• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Consider used cars

For a long time, it was safe to assume that used cars were a good deal and would be considerably cheaper than buying new. But the supply shortage of recent years has complicated this. In 2021 and 2022, as COVID’s effect on supply chains rippled through the economy, used car prices accelerated to historic highs. The situation is improving, but the average price of a used car in America — about $27,000, according to Consumer Reports — is still higher than before the pandemic.

Nevertheless, there are still some attractive deals in the used market, especially on models older than three years. And financial personalities like Dave Ramsey and Suze Orman still strongly recommend buying used as the cheaper alternative.

Kiss Your Credit Card Debt Goodbye

Millions of Americans are struggling to crawl out of debt in the face of record-high interest rates. A personal loan offers lower interest rates and fixed payments, making it a smart choice to consolidate high-interest credit card debt. It helps save money, simplifies payments, and accelerates debt payoff. Credible is a free online service that shows you the best lending options to pay off your credit card debt fast — and save a ton in interest.

Explore better rates

Get pre-approved

Getting pre-approved for a car loan instead of signing up for a dealer’s offer could have some benefits. For one, you can shop around among lenders for the best deal. Also, getting pre-approved means you’re well aware of how much a car you can afford before you start hearing the dealer’s pitch and get talked into buying too much.

Beware of long terms

One old fashioned nugget of advice on car buying held that your loan term shouldn’t be longer than four years. But these days, 60 months, or five years, is more commonly recommended. Longer terms — 72 or 84 months — mean less flexibility. If you decide to sell or swap a car mid-way through a long term, you might owe more on the car than it’s worth, since interest rates on car loans tend to be high and because cars depreciate rapidly — and the newer the car, the more rapidly it will depreciate.

Discover the power of FreeCash – your ticket to easy money

Dive into a world of rewards at FreeCash where earning cash is as simple as a click. No gimmicks, just real cash for your time. Join the community of earners today and watch your wallet grow effortlessly.

Make Money Now

Buy with cash

The simplest case for buying a car with cash, which experts like Dave Ramsey have long espoused, is that doing so means not going into debt at a time when, because of rising interest rates, borrowing money is prohibitively expensive.

Buying with cash can also give you leverage in negotiating with a dealer, Ramsey suggests. If you have enough cash to buy the car you want outright, you won’t be vulnerable to dealers’ pressure tactics or unfavorable deal terms.

Sponsored

This 2 Minute Move Could Knock $500/Year off Your Car Insurance in 2024

Saving money on car insurance with BestMoney is a simple way to reduce your expenses. You’ll often get the same, or even better, insurance for less than what you’re paying right now.

There’s no reason not to at least try this free service. Check out BestMoney today, and take a turn in the right direction.

Vishesh Raisinghani Freelance Writer

Vishesh Raisinghani is a freelance contributor at MoneyWise. He has been writing about financial markets and economics since 2014 - having covered family offices, private equity, real estate, cryptocurrencies, and tech stocks over that period. His work has appeared in Seeking Alpha, Motley Fool Canada, Motley Fool UK, Mergers & Acquisitions, National Post, Financial Post, and Yahoo Canada.

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.