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Avoid car loans and instead pay cash for vehicles from "summary" of The Total Money Makeover by Dave Ramsey
When it comes to buying a car, the idea of taking out a loan has become the norm in our society. Many people think that borrowing money to buy a vehicle is just a part of life. However, this couldn't be further from the truth. In fact, taking out a loan for a car is one of the worst financial decisions you can make. The problem with car loans is that they come with high interest rates, which means you end up paying much more for the car than it is actually worth. Not only that, but car loans often come with long repayment terms, which means you will be stuck making payments for years to come. This can put a strain on your finances and limit your ability to save for other important things, like retirement or emergencies. Paying cash for a car, on the other hand, is a much smarter move. When you pay cash, you avoid paying any interest on the purchase, which means you save money in the long run. Additionally, paying cash for a car forces you to live within your means and only buy a car that you can truly afford. This can help you avoid getting in over your head with debt and keep you on track towards financial stability. While paying cash for a car may seem like a daunting task, it is definitely achievable with some planning and discipline. By saving up for a car in advance and setting a budget for yourself, you can make paying cash a reality. Remember, the goal is to avoid debt at all costs and make wise financial decisions that will benefit you in the long run. So next time you're in the market for a new car, think twice before signing on the dotted line for a loan.
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