topic What NOT to do in Auto Loans

What NOT to do

MattH — Sun, 13 Jul 2008 13:37:54 GMT

Some years ago when my old clunker died I bought a replacement that same day, and overpaid by several thousand dollars due to the lack of shopping time. If I'm ever in a similar situation again, I will RENT a car for a few weeks to give myself a little shopping time -- three weeks rental on an economy car would cost a LOT less!

Re: What NOT to do

Anonymous — Sun, 13 Jul 2008 15:51:36 GMT

Great idea Matt! That would save a lot of money in the long run.... There are so many posters saying their cars died or are about to die and need a loan asap without shopping it seems. Then later regret their purchases because they got ripped a new one on the sale or have to much negative equity. Excellent advice Matt!!!

Re: What NOT to do

Anonymous — Sun, 13 Jul 2008 19:42:17 GMT

Yes, I did the same thing when I bought my first car after mine died....Research is key!

Re: What NOT to do

MattH — Sun, 13 Jul 2008 20:45:00 GMT

@Anonymous wrote:
Great idea Matt! That would save a lot of money in the long run.... There are so many posters saying their cars died or are about to die and need a loan asap without shopping it seems. Then later regret their purchases because they got ripped a new one on the sale or have to much negative equity. Excellent advice Matt!!!

Fortunately for me, the car for which I paid about $3K too much was in all other respects a good car (2000 Camry, very reliable) and I still have it four years later. I'm thinking of trading it in sometime in 2009, by which time I will have had it for five years, so effectively my mistake will only have added around $500 to my annual transportation costs. That's a major advantage of keeping my cars for a while: it minimizes the overall impact of any negotiating errors! Imagine if I bought NEW cars every couple of years and overpaid by a similar percentage...

Re: What NOT to do

Anonymous — Mon, 14 Jul 2008 04:29:10 GMT

Buying a vehicle when you have -to, as opposed to when you want -to, is a very bad idea! Not only losing the needed research but your desperation makes you impulse buy, and thats the worst way to purchase a car. The dealers will pick up on this and jump all over you. Do your research before you need to, not when you car dies and you have to.