1 00:00:00,160 --> 00:00:02,840 Speaker 1: Welcome to How the Money. I'm Joel and I and Matt, 2 00:00:02,920 --> 00:00:06,120 Speaker 1: and today we're asking the question repair or replace that 3 00:00:06,160 --> 00:00:27,760 Speaker 1: old car? Yeah, Joel, did you know that the annual 4 00:00:28,000 --> 00:00:31,200 Speaker 1: expense for making repairs to a ten year old vehicle, 5 00:00:31,560 --> 00:00:33,720 Speaker 1: it's about the same as a single month's worth of 6 00:00:33,760 --> 00:00:36,880 Speaker 1: car payments to a new vehicle. Isn't that crazy? And 7 00:00:36,920 --> 00:00:39,040 Speaker 1: not even necessarily new, like sometimes these cars are a 8 00:00:39,080 --> 00:00:41,559 Speaker 1: few years old. But either way, there are payments on cars, 9 00:00:41,840 --> 00:00:43,280 Speaker 1: and a lot of times I think we we blow 10 00:00:43,280 --> 00:00:45,040 Speaker 1: out of proportion the amount of money that we put 11 00:00:45,120 --> 00:00:47,880 Speaker 1: towards repairing our vehicle. And so that's what we're gonna 12 00:00:47,880 --> 00:00:49,800 Speaker 1: talk about this episode. Man, you know, this isn't a 13 00:00:49,840 --> 00:00:51,839 Speaker 1: slam dunk though, Like we're not gonna tell everybody to 14 00:00:52,320 --> 00:00:55,000 Speaker 1: hang onto their old vehicle. There are some great reasons 15 00:00:55,040 --> 00:00:57,880 Speaker 1: to replace that vehicle, and we're gonna cover all of 16 00:00:57,880 --> 00:01:00,680 Speaker 1: those and some more in this episode. Buddy, Man, a 17 00:01:00,680 --> 00:01:02,320 Speaker 1: lot to cover here. I think we've got a lot 18 00:01:02,320 --> 00:01:05,640 Speaker 1: of good information for people to consider if they're driving 19 00:01:05,680 --> 00:01:07,600 Speaker 1: an older car that's starting to give them more issues 20 00:01:07,640 --> 00:01:09,560 Speaker 1: and they're not sure what should I ditch it, should 21 00:01:09,600 --> 00:01:11,480 Speaker 1: I keep it? Should I be trading up for a 22 00:01:11,480 --> 00:01:13,720 Speaker 1: newer vehicle, and there's just there's just a lot of 23 00:01:13,760 --> 00:01:16,240 Speaker 1: moving parts in the situation. Uh, not to mention the 24 00:01:16,240 --> 00:01:18,560 Speaker 1: parts that might be breaking down in your car. So yeah, 25 00:01:18,600 --> 00:01:20,120 Speaker 1: we'll kind of cover a lot of that stuff on 26 00:01:20,160 --> 00:01:22,440 Speaker 1: today's episode. That's right. Well, before we get to all that, 27 00:01:22,480 --> 00:01:24,920 Speaker 1: I wanted to share a quick little story my car 28 00:01:24,959 --> 00:01:27,800 Speaker 1: insurance company. I noticed that they had this application that 29 00:01:27,840 --> 00:01:30,840 Speaker 1: you could download. They started offering one of those apps 30 00:01:30,920 --> 00:01:33,560 Speaker 1: that you can download and it's super easy and it 31 00:01:33,600 --> 00:01:35,959 Speaker 1: tracks you're driving. A lot of insurance companies are offering 32 00:01:36,000 --> 00:01:38,440 Speaker 1: these now, and what's great about this is that you 33 00:01:38,480 --> 00:01:42,160 Speaker 1: have the opportunity to decrease your premiums every single month. 34 00:01:42,200 --> 00:01:44,360 Speaker 1: And I thought, you know what, I like saving money. 35 00:01:44,560 --> 00:01:46,600 Speaker 1: I'm going to give this a shot. And you with 36 00:01:46,680 --> 00:01:49,400 Speaker 1: how little you guys drive, you only have one car 37 00:01:49,840 --> 00:01:51,520 Speaker 1: and it typically sits in the driveway a lot of 38 00:01:51,520 --> 00:01:54,000 Speaker 1: the time. Yes, yeah, the large portion of the day 39 00:01:54,080 --> 00:01:56,240 Speaker 1: it sits there. That's that's why I've considered doing the 40 00:01:56,520 --> 00:01:59,000 Speaker 1: what's that app? Touro where you like rent you know, 41 00:01:59,040 --> 00:02:00,520 Speaker 1: where you can rent out your view goal. It makes 42 00:02:00,520 --> 00:02:02,040 Speaker 1: some money side money with it. Yeah, I mean, it's 43 00:02:02,040 --> 00:02:04,320 Speaker 1: just it's an asset. It's it's money literally sitting in 44 00:02:04,320 --> 00:02:07,360 Speaker 1: our driveway that is doing us nothing except for be 45 00:02:07,440 --> 00:02:09,440 Speaker 1: there for when we need it. And I guess it's 46 00:02:09,440 --> 00:02:12,640 Speaker 1: worth it because for that reason, otherwise it would be 47 00:02:12,639 --> 00:02:15,560 Speaker 1: earning its keep. On the side, I think, yeah, insurers 48 00:02:15,560 --> 00:02:18,680 Speaker 1: are going more towards tracking your driving and giving you 49 00:02:18,720 --> 00:02:21,160 Speaker 1: discounts if you drive a fewer miles, which I love 50 00:02:21,200 --> 00:02:24,680 Speaker 1: because really, car insurance should be in an ideal world 51 00:02:24,880 --> 00:02:26,960 Speaker 1: based on how much you drive, because someone who drives 52 00:02:27,000 --> 00:02:30,240 Speaker 1: more is you know, a bigger risk to the insurance company. Absolutely, 53 00:02:30,280 --> 00:02:31,840 Speaker 1: So how's that going for you? Then? Yeah, well, so 54 00:02:31,880 --> 00:02:34,320 Speaker 1: we did it. It was a three month period, right, 55 00:02:34,320 --> 00:02:36,640 Speaker 1: It was about ninety days that they tracked my driving 56 00:02:36,760 --> 00:02:39,480 Speaker 1: keeps driving and specifically, I'll tell you what they were 57 00:02:39,480 --> 00:02:41,560 Speaker 1: looking for, at least you know this app. It was 58 00:02:41,600 --> 00:02:46,639 Speaker 1: specifically looking for how hard we break, how quickly we accelerates, 59 00:02:46,960 --> 00:02:49,720 Speaker 1: as well as the percentage of driving that we were 60 00:02:49,720 --> 00:02:53,040 Speaker 1: doing at nights so nighttime driving, and it took all 61 00:02:53,040 --> 00:02:54,560 Speaker 1: three of those things into account. And at the end 62 00:02:54,560 --> 00:02:57,080 Speaker 1: of that three month period where they were analyzing our driving, 63 00:02:57,160 --> 00:03:03,079 Speaker 1: we were gifted a discount of a bucks which isn't huge, 64 00:03:03,520 --> 00:03:06,239 Speaker 1: but it is way better than nothing, right, and so 65 00:03:06,680 --> 00:03:08,640 Speaker 1: it's also worth noting though. Here's the thing, and this 66 00:03:08,680 --> 00:03:10,640 Speaker 1: is why I wanted to share it with folks. There 67 00:03:10,639 --> 00:03:12,640 Speaker 1: are a lot of different apps out there, but what's 68 00:03:12,680 --> 00:03:14,680 Speaker 1: important to look at is whether or not you can 69 00:03:14,720 --> 