Financing a car

Don’t trade-in. Dealers don’t want your old piece, so you think they will give you a good price for it? Sell it yourself, or better yet, donate it to your favorite niece. If you feel you have to trade in, negotiate it after you have settled on the price of the new car.

See what your trade-in is worth on kbb.com. The dealer is just going to give you wholesale, or trade-in value. If you sell it yourself, you will get somewhat closer to retail. If it is a $2000 piece, it may not be woth the hassle of selling yourself, so again, look up that niece.

Never get a loan for more than 48 months for a car. Cars depreciate, and with a 60 month loan, you will be upside down for the majority of the loan period, meaning you owe more than it is worth, what if you have to sell it? If you can’t afford 48 month payments, buy something cheaper or wait until you can.

Don’t talk about financing until after the price of the car has been agreed on. The dealers may offer 0% financing, but they will jack up the price of the car. So, look at the total amount you will pay over the life of the loan, that is the true gauge of which loan is cheaper.

Only buy a manufacturer's extended warranty or from your auto insurance company. Never buy a third-party warrantee, which is worth almost, but not quite the paper it is printed on. Compare here as well. You don’t have to buy the extended warrantee until after you buy the car.