What price car can I really afford?
The truth is that car dealers hate dealing with Indians (from India). It is not because they are cheap but for a completely different reason. They hate it when a Indian walks through their doors because they know that that person has done their homework. They can’t be tempted with credit or talked to about monthly payments. They know that that person has done their homework and will not pay a penny over the price they should be paying for that car. You can’t talk them into buying something that they can’t afford like most people can be.
I can’t teach you really how to do your homework but what I can teach you is what you can afford.
An individual should only buy a car that costs a total of 1/3 of their yearly salary. No not in monthly payments or to pay every year but total cost. For example, if you earn $30,000 a year, then you should buy a car for a total of $10,000. And that is the “out the door” price that includes taxes and fees. If you want a fancier car, then go out and make more money. These lenders and crooks make it seem that you can afford more and they know that you will default on your loan obligations.
Most of you who are reading this would not get a loan from me if my own life depended on it. Would you give you a loan? So now tell me why these other people give you loans when even you would not. They are not stupid. So use my 1/3 method and don’t budge from that price. When you walk in the dealership, tell them, “I have $10,000. Show me what I can buy for that.” When they show you a car that costs $30,000 and they ask you how much do you want to pay for this, simply and calmly reply $10,000 and when they look offended and try to yell at you, yell back and speak to the manager and tell them they have an idiot for a salesperson cause you told them how much money you have.
Moral of the story: Don’t let them trick you into buying a car you cant afford