August 14, 2017

It's always cheaper to buy your own vehicle.

"Is it worth it to fix up my old vehicle?"

This seems to be the question over-the-counter as of late.  The answer is, "Yes, it is."  Cash flow that is......

This question is asked so much of me that sometimes I take it for granted that others understand it.  I have directed quite a few people to the challenge of pushing the pencil on this question.  What they find out is that no matter if you buy new, good used, used, old used, or very old used, or repair your vehicle, it all comes out to about $130-$150/month to operate a vehicle no matter it's age or it's condition.

The trend right now is not to buy new, but used, and fix it up.  This is holding more true with pick-ups than cars.  A new pick-up is quite high, but for about $5000 you can buy a used pick-up and put in about $5000 to get it up to speed without having to dish out 40,000-60,000 for a new one.  Do the math.

But remember, in the end, it all comes out to about the same amount of money each month no matter what you buy.  The older ones can be repaired, and it helps your cash flow, today.

So then, the saying, "It's always cheaper to buy your own vehicle.", applies.  Because the logical deduction of the saying translates to, "Money today is worth more than money tomorrow."

Practical application:  Take the money you were going to spend on a new or used vehicle.  Subtract out of it the money it takes to repair your vehicle and have it repaired.  Then take what is left over(of what you were going to spend on a different vehicle), and invest it to receive interest, instead of paying interest.  You just won at the game of getting ahead financially.

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