Part II:How to Drive a Mercedes Benz instead of a Hyundai
March 28th, 2007 |
This is part two of yesterday’s article “How to drive a Mercedes instead of a Hyundai”. You can read part one here.
Yesterday we talked about how having some money in savings can start giving you some options in life. When it comes to cars, you can look at a good used car instead of an over-priced new one. Why? Because you have money in the bank to cover unexpected car repairs. Most people don’t have money set aside for unexpected car repairs. This is why people decide to buy a new car and pay a lot more money for it.
I though we’d take things a little further and do some shopping.
I went to Hyundai’s website and ordered up an average Sonata. It will cost me $18,545:
Next I went over to AutoTrader.com. They list used-cars for sale here in the USA. I quickly found hundreds of Mercedes Benz cars for sale. Here are four:
New, any of these cars would cost you well over $30,000 and probably more like $40,000 to $50,000. Why not let someone else take the hit on new-car depreciation?
Used car dealers list each of these cars. This is good news for us. Why? Because the dealer will probably offer you an extended 2-year warranty for around $1,500. But there’s a catch. These warranties will only cover big repairs like replacing an engine or transmission. Personally I think they’re worth the money. You can keep your Million Dollar Savings Club money to cover smaller repairs like tires or a new engine belt.
Hopefully I’ve gotten you start thinking about getting a good used car instead of a new one. You’ll come out much further ahead in the end. I’ve been doing this for years. It amazes me how many people spend $400, $500 or even $600 a month to lease a new car they’ll never own. It amazes me how these same people won’t drive their leased car because they’re afraid of putting too many miles on it.
Me, I drive my good used car until the tires fall off. My last purchase: A $15,000 BMW that would cost over $60,000 brand new. I love the car and payment.
Until next time, keep on saving…
