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Car Purchasing Advice from Millionaires: Buy Used

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Have you been thinking about purchasing a new car? It’s tempting when there’s countless commercials, magazine ads, and promotions showing off the latest models in style and features. But in order to afford a new car, most people are going to finance the cost with a combination of a down payment, trade-in, and years of monthly payments.car purchase tips des moines iowa

But if you can avoid financing a car, you should. That’s what authors Thomas J. Stanley and William D. Danko discovered in their book The Millionaire Next Door: The Surprising Secrets of America’s Wealthy. They interviewed dozens of ordinary people who amassed at least a million dollars in wealth through hard work, smart investments, and frugal living.

In their quest to uncover the habits of self-made millionaires, they found that many intentionally bought used cars for years instead of making payments on a new one. It’s a novel concept that can save you a lot of money.

Car Repairs and Regular Maintenance Can Save You Money

Buy used and pay cash. Take good care of the car with regular maintenance and necessary repairs. Save some money. After a couple of years, trade-up for another used car with your trade-in and cash to cover the cost. It’s one of the ways people with ordinary jobs in The Millionaire Next Door were able to save a lot of money and eventually drive their dream car.

If you’re driving an older car that has a few issues, you might be tempted to get rid of it and buy a new-off-the-lot car. But in most cases, it’s going to cost a lot more in the long run to buy a new car than to keep your used car up and running.

Have a used car that needs a little help? Basic maintenance like regular oil changes and replacing the brakes, belts, and air filters can prolong the life of your car. Keeping up on routine maintenance can help prevent more costly repairs and save you money over time. In The Millionaire Next Door people used that extra money to save and make smart investments instead of making monthly car payments.

Want to get the most mileage out of your car? We can help. A full-inspection can identify any issues and routine maintenance will keep your car running longer, smoother, and more efficiently, and cost you less money over time. Give us a call at 515-423-8185 or click here to schedule an appointment.