You Should Buy a Used Car to Avoid $50,000 in Interest Payments

A Chevy Tahoe is a nice car, but it's pretty expensive these days, and interest rates are climbing. People often look at a car's sale price and figure that into their budget. Or when they finance, they just look at the monthly payments. However, the interest rate makes a huge difference, particularly when the payments are spread out over several years. Blaisey Arnold had dreamed of owning a Tahoe, and bought one, presumably new, for $84,000. That in itself is a heart-stopping amount of money, yet it was within her budget. But she financed the car at 10.2%!

But that's not all- her husband financed his truck at 14% interest. he's not getting anywhere by making payments.

That's $3K a month in car payments. I wonder what their rent/mortgage payment is. Yes, Arnold received a lot of pushback for living beyond her means, and she asked what everyone else's car payments are.

@theblaiseyarnold

🤷🏻‍♀️ am i wrong? fy foryou carpayment carloan financetok intrestrates foryoupage

♬ original sound - B L A I S E Y 🤍

There are 23,000 replies so far, mostly payments of $400 or less, with a lot of people not making any car payments at all, because we all drive Toyotas with a quarter-million miles on them. Or at least I do, and so do many of the commenters. Yes, cars are very expensive these days, but you can save many thousands by buying a car that's been driven for a year or two or ten. And when you finance a car purchase, pay strict attention to the interest rate as well as the monthly payment. There are calculators that will explain how much more you will be paying in interest for each percentage of the rate. Knowing how much financing will cost you over the term of the loan will make you think twice and maybe widen your definition of a dream car before you make an expensive decision. -via Jalopnik â€‹

(Top image credit: Bull-Doser

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