Rolling Your Existing Car Loan Into a New Car PurchaseDon't buy a new car if you haven't paid off your old one unless you have equity accumulated. One common practice at dealerships is to offer to roll the balance of an existing loan into the financing for a new car. It usually creates a situation where you are taking a loan that is greater than the value of the car you are buying. While this makes it easy to leave the car lot with a sparkling new car, it's bad practice for consumers and a financial boon for dealers and lenders. Anything that is good for the dealer and lender, is usually bad for your wallet. 20% Down on New CarsWhen buying a new or used car from a dealer, make a down payment of at least 20%. That will be a enough to cover taxes and most of the vehicle's first year depreciation. Dealerships will gladly sell you a car with less down, but that will leave you with an upside down loan for years. An upside down loans means you owe more than the car is worth. The Benefits of Buying Used CarsYou can save a bundle on your next car purchase by buying a used car. One of the common concerns I hear from people about used cars is that they will require expensive repairs sooner than new cars. There is no question that repair bills can be outrageously expensive but here's one way to look at it. If a new car costs you $15,000 (or more) and a five year old version of the same car costs $5,000, the difference in price leaves you a lot of room to make repairs and still come out on top. Home :-: Parents :-: Shop :-: Freebies :-: Coloring :-: Clip Art :-: Printables :-: Search :-: Recipes This web site generates income based on affiliate relationships with third parties and advertising services. |
|||||||||||||
DIY Auto Maintenance Tips