The Primary Obstacle to Your First Deal: Your Car

Have You Listen to All BiggerPockets Podcasts, Blogs, Interact with Forums and Attend All Meetups? On a daily basis you are analyzing deals from both MLS listings and wholesalers you have met – yet nothing seems to work?! Networking, learning and taking the necessary steps but something just doesn’t add up?

Your future and that of your family rest on you making changes in your life – with no room for error here. How do people begin from scratch to make this change?

One thing holding you back, which may not have even crossed your mind yet, is your car payment.

Check Your Car Payment Many investors seek deals that have an initial cash-flow. According to Nerdwallet’s estimates for 2022, the average used car payment in America was $516 while new car payments reached a whopping $725!

That is per month on average; factor in that most families own two cars (even if used), and you have an estimated monthly car payment bill of $1,032.

How would you like an increased cash flow? Well, you could achieve it as early as tomorrow by canceling car payments.

“But I need my car to get to work!” Do you mean the job you are trying to ditch? Alternatively, there are so many alternatives – from driving a junker vehicle, riding bikes or skateboards to using public transit, carpooling or carsharing options; your options are limitless!

Reconsider your car payment: Why is it necessary? As an advisor in my market, I often see young investors arrive with nicer vehicles than myself for mentoring sessions. When questioned on why, their answers tend to fall along two lines: Either they require it for work, or need one as a family vehicle.

Well, sure, a 2010 Camry may seem less safe than a 2022 Tesla Model Y with all its fancy navigation panels and automated features – but do you really require such features?

“I’m a contractor and need my truck.” If your annual income falls under $150,000, paying a $1,200 truck payment might not make much sense – especially considering a 2008 F150 can carry as many nails as a 2023 F350 with lift!