Page 60 - Book6E

Promises make debt, and debt makes promises.
— Dutch Proverb
WHAT WE SPEND ON TRANSPORTATION
Income Range Annual Spending
Less than $19,179 $2,742
$19,179 to $35,999 $5,330
$36,000 to $57,659 $7,437
$57,660 to $91,704 $10,504
More than $91,704 $15,691
Average household spending $8,344
52
complete nonsense, but some people have been so brainwashed that they literally drive themselves into bankruptcy.
• Failing to consider the overall costs . When buying or leasing a car, many people consider nothing more than the monthly pay- ment. They’re not seeing the whole picture. Once you factor in insurance, gas, maintenance, repairs, taxes, depreciation and other
costs, most cars will set you back at least twice the initial purchase price over five years.
Depreciation, explains Weston, is just a fancy word for the steady, day-by-day drop in the value of your car. You don’t pay for it as it happens, but you do pay eventually,
when you go to trade in your car for another.
The auto association Edmunds (Edmunds.com) estimates the typical passenger vehicle costs 52.2 cents a mile to operate, or $7,834 a year assuming 15,000 miles driven annually. The estimate is based on aver- age fuel prices and finance charges. Your costs may well be higher; for example, bad credit can send your finance costs soaring. (Edmunds. com said the average car loan carries a 7.38% interest rate.)
Wait Until You Can Pay Cash For That Car