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Old 07-02-2009, 07:09 AM
CherryPicker CherryPicker is offline
Veteran Strategic Shopper
 
Join Date: Aug 2008
Location: Grinning In Aisle 4
Posts: 1,926
Talking Living Like No One Else....

To begin with, Congratulations on your promotion Simille!!

As to thoughts....I am soooooo going with Dave Ramsey on this one. If you are able to....I would highly suggest reading his book "The Total Money Makeover". I was able to download the audio book on itunes...and he talked at length about buying cars....I would highly recommend this.

To answer your specific concerns: If you are able to make payments....presume the average car payment is around $300-$378 a month right now. Put these payments in a cookie jar right now. (Seriously!!) In fact....add to that cookie jar as MUCH as possible. Would it be possible to make a couple of payments a month? If so....keep adding.

In your situation....I would buy a very inexpensive car to start out on, with NO PAYMENTS. In the meantime.....you're still making those payments to your 'cookie jar'. In a few months time.....you would be able to trade in that car to a nicer one. (With NO payments!!)

Keep up this system, and what will happen over time.....those payments that you have routinely saved will allow you to purchase a NEW car for CASH without ever having known a payment+interest, DEBT, etc.

I would plea with anyone here.....that if you are in a position to do so, to download the audio book for The Total Money Makeover by Dave Ramsey. It could forever change how you purchase cars.....Seriously!!

A couple of brief examples:

1. Buy Here, Pay Here: The dealer gets those cars at a very cheap cost anyhow. He described that one payment by the customer is generally how much the dealer paid for the CAR!!.....All those other payments? GRAVY for the lot!!

2. The FLEECE: FLEECE is what Dave Ramsey calls leasing. He gave the illustration that if you go to a lot and buy a car with cash....the dealer makes around $82. If you finance it....the dealer makes around $700. HOWEVER....dealers know that fleecing (I mean LEASING) a car.....is the dealers LARGEST profit margin, and it makes them around $1300!!(For the specific numbers please listen to the audio book)

Hope that helps.
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CherryPicker

Last edited by CherryPicker; 07-02-2009 at 07:12 AM.
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