Purchasing a vehicle is a big deal. It doesn't matter who you are, it is going to take some time and thought. They cost so much that most people aren't willing to just go out and buy whatever car they think looks good. Most people finance cars and probably think it's near impossible to pay for one up front in cash.
If you want to avoid this high purchase, you could buy a used car. These are usually cheaper and can be as low as a couple thousand dollars. You could buy a junk car for a few hundred dollars and fix it up.
When you buy a new car, there are a few advantages. If you pay in cash, you can save a lot. If you buy a $75,000 car in cash, you would save a lot if you didn't finance it over a few years. Most people can't even afford to finance a $75,000 car. If you wanted to buy a car that cost $18,000, could save for it in a year?
First, it will depend on your salary. If you make less than $25,000 a year, there will probably be no way to buy it because even if you were able to save every penny, you still have to pay taxes on it. It will also depend on how much you spend every month.
If you don't pay for any living expenses or anything else, someone is paying for them. If you went and bought a brand new car while not paying for anything, you wouldn't be being very respectful towards whoever was paying for you. In this case, you should buy a meager used car and save for a house or education.
Is it ever possible to save $18,000 for a car? Let's say you live in your own apartment and rent is about $700 a month. You have no cable and only use your cell phone, no land line. You live on Ramen noodles and beans, never go out, and save every penny possible.
You make a healthy $35,000 a year paying about 20% in taxes making your after tax income about $28,000 a year. If after rent of $8,400 a year can survive on $1,600, then sure, you can afford an $18,000 car?
This is possible, but only if you are willing to live on scraps with no social life. You'd have to spend your free time trying to come up with more ways to save money. If you make a lot more than that, it would be a lot easier. For those of us who don't have high salaries, just take a few more years, for your own sake.
If you want to avoid this high purchase, you could buy a used car. These are usually cheaper and can be as low as a couple thousand dollars. You could buy a junk car for a few hundred dollars and fix it up.
When you buy a new car, there are a few advantages. If you pay in cash, you can save a lot. If you buy a $75,000 car in cash, you would save a lot if you didn't finance it over a few years. Most people can't even afford to finance a $75,000 car. If you wanted to buy a car that cost $18,000, could save for it in a year?
First, it will depend on your salary. If you make less than $25,000 a year, there will probably be no way to buy it because even if you were able to save every penny, you still have to pay taxes on it. It will also depend on how much you spend every month.
If you don't pay for any living expenses or anything else, someone is paying for them. If you went and bought a brand new car while not paying for anything, you wouldn't be being very respectful towards whoever was paying for you. In this case, you should buy a meager used car and save for a house or education.
Is it ever possible to save $18,000 for a car? Let's say you live in your own apartment and rent is about $700 a month. You have no cable and only use your cell phone, no land line. You live on Ramen noodles and beans, never go out, and save every penny possible.
You make a healthy $35,000 a year paying about 20% in taxes making your after tax income about $28,000 a year. If after rent of $8,400 a year can survive on $1,600, then sure, you can afford an $18,000 car?
This is possible, but only if you are willing to live on scraps with no social life. You'd have to spend your free time trying to come up with more ways to save money. If you make a lot more than that, it would be a lot easier. For those of us who don't have high salaries, just take a few more years, for your own sake.
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