If you have ever paid off a vehicle loan, you know the value of your car dropped as you paid it off.
The Chart below is an example of vehicle depreciation vs. investing your payment.
The standard for car depreciation is that all cars, in general, lose about 15 to 20 percent of their value each year. That means when you finance a vehicle for 84 months, your ROI (Return of Investment) will be -346%. Many people believe the right thing to do is devote even more money per month to the lender to get the loan paid off quicker. Just because you can afford to do so does not make this a wise financial decision. If you ever run into hard times, your vehicle can still be repossessed, even though you had a history of sending in extra payments.
The Chart below represents what happens when you pay off a vehicle as a non-member of DriveFree™ versus a Member. You can see as a DriveFree™ Member; the money management plan pays off your vehicle loan. You can now begin devoting the money you no longer need to pay to your lender towards your investment portfolio.
As you can see, even though payment still goes towards your lender to pay off a depreciating vehicle, the payment no longer comes from your budget. Your active DriveFree™ membership will free you to devote your entire loan payment towards profitable investments.
Sample Vehicle Pricing Chart