The 7 Deadly Sins of Car Financing
So, you can't pay cash up front for the car you want, you want it now but it would take you 5 years to save for it. How do you get it now, the answer the dealer says is Finance. Well, YES, the dealer is probably right there, but there are a lot of other quesitons that you need to answer before taking up the dealers offer, or any offer of finance for that matter!
Here are the 7 deadly sins of car finance and the questions you need to answer before saying YES...
1. Lust: As attractive as having that brand new WRX now is, don't let it blind you to the fact that you can't afford it, because in 12 months you will be giving it back and paying big time for the indulgance. Ask: Can I get a 3 year old WRX for half the price which I won't have to give back in 12 months and then pay for for the next 2 years?
2. Gluttony: To much finance (interest burden - ability to pay)
3. Sloth: You need to do your homework on you finance options as much as you have done your homework on what car you want (please tell me you have at least done some research on the car you want). Like cars, finance and those that sell it are often quite different when you look under the bonent. Ask: Who else can I get finance from and how do their options compair?
4. Wrath: If you feel tricked or trapped by finance don't get angry and do something stupid.
5. Pride: If you are wrong - change
6. Envy: What is right for others is not necessery right for you
7. Greed: Do you need the car
Here are the 7 deadly sins of car finance and the questions you need to answer before saying YES...
1. Lust: As attractive as having that brand new WRX now is, don't let it blind you to the fact that you can't afford it, because in 12 months you will be giving it back and paying big time for the indulgance. Ask: Can I get a 3 year old WRX for half the price which I won't have to give back in 12 months and then pay for for the next 2 years?
2. Gluttony: To much finance (interest burden - ability to pay)
3. Sloth: You need to do your homework on you finance options as much as you have done your homework on what car you want (please tell me you have at least done some research on the car you want). Like cars, finance and those that sell it are often quite different when you look under the bonent. Ask: Who else can I get finance from and how do their options compair?
4. Wrath: If you feel tricked or trapped by finance don't get angry and do something stupid.
5. Pride: If you are wrong - change
6. Envy: What is right for others is not necessery right for you
7. Greed: Do you need the car