The average american buys a new car every 5 years.
As I write this in 2013, the average new car price is $30,000.
Let’s assume that your car buying years are from 20 to 75.
75 minus 20 = 55 years
55 divided by 5 = 11 times that the average person buys a new car
11 times $30,000 = $330,000
What if instead of buying new, you bought used and payed $10,000 every 5 years for a car…
11 times $10,000 = $110,000
$330,000 minus $110,000 = $220,000
This is the amount that you could easily save by buying used instead of new.
Cars are a terrible investment of your money.
Only purchase what you need, not what you want.
This number could be much higher if you can hold onto your car for even longer than 5 years or pay less than $10,000 each time.
I have had my Ford Taurus now for 13 years. It is as old as my middle child.
I hope that it will last 10 more years or at least until I can pass it on to him.
Are you buying used or new?
Anyone thinking they’re beating this number?
Please share your thoughts in the comment section below.