Pay cash for cars

Did you realize that when you buy a new car and drive it off the lot you are typically "upside down" already. The difficult concept for most people is that your car is TRANSPORTATION, not a fashion statement. Instead of paying more than a vehicle is worth just because its new or trendy, try buying one that is 2-3 years old and is based on your needs. At that age the vehicle should still be reliable and under warranty. Often you can even pick up and extended warranty if you wish. Buy the least expensive vehicle that still suits your needs. Put as much as you can down and only finance the remainder. Make paying on principle a priority so that you can get your vehicle paid off. When you vehicle is paid off, put the money that you would have spend for your payment into a "car fund" and only spend from this fund for vehicle maintenance/repairs or to buy your next vehicle. Don't buy another vehicle until you can pay cash for it. Cash purchases have far greater negotiation power than financing which will get you an even better deal on the next one!