Buying a used car can mean freedom for some people that haven’t been able to afford a car in the past. Still, a terrible deal is being shown on social media.
To put things right out there, a woman has bragged on social media that she purchased a 1998 Ford Escort for $289 per month. At the time this car was new, that might not have been a terrible deal, but this car is more than twenty years old. This sounds like a terrible deal, but it gets worse.
Did the tax return strike her hard?
Some people get super excited when they file taxes because of their return amounts. Some people earn so little money throughout the year that they qualify for higher thresholds of the earned income credit, which typically pushes tax returns into four or five figures for some low-income filers. Hopefully, this woman didn’t place a large down payment for this old car that she will pay $289 per month for. It won’t be long before she realizes this is a used car deal that wasn’t worth the cost, but now she’s tied into this loan.
How long is the loan?
Worse than the payments is the length of the loan for this old car. Although payments under $300 are hard to find in today’s used car market, the 1998 Ford Escort can’t be worth much more than $1,500. Although a nine or twelve-month loan might make sense for this car, the woman bragging about her deal is tied into this loan for 84 months. That is the next seven years, after which she will have paid $24,276 for a car that will be well over 30 years old by that time.
Let’s be a little fair
We’re not making fun of this woman for buying such an old car at these terms. We are a bit shocked that the complete inequity and ridiculous nature of this loan didn’t surface during the signing process. Still, if this is the car she chose to have a set of wheels when she didn’t previously, it’s a car she’s using to rebuild her credit to buy something better after the loan is paid off, or she just has to have a car, and this was all she qualified for, then good for her for being proud of her purchase.
What can you drive for less than $300 per month?
Assuming you can qualify for a lease deal, there are some new cars that can still be driven while you pay less than $300 per month. If you qualify for a lease, you’ve probably got a good credit score and don’t need to try and rebuild your score. Still, some dealers will help you qualify for the lease, even if you have a lower-than-average score.
Here are some of the new models you can drive without spending more than $300 per month:
2023 Hyundai Venue
Rather than getting stuck in one of the terrible used car deals, you’ll be pleased to pay $199 per month or $36 months for the 2023 Hyundai Venue. If you receive a large tax return, all you need at signing is $3,299 to close the deal. A new Hyundai Venue can be a lot more useful and dependable than an extremely old Ford Escort. The Venue has decent cargo room and good fuel mileage to be one of the easiest cars that you can drive.
2023 Kia Forte
Another vehicle that comes with an affordable lease price is the 2023 Kia Forte. This car can be leased for $219 per month for only 24 months. The amount due at signing is $3,018 for this small and useful sedan. In fact, the Forte plays in the same class as the Escort, although the Escort is no longer produced by Ford. You’ll find a useful small sedan when you drive the Kia Forte. This car offers a useful infotainment system with Apple CarPlay and Android Auto, along with excellent driver-assistance features. You won’t find those items in a 25-year-old Ford.
2023 Subaru Crosstrek
This small Subaru brings you the benefits of standard AWD, and the lease price is only $285 per month for the next 36 months. Pay $2,585 at signing, and you’ve got a brand-new small SUV that can be fun to drive and offers you the cargo room you need for some wonderful adventures. The deal is for the base model, which includes the EyeSight suite of safety features, an excellent infotainment system, and an efficient powertrain. Can you get all of these items in an old Ford Escort? No, you can’t.
2023 Hyundai Elantra
If you can afford $219 per month for 36 months, you can avoid terrible used car deals and enjoy driving a new Hyundai Elantra. At the signing, you’ll pay $3,299 to take this affordable small car home with you. This car brings the modern features you want and a long warranty. There’s no way the old Ford Escort has a warranty still. The lease deal for the Hyundai Elantra is for the base SE trim, which offers good fuel mileage to give you the desired level of savings.
2023 Chevrolet Equinox
Among these vehicles, the Equinox is the largest vehicle with the most generous amount of cargo room. The lease deal for this Chevy SUV is $269 per month for 24 months after $3,019 is due at signing. The lease deal is for the FWD LT trim, which means you’ve found a step up above the base model of this compact crossover SUV. Could you enjoy this lease deal instead of the bad deal for an old Ford Escort?
2023 Mitsubishi Mirage
The Mirage is about the only vehicle in the entire automotive market that can be purchased for less than $250 per month. Payments start as low as $246 per month for 72 months when approved. The Mirage is a small car with very little power, but it’s new and comes with a warranty and modern safety features. The payments for this new car are lower than the woman found with the terrible used car deal she signed for a 1998 Ford Escort.
The lesson here is to shop around and make sure you get the right car at the right price. Don’t get stuck in one of the terrible used car deals without predatory lenders just because they tell you that you’ve been approved.
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