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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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Questions

Ask a QuestionHere are the questions asked by community members. Read on to see the answers provided by the ThriftyFun community or ask a new question.

March 19, 2010

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

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March 19, 20100 found this helpful
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Look at the ratings on Cosumer Reports:
www.consumerreports.org/.../index.htm

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March 22, 20100 found this helpful
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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.

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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

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August 1, 2013

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

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August 1, 20130 found this helpful

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.

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They would be your best bet for advice, and whatever help they give you should be at no cost to you.

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August 1, 20130 found this helpful

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.

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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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