A lot of people get confused or excited when they see a car dealer advertise a $99 a month payment. Sometimes the dollar amount changes, dealers will use a $47 a month payment or some other low number. I’m going to explain why car ads that use these tricks are usually offering you a bad deal. In fact, I tell people that if a car dealer advertises in this manner they should avoid doing My Favorite Top 10 Comedy Movies Chevrolet Traverse LS Augusta WI 54722 business with them. The reason car dealers use this advertising method is because so many people are fixated on what their monthly payment ends up being and they never understand how that number was generated.
You must understand how a car dealer arrives at your monthly payment to determine whether your $385 monthly payment is a good price or a bad price. Many people don’t understand that two people can have the same $385 payment Chevrolet Traverse LS Augusta WI 54722 for the exact same car and one person got a good deal, the other a bad deal! So when someone asks me to evaluate their car-buying skills by throwing out a low monthly payment I simply nod in approval just to be polite. Of course I do not know if they got a good deal or a bad deal and they usually don’t know either!
So let’s look at all the elements that make up More and More Choices – Hybrid Car Models of 2008 Chevrolet Traverse LS Augusta WI 54722 a car buyer’s monthly payment so you can make intelligent decisions. Your monthly payment is a combination of the following: an interest payment for your loan, a fraction of your actual loan (if your loan is 48 months you pay 1/48 of the loan each month) along with any other fees or taxes you might have rolled into the deal. These are the separate elements that make up your monthly payment. So you must Chevrolet Traverse LS Augusta WI 54722 have negotiated a good purchase price for your car or your monthly payments will never be a good deal. This is true whether you are buying or leasing your next car. No figure has a bigger impact on your car deal than the car’s purchase price – common sense when you think about it.
Now you must take the vehicle’s purchase price and subtract any down payment or trade-in allowance. So if you are buying Chevrolet Traverse LS Augusta WI 54722 a $25,000 car and you put $5,000 down or give the dealer a trade-in worth $5,000 your financing figure becomes $20,000. Now we take that $20,000 and add any additional fees you might have rolled into the deal to create the final amount of money you will be financing.
When you go to financing you need to determine how much interest you are paying on the money you are financing, in our example let’s use Chevrolet Traverse LS Augusta WI 54722 $20,000. The length of your loan determines the number of monthly payments you will make. A common rule of thumb is the longer the loan and the large amount of money you finance, the higher your finance rate will be. So do not be afraid to ask if your financing gets better if you shorten your loan term.
For instance, let’s say two people are financing the exact same car for the exact same amount Chevrolet Traverse LS Augusta WI 54722 of money, $20,000. One person got a rate of 7.9% financing for 60 months. This person will have a monthly car payment of $404.57. The other person got a rate of 4.9% for 48 months. This second person’s monthly payment will be $459.68. Now remember, they both are financing the exact same amount of money, so who has a better deal? Many people instinctively would say the lower monthly payment is a better deal, Chevrolet Traverse LS Augusta WI 54722 I disagree. You see, the first person is paying $404.57 per month for 60 months for a total of $24,274.20. The second person is paying $459.68 for 48 months for a total of $22,064.64. The person with the higher monthly payment ends up paying $2,209.56 less for the exact same car!
Now that you understand the process you can see that anyone could buy a new Rolls Royce and have a $99 a month car Chevrolet Traverse LS Augusta WI 54722 payment. To accomplish this all you need to do is put about $125,000 down! Car dealers advertise $99 a month payments because they know that any potential customer who walks in the door off that ad is fixated on their monthly payment. This allows the dealer to jack up the financing rate, spread the payments out (some dealers now push 72 month loans). By hiking your rate several points and stretching the payments out Chevrolet Traverse LS Augusta WI 54722 an extra year or two the car dealer and the bank will make additional thousands of dollars on every customer! Don’t let this happen to you! Buy smart, don’t be fooled into judging a car deal by the monthly payment, it’s the easiest way to get scammed by a car dealer!
Business Results 1 - 10 of 20
Augusta WI - BingNews Search results
Why you should plan your luxury cruise around a special event
Not only can you tee off on top courses such as the Ocean Course at Kiawah Island, The Links Course at Wild Dunes and the Mid Ocean Club in Bermuda, but you can even attend the 83rd Masters Tournament ...
Augusta man dies after I-20 collision with "broken down" tractor trailer in Aiken County
Wisconsin, had broken down on the interstate and was parked legally as the driver was awaiting a tow truck, the release states. Starnes ran into the rear of the parked vehicle, Carlton said. EMS was c...
Text-to-911 service now available in Albemarle-UVa-Charlottesville region
An active data plan is required to use the text-to-911 service–simply connecting to Wi-Fi will not allow you ... www.communityemergency.org or www.albemarle.org/ECC. Augusta Free Press content ...
Joke's not on Mehaffey as she gets invite to Augusta
Olivia Mehaffey laughed off a cruel prank from her room-mate and proudly showed off her invitation to play in the inaugural Augusta National Women's Amateur ... no-nonsense Steve Stricker if the Wisco...
The search continues for a missing father
AUGUSTA, Ga. (WJBF) - The search is heating up for a missing Augusta man. In the wake of the reappearance of the missing Wisconsin teenager Jayme Closs, her family remained hopeful. As does the family ...
Dr. Mark Gideonsen
Dr. Mark Gideonsen is a family medicine doctor in Augusta, Wisconsin and is affiliated with HSHS Sacred Heart Hospital. He received his medical degree from Rush Medical College and has been in practic...
Doctors around Augusta, WI: Doctors Around Augusta
AARP offers tools to answer your health care questions, to help manage your health information and to help you learn about medical conditions, symptoms and procedures. Start now by selecting a tool be...
Stricker at Augusta with one eye on Wisconsin hoops
AUGUSTA, Ga. – He’s back. We’re talking, of course, about Steve Stricker. After a four-month layoff following back surgery for a bulging disk, the affable Stricker is returning to tournament golf just ...