Buying My First Car

Buying the two cars that I have owned in high school have been the two most important events thus far in my life concerning money management. During these experiences, I learned about the difference between buying something by saving for it over time and using a loan, how different decisions can have hidden consequences later on, and why buying to fit my needs rather than what I want is critical. I have undoubtedly learned much more about money management thanks to these two cars than any other event in my life. When I was 14, I bought my first car: a 2006 Dodge Charger with over 180,000 miles already on it for $6,000. I had worked throughout my entire life mowing lawns and doing little odd jobs saving up to eventually buy my first car.

I decided this was a good idea and bought a second car: a 1966 Ford Mustang. Rather than wait around to find out what other expenses would cost me following the initial purchase, I researched what I wanted to buy and how it would cost me later before I made the purchase. I discovered that I could get a classic car for more money upfront, but save hundreds of dollars every month on insurance and taxes and be able to sell it for the same price that I bought it, if not more, years later. However, the Mustang costed $12,000 and I only had $9,000 after selling the Charger to my brother. Because I thought it was a worthwhile investment as the car would hold its value, I took out a loan to pay for the rest. I soon found out that I despised being in debt. I began making payments in the late spring, so I only had to wait a month or two before I could get out of school and begin working over the summer to pay it off. Although I had the loan payed off in a few months, I learned the value of saving up for purchases rather than borrowing money through a loan to satisfy my immediate desires. I enjoyed having a cool car, but having to continue to pay money out of my pocket to keep it soured the feeling of driving it over that