This post is sponsored by Kia.
The Megan Method — Overpay, Then Sell
My first car was a wonderful, amazing, dark green faux-wood-interior-paneled convertible. I bought it outright from a lady in the neighborhood, and I used all my savings—$5,000.
When that car broke down, I bought another car, this one from my “car guy.” I traded my car in to him and financed the rest—$4,000.
I got a loan through the credit union, and overpaid each month so that I could pay it off early and avoid some interest. But now I need to replace my brakes and my air conditioner—to the tune of $2,200, which I will not be doing. I’ll sell it as-is and pay off the remainder of the loan and start over. Not with a used European car. Never again with a used European car.