Quote:
Originally Posted by R8ers
They can't eat you man, don't be scared, it's business and happens everyday.
Get away from debt, rent for a few yrs, act your wage, live well within your means and take care of the things you do buy.
Don't buy new cars, they depreciate 100 dollars a week for the first 4 yrs you own them on a 30k car
30k car
Payments 500 bucks a month
Depreciation 400 a month
Extra cost of the collision 100 per month at least
Shiny car costs you 1000 dollars a month to drive.
Stay away from credit and you will be able to do what I did in a few years.
I wish you luck
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I do have to call you on this, though. Your math is wrong. The depreciation is part of the 500 bucks a month, so you are counting that $400 twice.
If you spend $10,000 on a car, don't insure it, and then set fire to it, it depreciates $10,000. That doesn't mean that the car cost you $20,000 because you spent $10,000 and it depreciated $10,000.
In your example, the true cost of the new car versus a used car would be the depreciation of the new car plus the extra insurance minus the depreciation of the used car. It's still a lot, but it's $600 a month in your example, not $1,000.