00:03:18,280 Speaker 1: potentially see your premiums increase. And that is the case 70 00:03:18,320 --> 00:03:20,360 Speaker 1: now or some companies. If you read the fine print, 71 00:03:21,000 --> 00:03:23,079 Speaker 1: like there's a you know, eight edits in drivers will 72 00:03:23,120 --> 00:03:26,480 Speaker 1: see their premiums decrease, but to edits in that drive 73 00:03:26,600 --> 00:03:30,040 Speaker 1: freaking crazy, they're going to see the premiums go up. 74 00:03:30,360 --> 00:03:32,480 Speaker 1: And so if you know that, that's you. You know, 75 00:03:32,520 --> 00:03:34,680 Speaker 1: if you're a heartbreaker or you just like to get 76 00:03:34,760 --> 00:03:37,760 Speaker 1: wherever you're going as quickly as possible, you might want 77 00:03:37,760 --> 00:03:40,720 Speaker 1: to stay away from down letting that app uper premiums 78 00:03:40,720 --> 00:03:42,760 Speaker 1: where they are because you might be getting a deal. 79 00:03:42,880 --> 00:03:44,680 Speaker 1: As it is for folks to drive like your grandma, 80 00:03:44,760 --> 00:03:48,080 Speaker 1: drive cautiously and also rarely drive like we do or 81 00:03:48,120 --> 00:03:49,920 Speaker 1: don't drive very much at all. I think it's a 82 00:03:49,920 --> 00:03:51,360 Speaker 1: it's a great way to go. I think, you know, 83 00:03:51,440 --> 00:03:53,480 Speaker 1: we did the same thing with our insurance company. But 84 00:03:53,520 --> 00:03:55,440 Speaker 1: this was probably a couple of years ago. And I 85 00:03:55,480 --> 00:03:59,880 Speaker 1: think we saved roughly something like that off our overall premiums, 86 00:03:59,880 --> 00:04:01,920 Speaker 1: so pretty huge. Yeah. Uh. And it's one of those 87 00:04:01,960 --> 00:04:04,800 Speaker 1: discounts that keeps going in perpetuity. Yeah, I like those 88 00:04:05,120 --> 00:04:08,360 Speaker 1: forever discounts. And of course, this is in addition to 89 00:04:08,400 --> 00:04:11,280 Speaker 1: the savings that a lot of car insures are also 90 00:04:11,320 --> 00:04:14,160 Speaker 1: providing their customers. Due to the fewer claims that so 91 00:04:14,240 --> 00:04:16,679 Speaker 1: many of these companies have experienced over the past several 92 00:04:16,720 --> 00:04:19,400 Speaker 1: months due to sheltering in place, a lot of folks 93 00:04:19,400 --> 00:04:22,920 Speaker 1: are receiving checks or credits directly from their auto ensure, 94 00:04:23,320 --> 00:04:26,640 Speaker 1: completely unprompted. But if you haven't, definitely look into that 95 00:04:26,720 --> 00:04:30,000 Speaker 1: as well. If you're interested in saving some money. And 96 00:04:30,279 --> 00:04:32,120 Speaker 1: we Matt, there's an article I wrote a long time 97 00:04:32,120 --> 00:04:34,200 Speaker 1: ago on the site, but it's still incredibly relevant about 98 00:04:34,240 --> 00:04:36,840 Speaker 1: how to save money on insurance. So for folks that 99 00:04:37,000 --> 00:04:39,720 Speaker 1: want to read more about that, we've got tips like this, 100 00:04:39,760 --> 00:04:42,640 Speaker 1: but even other ones that little known that might take 101 00:04:42,680 --> 00:04:44,320 Speaker 1: you an hour, that are gonna that are gonna save 102 00:04:44,320 --> 00:04:47,720 Speaker 1: you hundreds of dollars every year in perpetuity. So yeah, 103 00:04:47,800 --> 00:04:50,000 Speaker 1: we'll link to that article in our show notes. Yep, 104 00:04:50,160 --> 00:04:52,960 Speaker 1: like we often do, all right, well, let's get onto 105 00:04:53,120 --> 00:04:54,960 Speaker 1: the beer that we're having on the show today. We're 106 00:04:55,040 --> 00:04:59,240 Speaker 1: drinking Zombie Dust by Three Floyd's Brewing. They're out of Indiana. 107 00:04:59,279 --> 00:05:01,960 Speaker 1: Big thanks to listener Doug for sending this one our way. 108 00:05:02,120 --> 00:05:03,920 Speaker 1: Three Floyds has been around a long time, been making 109 00:05:03,920 --> 00:05:06,160 Speaker 1: good beers for quite some time now. Plus this is 110 00:05:06,200 --> 00:05:07,560 Speaker 1: one of those fun ones that have to that it 111 00:05:07,600 --> 00:05:09,240 Speaker 1: kind of has this cult following. Like you hear people 112 00:05:09,240 --> 00:05:11,400 Speaker 1: talk about Zombie Dust and you're like, oh, yeah, zombie does. 113 00:05:12,440 --> 00:05:14,240 Speaker 1: I think when you have a standout name like that, 114 00:05:14,320 --> 00:05:16,120 Speaker 1: it's easy to grab a lot of people's attention and 115 00:05:16,120 --> 00:05:18,320 Speaker 1: it kind of stands out in the crowded beer markets. 116 00:05:18,560 --> 00:05:20,719 Speaker 1: But yeah, excited to share this one with you, buddy, 117 00:05:20,800 --> 00:05:22,960 Speaker 1: for sure. Man looking forward to it. We'll give our 118 00:05:22,960 --> 00:05:24,560 Speaker 1: thoughts at the end of the episode. But Matt onto 119 00:05:24,560 --> 00:05:26,719 Speaker 1: the subject at hand. We're asking the question should you 120 00:05:26,760 --> 00:05:29,000 Speaker 1: repair or a place that old car? And for a 121 00:05:29,040 --> 00:05:31,680 Speaker 1: lot of folks right now there who are self quarantining 122 00:05:31,720 --> 00:05:35,280 Speaker 1: because of the coronavirus, still it continues to to have 123 00:05:35,320 --> 00:05:38,080 Speaker 1: a major impact on our society and on us as individuals. 124 00:05:38,360 --> 00:05:40,400 Speaker 1: There's much less traffic out there on the roads. People 125 00:05:40,400 --> 00:05:42,000 Speaker 1: are leaving their cars in their driveway kind of like 126 00:05:42,080 --> 00:05:43,960 Speaker 1: you do a lot of the time. Welcome to my world. 