One Major Loan Down

Hello There!!!

It’s been quite a while since my last post.  I think my last post was October 2015.  It’s been ages already.  But nonetheless, so many things happened in between posts and I would like to share one major think that happened just recently.  I just finished paying up my car loan which I took up last June 2011.  Yup, that’s right.  I just completed paying up for my car.  And what a relief!!! Whew!!! YAHOO!!!

All of us know that having a car is one of the major purchases that anyone makes even at the expense of incurring a loan.  Well, it’s understandable.  Paying up for a new car in cash is quite impossible for the average individual like me (please call my attention if someone disagrees :)). Unless if I’m rich, I don’t think I can pay up for a brand new car in cash.  At least not yet.

Whether it’s a brand new or a second hand car, it is up to the person to decide on what to purchase since both still requires maintenance checks from time to time.  The advantage of owning a brand new car is the fact that you will be the first owner and you will be the first one to drive it out of the dealership.  Purchasing a second hand car requires patience since you need to check the history of the unit.  Failing to check up on important items will just give you headache.

I received an advice from someone that once the car reaches five (5) years, dispose it immediately since the maintenance tends to be costly after 5 years.  I beg to disagree.  At 40Kms plus, I don’t think the car would just bog down like that, especially if it is casa maintained.  Would it be more costly if you will have to pay for another car loan for the next five (5) years rather than just saving up your additional income from the completion on the load and use a portion of it to properly maintain your car?  I would rather choose the latter.

A brand new car also needs regular maintenance check-up.  And maintenance checks at the dealership also takes away money from your pocket.  That’s what I call practicality. Incurring another major loan on something which immediately depreciates is, for me, not a wise decision.

I would rather use that additional cash flow on something else which will make my money grow and on something which will make me wealthy.  And that is Investing.  More on this. 🙂