If you've paid off your car loan, don't rush out to buy a new one if it's still in reasonable condition and doesn't have any foreseeable major repairs. Instead, start putting the monthly amount you previously paid for a loan into a savings or money market account. You will have money for any repairs or a down payment for a car when it's time for a new one. If your payment was $400 a month by waiting two years you will have $9,600 plus the trade in amount for your used vehicle toward a new car.