127 00:05:45,080 --> 00:05:48,200 Speaker 1: Uh And and so hopefully your car is not experiencing 128 00:05:48,240 --> 00:05:50,040 Speaker 1: many issues right now, but it's important for us to 129 00:05:50,040 --> 00:05:52,080 Speaker 1: discuss on this episode if you do have an older 130 00:05:52,120 --> 00:05:55,040 Speaker 1: car that's having more and more issues, well, maybe your 131 00:05:55,080 --> 00:05:57,760 Speaker 1: mechanic is really nice person, but you still don't want 132 00:05:57,760 --> 00:06:00,280 Speaker 1: to become best ease with him or her. And there 133 00:06:00,360 --> 00:06:02,400 Speaker 1: is of course a point where repairing an older vehicle 134 00:06:02,480 --> 00:06:05,280 Speaker 1: no longer makes sense and you'll be throwing good money 135 00:06:05,279 --> 00:06:07,920 Speaker 1: after bad. But many folks make the decision to abandon 136 00:06:08,040 --> 00:06:10,840 Speaker 1: their still solid vehicle based on the desire to drive 137 00:06:10,880 --> 00:06:14,280 Speaker 1: something newer instead of an actual need to upgrade their 138 00:06:14,360 --> 00:06:17,880 Speaker 1: vehicle and and get something that's more reliable. And also 139 00:06:17,960 --> 00:06:20,039 Speaker 1: it's important to note that the cost of upgrading your 140 00:06:20,080 --> 00:06:22,520 Speaker 1: car could blow a hole in your budget, since cars 141 00:06:22,560 --> 00:06:26,720 Speaker 1: are typically the second biggest line item in our budget. Yeah, man, 142 00:06:26,720 --> 00:06:29,560 Speaker 1: that's right, transportations typically second on the list. I actually 143 00:06:29,600 --> 00:06:32,479 Speaker 1: should know if it's second on my personal list, because 144 00:06:32,520 --> 00:06:35,320 Speaker 1: we do drive so infrequently. I bet, like health insurance 145 00:06:35,400 --> 00:06:37,159 Speaker 1: or you know, our health coverage, I'm guessing that probably 146 00:06:37,200 --> 00:06:39,400 Speaker 1: has the second place spot. But I should know that though, 147 00:06:39,440 --> 00:06:41,520 Speaker 1: right I've I've got all the numbers there. I should 148 00:06:41,600 --> 00:06:43,520 Speaker 1: dive into those numbers and share that with you, gay man. 149 00:06:43,600 --> 00:06:45,720 Speaker 1: While you gotta do is like if you care run 150 00:06:45,720 --> 00:06:47,800 Speaker 1: a quick program. I'm sure on your excel and you 151 00:06:47,800 --> 00:06:49,479 Speaker 1: can figure it out. Well, I mean, we we total 152 00:06:49,560 --> 00:06:51,680 Speaker 1: our expenses every year, but I've never actually ranked them. 153 00:06:51,720 --> 00:06:53,200 Speaker 1: And so I don't know why I've never done that 154 00:06:53,240 --> 00:06:55,520 Speaker 1: because I like numbers. I don't know I've set you 155 00:06:55,560 --> 00:06:59,880 Speaker 1: off exactly, but no, I totally agree, man. And as 156 00:07:00,040 --> 00:07:02,800 Speaker 1: the repair costs of owning an old car like they 157 00:07:02,839 --> 00:07:05,080 Speaker 1: will start to increase, and so the question you know, 158 00:07:05,080 --> 00:07:07,280 Speaker 1: we're often asking ourselves is should we keep that car 159 00:07:07,400 --> 00:07:09,440 Speaker 1: or should we ditch it? And so today we are 160 00:07:09,520 --> 00:07:12,440 Speaker 1: going to discuss when you should repair a used car 161 00:07:12,560 --> 00:07:14,400 Speaker 1: and when you should consider getting rid of it and 162 00:07:14,440 --> 00:07:17,120 Speaker 1: opting for something newer. And we'll also touch on how 163 00:07:17,160 --> 00:07:19,480 Speaker 1: to sell your old car and where to go if 164 00:07:19,520 --> 00:07:22,760 Speaker 1: you decide to upgrade. So before we get into kind 165 00:07:22,760 --> 00:07:26,280 Speaker 1: of the finite points, well, a lot of this episode 166 00:07:26,320 --> 00:07:28,480 Speaker 1: is going to dive into those nerdier aspects of things 167 00:07:28,480 --> 00:07:31,240 Speaker 1: that you need to consider when you're you're asking yourself 168 00:07:31,240 --> 00:07:35,320 Speaker 1: this question things like math repair costs exactly. But before 169 00:07:35,360 --> 00:07:37,080 Speaker 1: we dive into the numbers, it's important to address that 170 00:07:37,120 --> 00:07:39,400 Speaker 1: there are a few reasons why it might make sense 171 00:07:39,440 --> 00:07:42,240 Speaker 1: to replace and not repair that old car. Basically, there 172 00:07:42,240 --> 00:07:45,040 Speaker 1: are different personal considerations to keep in mind, and all 173 00:07:45,120 --> 00:07:48,080 Speaker 1: those depend on who you are as an individual and 174 00:07:48,240 --> 00:07:50,960 Speaker 1: what your car means to you. So partly depends on 175 00:07:51,040 --> 00:07:54,400 Speaker 1: what you value. Right. For instance, you might really appreciate 176 00:07:54,520 --> 00:07:57,120 Speaker 1: being the first owner of a vehicle and completely knowing 177 00:07:57,160 --> 00:07:59,800 Speaker 1: the history of a car starting with the first hundred 178 00:07:59,800 --> 00:08:01,920 Speaker 1: mile that you put on it. Right, These are cars 179 00:08:01,960 --> 00:08:03,480 Speaker 1: that are treated like a member of your family. You 180 00:08:03,560 --> 00:08:05,760 Speaker 1: might even have a name for that car, like Scottie 181 00:08:05,880 --> 00:08:08,600 Speaker 1: or Steve, Like j L's got Steve in his garage. 182 00:08:08,640 --> 00:08:10,400 Speaker 1: Yea our friends, our friend j L who came on 183 00:08:10,440 --> 00:08:13,600 Speaker 1: recently and Steve Steve two point out, Or speaking of garages, 184 00:08:13,640 --> 00:08:15,640 Speaker 1: like you might even have a separate room of your 185 00:08:15,680 --> 00:08:19,280 Speaker 1: house dedicated to housing this car, you know, like, if 186 00:08:19,280 --> 00:08:22,080 Speaker 1: you think about garages, it's a house for your car 187 00:08:22,400 --> 00:08:24,160 Speaker 1: that you park in like it's it's it's kind of 188 00:08:24,160 --> 00:08:26,000 Speaker 1: crazy if you think about it, Like how much of 189 00:08:26,000 --> 00:08:28,080 Speaker 1: the percentage of our homes is dedicated to the care 190 00:08:28,120 --> 00:08:30,640 Speaker 1: of our vehicles. And maybe I'm saying all this because 191 00:08:30,760 --> 00:08:34,640 Speaker 1: I don't have a garage, jealous garage envy, but like, 192 00:08:34,920 --> 00:08:36,520 Speaker 1: until I have a garage, I can make fun of it. 193 00:08:36,559 --> 00:08:39,040 Speaker 1: But some people really love their car that much and 194 00:08:39,080 --> 00:08:41,560 Speaker 1: so and so for them having a garage, having a 195 00:08:41,600 --> 00:08:43,760 Speaker 1: place to work on it, having a place to keep 196 00:08:43,760 --> 00:08:46,120 Speaker 1: it clean, it makes a lot of sense. And so 197 00:08:46,200 --> 00:08:48,280 Speaker 1: if you are one of those people who really values 198 00:08:48,480 --> 00:08:51,680 Speaker 1: having a new car, Matt's got a fairly new used car. 199 00:08:51,720 --> 00:08:54,000 Speaker 1: I've got older used cars. But the great thing about 200 00:08:54,000 --> 00:08:56,760 Speaker 1: how we view money is that it's not necessarily the 201 00:08:56,800 --> 00:08:58,240 Speaker 1: worst thing in the world for you to buy a 202 00:08:58,280 --> 00:09:00,559 Speaker 1: new car. If it's something that you value, it's high, 203 00:09:00,640 --> 00:09:02,680 Speaker 1: high up on your priority list, well then we would 204 00:09:02,679 --> 00:09:05,320 Speaker 1: say let your money follow your values. Well, Joel real quickly, 205 00:09:05,440 --> 00:09:06,840 Speaker 1: you know, I think it's worth mentioning. This is why 206 00:09:06,840 --> 00:09:09,920 Speaker 1: we have a nice craft beer on every episode. We 207 00:09:10,040 --> 00:09:12,400 Speaker 1: quickly cover this on our interviews, right like we talked 208 00:09:12,440 --> 00:09:15,920 Speaker 1: about how beer for you and me, uh, craft beer specifically, 209 00:09:15,920 --> 00:09:17,719 Speaker 1: it's a little bit of a splurge. Sometimes we'll get 210 00:09:17,720 --> 00:09:19,800 Speaker 1: some really nice beer. Is that we really enjoyed because 211 00:09:19,800 --> 00:09:22,160 Speaker 1: it's something that we value. And so whereas a lot 212 00:09:22,160 --> 00:09:24,160 Speaker 1: of people are thinking, why would you drink beer like 213 00:09:24,360 --> 00:09:27,200 Speaker 1: water is for free or next to free, you know, 214 00:09:27,240 --> 00:09:28,920 Speaker 1: you get it out of your faucet, like that is 215 00:09:29,880 --> 00:09:33,000 Speaker 1: something that's better for you. This is hot water though. Basically, 216 00:09:33,000 --> 00:09:35,440 Speaker 1: come on, that's what I would say to those people. 217 00:09:35,440 --> 00:09:38,400 Speaker 1: It meets the Bavarian standard of being considered a beer 218 00:09:38,400 --> 00:09:41,120 Speaker 1: in Germany. What is it? There's like a high standard 219 00:09:41,120 --> 00:09:43,920 Speaker 1: to be considered. Uh, it has to include four ingredients 220 00:09:43,960 --> 00:09:48,920 Speaker 1: and maybe only four water, malts and hops, yeast. I 221 00:09:48,920 --> 00:09:50,720 Speaker 1: don't know, something I don't know. Yeah, yeah, we're probably 222 00:09:50,720 --> 00:09:53,839 Speaker 1: gonna get lampoon for for that right there. But but again, 223 00:09:53,920 --> 00:09:55,640 Speaker 1: for us, this is a parallel. This is why we 224 00:09:55,640 --> 00:09:58,400 Speaker 1: spend our money on this because we value it. And 225 00:09:58,520 --> 00:10:00,000 Speaker 1: you know, when it comes to vehicles, even though I've 226 00:10:00,080 --> 00:10:02,439 Speaker 1: never purchased a brand new car or even near new, 227 00:10:02,559 --> 00:10:04,560 Speaker 1: right like, I totally get this line of thinking of 228 00:10:04,640 --> 00:10:07,040 Speaker 1: as far as putting your money towards something you value, 229 00:10:07,120 --> 00:10:09,840 Speaker 1: especially to if you're looking at getting something newer, like 230 00:10:09,880 --> 00:10:13,000 Speaker 1: I understand wanting to have that predictability in the peace 231 00:10:13,040 --> 00:10:15,720 Speaker 1: of mind that comes with being the first owner and 232 00:10:15,760 --> 00:10:17,800 Speaker 1: the only owner of a vehicle, right, Like, you know 233 00:10:18,160 --> 00:10:20,200 Speaker 1: the ins and outs, you know the maintenance history of 234 00:10:20,240 --> 00:10:22,320 Speaker 1: that vehicle. It's something that you can count on. And 235 00:10:22,360 --> 00:10:24,600 Speaker 1: so while I know that it can be just a 236 00:10:24,640 --> 00:10:26,600 Speaker 1: strong sticking point for a lot of people to where 237 00:10:26,640 --> 00:10:28,320 Speaker 1: it's just across the board. You should never have a 238 00:10:28,320 --> 00:10:31,400 Speaker 1: new vehicle or even a newer vehicle. Uh, that's something 239 00:10:31,400 --> 00:10:33,440 Speaker 1: that you and I would push back against. Your money 240 00:10:33,440 --> 00:10:35,640 Speaker 1: should follow your values. And if you value you know, 241 00:10:35,800 --> 00:10:38,360 Speaker 1: having a newer vehicle and it works into your budget 242 00:10:38,360 --> 00:10:40,640 Speaker 1: really well, then that's not something we would follow people for. 243 00:10:40,920 --> 00:10:43,319 Speaker 1: And at the same time, I think car ownership can 244 00:10:43,320 --> 00:10:46,200 Speaker 1: have like this emotional component. That's another consideration that people 245 00:10:46,240 --> 00:10:48,880 Speaker 1: have to make is I know some people have this 246 00:10:48,920 --> 00:10:52,200 Speaker 1: strong attachment to their car, or this strong detachment they 247 00:10:52,200 --> 00:10:54,320 Speaker 1: almost hate their car. And I think sometimes we can 248 00:10:54,320 --> 00:10:57,240 Speaker 1: make a decision because of past history and we have 249 00:10:57,559 --> 00:10:59,760 Speaker 1: a negative emotional tied to the vehicle that we're driving, 250 00:11:00,080 --> 00:11:01,120 Speaker 1: Like I just want to get rid of it. I 251 00:11:01,160 --> 00:11:03,120 Speaker 1: don't care about the finances. I don't care about the 252 00:11:03,120 --> 00:11:04,880 Speaker 1: fact that I'm gonna lose money or that I can't 253 00:11:04,920 --> 00:11:07,199 Speaker 1: really afford it. But this car I'm just so tired 254 00:11:07,240 --> 00:11:08,800 Speaker 1: of it. I'm fed up with it, or they or 255 00:11:08,840 --> 00:11:10,800 Speaker 1: they say I love it, like this is something I'm 256 00:11:10,800 --> 00:11:12,600 Speaker 1: wanting to spend a lot of money on some guy. 257 00:11:12,600 --> 00:11:15,120 Speaker 1: I'm I'm gonna put that four thousand dollar transmission into 258 00:11:15,160 --> 00:11:17,199 Speaker 1: it just because I love this car, even though it's 259 00:11:17,200 --> 00:11:18,640 Speaker 1: not worth it. Right, And so I think we do 260 00:11:18,720 --> 00:11:20,360 Speaker 1: have to step back, and it can't just be an 261 00:11:20,360 --> 00:11:22,960 Speaker 1: emotional decision either way, whether it's a good one or 262 00:11:22,960 --> 00:11:24,719 Speaker 1: a bad one. Yeah. Man, Well, so you know, we're 263 00:11:24,720 --> 00:11:28,040 Speaker 1: talking about these different personal considerations of repairing a vehicle 264 00:11:28,200 --> 00:11:30,080 Speaker 1: or getting a new one. A lot of it depends 265 00:11:30,080 --> 00:11:31,720 Speaker 1: to on if there is a change in what you 266 00:11:31,800 --> 00:11:33,840 Speaker 1: need out of the vehicle, right, Like this might be 267 00:11:33,840 --> 00:11:35,959 Speaker 1: an obvious reason, but what we need out of the 268 00:11:36,040 --> 00:11:38,880 Speaker 1: vehicle it changes over time. It's safe to say my 269 00:11:38,960 --> 00:11:41,560 Speaker 1: old CB five fifty motorcycle, you know, back from my 270 00:11:41,600 --> 00:11:43,679 Speaker 1: bachelor days, that wouldn't really cut it these days with 271 00:11:43,720 --> 00:11:46,480 Speaker 1: the kiddos. Although I have seen little kids with helmets 272 00:11:46,480 --> 00:11:49,080 Speaker 1: on the back of motorcycles as passengers before. Dude, if 273 00:11:49,080 --> 00:11:50,199 Speaker 1: you had all four kids on the back of a 274 00:11:50,240 --> 00:11:52,800 Speaker 1: motorcycle with helmets on, you guys are be in a 275 00:11:52,840 --> 00:11:55,719 Speaker 1: circus or something. Yeah, it really would be like the circus, Like, 276 00:11:55,720 --> 00:11:58,440 Speaker 1: I'm not gonna or you get arrested. Well, that's the thing. 