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If you already have a car paid off, then each month put aside what you would have spent on a car payment. By the time you need a new car, you'll have the money to pay cash.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Quote:
Originally Posted by Philip T
If you want to save a lot in relation to buying a car . . . .Never buy the car and you will save a lot more. ...
Save right from the start and more additionally in every year that you do not have pay for fuel, maintenance, insurance and depreciation.
this is the best way.. but IF you HAVE to drive... get a cheap, used but serviceable economy car. I buy VW Rabbits for under $100, diesels get 50 mpg (no HUGE expensive batteries either) or the gas ones get 35 mpg. Parts are super cheap and very available (tho I seldom need parts, even in my 300,000+ mile Rabbits)
'Like new' tires are $5 at the junk yard. Insurance and licensing is as cheap as you can get. You can 'upgrade' to an A2 (85-92) VW diesel, they still get 50 mpg and cost ~ $2000.
If you want something you feel is safer / newer... get a used (~2002) TDI Jetta or Golf for $10,000 with side curtain airbags. Thats' what the 'rural trauma' instructor has for his wife and kids to drive They get 50 mpg (with manual tranny - not auto !! = 38mpg )
While you're saving... calculate the overall Cost per mile of your ride (including the capital cost + what $25,000 could be earning for you + high insurance and maint) and you may choose a less expensive mode.
Very interesting responses. I know several have suggested on the idea of getting an older used car, or beater, but if that was the case it would have to be something that is reliable and not to where I would end up spending more money than what the car was worth when it comes to repairs. I only used $25K as an example, since I know there are many good econo-cars well under that amount.
The savings account seems like a good idea, may look into that idea. That way can just simply put money there and forget its there until I have enough.
And here in Texas, it would be really hard to get around w/o a car, especially with the high heat here in the summertime. I do drive for a living but when I am not driving to visit my sister's house would be about 40 miles away since she lives quite far from the city.
Anyway, I can look into these other cars that were mentioned; thing is finding them. With gas prices as high as they are alot of these cars, even the older ones will be in high demand I am sure. As for the Prius, I do like that car as I had test driven one back in '06. But of course now those cars are selling at a premium now due to current circumstances.
If you want to save a lot in relation to buying a car . . . .
Never buy the car and you will save a lot more.
Save right from the start and more additionally in every year that you do not have pay for fuel, maintenance, insurance and depreciation.
never buy the car? So what do you mean? Lease instead? If that is the case that is the most expensive way to use a car. Why do you think every car dealer tries to sell you the idea that a lease is a smart way to get a car? Because they make the most money on those deals.
If you have trouble saving a month at a time, reduce the allowences on your I-9 and have more income tax withheld from your paycheck. Take your larger tax refund every year and put it in a high yeild savings acct.
I know most people will tell you that you are giving the govt an interest free loan, but it is a way to put the money asside without having to even think about it. Just make sure you really save the refund and don't spend it when it comes in.
I agree with others--set aside as much as you can each month in a savings account. Pay off any other debt--especially high interest debt, and don't spend money that you don't have to.
Now, as to a vehicle: A brand new car is great, but it's generally a waste of money. The first 2 miles out of the dealer's lot will cost you several thousand dollars in depreciation. Buying a reliable used car will save thousands of dollars in upfront costs. Yes, fuel economy is important, but these days the most fuel-efficient vehicles often sell at a sizable price premium compared to what fuel savings they may achieve. You may be ahead financially to buy a used car that is not quite as fuel economical, but may be selling at a huge discount on the used market. If you insist on buying a new vehicle, then buy the most fuel-efficient vehicle that will meet your needs (not wants)--and plan on driving it for a lot of years.
If your current car is in half-decent condition and meets your needs, you might think about investing some money in it to extend its life. I just spent some money on a 10-year-old vehicle that will make it last for another 100,000 miles. That cost me about 15% or so as much as what I would have spent to buy even a used vehicle that was comparable in utility.
This may belong to the Automotive section, but I am talking mostly as far as saving for a car rather than talking on specific kinds of cars.
In the future I would like to buy a fuel-efficient vehicle. Don't want to bother with financing; this time around I want to be able to buy a car in cash, with no payments and no interest. With cars being such a depreciating asset, it seems pointless to finance them at all.
So, what is the best way, or for those of you who have paid cash for your cars been able to save up for such a vehicle, say one for $25K? Did you save a monthly payment's worth for several years until you had enough to buy it, or by some other means?
Nothing feels more satisfying than walking into a dealership and handing over a cashier's check for the amount of the exact car you want, and you don't have to waste time in cubicles or playing the Atari version of 'Combat' with the finance managers. Its the best feeling in the world to have a vehicle that's paid for and no annoying notes to worry about.
My next car that's what I would like to do.
I've paid cash for houses and cars, but you dont overspend on depreciating assets, especially if your trying to figure out how to "save" for it..
never buy the car? So what do you mean? Lease instead? If that is the case that is the most expensive way to use a car. Why do you think every car dealer tries to sell you the idea that a lease is a smart way to get a car? Because they make the most money on those deals.
You did not hear me say Lease.
I said do not buy the car.
Either are a loss.
Between two evils, choose neither.
Life is full of false choices:
Coke or Pepsi? To me, they both suck
Democrats or Republicans? Again, both suck
Prefer to be beat with a hose or a bat? Neither, thank you.
Buy or Lease a car? None of the above -- Walk, bike, bus, share, train
Figure out how much you can afford in notes for the car then start saving that for a couple of years.I have a savngs account that I tranfer the note money to when I get through finacing the car I am driving. This alows financing a vehilce for three years and the maintenace easily on a new car. I never buy the extended warranty this way and have always come out better.
I agree with others--set aside as much as you can each month in a savings account. Pay off any other debt--especially high interest debt, and don't spend money that you don't have to.
Now, as to a vehicle: A brand new car is great, but it's generally a waste of money. The first 2 miles out of the dealer's lot will cost you several thousand dollars in depreciation. Buying a reliable used car will save thousands of dollars in upfront costs. Yes, fuel economy is important, but these days the most fuel-efficient vehicles often sell at a sizable price premium compared to what fuel savings they may achieve. You may be ahead financially to buy a used car that is not quite as fuel economical, but may be selling at a huge discount on the used market. If you insist on buying a new vehicle, then buy the most fuel-efficient vehicle that will meet your needs (not wants)--and plan on driving it for a lot of years.
If your current car is in half-decent condition and meets your needs, you might think about investing some money in it to extend its life. I just spent some money on a 10-year-old vehicle that will make it last for another 100,000 miles. That cost me about 15% or so as much as what I would have spent to buy even a used vehicle that was comparable in utility.
I do have a 4-cylinder '84 Olds Cutlass Cierra that still runs good, but need some work done on it though to pass inspection. This car has 186K miles on it and still runs great. I do need to replace the exhaust pipes and the converter since both had rusted out (being in Michigan and Ohio the last few years) but other than that it will run.
I know the Prius now commands a premium price due to high gas prices, but I figure if I put a decent amount aside for the next few years, then by the time the vehicle I need is available, I'll be ready. Used cars can be a viable option too since you are pretty much immune from the big depreciation hit on new cars, but my main concern on used cars is reliability and making sure that it wont spend more time in a shop than on the road. My late granddad always taught us about avoiding buying someone else's problems. And seeing as how many people smoke in their cars, I don't want a car that has been smoked in either, as you cannot rid of the smell unless the seats and upholstery was replaced.
Anyway, I will look at some saving options for my next car.
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They get 50 mpg (with manual tranny - not auto !! = 38mpg 
)
