Buying a car maybe a second only to having a child when it comes to cutting a hole in your pocket. Just think of the expenses: gasoline, oil, tires, state safety inspections, insurance, maintenance and repairs, interest on your auto loan or lease. And then there’s depreciation. Want to see $5,000 disappear in an instant? Just buy a $40,000 car and drive it off the dealer’s lot. The typical new car losses between 20 and 35 percent of its value during the first year you own it.
Still, cars and kids are not something most of us would want to do without. So, with due acknowledgement of the costs of car ownership, the questions becomes how do you find the car that’s right for you, and then get the best deal when you’re ready to buy?
Finding the Right Car
The best advice in looking for a car (or a van, minivan, pickup, sport utility vehicle, etc.) is to shop with your head, not with your heart. Automobile companies have spent billions to convince you that “you are what you drive”. Well, you aren’t, of course. But it’s still difficult to counteract the emotional appeal. There you are, a fighter pilot flying down the freeway in your hot new sports car, checking your sleek instrument panel and maybe even using a cellular phone headset to communicate with your base. “I’ll take it!” you say. “Just tell me my monthly payment.”
It’s quite human to be emotional about your car. So don’t sweat it. But do admit it. That way you’ll be head of the game. Car salespeople are very good at detecting such vulnerabilities and not at all above using them against you. As long as you’re aware of what’s going on, your brain can intervene and prevent you from making a costly, impulsive decision.
(Personal Finance Management Guide by Marie
Claire Cooper. It’s all about good reading and smart information.) http://personal-finance-management.blogspot.com/
