I'm an adult.. and I'm buying a car for the first time. Advice.

[Sateryn76]

@Rand_Rover

Yep. Buy a Buick (they are offering 0%) or a Honda (offering 1.9% up to 36 months) and earn any return or a very small return on your $20,000 and you are ahead of the game.

Of course, the return you could earn on the $20,000 is uncertain whereas the interest you will pay (if any) is absolutely certain, which is why the issue is a matter for each individual’s risk tolerances and goals with their money.

Is that 0% for the entire term? I haven’t bought a car in ten years, but my husband, who has gold plated credit, could only get 3.9%. Of course, a Buick was not on the list.

Is there a pre-payment penalty? How does the finance company make any money? There’s got to be a catch somewhere. Maybe an increase in the price?

[Sateryn76]

@vactrac

Use your car cash to pay off more-expensive debt, buy the car with the 0% loan. It’ll save the difference in interest rates.

This I agree with, except I would be paying off any consumer debt before I went car shopping.

[RickJay]

@B.Serum

If you don’t get the Truecoat, you get oxidation problems, it’ll cost you a heck of a lot more than the cost of the sealant, I’ll tell you that much.

If you don’t want it, there may not be much the dealer can do — they install that Truecoat at the factory — but if you’re lucky, they might be able to knock a hundred dollars off the cost.

Ya goin’ to the Gophers on Saturday?

[Cyberhwk]

@Baracus

You may plan to keep the car indefinitely, but it doesn’t always work out that way. If the car gets totalled in an accident a month after you buy it, you will certainly care whether you get a check for 60% or 90% of what you paid for it.

To combat this ask your insurance company about “Gap Coverage.” It’s an agreement that if you total the car while still upside down they will pay off the balance of the loan. I asked about how much money it would be when I bought my Toyota Camry. $2 a month.

[Wesley_Clark]

Check carsurvey or msn autos to find reviews from other owners and see what they say.

My last vehicle was a ford ranger, and the reviews I found before I bought it said it was a mechanically sound vehicle but had some electrical and transmission problems. That was what my vehicle turned out to be, I finally had to sell it after years of good service due to transmission issues.

Have a 100 point inspection done before buying a car.

If you find a car you want at a dealer, look for comparable cars at other dealers that are close to what you want but not exactly the same thing. Then print one of those off and ask the dealer to match it on the model you do want.

[Rand_Rover]

@Sateryn76

Is that 0% for the entire term? I haven’t bought a car in ten years, but my husband, who has gold plated credit, could only get 3.9%. Of course, a Buick was not on the list.

Is there a pre-payment penalty? How does the finance company make any money? There’s got to be a catch somewhere. Maybe an increase in the price?

It’s 0% for the whole term with no pre-payment penalty. It’s just a complicated way to give a discount on the price of the car.

For example, say that you finance a $20k car at 6% and end up paying $2k in interest over the term of the loan (numbers are made-up for illustration purposes). Offering 0% interest is the same as a cash discount to the purchase price equal to the present value of that 2k over the finance term.

[glacier_chaser]

Honestly, I wouldn’t recommend buying a brand new car - instead, I’d buy a certified pre-owned vehicle. You end up getting a great car with full factory warranty.

If you visit NADA Guides you can find great information on certified pre-owned and if buying used is not your thing, you can find accurate pricing on new cars, trucks, suvs, etc.

Good luck finding your first car - it’s a real thrill.