Buying a car: Take a good look at finances

Editor’s note: This is the sixth installment in a series on financial literacy.

ST. MICHAELS

A car is definitely one of the largest purchases a family makes, and it should be made after a lot of deliberation and consideration of what they can afford.

But for many Navajo families, it’s more of an impulse buy.

“A lot of times they just go in and, you know, it’s nice to buy something new,” said Varvara Phillips, an investigator for the Navajo Nation Human Rights Commission.

Do dealers bear some responsibility for selling cars to people who can’t afford them?

The commission has tried to talk with dealerships about not selling vehicles to people who don’t have enough monthly income to purchase them, but this has brought up a question of discrimination for the dealerships.

Would it be seen as discriminating based on income and race?

For the commission, it’s clear.

“On our side, we have said (buyers) do need to be turned away,” Phillips said. “It’s really hard to sit here and listen to grandmas and grandpas when they come to our office and say they don’t have any food to eat because of this vehicle. Or they’re pawning their own jewelry to make payments on this new vehicle.”

Another issue is “door-to-door” cases, where car salesmen literally show up on someone’s doorstep with a vehicle and a contract.

Navajo buyers are hastily presented with purchasing documents and told to sign by pushy car dealers, said the commission.

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