If you’re shopping for a car, there are many reasons to choose a used car over a new one. The first is cost. Along with actually paying more for the new car, you’re also paying more in sales tax. As well, it costs more to insure it every month, as well as register it every year. And cars don’t increase in value the way real estate often does. In fact, they depreciate, rapidly. Which means you lose 20% of the value from the moment you buy it.
According to Kelley Blue Book, the average cost of a new car in 2018 was over $30,000.00. (Along with the highest prices yet for new cars, Forbes reports that missed payments have gone up as well.) Due to depreciation, or the fact that once you drive your car off the lot, it’s no longer new, you’ve lost $6000.00 right there. You [...]
With the government shut down, there may be delays on receiving Earned Income Credit. Instead of getting stressed out over this- it can’t last forever–spend the time planning how to use it to help improve your finances this year. One way is to put it towards a down payment on a used car, so that you have lower monthly payments. The ideal down payment for a car is 20%. There are three big advantages to this.
More Money in Your Pocket
Lower monthly payments mean that you pay less interest over the life of the loan. This is particularly important for subprime borrowers who pay higher interest rates.
More Skin the Game
While a car is a necessity in modern life, and yes, some are luxuries, it’s not considered an investment. In fact, it depreciates rapidly in the first few years. By having already paid off a [...]
Used car salesmen and women get a bad rap. They’ve been depicted by Hollywood as hustlers and peddlers of lemons who would do anything to make a buck. In the 1990 film Cadillac, Robin Williams plays a used car salesman named Joey O’Brien. He’s pure trouble- and even tries to sell a car to a widow at her husband’s funeral. Nothing is sacred! However, in reality, most car sales people want you to have the best option for your needs. Here are some tips for working with them effectively.
Shop When It’s Not Busy
This means a weekday. If you can get a late lunch hour, go by a dealership then as it won’t be as busy as a weekend and they can spend more time with you.