2008 looking to be a lousy year for car dealers


If you're in the market for a new car, 2008's probably a pretty good year to buy one. But if you're in the market for a new car, you should either be very very rich or have your head examined.

Some economists are predicting that 2008 could be the worst year for car sales in over a decade. That could make car dealers desperate for sales. That could lead to some of the promotions we saw after September 11th, including no-money down deals and 0% financing.

The question is should you fall for it and the answer is most definitely not. In his awesome book Total Money Makeover, anti-debt crusader Dave Ramsey discusses some of the common myths about debt:

Myth: You can get a good deal on a new car at 0 percent interest.

Truth: A new car loses 60% of its value in the first four year; that isn't 0%.

The point is that unless you're so rich that you can afford to throw away money, you shouldn't be buying a new car. No easy-money financing gimmick can make up the horrendous depreciation you'll have to endure.