Thomas has debt! He bought a car. Not a new car of course but having recently gone through the process, he’ll share what he learned.
Thomas went from a “It gets me from A to B” car person to a person who really likes cars and wants a nice, fast, shiny one.
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He didn’t buy a car he couldn’t afford of course. He still has plenty of money to pay his living expenses and to invest $2,000 a month. You don’t always have to go with the cheapest option as long as you can say the same.
Know what you want and do your research before you walk into a dealership. Salespeople will try to sell you on tech and fluffy extras. A lot of the tech stuff you can buy later. Look for things like dependability, gas mileage and maintenance costs.
Look at the features that make it a car.Tweet This
Know your budget and then spend a little less than that on the car because you have to factor in things like insurance, possibly a warranty and maintenance.
Do lots of test driving and have a list of what to look for in a used car. You choose the test drive route, not the salesperson. You want the car exposed to a variety of conditions, high way, speed bumps, railroad tracks.
If you don’t know cats about cars, there’s no shame in bringing someone with you who does or who is a better negotiator than you. If you aren’t paying cash, research interest rates on auto loans. Thomas got a rate of 2.5%. Also make sure that there is no penalty to pay off your loan early.
Debt is not always something to be avoided like Times Square. Not all of us have cash up front for big purchases and even if we did, paying in full is not always the best decision.
Aecht Schlenkerla Rauchbier Fastenbier: An unfiltered, smoke beer. Must be good with a name like that, otherwise who would bother to remember it?!
Kelley Blue Book: A good place to start your research.
Credit Karma: Check your score.
Car Gurus: Calculate your monthly payment.
College Info Geek Podcast: How to buy a car.
Featured Image Photo Credit: “Ford Model T 1914” by LibertyGroup25