We all have a 'bad car deal' story to tell and mine happened when I was 18.

I wanted to trade my first car - a Ford Escort - up to a larger sedan. With my pre-approved bank loan of $5k and hopefully trade-in price of $1500, I was sure I could pick up a decent set of wheels within my budget.

That was until the car salesman noticed me ogling off a more expensive sedan that wasn't within my price range. After a short discussion he promised me that he could get it down to within my budget (a drop of $5K) if I was interested. Of course I was so we started completing the paperwork.

One small hitch, he just had to get it approved by his manager but reassured me by saying this was a fait accomplice. So, I sat waiting until he re-emerged with his boss who wanted to have a word with me. His manager was less than polite and berated me for taking advantage of his fine establishment. How on earth could I expect to buy this car with the amount that I had? I'm pretty sure this was my original question!

Regardless, every other car I'd seen by this stage no longer appealed and with the finance deal they could secure for me I could be on my way in less than 24 hours.

Why I fell for this, I have no idea. Apart from the fact that I was a pimply-faced 18 year old who was too trusting of the world, I was also too hasty trying to prove myself.

But the rip-off didn't end there. The $5k loan I had already obtained from the bank was charging 11%pa while the showroom finance deal was closer to 30%. I couldn't understand back then why the bank was only prepared to lend me $5k yet this finance company was prepared to further extend my credit to almost the same amount.

Today, it makes sense albeit a little late. However, once bitten twice shy. Showroom finance deals are usually the highest interest loans you will ever see because they work on a customer's compulsiveness.

From now on, I get the finance deal sorted prior to choosing a car and I stick to it - like superglue.