Automobile Enthusiasts

And never, never, never, get into a purchase that has you underwater on that car. Buy what you can afford. Buying a used car is not that awful. Better yet, pay cash for a car. Okay, I understand that you might not be able to that when first starting out, but at that point buy less than you can afford. Then, when that car is paid off, put the car payment into savings for however long it takes to build up a serious down payment on the next car. By your third car you should be able to set aside enough money that from now on all cars are paid for in cash.

Among the worst things about being underwater on your car is that if you have the terrible misfortune to be in an accident, and even if it's not your fault, insurance will only pay whatever the car is currently worth. You still have to pay off anything else you might owe.

About a decade ago I'd had a car for a year. I'd bought it after a previous car was totalled. Paid cash for the car. Less than a year later, another accident, car totalled. Dammit! But the check I got from the insurance company was sufficient to purchase a replacement care, the same year, make and model. With no additional money out of my pocket. I'm still driving that car.

Oh, and I've written How to Buy a Car that I'm happy to share. PM me.