Investment Strategies: Buying A Car

It's been said time and again that a car is the worst investment you can possibly make. It sure feels nice to get behind the wheel of a sleek BMW, but even a luxury car is going to go steadily down in value. A day after you drive a car off the lot it's officially a used car, and it's simply not worth as much. Here's the basic formula: you can never, ever get more for a car than you paid for it, unless you're dealing with a seriously dumb car buyer. Still, that never stopped anyone from buying a car. If you look around, you'll see an inordinate number of people driving around in luxury cars. What, is everyone super-rich all of a sudden? No, it's just that half-broke people put all their money into their cars. It's a status symbol. If you're not rich, you can at least look like you are. Maybe that'll make you feel better the next time you see that guy in a convertible Mercedes who looks like he has it all. He actually cries himself to sleep at night, clutching his bank statement. Still, even though car payments aren't through the roof, even for high-end cars, you're going to want to save up some dough before buying a car. The more you save, the better car you're going to get, and the faster you're going to pay it off. You'll pay it off quick not just because you've got money in the bank, but because you'll get a better financing plan with a hefty down payment. Who knows, maybe you'll be able to buy the thing in full, in cash. Car dealers will be kissing your feet. Investing for a Car. To get to that point, you've got to raise the funds. Unless you're pulling in ten grand a month, and not spending it, you're going to have to invest some of that money to maximize your paycheck. Chances are if you're saving up to buy a car that you aren't independently wealthy. Is it at all possible to invest with close to nothing? The answer is yes, so long as you start early. The mean average for stock investment is net eight percent. If you put in $10 a week for ten years, you'll end up with $8,000. Yeah, ten years is a long time to wait, but it shows that you can get a decent return if you wait long enough. What if you invested $20 a week? Is $50 out of the question? You could reach $10,000 in a much shorter amount of time. Of course there are stocks that go exactly the wrong direction, so you've got to diversify. If one stock fails, the success of another can take up the slack. Mutual funds and 401(k)s are also a good bet for small investors. Keep in mind though that some mutual funds require a pretty sizable initial payment, so they're not for everybody. 401(k)s are tax deductible so they make sound fiscal sense. The main thing is to not believe that investing is the realm of the very rich. There are all levels of investors, and there's no reason small enough to invest your money, even buying a Yugo. Always, always check your credit report before buying a car. Your credit score can affect the payments you will have to make in possibly a huge way. So make sure you have healthy credit and if not it might be a good idea to get some credit help before buying a new car. Financial directory