How many people are spur-of-the-moment shoppers?  We wake one day or walk by this or that and decide we need it.  Many Americans fall into this category. I can’t speak for the rest of the world, but, it should be labeled as a disease and drugs should be prescribed immediately, (actually I think there is a drug for it – with only small to moderate side-effects).  Anyhow, we feel this urge over-come us and will stop at nothing to acquire that little piece of heaven in the shape of a brand new car.

To a person who wants to pay off all of their debt in 8 years, this is a huge challenge to master. We need to recondition our minds to thinking this unacceptable.  How with all of those commercials bombarding us everywhere we look. Television, Internet, Road Signs, back of cars, restaurants, shopping centers, sporting events, newspapers, etc…  Everyone has a deal and it you need to act now.  Give me a firkin break.  Do they really think we believe there’s never going to be another deal again?  Well, yes.  We do believe it and not only that we believe whatever the sales person tells us.  The auto dealers call this the “Ether Effect”.

Our wonderful imagination is a double edged sword.  It can put us in instant celebrity status simply by purchasing a vehicle.  “Look at me! I’m a Peacock!”, “My friends are going to flip when they see me in this ride.”, or “I got the deal of the century.”  All the while, the sales guy is just standing there, laughing because he didn’t need to do anything.   When it comes to automobiles the sales people really only need to do two things: A. They must be nice. B. They must know how to put a pen on the form and move it around.  That’s it.  The “Ether Effect” will do the rest.

Buying a car takes great discipline.  As a rule of thumb, buy with cash. However, if you must finance an automobile, at most finance only 36 months and buy used.  Why? If the car costs $10,000 and you pay cash that’s it, however, if you finance a car for let’s say 36 months at 7% interest, you pay $10,000 plus, another $1,115.72. Using credit to buy something is more expensive in any form.  Giving someone $1,115.72 is not something we would consciously do on a regular basis, but we do it anyway.   Now, take that $1,115.72 and add it the credit card interest rates, your home’s interest rate, and all the other interest rates and you become trapped in the Rat Race.  Sure the bank will loan you the money, “sign here – buddy o pal”.  POOF! They just created money by taking it right out of your future paychecks.

Taking charge of your finances is important.  There are basic steps you can take to pay off all of your bills within 8-10 years.

Tips For Successfully Buying A Good 2 To 3 Year Old Car

• The foundational rule is to leave your emotions at home.

• • Never buy a car on impulse.
    • The CD player, or how good your girlfriend looks in it are not reasons to buy a car.
    • When you find an acceptable car…take it to your mechanic.
    • Pay him or her to give it a complete check out. About $50. It’ll be some of the best money you’ll spend in the transaction.
    • If the seller resists your mechanic checking it – run.
    • Dress down when car shopping.

¨        You’ll fell more comfortable crawling around the car.

¨        The price won’t creep upward.

• • A step-by-step used car checkout.
    • Inspect the exterior.
    • Look for signs of major damage or rust.
    • Do the colors of all the fenders and doors match EXACTLY?
    • Are there signs of hail damage?
    • Are there signs of repainting, like over-spraying inside door jams, inside the gas filler cap area, around the front and rear glass, on exterior moldings, and inside wheel wells.
    • Some people paint for cosmetic reasons.
    • But more frequently to hide repaired damage.
    • Look down the sides to check alignment.
    • Watch for sagging, uneven door alignment, or waves in the flat surfaces.
    • Stand at each corner and push the bumper up and down until the car is bouncing.
    • When you stop pushing, it shouldn’t bounce more than a couple times. Otherwise negotiate for price of new shocks or struts.
    • Next check the tires for uneven wear, tread damage. Don’t forget the spare.
    • Check a vinyl roof for fading color, bubbling, or coming loose.
    • Check for glass damage.
    • Inside you want to look over the interior for splitting or tearing.
    • Power seats should function properly.
    • An excessively worn brake pedal could mean the driver was hard on the car.
    • Do all the gauges operate?
    • Look under the dash for hanging or taped wiring.
    • Make sure everything electrical works.
    • Now let’s pop the hood.
    • Look under the car for fluids leaking on the ground.
    • Fresh oil on the engine is not normal, but dirt is.
    • Check the coolant for a fresh green color.
    • Check for soft or worn hoses and belts.
    • Check the oil. It should not be black or real dark brown. It should obviously be within the safe range.
    • Check battery electrolyte (cover the plates), brake fluid (no more than a half inch from full), and transmission fluid. Transmission fluid that smells like burnt coffee can indicate trouble.
    • Remove the air filter and check for oil, which would indicate a cylinder problem. Dirt is normal.
    • Before you start the engine, turn off the radio and everything else.
    • When it starts check the mirrors for smoke.
    • Have the seller or a friend rev the engine, while you get behind the car and watch for smoke. A little is OK, but blue smoke indicates burning oil, which is always bad.
    • Listen for clinking, tapping, or any other abnormal noises. They’re rarely harmless.
    • Before test-driving, turn the wheel from one extreme to the other. No squeaking or resistance.
    • Then – with foot on brake – move gearshift through all the gears. No knocking, grinding, or clunking sounds. The louder, the more expensive.
    • Keep radio and people quiet while driving.
    • Try a hard stop from 30 mph. Does it stop in a straight line? Does the pedal feel mushy? Any noises?
    • Next try accelerating. Does it jerk or hesitate?
    • Does the transmission properly drop down a gear when accelerating to passing speed?
    • Make sure you drive over all the types of surfaces you’ll encounter when you own it.
    • After you’ve had the car to highway speed for 10 minutes, check the gauges for overheating or other problems.
    • While on the highway, drop down about 10 mph under the speed limit, then punch it – watch for blue smoke in rear view mirror.
    • Then at speed limit, take foot off accelerator, and watch again for blue smoke.
    • There should be no shimmying or shaking in the steering wheel.
    • When back on slow streets, take hands off wheel, check for straight tracking.
    • The best situation is to have your mechanic with you during these tests.