Buying a car

Buying a car is a recuring transaction with a frenquency that change depending on the persons. For many persons it's the second biggest expense after housing. It's important to control this expense

Buying new vehicules

New vehicules are expensive and just going out of the cars dealer the car have lost 5%. American car lost nearly 40-50% in the first 2 years, japenese 25-40%, Corean 35-50%.

Renting vs owning

Their is no straight answer! but some category are easier: If you keep your car for long time: Buy it! If you change every 2-3 years and don't have the time to sell the car renting is possibly an interesting option. Sometimes renting is less expensive then buying, but usually it's not the case. You need to keep in mind that by renting they don't loose money.

Low interest financing

Low interest financing is not always really low interest financing! Why? Because sometimes they give you cash rebate ... what is it? In fact mostly it's the margin they added to the car price to reduce the interest. A cash rebate of 3000$ on a 20000$ car can be seen as 3000$ interest on a 17000$ car! This is equivalent to an add more then 11% for a 3 year financing! Or add more then 7% for a 5 year financing!

Buying used car

Used car are cheaper then new vehicules. But also need some more care. For used car we can classify cars dealer in 4 categories

Brand cars Dealer:Usually get the best lease return before the financing company put the car to aution for other dealer. They have the best used car. but are usually also a bit more expensive. They usually don't keep the accidented vehicules and the vehicules they know to have a record of problem during the rental or excesive mileage

Lease end cars dealer: this is The type that advertise as lease return , financing return. Usually most of their cars come from the auction from the financing company. That's the cars from the end of the lease. usually 3-4-5 years old. Sometimes have repaired vehicules, take special care if 1-2 year old with relativly low price. It's often cars from accident or from cars rental company.

The body shop cars dealer: this is where you get discount car because they had an accident before. And you know they add one it's a body shop!

The last one is the other cars dealer: you don't know where the vehicules comes from, they have very cheap to semi expensive used cars. In those place anything goes. good, bad, accident, cars from auction, brand cars dealer exchange

Low interest financing

Used cars dealer don't really have low interest financing. Usually they refer to most of the bank for financing.

Second and third chance of credit

Used cars dealer often offer this type of financing. But this is not, absolutly not a low interest financing. If you can stay away from those loan do it.

Other references

You can read about my story for buying used cars and why used cars dealer have and continue to have bad reputations:

My personal experience with buying used cars

An interesting article about buying a car :

Since this guy write 10 times better then me I get the article and have not try to write it myself. But his point of view is very similar to what I should have written.

Top 10 Money Mistakes In Buying A Car

You can refer to the APA investigation on used cars dealer:

APA investigation of used cars dealer