Car Loans

I’m Miriam Neff and I’m Valerie Neff Hogan with Wise Women Managing Money.

M Ideally, pay cash for cars.  They are a depreciating asset. Sometimes a necessity, never an investment, yet many finance cars, even used ones.

V Lenders love to make money on your loan, even a used car that may last four years, is a money-making opportunity to give you a five-year loan, but by year three, your car may be worth less than you owe.  Trade in options are costly.  Determine first the amount you have to pay for a car and shop in that range only.

M Cars are a functional tool.  They do not define your popularity, prestige, or mirror your worth to God, nor your neighbors.  Resist impulse and if possible, debt, to own a car.