Dreaming of owning your own home but struggling to save up for the down payment? You may want to consider sticking with your current paid-off vehicle instead of upgrading to newer wheels.
Here’s why.
A New Car Is Expensive
With used car prices higher than ever – especially in hot markets like Silicon Valley and San Francisco – taking out a 5-year loan for thousands of dollars can seriously stall your homeownership dreams.
So, between sky-high interest rates rising above 14% and years left of monthly $450+ payments, that shiny new model can drain your savings fast. It’s a money pit and can kill your dream of owning a home.
Dishonest Used Car Dealers
Sometimes, you’ll have a eureka moment and think, “I can sell my good quality European vehicle for a better price and get another used car on the cheap. This will help add to my home down payment.”
Well, this sounds good on paper, but what could go wrong?
Regulators are warning buyers about flooded pre-owned vehicles illegally for sale after recent hurricanes and storms. While it doesn’t mean the industry has fallen into dishonesty, there are a few bad apples that may be spoiling for everyone.
Have you been following the latest industry news? There have been reports of dishonest sellers disguising water damage from natural disasters. Water-damaged vehicles can run your wallet dry and leave you with nothing for your home down payment. This leaves you worse off than you started. So, don’t you think it was a much better decision to hold on to your trusty vehicle?
Good maintenance habits
Luckily, investing some money into minor repairs, upgrades, and TLC for the car you already own allows you to skip dealership debt. For just a few hundred dollars, you can give your older vehicle a new life with modern amenities through easy DIY installations done right in your own garage. Plus, A1 Performance European is there to give you a hand with your European car.
Things like backup cameras, Bluetooth stereo adapters, weatherproof seat covers, and other accessories make existing cars feel fresh.
So, while buying new seems tempting, the financial freedom that comes from owning your own place one day is even more rewarding. So before taking on another 5-year loan, consider keeping and enhancing the reliable used car that’s already paid off. Your future homebuying self will thank you.
Recent Comments