The need or desire for a first car often comes before sufficient money is available.
This is especially true for many teenagers or college graduates who are eager to buy that first car, but lack the necessary funds. What to do?
This is a common problem for lots of folks buying their first car. It can be solved in a number of ways.
There are essentially four ways to get money for a car:
- Save the money
- Be gifted the money
- Borrow the money
- Earn the money
Let’s take a closer look at each of these ways:
Continue reading Money for Your First Car
Everyone buying a new car wants to get a bargain and a great deal. So where can those deals be found?
Although we’ll be primarily discussing brand new cars here, we can make some comments on used cars, if that’s the direction you think you want to go.
Used Car Deals
Finding a great deal on a used car is a bit more tricky than finding a new-car deal. That’s because used cars are, well, used. No two are alike. Even used cars of the same year, same brand, same model, and same equipment can have different mileage, different problems, may have been driven and maintained differently, may have been wrecked (or not), and may have very different prices for these and other assorted reasons. When you find a used car at a bargain price, it might be for a good reason — or the buyer may simply be desperate — or it could be a common scam, especially if bought online. Therefore, it takes much more care when buying used.
Continue reading Where Are the Best Car Deals?
Although we’ve discussed this topic previously (see Lease vs Buy), there is one aspect that we haven’t discussed and continue to hear questions about.
The question is essentially this: “If a car dealer is offering a special promotional lease deal, a purchase rebate, and a low interest loan on the car I want, which one is the best deal?”
The short answer to this question is that the lease deal will nearly always be better — and it’s not simply because monthly payments are less. If the lease deal is one that is being offered by the car manufacturer, the company has usually applied a price discount, a low money factor (finance rate), and a high lease-end residual value. The combination of all these things makes for an attractive low monthly payment. Customers are not able to negotiate these kinds of deals for themselves because a dealer only controls one of those three things — price.
Continue reading Is It Better to Lease or Buy a Car?