What to know
I have low credit and no money to my name right now, but I get paid $1,200 a month and can definitely pay a $300 car payment. Should I go buy a car right now?
No, please save.
I am buying a new car, my current insurance company quoted me way too much ($500/month!)
What do I do?
Shop around for different rates or look at a different car to be within your affordable range.
What is a lemon car?
A car that has multiple defects that occur before purchase of the vehicle and continue to persist without being resolved. Basically a broke car.
Is gap insurance added to your insurance payment or your car payment?
Car payment! Normally the car dealership will add it to the loan.
Someone calls you saying your cars extended warranty is about to expire, what do you do?
Hang up, your actual warranty would send mail or email you.
I want to buy my dream car, a $65,000 SUV. I make $1,000 a month. Do you think I could buy the car if I have no money saved up right now?
no:) your payment would probably be higher than your salary.
What is Gap Insurance?
An insurance to cover the "gap" of potential loss from an accident or total of the car, that way your leanholder (aka who gave you the car loan) can get their money back from the insurance company.
Does Pennsylvania have laws that protect you from Lemon Cars?
Yes
I have a $50,000 car. My insurance covers $25,000 in damages to my car. My car payment is $500/month. I have the option to add Gap insurance for an extra $90 a month, should I add it?
Yes! If it is not already on your loan. Or else you'd be responsible for $25,000 alone if you total the car before it is paid off.
What is a warranty?
a contract, provided by the manufacturer or a third party, that guarantees repairs or replacements for covered components that fail due to manufacturing defects within a specified timeframe
Car salesmen are always going to try and upsell you. I read online this car is worth $20,000, and the car salesman wants to sell me for $25,000. What do I do?
Lowball for $18,000, and then stay firm on a $20,000 maximum. This is negotiation. Then if he refuses to go to $20,000, just leave and go somewhere else and look.
Should I get Gap Insurance?
Most of the time, if you bought a car and make a monthly payment, not only do you have to get GAP insurance, but you are required. YES get gap insurance, or else YOU are responsible for that extra amount if something happens to your vehicle.
I have a lemon car, my defect is not fixed after a reasonable number of attempts, and my vehicle is out of service for 30 or more days for repairs. What should happen next?
the dealership must either replace the vehicle with a comparable one or refund the purchase price (minus a reasonable allowance for use)
What is APR?
The cost you pay each year to borrow money for the car, including certain fees, such as origination fees, expressed as an annual rate.
What does a warranty NOT cover?
excludes normal wear and tear or routine maintenance
Name some preferred brands for cars that have limited issues and cheaper parts to replace:
Honda
Toyota
Subaru
Mazda- after 2010
Lexus
Chevrolet
I finally got the cheapest insurance quote, $80, but it only covers $20,000 in damages. My car is worth $15,000. Should I up my coverage to $50,000 in damages and pay $100 a month instead?
Just because your car is worth $20k doesnt mean you should opt for the cheaper plan, you might causes damages to a $50k car in an accident, and you don't want to ever be responsible for that difference in price. Which would be $30k.
The manufacturer who sold me the lemon REFUSES to give me my money back, but my car loses gas on the road and it has not been fixed after 10 attempts, what do I do now?
Contact an attorney with the receipts of work done on the car, as well as the information and agreement from when you bought the car.
I want a $20,000 car. I got approved for a 5 year loan with 2% APR financing. I have $10,000 in cash to give. Should I give it all to the down payment to lower my monthly payment or only give $2,000 and pay the rest monthly?
The more you can put down on a car payment the better, that way you are paying less back on APR for the monthly payments.
My dealership offered me a $10/mo warranty added to my car payment that included oil changes up to 100,000 miles. I bought the car at 92,000 miles. Is it worth it?
Probably not since that will expire very quickly then you continue to pay a warranty for free oil changes that you don't qualify for.
I have the option to go to a used lot or a brand new car lot. Where should i go to buy my car?
Go to both and see options. Many new dealerships have used cars that were trade-ins. Always check multiple places. Never get pressured into buying that moment. Take a second to think on it.
I want a 2024 Toyota Highlander. My current insurance rate for my 2012 Honda CR-V is $180 a month. With a Highlander my insurance was quoted at $160/month. Why do we think this may be lower?
New cars typically have the latest safety technology, which can lead to lower insurance rates despite their higher value.
I bought a lemon car with multiple issues, and while I was driving I busted the lugnut stud off. Will this damage be covered when I complain to the manufacturer.
No, only the preexisting issues would be covered. For example; a check engine light from the day you bought it to now, that issue should be covered.
The car I want to buy is $30,000. I have low credit but the TV says I can have 0% APR upon signing TODAY. They offer me a 7 year loan which means
$30,000 / 84= $358 a month for a car loan.
Should I sign with them right now and have them run my credit?
NO! :) remember we said you have low credit, that APR will not qualify you and you will have added interest to your monthly payment. Build your credit back up and then shop for a car if it can wait.
i bought $800 tires from a tire shop and an automatic warranty covers them for any tears or damages to the tires. I drove them throughthe mud and got a nail in one tire. What should i do now?
Go to the tire shop and tell them you have a warranty and have them replace your tire. The tire should be covered (labor may vary if it is covered)