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Buying a New Car

March 18, 2008

Buying a New Car"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.

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Hmmmm. How about if you reversed this scenario and paid $4,000 for a good used car, then invested that same $500 a month for the same 48 months at the same 10 percent interest, compounding monthly? At the end of 48 months you would have a car plus $29,605.92 sitting in your bank account. Hello? Is anybody listening?" lol

Source: The Simple Living Guide, a book, by Janet Luhrs page 34.

By Carol from Wyoming, PA

 
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November 23, 2005

Realize how big a purchase a car is. It's the second-largest purchase most people make after buying a home. When you buy a home, you have so much help: a broker to help you find the home, and a mortgage broker for financing. An inspector, an attorney, a title search, a mover, and more.

 
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March 4, 2005

One way that car sales people try to rope you into a quick sell is by creating the impression that you NEED to buy now to take advantage of some deal. Or if you wait a day, the car won't be available. Dealerships and salespeople are out to make a profit off your purchase, not find you the best deal.

 
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December 14, 2005

This is the best time of year (Dec.) to buy a car! With sales being slow and the salespeople needing to meet the end of the year quotas, you'll probably be able to save thousands...

 
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February 27, 2018

Many dealerships will try to encourage you to trade in an unpaid for car and buy a new one, by rolling the remaining balance into the new loan. There are some good financial reasons to avoid this practice, as it benefits the dealer more than the consumer.

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This is a page about avoiding rolling existing car loans into a new car purchase.

Calculator, cup of coffee, pencil, toy car and a notepad with "Loans?" written on it.

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