Home - Mortgage Loans | Personal Loans | Bad Debt Loans | Foreclosure Loans
Apply for a Loan | Best Auto Loans | Best Bad Credit Auto Loans | Best Bad Credit Loans | Best Bill Consolidation Loans | Best Cash Advance Loans | Best Credit Cards | Best Credit Repair Tips | Best Debt Consolidation Loans | Best Free Credit Reporting Tips | Best Home Equity Loans | Best Mortgage Loans | Best Pay Day Loans | Best Personal Loans | Best Products on the Internet | Best Unsecured Loans
Great Financial Advice
Apply for a Loan
Latest Financial News
Rate Lock Advisory
Best Products
Join Our Mailing List
Contact Us
Loan Articles Index
Auto Loans
Bad Credit Auto Loans
Bad Credit Loans
Bill Consolidation Loans
Cash Advance Loans
Credit Cards
Credit Repair Tips
Debt Consolidation Loans
Debt Reduction Loans
Foreclosure Loans
Free Credit Reporting Tips
High Risk Loans
Home Equity Loans
Home Loans
Lawsuit Loans
Mortgage Loans
Pay Day Loans
Personal Loans
Products on the Internet
Real Estate Services
UK loans
Unsecured Loans
Loan Article Index
Loan Articles A-G
Loan Articles H-Q
Loan Articles R-Z
Mortgage Calculators
Mortgage Calculator
Mortgage Amortization Calculator
Rent vs. Buy Calculator
How Much Can I Afford Calculator
Auto Payment Calculator
Click here to Sign up for Email and Newsletter

 

redhotloantips fat loss


Auto Loans: Don't Dig a Money Pit in Your Garage

Written by: Joel Walsh

Carloans are certainly less costly than home mortgages, student loans, or
other kinds of loans. So why do so many people end up defaulting and
losing their cars? Find out these hidden dangers:



Biggest Hidden Car Loan Danger: The Inherent Money Pit

Unlike home mortgages, student loans or other
big-ticket loans, car loans are inherently money pits. A house can
build equity; higher education can increase earning potential; even
jewelry can sometimes be re-sold for as much as was paid for it. If you
borrow to buy one of those things, you may eventually get a return on
investment. But every single car loses significant value and keeps
losing it as time goes by.



Unlike home mortgages, student
loans or other big-ticket loans, car loans are inherently money pits. A
house can build equity; higher education can increase earning
potential; even jewelry can sometimes be re-sold for as much as was
paid for it. If you borrow to buy one of those things, you may
eventually get a return on investment. But every single car loses
significant value and keeps losing it as time goes by.

Solution: spend as little on your car as possible.

Of
course, in order to spend as little as possible over the life of the
vehicle, you need to get a well-made, fuel-efficient car, rather than
the one with the lowest price on the windshield.

But
a pickup truck, SUV, sports car, or "luxury" model is a guaranteed
money-loser. Don't worry about what other people will think. Think
about it: when was the last time you saw an expensive automobile and
thought, "I really like and respect whoever owns that!"

The
best buy? Many economists actually recommend buying a used car that's a
year or two old. That way you can actually benefit from the fact that
cars only drop in value. Even a car that's just six months old may
offer you a substantial savings. Just have it inspected thoroughly so
you don't lose what you've saved on maintenance payments.



Hidden Car Loans Danger: Dangerously High Monthly Payments


Unfortunately, most people
never figure out the total cost before signing on the dotted line. They
end up staying up late at night trying to figure out how to make ends
meet. They live in smaller houses. They skip going out at night. They
don't go on vacation.


All that sacrifice to have a brand-new SUV in the driveway!

Take
a hard look at your finances, and figure out how much you can pay total
each month for your car. Be sure to take into account insurance, tax,
maintenance, and fuel. Usually, when people actually do calculate the
total monthly cost of the car they're considering buying, they're
amazed by how high it is.



How Much Car Debt Can You Afford?

1) Make a list of your average monthly non-car expenses, and subtract them from your earnings.



-___your monthly after-income-tax income

-___any other taxes

-___housing (including any fees and property taxes, and utilities)

-___food

-___health insurance or HMO

-___life insurance

-___debt payments

-___401 (k), IRA, or other long-term savings

-___short-term savings

-___telephone, cellular phone, cable, internet, etc.

-___entertainment and fun stuff (be honest!)

-___cost of yearly vacation(s) divided by 12

-___other expenses

= ____what you can spend on a car



2) Subtract your monthly car-related expenses from the amount you have left over from your other expenses.



___What you can spend on a car (from above)

-___Amount
you're spending per month on gas (raise or lower this figure depending
on whether you are getting a car with higher or lower gas mileage).

-___Monthly maintenance (remember: your new car won't stay new long, so maintenance will be an issue).

-___Monthly insurance (remember that for a new car, your insurance premiums may go up).

-___Tax.

= ____ Maximum monthly loan payment.



Now plug the number above into a vehicle loan
rate calculator to figure out big of a car loan, and how much interest
you can afford.




Final Hidden Auto Loan Danger: Unnecessarily High Rates

If you simply take the
first loan the dealer offers you, you are probably paying too much. Do
some comparison shopping on the internet, and bring a list of the best
loans with you when you negotiate loan terms with the dealer.

Don't
let the dealer cheat you by shifting the cost from the car loan to the
car price to the deal on your trade-in. Make sure you get a good deal
overall.

Congratulations! You now are far better
prepared to stay out of an auto loan money pit than the vast majority
of car buyers.


Joel Walsh is a regular contributor.


Other Related Articles:

Free Money Saving Auto And Home Loan Tips?
Free Auto Loan Tips The following tips should help increase your chances of getting a car loan at a better rate. Tip #1 - If you just started a job (recently graduated from college) then wait 6 months to apply for your car loan. Tip #2 - If you...read more

How to Find Equity Lenders and Loans
How to Find Equity Lenders and Loans Equity lenders and loans are swarming like flies aboard the World Wide Net, offering savings galore. Thousands of homeowners are applying for home equity loans to pay off credit cards, school bills,...read more

Home Equity Loan – Beware of equity stripping scam
The market for mortgage refinancing has been brisk during the last few years. The boom in business can be attributed to interest rates that have been at or near historic lows, and to lenders who have more money to lend now that they aren’t investing...read more


Return to Home

468x60

Best Auto Loans, Best Bad Credit Auto Loans, Best Bad Credit Loans, Best Bill Consolidation Loans, Best Cash Advance Loans, Best Credit Cards, Best Credit Repair Tips, Best Debt Consolidation Loans, Best Debt Reduction Loans, Best Foreclosure Loans, Best Free Credit Reporting Tips, Best High Risk Loans, Best Home Equity Loans, Best Home Loans, Best Lawsuit Loans, Best Mortgage Loans, Best Pay Day Loans, Best Personal Loans, Best Products on the Internet, Best Real Estate Services, Best UK loans, Best Unsecured Loans
Subscribe to Mailing List | Private Policy | Unsubscribe | Site Map