Auto Loan Debt
 
Sometimes the kinds of debts that we take on are not the bad ones. We need a car, so we get an auto loan. This is only a bad thing for us if we can’t afford an auto loan, or we take on a bigger loan than what we can afford. It is more important to look at how we take on this kind of debt, then what the kind of debt it is.
 
It is normally around this time of year that consumers start seeing all kinds of ads for cars on sale – simply because it is a slow time for them. With the holidays over and people concentrating on paying back their credit cards from excess spending, there usually isn’t a lot left over for yet another bill. So they push specials hoping to entice you in to get a car loan anyway.
 
But what if you get that auto loan and now you have another debt to pay off? That’s fine if you need the car. If you can make due with what you have, you should instead, save up for a new car and then pay cash for the deal. Not only does this leave you debt free, but it also gives you bargaining power at the dealership to get a better deal on the car that you are purchasing.
 
But how much is too much? Look at your budget and see what the numbers say and don’t get a car that is more than you can afford. With so many specials and the economy being what it is – you can really get a great deal on a car right now if you play your cards right. You go into the dealership with the amount that you can pay on a car and tell them that you are not spending one dime more. You want the cars that are on special, and if they are more than you can afford look at the used cars that are on the lot. If you can’t afford a new car do not let them pressure you into taking one. Their mark up is much higher on the new which is why they want to move them, so don’t let them fool you into thinking otherwise.





 

 

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