You work hard for your money, we all do. And, working so hard can sometimes make spending the money you work so hard for, hard to do too. It’s necessary, however, especially when it comes to things that give you the ability to get to your hard job every day, like a car. Cars cost thousands of dollars and that price tag can quickly skyrocket as bells and whistles are added to a vehicle. And, you’ve probably heard that cars are a terrible investment more times than you can count. The truth is, they don’t have to be if you keep a couple of things in mind while car shopping.
The truth is, if you’re hoping to make a smart investment in your next set of wheels, you should probably avoid a brand new car. Brand new cars automatically depreciate several thousand dollars the moment you drive them off the car lot. One thing that can offset this occurrence is if you’re able to get a great deal from the dealership that brings the price you pay for the vehicle in line with this depreciation factor. But the fact remains, you’re likely to owe more than your new car is technically worth if resold or traded in, for a short time in the beginning of your ownership. Be sure you are very familiar and comfortable in knowledge of the value and cost of a car you’re looking to buy. You can research any makes and models you can think of at Cars.com well before heading to the dealership.
Another way to protect your car investment, is to secure the best financing available. Just a couple of points in interest can mean savings of thousands of dollars over the life of the loan. If you’re lucky to score a really great interest rate, like 2 percent or less, you’ll begin building equity in your new investment very quickly which means your car purchase is actually a good investment that you can, at the very least recoup what you’ve paid, and, at the very most, make a bit more than you currently owe.