277 00:11:58,440 --> 00:12:00,920 Speaker 1: It's not illegal, Isn't that crazy. There's no age limits 278 00:12:00,920 --> 00:12:02,840 Speaker 1: to how old a passenger on a motorcycle can be. 279 00:12:03,120 --> 00:12:05,080 Speaker 1: So like, I'm not gonna judge anyone, but there's no 280 00:12:05,120 --> 00:12:08,520 Speaker 1: way that I'm going to do that myself. And so 281 00:12:08,559 --> 00:12:11,040 Speaker 1: for us man moving from a small old sedan to 282 00:12:11,120 --> 00:12:13,440 Speaker 1: a vida up station wagon like that made sense for us. 283 00:12:13,640 --> 00:12:15,199 Speaker 1: That was back when we were doing tons of garden 284 00:12:15,559 --> 00:12:18,160 Speaker 1: and yard projects. And by the way, we're driving around 285 00:12:18,160 --> 00:12:20,600 Speaker 1: a baby in a full size Great Dane around the holidays, 286 00:12:20,640 --> 00:12:22,319 Speaker 1: and so like, for us, that was a smart move. 287 00:12:22,360 --> 00:12:24,959 Speaker 1: We couldn't continue to do those things and include those 288 00:12:25,000 --> 00:12:28,720 Speaker 1: aspects into our personal life with that really really old, 289 00:12:28,840 --> 00:12:31,439 Speaker 1: tiny little sedan Great Dane. Even harder to take around 290 00:12:31,440 --> 00:12:36,280 Speaker 1: on a motorcycle. Uh, you gotta do the sidecar, Yeah, exactly. 291 00:12:36,320 --> 00:12:38,200 Speaker 1: You've seen those dogs in the sidecars with the goggles 292 00:12:38,200 --> 00:12:41,959 Speaker 1: in the scarf. Adorable, pretty freaking hilarious, so cute. And 293 00:12:42,240 --> 00:12:45,320 Speaker 1: so I think another personal consideration that people need to take, Matt, 294 00:12:45,480 --> 00:12:47,080 Speaker 1: and this is what we're gonna spend most of the 295 00:12:47,080 --> 00:12:49,440 Speaker 1: rest of the episode talking about is what is your 296 00:12:49,440 --> 00:12:52,320 Speaker 1: specific financial situation. If you've been doing smart things with 297 00:12:52,320 --> 00:12:54,760 Speaker 1: your money your entire life, you're a millionaire, right, go 298 00:12:54,800 --> 00:12:57,240 Speaker 1: ahead and replace that old car for something newer. It's 299 00:12:57,280 --> 00:12:58,959 Speaker 1: likely just to drop in the bucket for you compared 300 00:12:58,960 --> 00:13:00,360 Speaker 1: to your overall net worth. And and that was one 301 00:13:00,360 --> 00:13:02,800 Speaker 1: of the things that Jail mentioned too, just recently, just 302 00:13:02,840 --> 00:13:06,360 Speaker 1: a couple of weeks ago. Was he felt comfortable buying 303 00:13:06,360 --> 00:13:09,040 Speaker 1: a brand new superru Forest or not going overboard. I mean, 304 00:13:09,080 --> 00:13:11,240 Speaker 1: he didn't buy a Bentley or anything like that, but 305 00:13:11,280 --> 00:13:15,520 Speaker 1: he bought a nice new car. And he basically his 306 00:13:15,600 --> 00:13:18,960 Speaker 1: defense for it, Matt was, I'm financially independent, and this 307 00:13:19,120 --> 00:13:21,520 Speaker 1: moves the needle. Not at all on my overall network, 308 00:13:21,640 --> 00:13:23,400 Speaker 1: this doesn't have an impact, but it did with a 309 00:13:23,440 --> 00:13:26,000 Speaker 1: needle when it comes to his enjoyment of life exactly. 310 00:13:26,040 --> 00:13:27,640 Speaker 1: Like they drive around the country all the time when 311 00:13:27,640 --> 00:13:29,240 Speaker 1: they're back in the States, like that kind of thing. 312 00:13:29,320 --> 00:13:31,480 Speaker 1: And he wanted a vehicle with foil drive because he 313 00:13:31,480 --> 00:13:34,120 Speaker 1: had this like steep, snowy driveway. Just all these things. 314 00:13:34,160 --> 00:13:36,440 Speaker 1: It made so much sense for him to actually get that. Sure, 315 00:13:36,559 --> 00:13:38,320 Speaker 1: But like you said it had very little impact on 316 00:13:38,320 --> 00:13:41,559 Speaker 1: his actual financial situation. Yeah, And for our listeners out there, well, 317 00:13:41,600 --> 00:13:44,120 Speaker 1: you might not even value cars all that much, but 318 00:13:44,160 --> 00:13:46,240 Speaker 1: if you're doing really well financially, then you might value 319 00:13:46,280 --> 00:13:48,560 Speaker 1: the convenience of not having to deal with the repairs 320 00:13:48,559 --> 00:13:51,120 Speaker 1: and a maintenance schedule of an older vehicle, and that's 321 00:13:51,120 --> 00:13:53,480 Speaker 1: a real benefit to you, right, And so I think 322 00:13:53,640 --> 00:13:56,440 Speaker 1: our personal financial situations have to be taken into account. 323 00:13:56,760 --> 00:13:59,400 Speaker 1: If like we've talked about matt cars being one of 324 00:13:59,440 --> 00:14:02,840 Speaker 1: the most expensive line items in our budget. Most people 325 00:14:03,200 --> 00:14:05,840 Speaker 1: don't have the free willing cash, aren't financially independent, aren't 326 00:14:05,840 --> 00:14:07,320 Speaker 1: in the place where jail is, and so we have 327 00:14:07,360 --> 00:14:09,520 Speaker 1: to make a decision that makes more sense for where 328 00:14:09,520 --> 00:14:11,520 Speaker 1: we're at financially. And so yeah, I think there's a 329 00:14:11,520 --> 00:14:13,560 Speaker 1: lot of information that we have to kind of get 330 00:14:13,559 --> 00:14:15,640 Speaker 1: out there so people can make an informed decision when 331 00:14:15,640 --> 00:14:17,720 Speaker 1: it comes to repairing or replacing. That's right, man, So 332 00:14:17,840 --> 00:14:19,680 Speaker 1: real quick before the break, I wanted to ask you 333 00:14:19,880 --> 00:14:23,400 Speaker 1: what was your or what is your favorite car of 334 00:14:23,440 --> 00:14:26,200 Speaker 1: all time that you've owned. So it's probably a tie 335 00:14:26,240 --> 00:14:29,200 Speaker 1: between the Nissan Leaf that I'm driving now because it's 336 00:14:29,240 --> 00:14:31,720 Speaker 1: fun and zippy. Yeah, I got the little e V. Yeah, 337 00:14:31,760 --> 00:14:34,640 Speaker 1: but in my first car nine nine Toyota Camry because 338 00:14:34,640 --> 00:14:36,520 Speaker 1: it was a manual transmission. And I gotta say, I 339 00:14:36,640 --> 00:14:39,800 Speaker 1: missed driving a stick shift so bad. So what about 340 