Making Your First Car Payment

start Making Your First Car Payment image courtesy of stevendepolo http://www.flickr.com/photos/stevendepolo/5749192025/

Getting an auto loan in today’s economy is a big deal, so be sure to treat it as such and celebrate each and every car payment for what it is.  Just what is a car payment?  Each auto loan installment, or payment, is a step towards a better and brighter financial future for you and your family.  If you are single, it is a good step towards the ability to start on the road to good credit and to perhaps eventually have those things that everyone wants: property, financial security, and the ability to enjoy life worry free.  If you consider the monthly auto loan payment to be nothing more than a noose around your neck, think again…

You Will Own Your Car…Someday

The eventual ownership of the vehicle is obviously the goal of getting an auto loan and buying a vehicle in the first place, but what does that really mean?  A vehicle is a financial instrument in many ways, especially if taken care of properly.  While nearly all vehicles will depreciate (lose value) over time, the fact is that once paid for they are yours.  Most vehicles will continue to lose value after a loan is completely paid off, but they will still be useful for a trade above and beyond being a method of getting you where you need to go when you need to go there.

All of that may seem like a long ways away when that first bill comes, but it is not really as far away as it might seem.  Time flies as you get older, and the truth is that the day will come that you will look back and realize that you have only a few payments left to go and you will own that vehicle outright.  The shorter the loan term, the quicker that is, and of course you have the option to trade it in or sell it to get something new.   Alternatively, you might bask in the fact that you have no more payments to worry about for a short while.  Either way, it all starts with that first payment.

On The Road…To Good Creditsville

Having good credit is not random, nor is it based on any other factors than your ability to master your finances.  While there are a few tricks to getting a stellar credit score, the fact is that a car loan is a great way to start.  Making each and every payment starting with the first on time or before it is due is a great way to get on the road to financial stability and freedom.  What does having good credit do for you?  A lot actually…

Did you know that the rates you pay for almost all types of insurance are based at least in part on your credit score?  Did you know that the interest rate you pay on everything from credit cards to your mortgage not only impact your credit score but are in turn reflections of that same score?  Did you know that many six- and seven-figure jobs require a credit check and a background check, and that a high credit score may actually be a pre-requisite to breaking through that glass ceiling?  Your entire future will be influenced in subtle and not-so-subtle ways by your credit.

The Longest Journey

Even the longest of journeys starts with that very first step, and you should think of your first car payment this way: it is the first step on the road to a brighter future regardless if you are putting the pieces of your life back together, or figuring them out for the very first time.

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