| Americans spend too much on their cars. This is | | | | extreme interest rates. We pay much more for our |
| because most Americans who buy cars use financing | | | | cars as a result. |
| to make the purchase possible. | | | | No leasing. If you wanted to buy a house, you wouldn't |
| When you borrow money to buy something that loses | | | | rent an apartment instead would you? It would still give |
| value, this is a bad idea. And nearly all cars do lose | | | | you a place to live, but would be a waste of money. |
| value over time. | | | | Leasing a car is just renting a car, but over a period of |
| Cars depreciate. We purchase cars to get us from | | | | years rather than days or weeks. The dealership will |
| point A to point B, and we pay a hefty premium to | | | | also add cost to the leasing agreement to cover the |
| have them. But when we pay interest on an item that | | | | damage they expect you'll do to the car. |
| is depreciating, this is poor money management. Next | | | | This is seen by many people as unfair. You end up |
| time you buy a car, follow these tips instead to make | | | | paying for damage, before you do anything to the car, |
| a smarter financial move: | | | | because other people in the past have damaged cars. |
| Don't finance. When you want a car, you probably | | | | Worse, you pay a great deal of money for years, and |
| aren't lusting after the bargain model. You probably | | | | at the end of the period you don't have a car to show |
| want as much car as you can get, and a loan officer | | | | for your thousands spent. |
| is on site to help you get more car than you can | | | | Never buy new. When you buy a new car, you are |
| afford. | | | | paying for the car but much of what you pay is for |
| It doesn't make a lot of sense but it doesn't have to. | | | | the 'new.' The minute you purchase the car and drive it |
| Buying a car is often an emotional thing. People get | | | | off the lot the value drops very sharply, some say by |
| very attached to their cars, they get proud of their | | | | up to half. This is because it can never be sold again |
| cars, and they want cars that are nice and shiny and | | | | as new. Your purchase loses value very quickly and if |
| new. Because of these emotional reactions, we can | | | | you need to resell it you will take a sizable loss. |
| be talked into taking out loans with horrible terms and | | | | |