Cheapest Way to Buy a Car

If you live in a large city and need to get somewhere fast on a regular basis, you probably own a car, or are in need of a car. I have found that people usually make a major mistake when they purchase a car. What is that mistake you ask? The mistake is financing that car.

Let me make this statement again and as clear as I can: Financing a car is a Mistake!

Why do I say that? When you finance a car, you are paying a lot more for that car than it is truly worth. You are paying for the bank to own your car. I don't know about you, but I do not like that idea. I want to own my car so no one had the opportunity to take it away from me.

In this lens, I am going to try to demonstrate ways for you to own your car, instead of paying the bank to use it.

It has become the norm in society to have to have a payment for a car. This is not necessary. You should never have outstanding debt on your car. Why? Because the car loses value every time you drive it. You should not have a loan on something that is losing value.

Take a moment to watch this video. You will learn how to buy a car and not owe anything on it, making unneeded payments for years. In fact, you could trade up to the car of your dreams in only a few short years, and own the title of the car. Think about it.

Spend What You Have... No Car Loans.

The cheapest way to buy a new car is to pay cash for it. Most of you want to know where you are going to get enough money to buy a new car with cash. It is going to take some time, but you can do it this way.

1. How much money do you have to put down on a new car? $500; $2000? Instead of using that money to put a down payment on a new car, use it to buy a beat up but running good used car. If you can drive a $500 beat up car for six months, then you will be able to save up a $1000 or more in that six months. If the beater lasts you longer than six months, then save up more money.

2. When the beater dies, or you have enough to buy a better used car, then go trade that car in for a $1000-$3000 used car.

If you clean or detail your old beater, you will be surprised what the dealership will give you for the car. I have heard of people getting more for a car than what they paid for it. If you can do that, you can buy a better used car.

Step 3: Continue to stockpile your money as your used car is drivable. If you have to have a repair made, use some of your stockpile if you need to. Don't make cosmetic repairs. We don't care how the car looks. It just has to get you from point A to point B.

Step 4: When you save up $5,000 - $8,000, go ahead and trade in you $3,000 car for a better used car.

Step 5: Now this $8,000 car should be in pretty good condition. Drive it till you can buy a new car in cash.

Consider buying a good used car and never buying a new car. You pay so much extra for a new car. When you drive it off the lot, it loses so much of its value. You will find that a good used car is just as nice as buying a new car. You will also find that a car that has been driven for a year or so has had all of its kinks worked out of its system.

Dave Ramsey is my Hero. He has taught me so much about personal finances and getting out of debt. Run over to amazon and read the first few pages of his book. This stuff is awesome. He has a free daily podcast on iTunes as well. Go listen to that if you can't afford to buy his book. You will learn so much just by listening to him help people with their financial troubles.