Has anyone figured out why we're so financially ignorant once we enter the car dealership? It's as if the dealer performs a lobotomy on us thus rendering our ability to resist that shinny car and costly car note. We recover from our horrific procedure as we drive off that lot or at the least the day after when we read the terms.
That day of realization happened for me after I took out a loan for Jeff Gordon's replacement vehicle. Of course, I am not referring to NASCAR legend Jeff Gordon's Chevy Monte Carlo, but my paid off '90 Toyota Camry with the emblazoned yellow 24 bumper sticker. Sure, the transmission was beginning to act up again, but why fix it for less than $2,000 when I can go out and finance a new car for $14,200.
What were we thinking? Just as we began the process of paying down our credit card debt (See attached financials), we decided to add more to our debt load. This one move set us back at least two years and several thousand dollars in interest. Don't get me wrong. Having an operable vehicle is an important asset, but it's no longer an asset when you're required to finance it.
If at first you don't succeed, try, try again.