The ADVANTAGE of Having a Paid-Off Car
Car payments cause many problems in life. Here are the advantages of having a paid off car.
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Chapters
00:00 Start Here
01:13 You Have More Breathing Room In Your Budget
02:35 You Have More Money For Fun Spending
03:48 You Don’t Have to Deal With Car Dealerships
04:36 You Can Get Lower Insurance Premiums
05:21 You Don’t Have High Interest Debt
06:41 Paying For The Other Car Expenses Isn’t As Big of a Deal
07:54 You Avoid Having An Upside Down Car Loan
08:57 You Have The Freedom of a Car With No Strings Attached
The biggest financial advantage is having a car that is completely paid off. And the reason is because cars are expensive and cost the average person thousands of dollars a year. In this video, I want to inspire you to pay off your car by sharing 8 advantages of having a paid off car.
1. You Have More Breathing Room In Your Budget
The average monthly payment for a new car is $735 and $523 for a used car. Even for a person with an above average income, that consumes a lot of your budget making it hard to be able to pay for other expenses in your budget. When you pay off your car and avoid a car payment, you have a lot more breathing room in your budget.
2. You Have More Money For Fun Spending
In addition, when you do not have a car payment, you save thousands of extra dollars each year, which you can use doing fun things. Chances are, you will save so much money, that you can do something things that bring value into your life while still having money left over to save.
3. You Don’t Have to Deal With Car Dealerships
When you decide to take on a car payment, you have to go through this complex process with the dealership and communicate with them for years until you pay off your car. When you have a paid off car, you get the title and you do not have to talk to a car dealership ever again.
4. You Can Get Lower Insurance Premiums
When you have a car payment, the dealership still holds the title since you do not own the car, which gives them a say over which insurance plans you choose. They often force you to get high insurance premiums with low deductibles and overage you might not want. When you own your car and have the title, you can get the coverage you want and possibly save money.
5. You Don’t Have High Interest Debt
When you decide to take on a car loan, you often have to pay a high interest rate on top of the principle costing you thousands of dollars every year. When you own your car, you save thousands of dollars each year on interest you would be paying for the car loan.
6. Paying For The Other Car Expenses Isn’t As Big of a Deal
Besides a car payment, there are many other expenses that are involved in a car that make car ownership expensive. And if you have a car payment, these expenses can really hurt you financially. However, when you don't have a car payment, the other expenses don't seem as big of a deal.
7. You Avoid Having An Upside Down Car Loan
Cars are depreciating assets meaning that they lose value each year. If you have a car loan over a long period of time, it is possible that you could end up owing more money than the car is worth and have negative equity. Avoiding a car payment allows you to avoid this upside down car loan.
8. You Have The Freedom of a Car With No Strings Attached
Although cars are expensive and annoying, they do provide a lot of freedom and value into your life. It is hard, however, to enjoy that freedom when you have a car payment because your entire life revolves around the payment. When you pay off your car, you have the freedom of a car with no strings attached.
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