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Driving 'underwater' car is no fun

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By Tom Purcell

What's the best car on the road? One that's paid off.

That's what my father loves to say. Regrettably, too many Americans aren't heeding his advice. What's worse is that they're taking on "underwater" loans that far exceed their cars' value.

The Wall Street Journal recently featured a 40-year-old electrician who bought a $27,000 Jeep with a $45,000 loan.

How is that possible?

A string of bad luck was part of it. He "replaced one because it had 100,000 miles and another when he went through a divorce, and he changed cars again when his family was expanding."

Since auto dealerships earn more from financing cars than from selling them, they're happy to extend "underwater" loans that can take many years to repay ― though in those cases, "car owner" probably isn't the right term for the buyer.

Buyers often trade their cars in before those lengthy........

© The Korea Times