Articles

If you can’t compress your car loan payments into 48 months, you should probably just buy a less expensive car.  It usually doesn't "pay" to spend more than 4 years paying off a car.  A car is a depreciating asset.  It becomes less valuable each month that you own it.  It is that simple.  If you can’t pay off a car faster than it depreciates, you will be “upside down” in it--which happens when you owe more on it than it is worth.  Just imagine having to pay someone to take your car.  That is essentially happens when you take a long-term loan and the car depreciates faster than you build equity in the asset.  Many people with long-term car loans trade in their cars and take a loss when they wrap the still-owed amount for their previous car into the loan of the new car.  That is a situation that can create serious financial trouble.  Avoid this situation.  Just buy a less expensive car instead.

Many (even most) people feel overwhelmed when it comes to looking for a used car.  There are just so many things to be concerned with, that it is one of the more dreaded events in many people's lives.   Here's a listing of used car buying tips that will make you look and feel like a pro when you walk onto a car lot.  Take this small checklist with you to remind you what to look for.

Has this ever happened to you (or someone you know)?  You've negotiated the best price you could get for the car that you want, you're ready to sign the papers, and then the finance manager says, "You need to buy this extended warranty because the bank requires it in order to get the loan.  It will cost an additional $2000, but it's worth it if you really want the car."