Car4Less.com Car Buying Guide Home New Car Quotes Auto Financing Auto Auctions Car Articles Welcome to the best online car buying guide! Let us find you best car deal by getting you free car quotes from the top dealers! Car Buying Online Auto Loans Information Auto Loans: Don’t Dig a Money Pit in Your Garage by: Joel Walsh Choose the wrong auto loan and you might drastically increase the chances of defaulting and losing your car. Find out step-by-step how to avoid a money pit. Car loans are certainly less costly than home mortgages, student loans, or other kinds of loans. So why do so many people end up defaulting and losing their cars? Find out these hidden dangers: Biggest Hidden Car Loan Danger: The Inherent Money Pit Unlike home mortgages, student loans or other big-ticket loans, car loans are inherently money pits. A house can build equity; higher education can increase earning potential; even jewelry can sometimes be re-sold for as much as was paid for it. If you borrow to buy one of those things, you may eventually get a return on investment. But every single car loses significant value and keeps losing it as time goes by. Solution: spend as little on your car as possible. Of course, in order to spend as little as possible over the life of the vehicle, you need to get a well-made, fuel-efficient car, rather than the one with the lowest price on the windshield. But a pickup truck, SUV, sports car, or "luxury" model is a guaranteed money-loser. Don’t worry about what other people will think. Think about it: when was the last time you saw an expensive automobile and thought, "I really like and respect whoever owns that!" The best buy? Many economists actually recommend buying a used car that's a year or two old. That way you can actually benefit from the fact that cars only drop in value. Even a car that’s just six months old may offer you a substantial savings. Just have it inspected thoroughly so you don't lose what you've saved on maintenance payments. Hidden Car Loans Danger: Dangerously High Monthly Payments Unfortunately, most people never figure out the total cost before signing on the dotted line. They end up staying up late at night trying to figure out how to make ends meet. They live in smaller houses. They skip going out at night. They don’t go on vacation. All that sacrifice to have a brand-new SUV in the driveway! Take a hard look at your finances, and figure out how much you can pay total each month for your car. Be sure to take into account insurance, tax, maintenance, and fuel. Usually, when people actually do calculate the total monthly cost of the car they’re considering buying, they’re amazed by how high it is. How Much Car Debt Can You Afford? 1) Make a list of your average monthly non-car expenses, and subtract them from your earnings. Buying Your New Car Think about what car model and options you want and how much you’re willing to spend. Do some research for car pricing information by getting free new car price quotes. You’ll be less likely to feel pressured into making a hasty or expensive decision and more likely to get a better deal. We help find the car online that is just right for you! Financing Your New Car Facts: If you decide to finance your car, be aware that the financing obtained by the dealer, even if the dealer contacts lenders on your behalf, may not be the best deal you can get. Apply for free car loan quotes online and compare the financing they offer you with the financing the dealer offers you. Because offers vary, shop around for the best deal, comparing the annual percentage rate (APR) and the length of the loan.