00:14:39,800 --> 00:14:41,360 Speaker 1: it do you miss? Just? I mean, it's just fun 341 00:14:41,400 --> 00:14:43,400 Speaker 1: to drive a stick Yeah, it's just the sense of 342 00:14:43,520 --> 00:14:45,640 Speaker 1: act of driving experience, exactly, the sense of kind of 343 00:14:45,640 --> 00:14:47,880 Speaker 1: control you have while you're on the road. I miss 344 00:14:47,920 --> 00:14:49,800 Speaker 1: my care, I mean, and I really do think if 345 00:14:49,840 --> 00:14:52,120 Speaker 1: I hadn't have been involved in like a minor accident 346 00:14:52,120 --> 00:14:54,080 Speaker 1: which basically total the car, I think I'd be driving 347 00:14:54,080 --> 00:14:56,160 Speaker 1: that car to this day. It was such a good car. Yeah, 348 00:14:56,400 --> 00:14:58,720 Speaker 1: you know, I never drove a stick as a primary vehicle, 349 00:14:58,840 --> 00:15:01,640 Speaker 1: but I learned on all my friends sticks, which means 350 00:15:01,680 --> 00:15:06,840 Speaker 1: that I was average at best drive stick shift cars. 351 00:15:06,880 --> 00:15:09,480 Speaker 1: And they can still but well they're so rare though 352 00:15:09,480 --> 00:15:12,160 Speaker 1: they're still they're rare. So your favorite car, okay, Well, 353 00:15:12,160 --> 00:15:14,640 Speaker 1: the most fun car I've ever owned was in college. 354 00:15:14,800 --> 00:15:17,920 Speaker 1: I was driving a nineteen nine, not in eighty nine. 355 00:15:17,920 --> 00:15:19,240 Speaker 1: I was slightly knewer than what you had going on, 356 00:15:19,320 --> 00:15:23,240 Speaker 1: but I had a white Land Rover Range Rover Man. 357 00:15:23,640 --> 00:15:26,640 Speaker 1: This car was the most fun vehicle of all time. 358 00:15:27,000 --> 00:15:28,600 Speaker 1: Just first of all, it was so unique, right, like 359 00:15:28,600 --> 00:15:30,880 Speaker 1: you never saw these on the road. It wasn't very 360 00:15:30,880 --> 00:15:33,520 Speaker 1: practical though at all. One time I was driving out 361 00:15:33,560 --> 00:15:35,400 Speaker 1: on the Interstate and it kind of got like the 362 00:15:35,440 --> 00:15:37,320 Speaker 1: speed wobble thing going on, and I thought, we're just 363 00:15:37,320 --> 00:15:40,520 Speaker 1: gonna flip for like doing nothing like like I didn't 364 00:15:40,520 --> 00:15:43,520 Speaker 1: really swerve or anything, but it just started getting really fishy. 365 00:15:44,000 --> 00:15:45,400 Speaker 1: That might be the time you know that you need 366 00:15:45,440 --> 00:15:47,320 Speaker 1: to replace that whole car, all right, Matt, Well, all right, 367 00:15:47,320 --> 00:15:50,560 Speaker 1: we gotta talk more about the specifics of repairing. What 368 00:15:50,640 --> 00:15:52,840 Speaker 1: are the average repair costs, and how do you know 369 00:15:53,200 --> 00:15:56,160 Speaker 1: where your car fits in and whether your specific car 370 00:15:56,320 --> 00:15:58,360 Speaker 1: needs to be repaired to replaced, And we'll get to 371 00:15:58,440 --> 00:16:10,040 Speaker 1: some thoughts on that right after the break. All right, man, 372 00:16:10,040 --> 00:16:11,760 Speaker 1: we're back from the break and we're talking about whether 373 00:16:11,800 --> 00:16:15,840 Speaker 1: we should repair or replace that old car. And so 374 00:16:15,920 --> 00:16:17,680 Speaker 1: before we dive into the repairs, man, I think let's 375 00:16:17,720 --> 00:16:20,280 Speaker 1: let's touch for a second about financing. Right, if you 376 00:16:20,320 --> 00:16:22,440 Speaker 1: are upside down on a car and you still owe 377 00:16:22,480 --> 00:16:25,760 Speaker 1: money on it, the decision to repair or replace a 378 00:16:25,840 --> 00:16:28,880 Speaker 1: vehicle it becomes a lot more difficult when you still 379 00:16:28,880 --> 00:16:30,520 Speaker 1: owe money on your car, your options are going to 380 00:16:30,600 --> 00:16:32,760 Speaker 1: be more limited, and so the goal here should be 381 00:16:33,240 --> 00:16:35,520 Speaker 1: to get out of debt on your car as soon 382 00:16:35,600 --> 00:16:38,040 Speaker 1: as possible. Once you own it free and clear, then 383 00:16:38,160 --> 00:16:41,400 Speaker 1: you can make an informed, rational decision about upgrading to 384 00:16:41,480 --> 00:16:44,480 Speaker 1: a newer car that might be in better condition. It's 385 00:16:44,520 --> 00:16:46,800 Speaker 1: just a terrible place to be in financially when you 386 00:16:46,840 --> 00:16:48,560 Speaker 1: trade in your old ride and you get into one 387 00:16:48,560 --> 00:16:50,880 Speaker 1: by rolling that old loan into the new one. Uh, 388 00:16:50,920 --> 00:16:53,000 Speaker 1: your interest rate is going to skyrocket, and then you'll 389 00:16:53,000 --> 00:16:55,600 Speaker 1: owe far more on this new loan than that new 390 00:16:55,640 --> 00:16:58,200 Speaker 1: car is even worth. It's just a terrible sort of 391 00:16:58,240 --> 00:17:00,960 Speaker 1: perpetual cycle to find yourself falling into. Yeah, it's like 392 00:17:00,960 --> 00:17:03,680 Speaker 1: a slippery slope. And for folks that don't have a 393 00:17:03,680 --> 00:17:05,520 Speaker 1: paid off vehicle and they're trying to roll that into 394 00:17:05,560 --> 00:17:09,439 Speaker 1: the purchase of the next it is financial armageddon for you. 395 00:17:09,600 --> 00:17:11,719 Speaker 1: For you, if you continue to do that, it balloons 396 00:17:11,720 --> 00:17:14,120 Speaker 1: your payment and if you have issues with that car. 397 00:17:14,200 --> 00:17:18,200 Speaker 1: Then people do this not just once, but sometimes two 398 00:17:18,200 --> 00:17:21,000 Speaker 1: and three times, and and car dealers are more than 399 00:17:21,040 --> 00:17:23,040 Speaker 1: willing to to lend them the money at higher and 400 00:17:23,119 --> 00:17:25,960 Speaker 1: higher interest rates, jacking up that payment. It's just not 401 00:17:26,040 --> 00:17:28,159 Speaker 1: a good situation. It reminds me of like a previous episode. 