Many of us may feel like it is impossible to live without debt because of the way certain purchase experiences are structured in our society. For big-ticket items like cars, higher education and homes, financing with loans and mortgages is the norm. However, if you think there has to be a better way, you may be right. Read on for an examination of common borrowing situations and how you can avoid taking on stifling amounts of debt – or in some cases, any debt at all.
Daily Transportation
Most of us live in cities and towns where the automobile is considered the primary form of transportation; while there may be a bus system, most people consider it a subpar way to get around. Of course, even the cheapest new car can still cost over $10,000, which is more money than most people can afford to fork over at one time.
One alternative that many people do not consider because of their misconceptions about the experience is buying a used car (with cash) from a private seller. Issues with this choice often spawn from older cars being less reliable sometimes more costly to repair. Or, buyers may be concerned about getting ripped off by the stranger they purchase the vehicle from or worry that they’ll unknowingly purchase a stolen vehicle. However, if you do some research and choose a model known for its reliability like a Volvo or Honda, you can have a reliable older car for less. There are simple precautions anyone can take to avoid getting ripped off, like verifying that the VIN on the dashboard matches the VIN number on each of the front door stickers; you should also take the car to a reputable mechanic for an inspection.
Another thing to consider is that the salesman at the car dealership is no less a stranger to you than the person from the classified ad. Sites like Craigslist make it easy to find vehicles for sale by individual owners in major cities. It’s true that you might have expensive repairs from time to time, but if you choose your car carefully, you’ll still come out ahead over the much higher expense of buying a car new and paying 5% or more in annual interest on an auto loan
Tags: Automobile, Craigslist, Home, Honda, Lexus, Loan, Vehicle Identification Number, Volvo
Category : Mortgages