why luxury cars are a waste of money

Buying a luxury car is a waste of money

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Transcription of buying a luxury car is a waste of money

Buying a luxury car is a waste of money G2-1

Steve's negative side makes the street fabulous if there are fancy cars it looks like it would be good and fabulous. We can make a good picture for this is our love Asia freedom for luxury brands

First of all, I was surprised at Asia's "nice luxury" country more in the world.

Because I believe that other countries like Europe and the United States are more likely to love luxury brands.

Recently, too, the sales of luxury items in Korea rose 71 percent compared to last year's sales. 71%

I think it is sometimes acceptable to buy luxury branded products.

Some people feel that their state increase and importance to each other's eyes when using luxury branded items.

But is it really increasing a person's honor?

No, maybe not. Although we use the luxury brands of our nice and beautiful appearance, there are many problems. .

First of all, if many people wear the same brand clothes and handbags, our personality is disappearing.

I think it's important to keep our own personality.

Second, consumers spend a lot of money to buy luxury items, and I think it's excessive spending and a waste of money.

For example, a woman had an addiction to luxury products, so she embezzled her company's money to buy many luxury items, but after a short time of pleasure.

She became a criminal. As you can see, it causes a lot of bad problems. People need to know how valuable money is. Third, there are a lot of counterfeit products on the market. So, people think it's luxury brand products and they buy, but they can't be real products.

I don't understand why people love branded luxury products so much.

The way you spend money by buying new cars, and the right way to do it

A waste of money on vehicle life

The ailment

After our homes, cars are the most expensive items that most of us buy. In the course of our lives, we're going to buy a maximum of 10 to 15 cars. So how do we buy and finance our vehicles can make a big difference in our financial health.

Years ago, most families had a car, which they kept until they died of old. Today, families tend to have more than one car and will buy a new one every four or five years. And many people trade more often.

The problem is that cars are both expensive and terrible investments-in fact, they are actually not investments. They are investment, which is my term for assets that are guaranteed to lose value. When invested, you expect the value of your investment to increase, but with the purchase of a car, you know that its value will be reduced steadily. Since the main purpose of a car is to provide transportation, to get from point A to point B, it may be time to rethink how to buy cars.

The cars depreciate the assets. Let's say you just bought a car for $22,000. The seller congratulated him on making a great deal and taking it home, feels like a million dollars. Actually, I should be crying because he lost $4,400 at the time of the pile.

The new cars lose about 20% of their value as soon as the property is taken. They are then depreciated anywhere from 6% to 13% annually. So, in the first year, I could lose $5.720 to $7,260. Oh! The money you lost could have been saved or invested in assets that you usually appreciate over time.

If you buy 10 cars during your life at an average cost of $25.000 each, you will lose $65,000 to $82,000 first amortization year.

Even if car manufacturers don't like it, I'll make a bold, but true, statement: Unless you're rich, I never buy a new car. This can damage your financial health.

Diagnosis

Buying a new car is a bad investment that guarantees buyers an immediate loss of wealth. A new car is more expensive than a used car such as monthly payments, insurance costs and registration. New cars lose immediately at an accelerated rate so if you have to sell shortly after you bought it, you are going to take a bath.

The purchase of a used vehicle costs less and has much more financial sense.

Vital Signs

Being financially sound means accumulation of wealth and accumulation of wealth by saving and investing. So let's take a look at how much we really lose for the whole life of buying new cars.

Let's assume we bought 10 new cars during our life-one every five years between the ages of 20 and 70. Suppose also that the first year of depreciation is $6,500 in each car. We had to invest $6,500 and received an annual yield of 5%, at 75 years we have accumulated $437 535, which is not change-if in fact, could be a good retirement fund.

When buying a new car, it has also been exposed to a hidden danger that most people never take into account, but that can cost them a lot. Let me explain.

