Sunday, May 3, 2020

#COVID-19 Buyer Beware Part 1

84 months is seven (7) years. When was the last time you kept a vehicle that long?

Tampa Bay, Fl
Opinion by: E. Eugene Webb PhD
Author:  In Search of Robin  So You Want to Blog.

Buying a car
#COVID-19 has become the marketing call of the pandemic. Along with: #we are all in this together.
Everyone from car dealers to pizza shops are playing the COVID song to get your attention.
The local Toyota dealer where I purchased my most-recent truck floods the airwaves with placating ads to bring my truck in for service, but when I get there I find a sign taped to every service register that there will be 3% up charge if I use my credit card to pay the bill. So much for helping out.
I knew I should have bought a Ford.
What follows are a few words of caution as you begin to venture out into a new world of commerce.
First, we are not all in this together. The people who sell stuff are still all about taking as much of your money as, they can, and they will still use any ploy to get you to buy.
Caution is especially important if you have become convinced that this could be a good time to make a large purchase. Say a new car or truck or a new house.
Let’s start with cars.
Those long-term financing options of up to 84 months (seven years if you're counting) may look good but remember this: in the car business, as in all of life, there is no free lunch.
0% interest is a myth. The finance cost is buried in the price no matter what they tell you. If the dealer says “they” are paying the finance cost just remember the only person putting money into this deal is you.

You may also find that the 0% offer is only for certain cars or certain models. Usually the ones that are not selling.

So, the car dealers are in this a bit more for themselves than they are for you.

Don't but a car you don't want to get a financing deal that is not in your best interest.
My suggestion is to call your bank or credit union get approved for car loan and then go shop.
Be extra careful if your dealer uses one of those fancy computer screen desks to close the sale. Once you agree to e-sign, things move very quickly.
Slow down and read the documents. You may inadvertently buy something you did not understand.
Finally if you go for one of these long term no interest deals, there will be a lot of pressure applied in the Finance Office as you close the deal to buy every add on from extended warranties and paint protection to add on tire coverage. Just keep saying NO unless you have a specific need.
84 months is seven (7) years. When was the last time you kept a vehicle that long?
Part two of #COVID-19  Buyer Beware will post tomorrow. With some thoughts about buying a new home.
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