Houston Used Ford Dealer
Q: I want to buy a used car from a Houston Ford dealer, but I don’t want to have an upside down loan… Is there some way to do this?
A: What’s an upside down loan?
A: An upside down loan is when you owe more for a car than it’s worth. That happens when you buy a car and, when it’s new, it depreciates really fast, so for the first couple of years there might be a difference of several thousand dollars between what you owe and what it’s worth. That’s why you really need to know what you’re getting into when you go to your Houston Ford dealer to get your car, because even if you try to sell it later on, you’ll probably still be paying the car notes and won’t have any money left over to get a new car.
If you don’t want to get an upside down loan from your Houston Ford dealer, then you only really have a couple of options: you can either wait until this has a better chance of not happening, or you can save a lot of money.
Usually, when I get a car I use it for a looong time. It’s my spouse who goes through cars like crazy. I wait for cars, because I know that waiting will get me a better deal from my Houston Ford dealer.
For example, my credit used to be bad. Instead of selling my then puttering car and buying a new one, I waited a coupe of years until it was really on the brink. In the meantime, I saved up a few thousand dollars and also started paying off my debt and building credit. When I was ready to get my car from my Houston Ford dealer, I made a huge down payment and got low monthly payments and a good interest rate… no upside down loan for me.
You don’t have to do both of those things, though. You can save up a lot of money and put down a big down payment. Or you can just wait until your credit is good enough to get an awesome interest rating. Either way, you should put down at least 20% for a down payment, because even a low interest rate doesn’t excuse you from an upside down loan.
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