– Buying/selling a car is a big decision with BIG financial implications!  Your choices on this front can cost you big time!  One of the most important things to realize is that a car is likely the largest purchase you’re going to make that will go DOWN in value.  Other purchases this large (property, investments, etc.) will go UP in value.  It’s one thing to buy a house that goes up in value with debt, another thing entirely to buy something that goes down in value with debt.

– Buying used is definitely going to be your best bet, avoiding payments to keep your cash flow up.  This means you might have to wait longer to upgrade your car.  But if you put the equivalent of the average car payment – $400 – away each month, you can have a car that is $4000 nicer than your current car in less than a year!

– When selling your car, you’ll get more money if you sell to a private buyer than if you trade it in.  It’s a little more work, but it can certainly pay off!  Use Kelly Blue Book to help you determine how to list your car, and how much more you can make if you sell it privately instead of trading it in.