Debt Consolidation Credit Counseling In Phoenix

Purchasing a vehicle is a big deal. It doesn't matter who you are, it is going to take some time and thought. They cost so much that most people aren't willing to just go out and buy whatever car they think looks good. Most people finance cars and probably think it's near impossible to pay for one up front in cash.

To get around this huge purchase, you could buy a car used. Some cars can cost only a couple thousand dollars or you could buy a fixer-uper for a few hundred, but you'd have to put some work into fixing it.

Buying a car new has a lot of advantages. If you can pay for it in cash up front, you can save a lot of money. If you want to buy an $80,000 car without financing or leasing, you will have a lot to save. If you make a lot of money, it is possible, but if you have an average income, an $80,000 car just might not be in the cards. If you want to save to buy a car costing about $18,000, can you do it in a year?

It will depend on how much money you make first of all. If you make under $25,000 a year, you'll probably have to wait a few more years. Even if you saved every penny you made and paid for nothing, after taxes, you might just barely make it. Not spending anything is pretty unreasonable.

If you live with your parents or somehow get out of paying for a place to live and food, you could save a lot more, but using the money you save to buy a brand new car probably wouldn't be very respectful to those you are taking advantage of. You should probably put it towards an education or a home of your own.

Let's look at a scenario where saving $18,000 in one year would be possible. You live alone in an apartment with rent costing $700. You skimp on everything you can including no cable or internet, you only eat Ramen noodles, you never go out, and you save every penny you can get your hands on.

You make about $35,000 a year and you pay about 15% in taxes. Your after tax income is $29,750. Rent costs you about $8,400 a year. If you could pay for food, utilities, and anything else you need with $3,350 a year or about $280 a month, you could save $18,000 for a new car.

This is possible, but only if you are willing to live on scraps with no social life. You'd have to spend your free time trying to come up with more ways to save money. If you make a lot more than that, it would be a lot easier. For those of us who don't have high salaries, just take a few more years, for your own sake.