creditstarved: I hear you on the slowly dying car. I used to drive a 91 Honda Accord, with 217,000 miles!! And, no A/C! But, stupid money management about 10 years ago put me in that position. I've turned things around for the most part, but still have 2 accounts that need to be paid off. But, much better shape than I was 5 years ago.
The life and disability coverage are on the loan only....if I die, the life coverage will pay off that loan only. As well as if I've disabled, it would cover only the car payment. if you have adequate life insurance for your next of kin to pay off your debts and bury you, you don't need to get the insurance on the loan. And, DON'T GET IT. But, if you don't have adequate savings to cover 2-3 months of being unable to work due to injury, get the disability coverage. So many people need to file BK or have repossessions due to medical bills. If your health insurance and savings can tide you over for a while, you won't need that insurance either. You've taken the right step in getting your finances in order and knowing what you want to afford. And, yes, the interest rate is determined by the year of the vehicle. Your credit and income also affect it, but most lenders will post new car interest rates and used car rates, with used cars having higher rates and shorter terms. So, I was happy to get 48 months...I was afraid that for an '02 vehicle, I'd have to get a 36 month loan, and that would have pushed my payment a little higher than I was comfortable with.
just don't go shopping and fall in love with a car you can't afford. See what you can afford and start a little below that range. And, research the price range of the cars you like. Don't let the sales person steer the deal...it's your money. They will tell you it's a great price on that car, but if you didn't do your research, how will you know? Know what you want, and if they can't or won't help you, walk out. I've walked out of a dealership over $200 before--salesman tried to add "undercoating" -which is a huge rip-off - by saying I agreed to it. I did not, and his response was "it's only $200 - are you going to lose this car over $200?" I replied, "No, I'm not losing this car over $200 - you're losing this deal because you didn't listen to me and lied to me." I stood up and walked out, with him and his manager chasing me. Got in my old junker car and left!! Good luck, and let us know how your car buying experience works out.
