Thursday, February 23, 2012

How to Get a Free Car

This video is pretty inspirational! I first saw it on Christian Personal Finance


  1. His math doesn't quite work out. It doesn't take into effect the depreciation of the older car. Nor does it account for maintenance costs that would be covered under the new car.

  2. Inspirational though. Ramsey is more about encouraging savings and debt reduction, I can forgive some of the missing things like Matt said, along with the psychological deficiency that most of us have in not thinking far ahead enough to actually plan for a car 1-3 years (he went in 10 mo chunks, i rounded up) out. most figure out the want or need a car almost in the past-tense and have to get something in the short term. It'd been nice of the host to press the concept of purchasing the lesser car as a viable option, having the brand new ride just isn't necessary, and causes many if not most to unknowingly live beyond their means in debt. A step in the right direction though. I do like the idea of plugging those savings into a mutual fund for extra growth, market risk could bite ya tho.

  3. Model Price
    2012 25065
    2011 18050 7015
    2010 16050 2000
    2009 14375 1675
    2008 12725 1650
    2007 11500 1225
    2006 10050 1450
    2005 8350 1700
    2004 7075 1275

    I just went to NADA to get car values. I added 15000 miles per year to the car (the average). This is for a very basic Chevrolet Impala. As you can see, after the first year the car depreciates by $7,015. After that it deprectiates by an average of $1567.86 per year. The first owner is taking the brunt of the depreciation.