When most Americans buy new cars, they have lowered the minimum amount of money they can and finance the rest. Generally, they finance 90% and 100%. So if you buy a car for $30,000, you left $3,000 and finance the rest, you will be forced to pay $27,000 more interest during the term of your loan.

If, one or two months later, I was in an accident and totaled the car, your insurance would only pay you $23,000 what would be the reasonable value of the vehicle at that time. Since I had a little less than $27,000 on your loan, it would be about $4,000, plus the initial sum of $3,000 you put down and you wouldn't have the car.

Treatment

1. What to Do

Buy a two-or three-year-old vehicle that just came out of a lease. Over the years, the quality and reliability of the cars have improved dramatically. Today's cars are built well and you can expect a duration of at least 150,000 to 200,000 miles when properly maintained.

Many used cars, especially those less than four years old, have a low mileage and look new. If you have led them mechanically, you won't have to worry about buying a problem from another person and you can expect years of safe and reliable service.

When buying a used car, the original owner has absorbed early amortisation. Instead of paying $25.000, you can pay $17,000, which is 32% less than the original owner paid. You also have to finance much less your monthly payments, insurance and fees will be less. If you decide to sell the car, you will get more of your money because your car has been carried out more of its value. Throughout their latest models of second-hand car buying cars life, the purchase can save you a lot of money.

AUTO Liquidators

When cars are returned to banks or financial companies at the end of the lease, the lenders do not want the cars. They want to sell as fast as possible to get their money back. So we work with distributors who specialize in selling out-of-lease vehicles for lenders.

These distributors are called lender-liquidating distributors or liquidators. Every month, liquidators receive a large number of cars that have recently returned. The liquidator I bought cars of 1500 is put cars a month. Take the best 250, put them in their showrooms and sell them to walk-ins. Then the major rest in the car auctions. Because lenders are willing to sell, their liquidators sell cars often below their book value returned.

Liquidators work with a number of banks and leasing companies and are paid a commission or a percentage of the selling price of the vehicles they sell. The balance of the profits of the sale they receive are given to the lenders.

Showroom of my local liquidators is full of 150 to 200 vehicles so you always have a good selection to choose from. They look new, have low mileage (most have between 10,000 and 30,000 miles), have been cleaned and are certified as mechanically sound by the liquidator. Most cars are priced at three to five percent below their book value. You can purchase an extended warranty, finance your purchase through the liquidator or rent or purchase it directly.

I bought six cars, reliable new look from a local bailiff. I bought each one for less of their book value and have always been well satisfied. The purchase of a liquidator implies little or no haggling because the cars are so well priced, to begin with..

Check on the Internet or in your local phone book to find the liquidators.

Before purchasing a car from a liquidator, get the vehicle Identification number (VIN) and check its history. A series of online services provide reports on car histories.

When you buy from a liquidator, the remaining part of the new vehicle car warranty comes with your purchase. For example, if you buy a car that has a warranty of 50,000 miles or five years that has been driven only 29,500 miles in two years, the new car warranty will protect you from 20,500 miles or three years, whichever comes first. And if you wish, you can purchase an extended warranty from the liquidator.

The American Automobile Association (AAA) has a free program under which its members can obtain special prices in new and used cars. Under the program, members say AAA that the cars they want and AAA they refer to the dealers participating in the program. Distributors have designated staff who then work with the member.

2. What not to do

A. Does not lease vehicles, new or used, unless you need to deduct the cost for business. Car leasing is more expensive than buying, because it does not get equity in the car. Leases also include charges when they accumulate up to the heavy mileage. Initially, leasing usually costs less, but after making your payments and returning the car, you have nothing to show for it; You have no equity.

Cars are status symbols and ego reinforcements for many people, not just transportation. So they enter short-term car leasing contracts that are exceptionally expensive. In fact, leasing is the least profitable method of acquiring cars. It!

