THE CAR DILEMMA
A. Buy New? – ONLY if your Budget says you can AFFORD it 1. Pro’s: Better Gas Mileage, Manufacturers Warranty 2. Con’s: Faster Depreciation, Higher Cost, Higher Insurance Cost B. Buy Used? – The risk of the “unknown” history. 1. Pro’s: Lower Purchase Price, Lower Taxes, Lower Insurance Cost 2. Con’s: Higher Maintenance & Repair Costs, Higher Financing Rate C. The Trade In? – Why give the Dealer the opportunity to make additional profit? 1. Dealers quote you wholesale, about $2,000.00 LESS than Retail D. Leasing? – Why PAY Interest on a vehicle you do not own? 1. Pro’s: Lower Monthly Payment, Business write off 2. Con’s: Allows you to drive a vehicle you CAN’T afford to BUY E. In SUMMARY: The following rules will help you SAVE Money 1. NEVER Trade your used vehicle in on a new vehicle a. Your Sales Tax Savings will be LESS than the additional $2,000.00 you can make by selling it yourself b. Keep ALL your Maintenance Records for the next owner 2. ALWAYS be pre-approved for a Loan if you have to Finance a. Why give the dealer the opportunity to make more profit? 3. ALWAYS take 0% Financing option on a NEW vehicle (as opposed to a rebate) 4. NEVER Lease UNLESS you plan to BUY the vehicle at the END a. Does your Budget allow you to save up enough money? 5. SMARTEST DECISION – LOWEST COST OPTION: a. Buy a Used “Ma & Pa” vehicle (Low Mileage, Older Model) b. Get the maintenance records if possible c. Budget $20.00 a week ($80.00 a month) for maintenance Now where can you get an $80.00 a month car payment? d. Save Big Money on Insurance The BUDGET TEACHER