0 thoughts on “A free car?!

  1. Well if you buy a car from any dealership, the price is usually inflated, so you lose that 10-20%, and then another 20% depending on the market when you go sell. So in as little as a year, the value can drop close to half, and this is referring to the low priced cars like in the video.

    Plus you know how brand new cars lose 30% when driven off the lot.

  2. Cars depreciate, but in 10 months, a $1k or $5k car won’t depreciate much, if at all. The biggest hassle factor is selling the cars, but for the most part, if you buy well, you can sell well without losing any money in the 10-month interim.

  3. @ Jason – I presume that in the $1k to $5k range we are buying used, where most of the initial depreciation that Tom (a.k.a. rawenergy) talks about has already been taken up?

  4. @Adrian

    Yes, if you buy used and upgrade in vehicle every 10 months or so, you can probably work it where you don’t lose much in depreciation while working your way up to a $10-15k vehicle.

  5. The flaw I see is that they are presuming the long term 12% annual return is garanteed to happen in a short period of time over and over again. If you dumped that 26,000 in an S&P mutual fund 5 years ago, you wouldn’t have a penny towards a new car (you would be down ~ $8,000.) It reminds me of a post I saw recently on get rich slowly about the difference between “average” and “normal” returns. It just seems a little over-simplified. But I must say, reading Dave’s book got me, as you would say, well on my way to “making money 201”

  6. Nice instructional video.I only have 1 point to make about it. He states you have upgraded to a $6,000.00, then 10 months later(after saving the payment you would have made on a financed car) you take the money saved, plus the $6,000.00 from your recent purchase and upgrade to an $11,000.00 car. Now 10 months later, your not likely to get $6,000.00 back out of the $6,000.00 car you just bought. So assuming a $1,500.00 drop there, you still end up upgrading to a $9500.00 car instead of the $11,000.00 he alluded to. Still works , as you can still keep this up grade thing going.Albeit a little slower than he points out. But I like the idea.It works for me.
    I’ve only ever Financed 2 cars in my life, I always seem to pay cash for cars when I buy.And I show no mercy when negotiating on Price, as its my Money we’re talking about .:)

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