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| Americans love their SUVs and hate their car payments. I refuse to pay more than I can afford. |
The average new car loan in America now runs longer than 7 years. It's crazy. People who won't save nickles and dimes for down payments on houses are scrimping to make monthly payments on gas-guzzling space-wasting vehicles. My parents' mortgage costs less than the payments on most SUVs.
Any 4-door car built in the last 5 years should serve the average family's needs for another 5 years. If you really need a shiny new vehicle then I suggest you only look at the Certified, Pre-owned vehicles all the major dealerships now offer their low budget customers. These vehicles have a few miles on them but they've already lost most of their inflated book value. You're financing real value, not real value plus showroom fancy.
I knew I would regret buying a new car the last time I took that walk across a dealer lot. I went in firmly committed to budgeting for $350 a month. I walked out with a $450 a month payment and a extended warranty I not only didn't need but ended up cancelling. Those sales managers know how to sell you a dream.
What kills me is that I had always heard you should get approval for a new car loan from your bank before talking to a dealer. Just tell the sales manager "this is what my bank is willing to pay you - what are you willing to sell me for it?"
All those premium add-ons they talk about in the back room are just pure profit for the dealer. A friend of mine who used to work in the car business warned me about the extended warranty scam. He said the sales manager will show you five options. The low end option doesn't cover enough. The high end option is too expensive. But the middle option - that's the Goldilocks Deal. That's the one they want you to pick because it sounds affordable and covers more than the 2 cheaper offers. It sounds "just right".
And it's just another ripoff.
I take my car in for service as soon as the maintenance light comes on. I keep the tires rotated and pressurized, the oil clean, and I don't let chips in the windshield grow into big ugly cracks. I invested in seat covers after 3 years because the upholstery was starting to look a little dirty.
And on top of that I found I can lay a blanket across the back seat and it looks fine. When I put heavy stuff in there it doesn't tear up the upholstery.
If we need to move something big my husband has a truck. On the rare occasion he's rented a utility truck from the local Home Depot.
When I attend a party at a friend's house you'll find my car squeezed into a little nook where the SUVs can't park. When I drive into the city I can find more parking spaces than my friends because I don't need an elephant-sized field of dreams to park in.
The downside of being the only person not driving an SUV is that I have to crane my neck to see through all the behemoths chugging down the road. They look affluent and comfortable in their oversized vehicles but I know inside that glossy casing is a woman who's wondering how she'll feed the kids and the pets this week because they just emptied the bank account to make the $800 car payment.
I rejoice in the knowledge that I was able to refinance my car with my bank for a lower interest rate. I take hidden guilty pleasure in knowing that two of my friends were turned down for refinance loans because they were overextended on their credit.
The sales manager at the car dealership is not your friend unless he's telling you how to avoid all the extra fees. He may have to make a living, too, but he'll have to do it with a few less dollars from me.
Unlike most of the people I know I'm well aware of how expensive an SUV really is. I'm not driving one of those monstrosities just because they drive like a dream. It's not dreamy enough to put money into my bank account.
