Are there any outdated car buying tips?
I was going to buy a car and after talking with my father about it, I'm more confused than ever. Are there any outdated car buying tips I should avoid?
“The landscape of buying a car has changed over time, so there are certainly some outdated car buying tips.
One of those is always paying cash. Sure, you won’t have a car loan, but with interest rates at all time lows, it’s not necessary.
For example, if you finance a car at 2.9% interest instead of paying cash and can invest that money at more than 2.9%, the interest rate for the loan drops to zero. If you can make 5% interest on your investment, you’re actually borrowing money and making cash on top of it.
Another great tip is to not always finance through the dealer. While they might be able to get you a better deal, going straight to a lender and cutting out the middleman will almost always save you money.
If you need a new car insurance policy once you purchase a car, use Jerry. Jerry will generate competitive quotes from top providers in less than a minute.”
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Read advice from car experts at Jerry
Browse by topics
What others are asking
"Can I finance a car if I don’t have a valid driver’s license after a DUI? "
"My license was suspended because of a DUI in which my car was totaled. I can now get my license reinstated. The dealer pre-approved me for a car loan, but to finalize the agreement, they said they need a valid driver's license. Am I out of luck? "
May 05, 2021
What are some ways to negotiate a car lease?
I want to lease a car, but I also want to get the best deal possible. Are there ways to negotiate a car lease?
Aug 23, 2021
What are some ways to quickly diagnose car problems?
I have a car that's on its last leg. Dashboard lights flicker with reckless abandon. So before I break down somewhere, I want to get on top of my game. Are there any ways or tips to quickly diagnose car problems?
Aug 23, 2021