"Take cars, as another example. Say you put $4,000 down to buy a new car worth $24,000. You finance $20.000. Say you are charged 10 percent interest for 48 months. Your monthly payments are $507.20. You have paid not $20,000, but over $24,000. Plus, you probably have zero in your bank account. So now you have a shiny new car with which to drive yourself to the job you'd like to leave but can't, because you have no money saved.
Source: The Simple Living Guide, a book, by Janet Luhrs page 34.
By Carol from Wyoming, PA
Here are the questions asked by community members. Read on to see the answers provided by the ThriftyFun community.
We're looking to purchase a new vehicle for the family. Does anyone out there have anything that they found useful/helpful when they purchased their vehicle or have any tips that have been passed down? Or anything at all that you think we should know? I really appreciate it. Thanks a bunch.
By Sadie Lynn from USA
Beside checking Consumer Reports, which is great for comparing the various models against each other, once you are ready to make a decision -- if your choice is between two or three different car manufacturers, please call you insurance agent and ask him to give you a quote for each vehicle your interested in. You'll find that even though all the cars are similar in features, one manufacturer may have better accident experience.
I've done this for my last two car purchases, one in 1998, the other in 2008. In both instances, I liked more than one of the models. After checking with my car insurance agent, I picked the one that saved me approximately $13 a month less than the other. That's an extra $190 a year!
Also, if you are getting a car that's been used - whether by a dealer or other purchasers, order a Car Fax report so you can be sure the vehicle wasn't in a major accident, a flooded area, etc. It's the smart thing to do now-a-days.
MaryAnn
Can someone please tell me if there is a law in Alabama preventing a dealership from charging more than the car/SUV is worth? I was overcharged by several thousand dollars, promised a huge discount with a "voucher" I received (which wasn't applied to the contract). Is there a website I can go to for information about fraud laws in Alabama (automotive only)?
By missysmom
If you think you have been a victim of fraud, contact the Alabama state attorney general's office. They should have a consumer fraud division.
What do you mean be charging more than a vehicle is worth? What are you going by to determine that. Dealerships are in the business to make a profit, they are going to charge more than what they paid for the vehicle to begin with.
