Should I finance that used car?

I have been around enough used car salespeople to have heard numerous jokes about what people are willing to pay, and how they determine as much. Most people are only interested in the monthly payment and secondarily how many years they can finance it for. If they could get a 15 year loan for $100 per month they would jump on it regardless of the interest costs and danger of wearing out the car before the payments are done. I overheard one lady asking what her payment would be with the late payment added on! Many people really get themselves into a never ending problem by continuously rolling over bad debt into their newest vehicle loan.

My suggestion to everyone is this... Work towards a day when you can afford to pay cash for your vehicle. Even if it is only $2-$3 thousand dollars you can immediately begin putting your monthly payments in the bank drawing interest for your next purchase. Watch this video from Dave Ramsey that does a great job of defining how this process works.

Should Used Car Transactions Face Regulation

First of all, I am not a fan of over regulation because it creates tons of extra paperwork that makes EVERY transaction more expensive. I do believe we have room for more actual enforcement of predatory lending practices. New laws without the staff to enforce them are superfluous. Then at some point that brings us to the point of a police state... but I digress into my usual political diatribe.

Here is a good article that speaks of some of the reasons reform might be needed. Read it and add it to your knowledge base to make your own decision.