Payment, Payment, Payment. What’s your car payment?
It’s not just about just the payment. A better question is “what is your total cost of the loan on the car”?
An age-old salesman trick is to get you to talk about the loan payment and not the true cost of the car. Salesmen have been known to pack (over inflate) a payment in order to maximize his profit. Thinking only of your monthly payment could mean a problem down the road. (Pun intended) Especially if you want to trade your car in on a newer super deluxe model before you are done with your current loan.
The key to creating a successful car deal is just like putting pictures of a puzzle together. At first keep the pieces separate so later you can stand back and look at the big picture. The pieces of the puzzle will include the price of the car, sales tax and DMV fees as well as your interest rate and length of the term of the loan.
Should you go 60, 72 or 84 months? You could be saving hundreds of dollars in interest by shorting your loan term. Sometimes the difference of 25-30 dollars a month and could save you hundreds even thousands of dollars in interest depending on the loan amount and term.
Know what total cost of getting a car is before you go to the dealer. Ed Car Guy before you buy… After you sign a contract you have commitments.