• jballs@sh.itjust.works
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    3 months ago

    I recommend that anyone buying a car that they’ll have to finance bring in a laptop with an amortization schedule up and ready to go to the dealership. Dealers don’t want to talk about the total cost of the car. They only want to talk in monthly payments. They’ll sometimes offer cashback in order to get you to agree to a higher interest rate. If you don’t have an amortization schedule handy, you’re not going to be able to do that math and figure out if you’re getting a good deal or getting scammed.

    If you don’t know what an amortization schedule is, then Google it and play around with one before you go in to buy a car. You only need to plug in a few variables - purchase price, number of months for the loan, and interest rate. That will allow you to see your monthly payment and what you’re paying in interest.

    If you can’t do that simple thing, then don’t finance a car.

    • jeffw@lemmy.worldOPM
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      3 months ago

      In response to an article about how poor people are trapped by loans… you recommend that? Really?

      • blurg@lemmy.world
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        3 months ago

        And what would be better recommendations for the poor individuals trapped by loans?

        • jeffw@lemmy.worldOPM
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          3 months ago

          Regulatory reform? Not “just go buy a laptop and study amortization before you buy”.

          • blurg@lemmy.world
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            3 months ago

            Yeah, that sounds reasonable in the long run (years), while the laptop plan is more immediately useful.