there.

Here’s the part where I don’t want to lose you. If you go buy a car for $12,000 out of that $32,000 in your mutual fund you would still have $20,000 left in it earning you 12% interest. Do you know what that means? Even if you never add another dollar to your mutual fund you would still be able to buy $14,000-$18,000 cars every 5 years from now on. The interest you will be earning on your mutual fund will pay for your cars for the rest of your life. That’s Free Cars! You will never have to worry about another car payment for the rest of your life.

Do you know what that can do? Do you know what your car payments are costing you? If you take that $475 and invest it in a mutual fund every month then at the end of ten years you will have $100,000! In twenty years you will have about $470,000! At thirty years it would be $1.6 million dollars! At forty years that car payment that you were going to pay for the rest of your life could be worth $5,588,385! Do you think you can retire on that I know I could.

I love cars, but I have never seen one worth $5,588,385! This one decision about a car can dramatically change your life forever. You can drive free cars and retire a millionaire! What’s stopping you? Try something different with your life and your decisions.

If you can do without the “new car smell” buying a used vehicle is the way to go. There are many benefits

to buying used, and one of the most important is the money you can save. Simply put, buying a used car is always going to save you money. And since there are so many used cars on the market, you should not have any issues finding what you want at a price you can afford.

How can you save by purchasing a used car? The biggest savings will come on the price of the car. Did you know that a car depreciates the most during its first year on the road? By purchasing a car that is one year old you can avoid all this depreciation, while still getting a vehicle that has low miles and many more years of good service to offer.

To go along with this, you can also save by avoiding particular costs that are standard on new cars. This includes items such as transportation fees, advertising charges, and other hidden costs that always seem to pop up during the new car buying process. When you purchase used you will be able to avoid the majority, if not all of these miscellaneous fees.

Don’t forget about tax. The lower the price of the car the less you will pay in tax. And if you live in a state with a high tax rate, this can save you several hundred dollars or more depending on the cost of the car. For example, compare a purchase of $20k to $10k at a six percent tax rate. If you buy the new car for $20k you will pay $1,200 in taxes. But if you opt for the less expensive used car you will only pay $600. As you can see, not only are you saving $10k on the car itself but also $600 on taxes.

You can save tons of money by purchasing a used car. For more information on getting the best deal read the car buying guide at Carsforgirls.com. With this information, plus what you already know about how much you can save, it is safe to say that you will end up getting a great deal on a quality car.