A brand new car every 5 years, for the price of one.

Today on Dave they did the math about owning cars. People buy in to the MYTH that "you will always have a car payment."

Facts:

The average new car cost $26,000
The average car payment $464 for 72 months
The car will be worth $6000 in a couple years.

Dave says try this:

Buy a $1500 car and put the $464 in a savings account.
In 10 months you will have $4640 dollars.
Add that to the $1500 your car is worth and you can get a $6000 value car.

Keep going...

Keep saving the $464 dollars a month and in 10 more months you can take the $4640 plus the $6000 your car is worth and buy a $10000 value car.

Keep going...

The next time you can get a car worth $16000 and still keep saving the money you would STILL BE PAYING ON THE FIRST CAR if you had financed it.

You can get a new car every 5 years for the rest of your life.

*** Note - Car rental companies such as Enterprise and Hertz have cars that are one year old with low milage for less than $16000.