That need for a new car is something every single mother dreads. Eventually, your vehicle will get to a point where even the most simple repairs cost more than the car itself is worth, and you will have to make some tough decisions. Here are a few ways to get that new car without being taken to the cleaners on the way:
Avoid “buy here, pay here.” The buy here, pay here dealerships offer great deals and might have some very nice cars to choose from. The price seems incredibly low — but that’s often the thing that snares you into the deal. The cars are not always in the best mechanical shape, and choosing one of them could set you back with even more repairs in six months or so. But the kicker is in the cost – by the time you are done paying for the vehicle, you have paid much more than you would have if you purchased it from a traditional car lot. If you absolutely must use one of these establishments, try to have half of the money up front, and make payments of much more than the minimum.
Don’t take the hard press. To the car salesman on a deadline to hit a quota, you’re not a single mother — you’re someone who needs to be separated from her wallet in the most efficient way possible. It is simply what they do, and the problem is, they do it very well. A slick salesman can have you signing on the dotted line within hours, but when the first car payment comes, you realize it’s for much more than you expected, and now you’re in even more serious financial trouble than you were before. No matter where you go car shopping, remedy this problem by vowing not to buy that day. No matter how nice the vehicle, no matter how “limited” the offer might be, walk away. There is always another vehicle.
Consider “for sale by owner” options. Many owners will choose to sell their cars themselves to save on commissions. Because they save money by selling themselves, they can pass that savings on to you with a lower price than what you would get on the dealer’s lot. If you don’t have the cash to pay for the vehicle up-front, ask about handling a lien through the local courthouse. The paperwork is legal and binding, which protects both of you as you make small monthly payments.
Don’t forget insurance! Many single moms will purchase a car for a great price, be fully able to make every payment on time and in full, but then get shafted on the insurance premium. Before you upgrade to a nicer car or even choose a car of a different color than your current one, run the insurance numbers with your agent. The extra money owed could be significant, so make certain of what you are truly getting into before you make that leap.
