USED - PhotoFriday

Today, the average car payment in America is $368. If you take that $368 and invest it at an average of 12% interest, in the course of 30 years, you will have $1,286,146.80.

Additionally, a new car will lose 60% of its value in the first four years.

Now, we NEED at least one car. But we have - as a family - decided that we will not ever finance a vehicle. We will never take out a loan on a car again. We have better things to do with our $1,286,146.80 than breathe in that new car smell.

That being said, we buy USED.


- hfs


Anonymous said...

New here, not the slightest offense meant, but where in the heck could one find a 12% interest rate?

Homefront Six said...

That's what the stock exchange has averaged over its existence. Assuming that you're planning on leaving the money in your investment vehicle (for us, mutual funds and IRAs), you can assume a 12% rate of return over the long run.

Last year, my mutuals averaged about 22%.