402 00:17:28,160 --> 00:17:30,159 Speaker 1: We're talking about interest rates, right, and when you have 403 00:17:30,200 --> 00:17:32,240 Speaker 1: interest rates working for you, it's like being on the 404 00:17:32,240 --> 00:17:34,280 Speaker 1: correct escalator and it's just kind of like shooting you 405 00:17:34,359 --> 00:17:36,000 Speaker 1: up to the next level. But if you have interest 406 00:17:36,040 --> 00:17:38,919 Speaker 1: payments working against you, and this is so easy to 407 00:17:38,960 --> 00:17:42,359 Speaker 1: do with car payments, when you are adding to that 408 00:17:42,400 --> 00:17:44,800 Speaker 1: principal amount, well that's like you trying to run up 409 00:17:44,840 --> 00:17:47,879 Speaker 1: the wrong escalator where it's working against you. Yeah, I mean, 410 00:17:47,920 --> 00:17:50,320 Speaker 1: you're you're a salmon trying to swim upstream when you 411 00:17:50,359 --> 00:17:52,600 Speaker 1: have interest that's working against you like that, Yeah, for sure. 412 00:17:52,680 --> 00:17:54,360 Speaker 1: So all right, Matt, let's get nerdy. Let's get into 413 00:17:54,359 --> 00:17:57,719 Speaker 1: the numbers of repairing or replacing. And so oftentimes that 414 00:17:57,760 --> 00:18:00,360 Speaker 1: decision to repair a place comes down to the math, 415 00:18:00,400 --> 00:18:02,439 Speaker 1: and and really in large part it should you know, 416 00:18:02,480 --> 00:18:05,520 Speaker 1: we've covered some of those personal considerations, and I think 417 00:18:05,600 --> 00:18:08,080 Speaker 1: that's really helpful, Like people should take the math into 418 00:18:08,080 --> 00:18:11,240 Speaker 1: consideration and filter it, I think, through their own personal values. 419 00:18:11,280 --> 00:18:14,199 Speaker 1: But the math is crucial here. So that's why we 420 00:18:14,280 --> 00:18:17,720 Speaker 1: recommend matth that people keep track of repairs and associated costs, 421 00:18:17,920 --> 00:18:20,480 Speaker 1: because I think it's easy for people to think that 422 00:18:20,520 --> 00:18:23,000 Speaker 1: their car is a dud, but is that actually accurate? 423 00:18:23,400 --> 00:18:25,280 Speaker 1: You'll want to have some facts to go on. Not 424 00:18:25,359 --> 00:18:27,560 Speaker 1: just like we said earlier, being emotionally done with your 425 00:18:27,640 --> 00:18:30,320 Speaker 1: ride and keeping track of the actual repair costs that 426 00:18:30,359 --> 00:18:32,240 Speaker 1: you incur on that car will help you make an 427 00:18:32,280 --> 00:18:35,080 Speaker 1: informed decision as opposed to just assuming that it's costing 428 00:18:35,119 --> 00:18:36,880 Speaker 1: you an arm in a leg. Yeah, just like with 429 00:18:36,920 --> 00:18:38,679 Speaker 1: all of the different amounts that we budget for and 430 00:18:38,680 --> 00:18:40,840 Speaker 1: track when it comes to our spending, it's easy to 431 00:18:40,840 --> 00:18:43,400 Speaker 1: fool ourselves into thinking that, you know, I spend way 432 00:18:43,480 --> 00:18:45,840 Speaker 1: less than that on going out to or not in 433 00:18:45,920 --> 00:18:48,760 Speaker 1: spend that much on vacation. But when you actually track 434 00:18:48,920 --> 00:18:51,480 Speaker 1: and see how much you are truly spending, you can make, 435 00:18:51,520 --> 00:18:53,440 Speaker 1: like you said, you will, informed decisions based on those 436 00:18:53,440 --> 00:18:55,639 Speaker 1: dollar amounts. I could just see Shakira saying the numbers 437 00:18:55,640 --> 00:18:58,880 Speaker 1: don't lie and shaking her hips or whatever. I'm taking 438 00:18:58,880 --> 00:19:02,280 Speaker 1: to the Super Bowl halftime exactly. Okay, So you know 439 00:19:02,320 --> 00:19:04,280 Speaker 1: how much you're spending on your actual vehicle, and then 440 00:19:04,440 --> 00:19:06,880 Speaker 1: next you'll want to know what the average repair rates 441 00:19:06,920 --> 00:19:10,119 Speaker 1: are going to be for your specific vehicle. Consumer reports 442 00:19:10,160 --> 00:19:13,000 Speaker 1: they have some great data on this, and just like 443 00:19:13,000 --> 00:19:15,880 Speaker 1: we mentioned at the beginning of the episode, generally speaking, 444 00:19:16,240 --> 00:19:18,520 Speaker 1: it turns out that's a five year old vehicle. It 445 00:19:18,560 --> 00:19:21,399 Speaker 1: takes about three fifty dollars worth of expenses every year 446 00:19:21,440 --> 00:19:23,679 Speaker 1: to keep that car running. And it's in yeal vehicles, 447 00:19:23,800 --> 00:19:27,239 Speaker 1: it takes just under six hundred dollars annually in repair costs. Right, 448 00:19:27,560 --> 00:19:30,679 Speaker 1: and so knowing where your specific car where it stacks 449 00:19:30,760 --> 00:19:32,720 Speaker 1: up like that s helpful information, and you know, it 450 00:19:32,920 --> 00:19:35,560 Speaker 1: can also allow you to know that if the repairs 451 00:19:35,560 --> 00:19:38,200 Speaker 1: you're having made to your vehicle, uh, if you're getting 452 00:19:38,240 --> 00:19:39,720 Speaker 1: a good deal or not. If if if you can see 453 00:19:39,760 --> 00:19:42,720 Speaker 1: that like Consumer Reports says that my Toyota camera should 454 00:19:42,760 --> 00:19:45,240 Speaker 1: cost me about four hundred bucks to maintain and repair 455 00:19:45,320 --> 00:19:47,959 Speaker 1: every year. But you look back at your records and 456 00:19:48,000 --> 00:19:50,439 Speaker 1: you see that you're spending eight hundred dollars. Well, like, 457 00:19:50,520 --> 00:19:52,800 Speaker 1: there's maybe a chance that you're overpaying, maybe you're getting 458 00:19:53,000 --> 00:19:54,639 Speaker 1: ripped off every time you have to take your car 459 00:19:54,680 --> 00:19:56,359 Speaker 1: to the shop. You might be, and you all, but 460 00:19:56,400 --> 00:19:59,159 Speaker 1: you also might have experienced just a year that costs more, right, 461 00:19:59,200 --> 00:20:01,120 Speaker 1: and so maybe that year you had a timing belt 462 00:20:01,119 --> 00:20:02,720 Speaker 1: and water pump go bad. And that's just something that 463 00:20:02,720 --> 00:20:04,720 Speaker 1: when you look at the life cycle of a car 464 00:20:05,080 --> 00:20:07,359 Speaker 1: is bound to happen, and just because you had that 465 00:20:07,440 --> 00:20:10,080 Speaker 1: one extra pair that year doesn't necessarily make your car 466 00:20:10,119 --> 00:20:11,679 Speaker 1: a dud either. So you do have to kind of 467 00:20:11,760 --> 00:20:15,000 Speaker 1: look at these these repair costs across multiple years in 468 00:20:15,080 --> 00:20:16,640 Speaker 1: order to get a good gauge of what that car 469 00:20:16,680 --> 00:20:18,360 Speaker 1: is actually costing. If you look at just last year, 470 00:20:19,040 --> 00:20:20,919 Speaker 1: it might look like a dud, but it might not 471 00:20:21,000 --> 00:20:22,480 Speaker 1: be a dud. It might just be that one big 472 00:20:22,520 --> 00:20:24,960 Speaker 1: repair that you incurred. But but the car is now 473 00:20:25,040 --> 00:20:26,600 Speaker 1: good to go for a while. Yeah, it wouldn't that 474 00:20:26,600 --> 00:20:28,240 Speaker 1: be a terrible position to be in, Like you drop 475 00:20:28,280 --> 00:20:30,480 Speaker 1: all this money on, like