Dollars and Sense
Providing you with the tools to pursue and complete college
Providing you with the tools to pursue and complete college
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What information should you research before buying a vehicle?<br />
What can I afford? New or used?<br />
What is the car worth?<br />
What are the benefits of paying cash vs. financing?<br />
What is the interest rate on the loan?<br />
What is the length of the loan?<br />
What is the amount of the finance charge?<br />
Can you obtain a better interest rate or a lower finance charge if you choose a<br />
different lender?<br />
When buying a car what price should be negotiated, the monthly payments or the total<br />
price of the car?<br />
One of the first questions that a salesperson could ask is, “What can you afford as a<br />
monthly payment?” It is in your best interest not to answer this question. Always<br />
discuss the actual cost of the vehicle. A salesperson could raise the selling price of a<br />
vehicle to meet your monthly payment request. If you have done your research<br />
you will know what the payment will be on a variety of loan amounts <strong>and</strong> interest<br />
rates.<br />
Bring another trusted individual with you.<br />
They can keep you focused on what type of car you are looking for <strong>and</strong> the amount<br />
that will comfortably fit into your budget. You will be less likely to make impulsive<br />
decisions that you will regret later.<br />
vs.<br />
EXTRA MONEY<br />
If you decide to purchase the Nissan Versa vs. the Dodge Ram 2500, what could you do<br />
with the $6,300 that you save each year over the five year period?<br />
Could you pay off your student loan within the 5 years?<br />
$6,300 X 5 years = $31,500<br />
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