Protect yourself. Read these important car-buying tips before you sign!
Friday, January 25th is “Opposite Day.” We’re not sure who invented this special day, but we think it must be the same committee who decreed May 24th “National Scavenger Hunt Day” or August 12th “Middle Child Day.”
There seems to be no real consensus on how to celebrate Opposite Day – some eat breakfast for dinner or wear their clothes backwards. For OMVIC, Opposite Day is the perfect time to talk about negative equity, an expression that reveals itself to be contradictory. Negative Equity, just like “jumbo shrimp” and “confirmed rumour”, is an oxymoron.
When you owe more for a car than what it's worth, you have negative equity. Follow our infographic to find out how easily it can happen.
Making car-buying decisions based solely on a low monthly payment could be financially hazardous and is becoming a problematic trend amongst many consumers. When buying a car it’s important consumers are aware of the potential consequences of financing vehicles over extended terms (e.g. 84-96 months). In some instances, particularly if the consumer has bruised credit and therefore only qualifies for a high interest loan, stretching the repayment term out can result in paying more in interest than the actual purchase price of the vehicle. Consumers should ensure they are getting the finance terms they want and can afford.
There’s a growing trend amongst some consumers that may have unexpected financial consequences ‘down the road’. Known as Monthly Payment Junkies, these consumers ignore the potential pitfalls of financing a vehicle over an extended term such as 84-96 months and make their car-purchase decision based solely on a low monthly payment.
It’s Financial Literacy Month! Interested in buying a new or used car? As November comes to an end and the holiday shopping season intensifies, it’s important that consumers are aware of the dangers of “…Being a Monthly Payment Junkie.” Read more to learn about negative equity. #FLM2015
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