Now we can compare two decisions. If you had bought new 2005 you would have a paid off 2005 in 2011 and you would have paid interest ($3,623.40 to be exact) on top of purchase price. Using our example you could have had a 2006 one year later in 2012 completely paid off and your money made interest for you while in your savings account.

These numbers are all conservative and you could do much better by continuing to save and delay your used car purchases longer than one year. This would be best thing to do so that you do not keep losing value on selling cars.

For example, if you kept saving and bought a used car every two years you could have bought a 2008 Honda Accord in 2012 completely paid for. When you stretch out your used car purchases while continuing to save, you can purchase much newer vehicles. With this method you can always purchase newer used cars and never pay interest to anyone.

The key to making this work is disciplined savings. If you have decided that you can make a new car payment, you can put money in a savings account earmarked for used cars.

Also remember that since you do not have a car payment, if you have a financial problem like a job layoff etc., you will not have to worry about losing your vehicle. Driving paid for used cars is a wise financial practice. It is said that it is millionaires that purchase and drive used cars. It is those in deep debt that drive new and leased vehicles.

The prices for these vehicles all came from Kelley Blue Book. The purchase prices are just under KBB retail value and selling prices are just over private party value. The values that I used were conservative and you could do much better, especially if you hold onto your vehicles longer while continuing to save.

You will also have to make a decision to continue driving vehicle you are currently paying, this plan does not work if you decide that you need a new vehicle before paying off one you are driving. The closer you are to your end of term, better position you will be in to get what you want. But there is no rush, when you pay it off you should then begin to put amount of your previous payment into your vehicle fund. Now with equity in your current vehicle and your savings you can begin shopping.

Considering prices of automobiles today, there is a high probability that because of your vehicle depreciation and small savings, you might not have enough money to buy a new vehicle. If you do not have enough to purchase what you want, there are always other options; first is to buy what you can afford. The alternative (worst-case scenario) is facing dealer with no savings and having negative equity in vehicle you are currently driving.

Strange concept, I know, but when its all said and done, transportation is transportation, it gets you from point A to point B. The only difference is what you are willing to pay to get there. For many, because of values they hold "whatever it takes" is an appropriate answer but mind set has to now change to discipline and desire to stop making lifetime payments.

If you don't have a car right now and are enjoying bliss of not having a financial obligation to an automobile, you can begin your savings immediately so that when time comes you will have a sizable chunk to begin your search for your new car. You are in a very good position if you are not in market presently looking for a vehicle.

You have time to save and plan for your next automobile. Begin "Freedom From Car Payments Fund" today and in a couple of years you will really be much better off. Contrary to what dealers try to make you believe, car ownership does require long term planning in order to break cycle of swapping payments every 3-4 years. It is a long term serious investment.

It's that simple. Easy, no but simple, and it can be done. It requires discipline and patience two characteristics that are not easily harnessed in by now generation. The obvious benefit is no car payment but you will also save on insurance and have much more disposable income for other necessities. With determination, a little vision and planning anyone can drive exactly what they want; without burden of a monthly payment. Could that be you?

Tony Puckerin is an Automobile Broker in Southern Florida who represents clients at local automobile dealerships. His service has recently expanded to Internet and cover the United States and a few select international clients. For more information go to http://www.automobilenetmarketing.com