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Good money habits can help you build wealth but a few bad ones can distract your progress. While it is easy to think about poor investment and impulsive costs as two factors that can kill wealth, financial guru Vincent Chan Reveals a murderer of great wealth that affects most people.
“It’s so normalized,” Chan said in discussing the killer of this wealth.
Chan speaks to take a automatic loan to buy your car. He offers concrete numbers and examples that show how much money you end due to these loans. These are some reasons why car credit is a bad idea.
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Chan begins the video, noting that one of his friends has taken a $ 55,000 loan and has been completed by paying $ 70,000 for the car. The loan had a 5-year term, and now the loan is extinguished, the car is only $ 25,000.
It’s a $ 45,000 loss that will get worse over time. The car model will continue to grow up, and on the way it will need maintenance and repair. Many people fall for a trap to buy a new car with a loan, but for many people it is also necessary.
Not everyone has $ 55,000 to buy a new car, and car prices can continue to rise due to inflation and tariffs. However, the car does not benefit from inflation. While your home is likely to get value over time, your car is actively losing the value. The simplest drop in the price occurs when you get your new car out of dealer work.
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Chan also notes that the average payment of the new car reaches $ 742 a month. It is a large percentage of people’s salary, as real average household income was $ 80,2330, according to the US Census Bureau.
It comes $ 6,717.50 per month. The payment of average cars of $ 742 per month is 11% of the average American economy. The average average paying of cars does not even present the full cost of cars. You also need to pay for insurance, gas, maintenance, repair and other expenses.