Sunday, January 22, 2006

Things I learned buying my car

There are a couple of interesting things that I have learned after buying my car. Here they are in bullet point format:
  • There is a difference between revolving credit history and installment credit history. You need to build both. (see this post)
  • Dealerships will finance anybody. They don't always take a scalper's wage either (I got 6% vs. best possible at my credit union of 5.75%), especially if they finance you through a credit union.
  • Some credit unions consider new cars to be anything from the last 3 years.
  • If you're buying used, you should do so in a millitary town. Millitary people buy nice cars, treat them well, don't drive a lot (especially if they are overseas or on a ship), and then trade them in cheap. I almost don't want to share this tidbit, I don't want it getting out into common knowledge and raising the cost of my next used car - so please don't re-post this one on your blog.
  • If you finance a car, you have to carry Comprehensive and Collision insurance on your vehicle with a minimum of a $500 deductible. (this raised my insurance $100/month over my initial estimates - I just didn't know)
If I think of any others I'll add them. If you have any other knowledge learned from experience, please share it.

1 comment:

amit said...

The last point is probably a MAXIMUM of $500 deductible. I'm guessing the lien holders would be happy if you had a lower deductible.

Interesting point about the 3-year rule for new cars.