Posts Tagged ‘auto’

I’m a Traitor

posted by Marne

carBefore working as a teller, I worked at a local tire store and I am quite loyal to them still. However, I’m here to deter some business from them and all tire stores/automechanic shops.

My family, ever since I can remember, has gone to that tire store for everything we needed: new tires, oil changes, safety & emissions, flats, alignments - everything! Last week my mom realized she had 3 lights that had burned out on her Denali. She called the tire store, asked how much the bulbs were, and took it in to get them replaced. Before they actually replaced anything my mom asked them again how much the bulbs were going to cost. Down at the shop, they told her it would be more than what they said on the phone - $35 for each bulb. My mom had them pull her car out, without fixing the lights, and went home. My dad was able to buy each bulb for $12 and replace them himself. That same day something went weird in the wiring of his truck, he called the mechanic and asked him how he would fix it. The mechanic told him there were some wires that needed to be soldered together and it should work just fine. My dad located the wires, soldered it and *voila!* good as new.

So, instead of spending $200 on both cars ($35 on each light, plus labor on my mom’s car and labor on my dad’s car — which is at least $40/hour) my dad spent $36 to fix it all.

I realized it pays to know your car - know how to change the oil, change the lights, change a battery, etc. Even if you can’t fix everything, knowing some of the smaller things (or knowing someone else who does) can really save in the long run.

Brand New Car!!! More than you think.

posted by Brannon

car-picture1So, if you are like me at all, you have once or twice driven by a car lot and gazed out at the vast sea of shiny brand new cars.  I love cars.  I have told my wife that I am jealous of the Jay Leno and the Bruce Wayne/Batman car collections.

The other day, I had an individual ask me about a car loan for a brand new truck, with all the options and luxuries a truck manufacturer can offer.  They were trading in a vehicle and were taking about a $1,200.00 loss in the trade in (meaning that the dealer was not going to pay off their existing car loan completely).  They decided to put $2,000.00 down on the vehicle.  The out the door price after tax, licensing, and even a manufacturer rebate was just over $51,000. 00.

Now, they didn’t have the greatest credit in the world, which means the best interest rate the dealer could give them, depending on the financial institution, would be between 9% and 15%.  The interest alone on this vehicle, with the 9%, figuring on a 7 year term, would cost  $18,245.42!  And if you figure the higher 15% on the same terms, it would cost $47,482.41, just in interest! So what was already a high priced vehicle could translate to a whopping $98,663.44!  Cha-CHING!!

Before you get too depressed, I’m not in any way discouraging purchasing a new vehicle, but make sure that you are in a position to do so when you do.   This means, make sure that you have a good credit score so that you can get the very best interest possible.  Also, make sure that you can put a good healthy down payment on a vehicle of this amount of money.   For example, the same deal I showed said before, figuring on an interest rate of 4.99%, with a $5,000.00 down payment, for 7 years, the interest would be $8,746.01.  That’s quite a big difference.  And of course, the more money you put down, the less you’ll pay in interest.

So, when you look out at that big vast car lot full of brand new shiny cars, just remember what I told you, and make sure that you are in a position to get it.  When you are, you will enjoy that car so much better when you get a good deal on financing!


wood grain