A secret tip by an American expert on how to buy a new car without a loan
Fund Lender needs a new car and looks for a model for CZK 300,000. He has no money saved and so he borrows the whole amount at the bank. It pays less than CZK 5,000 per month for 6 years .
Classic situation when buying a car
She opens champagne for the sixth year and is happy to sleep peacefully. The car is only hers. He drives for another 4 years and then the car shuts down. He has to go to the bank again , take the loan, and worry about losing his job and paying for it.
It pays to postpone the money
However, expert Suze Orman suggests a way for Mrs Lender to avoid another large loan.
How does it work:
- Sixth year repays the loan.
- He still puts aside CZK 5,000 a month, but instead sends them on a savings account or other deposit product.
- It will save 240,000 CZK for a new car in 4 years .
- If the monthly interest is 1.5%, it earns an extra CZK 7,496.
- Total has immediately available 247 496 CZK.
The future without a car loan
Mrs. Lender can buy a cheaper car right now or go to rent only 50 000 CZK.
The cycle is repeated:
- The loan repays CZK 50,000 per year.
- He further postpones CZK 5,000.
- She only needs to save her for 5 years and has CZK 311,724 to buy a new car.
- He no longer has to go borrow.
Tip: If Orman’s advice captivates you, read other helpful tips in her book Courage to Be Rich. It advises women on how to achieve independence and how to manage personal finances.