subject: Car Loans: Try to Avoid If Possible [print this page] Car Loans: Try to Avoid If Possible Car Loans: Try to Avoid If Possible
While certainly not a new concept, monthly payments, over the past few decades, have become more of a permanent fact of most people's lives. If at all possible, when purchasing a used car, try to pay for it in cash. And preferably a car that is only a couple of years old.
Solid Strategies
But if you must get a loan, try to solidify your credit rating before venturing onto the lot. That high interest rate will really drive up your monthly payment. Another strategy to use is, if you can afford it, double up your payments, get that car paid off as fast as you can. While that won't save you a lot of money as it does with house payments(the loans are different)it's always good to rid yourself of debt when you can.
An Overall Strategy For Your Financial Future
Most cars lose most of their value within the first year, all lose value as soon as they're driven off the lot. So, if you have the cash, the best way to purchase a car is to find one a year or two old. This way the original owner has taken all the burnt of value loss. And with cash on hand, you should even be able to negotiate a better price than what they want to sell it for.
Reaching the Promised Land
Once you master that method of purchasing a car, then apply that strategy to other aspects of your financial life. You'll find that the small seed of discipline has blossomed and that you actually have control. Then, with your perfect credit, maybe then you can take out a few zero percent loans. Managing your money has nothing to do with smarts, just with common sense and discipline.
