Don’t Buy a New Car – Pt. 2

Embarrassing

flying-dollarsI feel a great deal of regret when I think about the 10,000 I probably paid in interest.  I can’t believe I was roped into such a terrible decision.  This is why I am posting about it to you and sharing this experience, because I want you to know that you aren’t the only one.  I know how hard it can be to come clean about your terrible financial decisions, but honestly it is liberating to finally get it out.  And of course to move past it, and never make that mistake again.

Buy Used

The minute I drove that car off of the lot, I lost several thousand dollars in value simply because it was no longer “new”.  I would never buy a new car again. I should have bought a used car that was a quality product, with good consumer reviews, and that hadn’t been in an accident.  There are many factors that you can look at when looking for a used car, but the most important point is that buying a “new” car is in most cases a bad idea.

Do not buy on impulse

The most important word of advice I can give you is do not buy on impulse.  I was not making a clear decision and had no clue about interest rates, finance charges, or late fees.  I didn’t understand that if I was late, my lender could repossess my car.  When I do buy another car, I will have researched extensively which vehicle I would like to buy and made a game plan for what kind of car I should buy.

Plan for the next car

Our most recent car purchase was a 1999 Subaru Forester.  We used a trade-in and paid $3000 cash.  Why have we gone the complete opposite and bought a 13 year old car?  Well, after a lot of research I found that Subaru’s are known for long life, no major problems would fit our needs for outdoors activities (it’s an all-wheel drive vehicle) and it had reasonable gas mileage compared to other similar vehicles.  I went into it with a clear goal on how much to spend, had a game plan for negotiating points, and looked at a number of vehicles before deciding on one.  I haven’t started a fund for our next car, but it’s my next savings goal.

However, what I do know is that the next vehicle decision I make will be a much smarter and informed decision.     

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