Why you shouldn’t buy a new car

In 2006, I bought a new car.

I could have bought a used car.

I should have waited.

Hell, I should have negotiated better.

And I definitely, should have listened to my boyfriend (now husband) but after grabbing my purse and driving down to the Toyota dealership down the street, I was sure that I could get a great deal.

Yaris-Ts-(2007)-3 (Mobile)

I had terrible credit

No one should have given me a loan; especially, not a loan for almost 20,000 dollars on a  brand new Toyota Yaris.  But I needed a new car, I kept telling myself.  I had wanted a  Toyota Prius. Being an environmentalist, I wanted a car that would get good mileage and  be representative of my love of the planet.  The Prius seemed to epitomize that ideal.  So I  went online and submitted my information through the pre-qualification form to see if I  would qualify.  It didn’t give me a decision online, but said a salesperson would contact me.

 

I knew I had terrible credit. So when the salesperson called and told me that he was sure he could qualify me, I was hooked.  So there we were, my boyfriend and I, looking at a Toyota Yaris.  The salesperson had convinced me that I couldn’t qualify for a Prius, but the Yaris would be a good fit for me.  It was a new car and the commercial showed a super cute electric blue hatchback. Somehow, I was now standing in front of a four door, navy blue sedan body car.

But they would qualify me

That was the line I told myself as I looked at this car.  If I didn’t buy now, they would take back their offer of financing a car for me, and I needed a new car.  Maybe I didn’t need a car, but I kept telling myself that.  The sticker price was 21,000 dollars and I didn’t haggle at all.  Looking back, it was the single worst purchase I ever made.  Now, when I pick on my husband (who was then my boyfriend) for making bad financial decisions, all he has to do is reference the Yaris.

The interest rate was 21%

Seriously.  I bought a car with a 21% interest rate.  And then I was shocked when I could barely make the $507 dollar a month payment.  I was shocked when 5 years after paying and paying on it, I had barely made a dent in the principal and that it would eventually be repossessed with me getting it out of hock for thousands… It was a terrible purchase and was like an albatross around my neck dragging me down.

I tell you this because, lenders are predators. 

Financial decisions shouldn’t be made based on impulse, and I STILL haven’t paid off this car.  It was only in the last year that I was able to get the interest rate down to 4% at my credit union.  But the car now has over 100,000 miles on it, and is a bit worse for the wear.  I would never make that mistake again.

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