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December 7, 2007, Newsletter Issue #119: Give and Take in Car Deals
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Tip of the Week
Think twice before signing up for one of those no or low down payment dealer financing options when buying a new car. A low down payment means you borrow more money, which means you pay more interest over the life of the loan.
Auto dealers are in the business of making money. When you get a break on one aspect of a car deal, you almost always make it up somewhere else. For example, if a dealer offers you a low interest rate, the new car price of the car may be jacked up to compensate. Experts recommend negotiating the exact price you'll pay for the car before you even begin discussing financing.
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