If you ever hear a new or used car dealer ask you, "What do you want your monthly payment to be?" a little red flag should go up in your mind. That's because buying based on a target monthly payment is a surefire way to get locked into a loan that's a bad deal. A dealer can wheedle the term of the loan and other factors to shoehorn many loans to fit a certain monthly payment range.

In reality, the total cost for the loan will be much more than it would be if you negotiated on price alone. If you have ever fallen into this trap, you should check out Edmunds.com's DealSmart service. The subscription service helps you become a savvier car shopper. A free trial is available.

About LifeTips

Now one of the top on-line publishers in the world, LifeTips offers tips to millions of monthly visitors. Our mission mission is to make your life smarter, better, faster and wiser. Expert writers earn dough for what they know. And exclusive sponsors in each niche topic help us make-it-all happen.

Ask a Question

Not finding the advice and tips you need on this Auto Loans Tip Site? Request a Tip Now!

Guru Spotlight

William Pirraglia

Ever wonder how you could make your life better and more fun? So have tens of millions of fans who have turned to LifeTips for answers over the past decade. We keep the tips, advice, books, podcasts and writing services flowing, so you can keep your life and business growing in the right direction. Upward!