NOV 25, 2017 AT 02:42 AM
6. If you cannot pay cash, avoid that car, or get pre-approval
This may sound harsh, but it is better than paying for that car with interest, when you may already have so much on your plate, and are losing money in two ways - the loan and depreciation costs. You are better off buying a lesser model or postponing the purchase altogether until you have the cash necessary to buy the car.
If you feel however, that you cannot let your desired car go, the least you can do before going to the dealer is to get pre-approval for a car loan. This will allow you to compare interest rates of different dealers before buying, and will help you to focus on the sales price when bargaining, instead of the monthly payments.
One thing you should watch out for - do not attempt to take car loans that last more than 48 months (4 years). Because cars depreciate, the longer the loan is, the worse the recipient pays the money back. Your monthly car payment should also not go beyond 15% of your monthly pay, assuming you do not have consumer debt to pay.