Get 50% Off Your Next Car
By [http://ezinearticles.com/?expert=Adam_Stevens]Adam Stevens So you want a new car? These days when most people make a large purchase such as a car, theyre in the habit of borrowing the money, rather than saving for it. Debt is sometimes unavoidable, but the next time you decide to make a large purchase, have a think about the figures before signing on the dotted line. Lets assume you want to buy a new car for 10,000. There are two ways you could finance the purchase. You could borrow the money (lets say at 7.8% as thats a reasonable rate for a loan in this day and age), or you could save until youve got enough. If you borrowed the money at 7.8% over 5 years, your monthly payment would be just over 200 (assuming you dont take out loan protection). By the end of the loan you will have paid a total of 12,108 which means that that lovely new car (which is now 5 years old) has cost you not 10,000, but over 12,000. But what if you saved up for the car? Lets look at the figures again. This time, you save just over 200 each month for 5 years. After 5 years you have 12,000 in the bank. Every bit of it is yours and you havent paid a penny interest. Not only that, but rather than paying interest, youre earning it. And thanks to the magic of compound interest, that 12,000 has turned into 13,000 (assuming a net interest rate of 3.2%). So, you now have 13,000 in the bank. You buy a car, and still have 3,000 change. So whos the fool? The guy who pays 12,000 for the 10,000 car, or the guy who pays 10,000 for the 10,000 car and has 3,000 in the bank? Thats a different of 5,000. 50% of the cost of the car. Of course the advantage of the loan is that you get what you want now, whereas it takes time to save money. In which case, youd better start saving now. Sound too good to be true? Play with the figures yourself by using the [http://www.whatsthecost.com/savings.aspx]savings and [http://www.whatsthecost.com/loan.aspx]loan calculators at [http://www.whatsthecost.com/]whatsthecost.com. Article Source: http://EzineArticles.com/?expert=Adam_Stevens [http://ezinearticles.com/?Get-50%-Off-Your-Next-Car&id=201661 ]http://EzineArticles.com/?Get-50%-Off-Your-Next-Car&id=201661 buy xanax valium xanax is it safe to purchase xanax online xanax without us prescription buy xanax no prescription
