auto

5 tips to becoming a one-car family

Develop a savings strategy and stick to it
Next
6 of 7
Back
Develop a savings strategy and stick to it

Don't be too quick to re-absorb that monthly payment.

"If you really want to try to get top dollar, sell it yourself," he says.

You could end up with $15,508 in five years by having your car note redirected to a money market account with 1.35 annual percentage yield, or APY, assuming a monthly payment of $250, Gerhard says.

In addition, it costs $46,845 to own a car for five years, according to AAA. That includes fuel, routine maintenance, tires, insurance, license and registration, loan finance charges and depreciation costs for a car that is driven 15,000 miles a year.

The savings comes to $62,353, which could be used to pay for needed repairs on the remaining car, Gerhard says. Or, you could use it to buy your next car with cash.

"You'd really have a nice pot of money," he says.


 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
 

A little research could save you BIG on interest.

Don't have time? Our rate-tracker tool saves you time and money. Delivered Thursdays.
 
advertisement
Partner Center
advertisement

Blog

Tara Baukus Mello

Chrysler recall for car ignition fix

The Chrysler Group has announced a recall of 349,442 cars for a potential problem that can cause the ignition key to become stuck or inadvertently move.  ... Read more


Connect with us