Ever experience that sick feeling when your car payment is due every month? You realize that you don’t have a much of a choice when it comes to making that payment because you need that vehicle to get to work and run the kids around town.
But you knew if you were able to have a paid for vehicle that your family’s finances would be so much easier to deal with. What if something unexpected happened like getting laid off or an accident/ illness that keeps you out of work for several months? Would you end up losing your vehicle because you couldn’t make the payments? Unfortunately, many people would.
“Car sickness is the feeling you get when the monthly payment is due”- Unknown
So how can you find a way to eliminate that sick feeling and drive paid for cars for the rest of your life? Well, there is a very simple concept that can allow you to do that if you’re willing to have a moderate amount discipline and stick with a long term plan.
- The first thing to do is to keep doing what you’ve always done and continue paying that car payment until it’s completely paid off. If you have any extra money in your budget to save toward your next car then put it away and don’t touch it.
- Second, resist with every ounce of energy you have the illness called “car fever” that even the best of us seem to get when we get a car paid off. Like the flu virus, it is a natural phenomenon but it can be very seriously hurtful to your financial health.
You see, when you finally get a car paid off, that car loses some of its luster. You decide you’re tired of driving that same old vehicle and now you have some money freed up because you no longer have a car payment. So in your infinite wisdom your emotional side tells you that you need a new car, better yet, you DESERVE a new car. So let’s go out and get another car payment!
Seriously, resist car fever at all costs!
- Keep that old vehicle that’s still running fine and drive it until the wheels fall off. Put your car payment in a bank account every month instead. Never treat your lack of a car payment like found money and buy a bunch of cool stuff because you have an extra few hundred dollars a month.
CONSISTENTLY put that money in a bank account and leave it there.
- You drive the wheels off that old car, and once you have enough money saved up you can buy the car of your choice with the money you’ve been saving. As a matter of fact, I just did this a couple of weeks ago. My Jeep Grand Cherokee finally died after 13 years and 320,000 miles. I just went out and paid cash for a nice Lexus RX300 pictured above and I don’t have to worry about paying loan interest on a depreciating asset.
Once you pay cash for your car, you continue putting a car payment in the bank every month so you’ll be ready when the time comes for your next vehicle, and so on until you die or your kids take away the keys.
This is a truly an awesome way to begin taking control of how you spend your hard earned money when it comes to the transportation that most of us depend on. It’s really not that difficult to do, especially when you finally decide you’ve had enough of sending your money to someone else and you change your mindset about car payments for good.
Just think, if you were to lose your job or experience some other financial crisis, think about how great it would be to have a paid for car. When a crisis does happen, all you have to do is not pay into your car account for awhile until the financial situation picks up again (disaster averted!).
Another benefit is that owning a car actually becomes cheaper because you are no longer paying the interest on the loan for a vehicle. So now, instead of paying close to $30,000 for a $20,000 car over five or six years, you actually pay $20,000 (or whatever you can afford) and that’s it.
Since you have cash you might even be able to negotiate a discount, depending on who you’re dealing with. People can get very anxious to sell when they see nice pile of green in front of them.
So when you feel yourself getting “carsick” once again, think about this simple process, change your mindset, and get rid of your car payments FOREVER!
ACTION STEP: Change your mindset about car payments and make a commitment to pay cash for your next car.