If you really want to save money and still like your car after the fourth payment, you'll have to look at the car-buying transaction in a new way. Most people find a car and adjust their budget to fit that car's payment. That's the wrong way, and usually means you end up eating pinto beans for years on end.
The Right Way, Step-by-Step
The FoolProofMe approach doesn't start with the car at all; it starts with your budget. We encourage you to slow down rather than speed up. Emotions in car buying should come after you've done it right.
And we define "right" as saving money and buying the right car, too. Doing it our way, versus simply following the dealership's lead, can literally put thousands in your pocket.
So, throw out the conventional thinking and consider this:
- All cars are bought for cash.
- No cars are bought with trade-ins or payments.
- Trade-ins and payments only provide you cash.
Right now, based upon your budget and your old car, you have an exact amount of cash available to you to buy a new car. That amount of money is called "Available Cash," and it's—logically enough—made up of all the cash you have available to buy a car.
"Available Cash" is made up of three things:
- The cash your payment will buy you, called "Loan Cash."
- Any cash your trade-in may give you after paying off your current loan. That cash is called "equity."
- Any other cash you may have—rebate money or savings, for instance.
Know more from: VIN Check