By Brishae Lacy
“A car is the worst investment you can make!” is something your consumer ed teacher may tell you, but is it? Is your dream car the worst investment you can make? When purchasing your dream car, make sure to calculate the down payment to reveal your car note total that you’ll pay every month. According to photos.state. gov, 95% of American households own their cars. If you are paying the full amount, lookout for hidden fees. According to Edmunds.com, over five years it will cost an estimated $33,604 to drive your vehicle and don’t forget about insurance. WHERE ARE YOU GOING TO GET THAT MONEY?!
In addition, the luxury tax threshold price is $63,184 with a LCT (luxury car tax) of 33%. Did you know you are charged a luxury tax when you purchase a luxury car? A luxury car owner stated, “it takes a really long time to buy your dream car. Cars are really expensive. Even an older used car can be expensive due to the cost of maintenance. You really need to make sure you budget for the actual price of the car.” So I ask, can you afford your dream car?
Steps to Affording A Dream Car
1. Get a summer/ hourly job.
You want to have income in order to save. Saving plays an important role in affording a car.
2. INVEST your…
• Time: Create a schedule of when to deposit money into your savings account or enroll in direct deposit.
• Energy: Be positive. Put in effort into getting that car.
• Patience: A car takes awhile to afford. Be sure to take care of relevant priorities before making a purchase. Be patient with how long it takes to save; it’s worth it.
• Overall, you may want to consider investing your savings into something that has potential growth and void purchases that are likely to depreciate rapidly, such as spending $60,000 on a car.
After considering these ideas, do you still think you could afford your dream car?