B. Do not buy used cars from new car dealers, as you will probably have to pay more than if you went through a bailiff. Used cars are profit centers for new car dealerships so they try to make a profit on all the vehicles they sell. They will usually not sell in or below the book value as liquidators. I was just going to buy a new car dealer if I couldn't find a car I wanted on a liquidator.

C. Used car dealers can be the worst places to buy the latest used car models. Used car dealers derive all their income from selling second-hand cars, which charge higher prices and the condition of their cars may not be reliable. Many used car dealers run small operations and are legendary for their questionable sales practices. At any time, they could close the store and leave it with little recourse if the car turns out to be a lemon.

D. Some owners know that dealers, new and used, and will not give them a fair price so they try to sell their cars on their own. Many want to unload their cars because they have mechanical problems, they will not disclose voluntarily. If you buy a car from your owner and then have problems, it may be impossible to get the owner's resource. Just buy a used car from a particular after having thoroughly inspected by a qualified mechanic.

Purchases Car Financing

When you buy a new car or late model, you can pay for it in a number of ways. If you have the money, you can pay in cash; However, most people need to finance their purchases. Unfortunately, many buyers do not think much about financing decisions, which can be so important to decide which car to buy and how much to pay.

2. How much can you pay?

Get a copy of your credit report and FICO score at www.annualcreditreport.com. Download your credit report and print a copy. You can get one free each year.

Your credit score will determine the interest rate you'll have to pay on a car loan. Visit your bank to see what terms you will be given on a car loan. Also the investigation of car dealerships terms, automobile clubs and other lenders are offering.

Suppose you will need to finance a maximum of 80% of the purchase price and find out the terms of the 48 month loans.

Monthly car payments of a family should not exceed 20% of your monthly salary to take home. In www.edmunds.com you can find financial calculators to help you calculate your monthly payment. That the payment is based on the purchase price, the initial payment, the interest rate and the duration of the loan. Print or write the figures and take with you when you go to buy a car.

3. Consider all property costs

Inquire into the cost of insurance for each vehicle you are considering as these costs can vary greatly. Insurance costs are linked to car safety, which is information you need to know and use as bargaining points with car vendors.

Note also the depreciation; A car that can be less expensive than another car could depreciate at a faster rate, which would make it more expensive in the long run. Factor in fuel costs, service program, warranty and repair of each vehicle when determining the long-term cost of the car.

4. Determine the value of your car

Before you buy a new car, find out the fair market value of your car present in www.kbb.com, www.edmunds.com or www.nadaguides.com. Then try to sell it privately as you can usually get a better price than if the trade in this is what you need to do.:

Place an ad on Craigslist, www.craigslist.com or in your local newspaper or advertiser

Accept payment only in cash or by certified cheque or could be burned

Immediately after the sale, submit all necessary paperwork with the state so if the car is then wrapped in an accident, you will not be legally responsible.

5. The trade in your car

Again, determining the fair market value of your car. Hope to be lowballed. New car dealers try to give as little as possible for their car because they plan to resell it and less are paid, more to do. You're going to find trouble with parts you didn't know existed.

Even though the dealerships don't offer you the full value of your car, the fact that you know the real value of your car can help you negotiate a better price. However, don't expect to get as much as you would with selling your car on your own.

Negotiate the price of the new car, and then discuss your trade. Since you're there to buy a new car, focus on it and don't let the seller divert you by initiating trade negotiations.

6. Go online and do an investigation

The Internet is filled with a lot of information about buying cars. Distributors have created Internet sites that allow car buyers to buy online. If you go online, you can check the inventories of the distributors, look for the available options and find out how much cars cost. Also look for information on dealer incentives such as refunds and zero percent fi funding. By reducing the number of vehicles you are interested in, go to the dealership for a driving test and negotiate an agreement.

7. See Price Distributor Invoice

Learn what point the dealer paid for the car before negotiating. Forget the label price or selling price suggested by the manufacturer (MSRP); It is mainly for demonstration. What really matters is how much the dealer has invested in the car.

