Caisses Desjardins du Québec and Caisses populaires de l'Ontario [Change site]
Buy a car
Saving money to be able to make a larger down payment when you buy a car is an excellent idea: it allows you to substantially reduce the amount of your car loan.
There is, however, a tried and true way to buy a car with cash. It's based on, you guessed it, savings. And being willing to drive used cars that are in good condition.
The reasoning:
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A new car loses value the moment you drive it off the dealer's lot. |
And it continues to lose value rapidly the first few years of its life. Instead of taking the depreciation hit, you can, instead, benefit from it by buying slightly-used cars. |
Take the money you would putting toward an average loan payment on a new car.
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For example $300 a month.
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Invest this amount each month. |
After a few years, you'll have accumulated enough money to be able to pay cash for your first used car.
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During the years you drive your used car, continue to save. |
Continue to save the same amount (e.g., $300 a month) towards the purchase of your next car.
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When you're ready to change cars, sell your 1st used car. |
Put the money from the sale of your 1st used car toward the purchase of a 2nd used car.
This way you avoid getting into debt can gradually move up to better and more luxurious cars, if you feel like it. |
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The next step
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 At the caisse
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Money question
Are you able to put money aside each month?