"I too had believed this car payment myth that I would always have car payments until I learned a better car buying strategy."
There is a car payment myth that I have come to see for what it is -- a retirement thief! Those offering car buying tips of course want us, as automotive consumers, to accept as truth that we should just plan on having car payments for life! Accepting this car buying lie that I would always have car payments finally came to a halt and my career has been better for doing so.
You see, what I viewed as as truth regarding new vehicle purchases in reality kept putting me into upside down car loans, meaning that I owed more than what the vehicle was worth.
Financial strategist Dave Ramsey quotes me often on his financial strategy programs. For example, I heard him tell millions of people what I have said for years: "I will always have a car payment for the rest of my life".
Unfortunately I have made that car payment budget busting statement for over 40 years! So I figure Dave Ramsey must be quoting me about always having car payments.
Take a look at a different car buying strategy. In this new car buying tips video you see a far different approach just by clicking on Drive Free, Retire Rich.
In developing his new car buying strategy, or better said, his used car buying strategy, he arrives at what he calls a "free car" buying approach.
I then checked with other family members and they too have been saying exactly the same thing about a lifetime of car payments. What if there is a way to drive free, without car payments, like Dave Ramsey says?
Now it is hardly a scientific study on car buying stupidity, but just hearing all my co-workers complain about huge car payments coincides with my own dumb car purchase fiascoes over the years.
In fact I believe my poor car buying strategies makes me an expert on how not to buy a used car or a new car.
The video above combines the concept of buying cars with building wealth and by watching it I began to regret some major car buying mistakes I had made over a lifetime of car buying.
Perhaps you too bought into the car payment myth of always having car payments. I personally like the whole concept of Driving Free, Retiring Rich.
Early on in my wife's teaching career, she had accumulated a whopping $1600 in her retirement plan. When we moved after my graduation from graduate school, we cashed the whole amount in and bought a fairly new car (about 50 years ago). That car was probably crushed 40 years ago!
Had we left the funds in her retirement account, that measly amount would have compounded to over $30,000! Oh, the wonders of compound interest! Of course, it would have compounded with lots of other dollars, had we understood the miracle of compounding interest. So the truth is the car we thought we needed really was a million dollar car.
So buy a used car and fund your 401k account or your 403b retirement plan. When you get to retirement-age like my wife and I are, you'll be blessed with a good return on your investments rather than regrets over thinking you had to have a new car!
So act on this bit of information from the IRS: A 403(b) plan, also known as a tax-sheltered annuity (TSA) plan, is a retirement plan for certain employees of public schools (like my wife), employees of certain tax-exempt organizations, and certain ministers (such as myself).