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Are there any outdated car buying tips?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 Are there any outdated car buying tips I should avoid?

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“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has changed over time, so there are certainly some outdated car buying tips.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.”
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