To find the cost of the distributor, go to www.edmunds.com and merchants Download invoice prices. In most cases, a Distributor will accept $500 to $1,000 above its invoice price. On popular models, you may have to pay closer to the price tag. Since these models are of demand, distributors do not have to deduct them.

Learn all the extra expenses you will have to pay. Include taxes, registration and destination charges. Make sure that you need or want the dealer is trying to sell you. If the dealer claims that something does not want it to come with the car, insist that the dealer to remove it. Do not pay for delivery, handling, FL oor charges or unnecessary encumbrances to the distributor tries to charge you.

8. Do not say how much you are willing to spend per month

Older book trick and one of the first questions a salesperson will ask you is how much you can pay each month. Despite having determined that before you go to the dealership (see # 2), it does not answer. If you do, you will be given the seller to win because he or she can structure an adjustment loan both within your figure and get your price for the car. Always negotiate the selling price in the vehicle itself-never in the amount of the monthly payment!

9. Play Cool

When you find the perfect car, do not make it sprout or show your emotion. Play it cool, because when vendors feel like you're madly on a car, they move to kill and it gets a lot harder to negotiate a lot. Take the time to look at the agreement more objectively. Ask:

Is the car right for me?

Do you have everything I want or is it loaded with too much?

Am I prepared to take the necessary expenses to buy this car?

10. Go home and freshen up

Distributors have buyers who act impulsively. They know that people fall in love with cars and Iran terrible offers. Once they are given a light of hope, they will push to close the deal.

When you think the seller has offered you the best deal and you are ready to buy, and a lot of working time for you. Tell him if you buy the car, you will buy from him or her, but it takes a little time to digest all the information you receive and think about it.

The seller will do his best to convince you to buy now (especially if it is the end of the month), including saying that the agreement is valid only for that day. Believe me, if I come back three days later, he or she is going to do the same thing.

After leaving the showroom, some vendors will call you relentlessly to convince you to close the deal. So think twice before you give her your phone number.

Take the time to reflect on the deal, to make sure it is the car you want and you can afford it. Be sure that you understand that your total cost and you have the best fi nance available. When you feel comfortable with your decision, go in and buy the car.

11. Beware of the business manager

AUTO LEASING

Leasing allows many people to buy cars that they could not otherwise afford. When renting a car, they actually rent the right to use it for a period of time, such as 36 months, 48 months and so on.

Monthly income consists of two components: depreciation and interest. From those who never give up the owner of the car, they only pay for the part of the value of the car during the lease period.

Leasing has some short-term advantages over purchasing. are:

The amount you initially have to rent a car is usually less than what you put down if you bought it.

Monthly payments are lower than if you bought the same car and financed with a car loan.

Expensive Leasing, luxury cars for business can provide tax advantages. When you rent a car, the interest is rolled in the monthly payment so it is tax-deductible. On the contrary, interest paid by car loans is not tax deductible.

After the lease expires, the car can be turned on and you can rent a new car, which works in excellent way for those who want to have a new car every few years.

Disadvantages

Economically, the downsides of the lease are far superior to the advantages.

Never build equity in your vehicle, as you never actually have it. You only have the right to use it.

You always have car payments. If you buy a car and the term of the loan expires, your payments stop. Since cars are manufactured to work reliably for up to 200,000 miles, you can own a car for a long time after you have stopped making payments.

If you exceed the maximum mileage allowed in a lease, you have to pay a fee for excess when the lease. If you drive a lot and put in excess of miles, you can be hit by a strong signal.

It's hard to finish a contract ahead of time. The penalties are involved and all charges can be costly.

When the lease, you can be charged for the wear, which can be significant.

If you decide to buy the car when the lease, it can be very expensive. You may need to get a loan to finance your purchase.

Lease contracts are very confusing. Often, you have no idea how much you are actually paying to rent the car.

In the long run, the lease is more expensive than buying a car.