Module 3.6: Your car: A depreciating asset

Learn why your car is not a good investment, a better way to get a car loan, and how to negotiate the lowest price for a new or used car.

Introduction to American Personal Financial Literacy, a Udemy course
Module 3.6 video filmed 2016-03-08

Cars are almost always commodities, not investments
If you take a loan to buy a new car, you’re underwater as soon as you drive off the lot
Getting a car loan from a car dealership or used car lot = bad idea
Go to your bank or credit union instead and get pre-approved for a loan
Buying used cars — have a trusted mechanic look at
Be careful of rebuilt cars (e.g., on Craigslist)
Use as a starting point
Buying a new car — get bottom-line cash quotes from various dealerships
Send emails
Start a bidding war
Don’t go to dealerships or talk on the phone
Go to a different dealership to test drive
Be patient — don’t be fooled by car salespeople
Be wary of upgrades and dealership services
Make sure quotes include sales tax, “dealer documentation fees,” and tag transfer

By Richard Thripp