Action Tip: Can you hear something wrong in this?
“I want to get a three year car loan.”
“Your monthly payment will be $159 over 60 months.”
Really listen to what a car salesperson says to you. The person requested a three year car loan which would be 36 months. The salesperson replied with a 60 month or 5 year loan. The salesperson only cared about a low car payment instead of the total being financed and the total amount of interest. The salesperson never said the total of the loan. The difference in interest paid is substantial.
Also, a car loan should never be taken out for more than 3 years. Cars lose value so fast you will be upside down in what the car is worth and what is owed.
“I said I want a three year car loan, 60 months seems to me to be 5 years.”
“You can always pay it off earlier if you want.”
Good intentions don’t always pan out. Everything else comes before paying extra on a car loan.
“What is the total and what is included in that number?”
“You can always call the credit union and go over it.”
“I think I will before I sign anything.”
Listen. Listen. Listen. Listen. Listen. Ask. Ask. Ask. Dig deeper for answers.