Has anyone ever heard the story about the guy who traded his car in for way more money than he expected? No? Me either. Unfortunately, in my experience it has been much the opposite!
Most customers who need to upgrade their car before their loan term finishes will find themselves with a shortfall on their finance payout. This results in them borrowing more than what their new car is worth and this gap progressively gets larger with each new vehicle.
Now, I am not saying this to discredit car dealerships or suggest they are trying to rip you off – it’s just the nature of the beast! If you put your cash into a car you have successfully turned your money into less money the second you drive away. Reason being, there are costs associated with reconditioning vehicles as well as load and administration costs. So, in order to sell the vehicle at a reasonable price accounting for their expenses, dealerships have to give you as little as possible for your trade-in in order to keep the stock selling and the doors open!
Many people have the mentality that you need to save your money so that you can own lots of things! In most cases, I can agree with that. Renting houses, for example, is a waste of money in my opinion. However, the thing about houses is that they appreciate so I can see the value in owning one. If you sell a property at the right time for the right price you can make lots of money! On the contrary, (unless it’s a classic) there is not any point in the period of owning a car where you can sell it and make lots of money – so what’s the point in owning it?
A car membership gives you the opportunity to spend your money on things that make you money! It does not limit your borrowing capacity or eat into your cash savings. It allows you to keep your cash, put it in a high interest savings account and save for an asset that won’t be worth 30% of what you bought it for in five years!
Of course, you still need to get around though so we’ve got you covered ;). Talk to us about membership pricing through our contact page today!
– Rachel Bennett