you said, maybe getting the 476 00:20:30,480 --> 00:20:32,679 Speaker 1: timing belt changed, which basically means that your car is 477 00:20:32,680 --> 00:20:35,320 Speaker 1: good for another hundred thousand miles. Yeah exactly. But but 478 00:20:35,400 --> 00:20:36,760 Speaker 1: you know what if you saw that though, and then 479 00:20:36,800 --> 00:20:38,240 Speaker 1: the next year you thought, you know what, I don't 480 00:20:38,240 --> 00:20:39,600 Speaker 1: want to go through that again, and then you sell 481 00:20:39,640 --> 00:20:41,399 Speaker 1: your car to somebody who's going to be able to 482 00:20:41,840 --> 00:20:45,679 Speaker 1: not change the timing belt, that exactly. It's good to 483 00:20:45,680 --> 00:20:47,720 Speaker 1: take multiple years into account for sure. Yeah, it's also 484 00:20:47,880 --> 00:20:50,640 Speaker 1: really helpful and smart to to look into the reliability 485 00:20:50,720 --> 00:20:54,000 Speaker 1: numbers for your specific make and model, and that will 486 00:20:54,000 --> 00:20:56,080 Speaker 1: help you determine if the car that you have is 487 00:20:56,119 --> 00:20:58,560 Speaker 1: worth hanging onto for the long haul. So JD Power 488 00:20:58,560 --> 00:21:01,280 Speaker 1: and Consumer Reports come out with lists every year which 489 00:21:01,320 --> 00:21:04,440 Speaker 1: would help you see which cars are typically the most 490 00:21:04,440 --> 00:21:08,080 Speaker 1: reliable and so Lexus, Mazda, and Toyota are top three 491 00:21:08,240 --> 00:21:12,000 Speaker 1: in the most recent findings from Consumer Reports. And if 492 00:21:12,000 --> 00:21:15,440 Speaker 1: you're curious about your specific car and and model and year, well, 493 00:21:15,520 --> 00:21:17,400 Speaker 1: you can pay for one time access to a sightl 494 00:21:17,480 --> 00:21:19,240 Speaker 1: Consumer Reports, or you can go to your local library 495 00:21:19,240 --> 00:21:21,040 Speaker 1: and get it get it for free. But it's worth 496 00:21:21,040 --> 00:21:24,119 Speaker 1: looking into, like, Okay, how reliable is my vehicle because 497 00:21:24,200 --> 00:21:28,240 Speaker 1: if typically those vehicles are historically reliable, well, and that's 498 00:21:28,240 --> 00:21:30,880 Speaker 1: at least one check mark in the decision to keep 499 00:21:30,920 --> 00:21:33,320 Speaker 1: it and make the repair, have the repair done. But 500 00:21:33,760 --> 00:21:36,560 Speaker 1: if your car falls along Matt like your land Rover 501 00:21:36,680 --> 00:21:38,720 Speaker 1: would have would not have been a good vehicle to keep. 502 00:21:39,119 --> 00:21:43,000 Speaker 1: Consumer the information from Consumer Reports would have said, get 503 00:21:43,080 --> 00:21:46,359 Speaker 1: rid of it now and find something more reliable. Lots 504 00:21:46,359 --> 00:21:48,520 Speaker 1: of fun in the short term, a lot of heartache 505 00:21:48,520 --> 00:21:51,280 Speaker 1: and the long term, well, then here's the thing though, 506 00:21:51,320 --> 00:21:53,720 Speaker 1: next step. If you find yourself at a crossroads with 507 00:21:53,800 --> 00:21:55,560 Speaker 1: a repair, and you're trying to figure out whether it 508 00:21:55,560 --> 00:21:58,280 Speaker 1: makes sense to move forward with that fix. That's when 509 00:21:58,280 --> 00:22:00,199 Speaker 1: you need to know how much this current repair is 510 00:22:00,200 --> 00:22:02,840 Speaker 1: going to cost, obviously, and so with that in mind, 511 00:22:02,880 --> 00:22:05,119 Speaker 1: a good rule of thumb for you is if that 512 00:22:05,160 --> 00:22:07,840 Speaker 1: repair costs more than half of what the car is 513 00:22:07,880 --> 00:22:10,439 Speaker 1: currently worth, then that's when you want to seriously consider 514 00:22:10,560 --> 00:22:13,080 Speaker 1: ditching your car in favor of a newer one. Obviously, 515 00:22:13,600 --> 00:22:16,439 Speaker 1: rules of thumb don't apply to every single situation. We 516 00:22:16,480 --> 00:22:18,359 Speaker 1: know that in a lot of cases, like the older 517 00:22:18,480 --> 00:22:21,440 Speaker 1: vehicle gets, if you know everything on it is solid 518 00:22:21,760 --> 00:22:23,840 Speaker 1: in your car, unfortunately though, it's not gonna be worth 519 00:22:23,920 --> 00:22:25,840 Speaker 1: very much. And like you said, again, let's reference back 520 00:22:25,880 --> 00:22:28,119 Speaker 1: to a timing belt. Timing belts cost a lot of money. 521 00:22:28,359 --> 00:22:30,160 Speaker 1: But if you know that that one fixed will allow 522 00:22:30,200 --> 00:22:32,480 Speaker 1: you to continue to drive that car for for years 523 00:22:32,520 --> 00:22:34,360 Speaker 1: and years, well, then that's an instance where this rule 524 00:22:34,359 --> 00:22:36,600 Speaker 1: of thumb, you know, it may not be quite as applicable. Yeah, 525 00:22:36,600 --> 00:22:38,879 Speaker 1: I think the older your car gets, it almost becomes 526 00:22:38,920 --> 00:22:41,080 Speaker 1: a does the repair cost more than what your car 527 00:22:41,160 --> 00:22:43,200 Speaker 1: is worth as opposed to more than half of what 528 00:22:43,320 --> 00:22:45,359 Speaker 1: your car is worth? So, yeah, if you're driving that 529 00:22:45,400 --> 00:22:48,200 Speaker 1: older car, and an engineer transmission goes bad. I think 530 00:22:48,200 --> 00:22:50,639 Speaker 1: that's that's a completely different scenario then. But yeah, the 531 00:22:50,680 --> 00:22:53,240 Speaker 1: next step in this process is to estimate the value 532 00:22:53,280 --> 00:22:56,199 Speaker 1: of your car, and Kelly Blue Book and Edmonds are 533 00:22:56,240 --> 00:22:57,760 Speaker 1: the best sites to help you see what your car 534 00:22:57,800 --> 00:23:00,280 Speaker 1: is worth. When you're entering in the information, make sure 535 00:23:00,359 --> 00:23:02,800 Speaker 1: that you're filling it out accurately so that you can 536 00:23:02,800 --> 00:23:05,600 Speaker 1: get a decent representation of the actual value of your car. 537 00:23:05,920 --> 00:23:08,399 Speaker 1: There's a big difference between a car that's an excellent 538 00:23:08,440 --> 00:23:11,159 Speaker 1: condition and a car that's in fair condition, right, that 539 00:23:11,200 --> 00:23:14,000 Speaker 1: has scratches and dense or that just hasn't been kept 540 00:23:14,000 --> 00:23:16,600 Speaker 1: in overall great condition. But that's the number you want 541 00:23:16,640 --> 00:23:19,840 Speaker 1: to weigh your repair costs against when you're making this decision. 542 00:23:19,840 --> 00:23:22,520 Speaker 1: And having kind of that informed value in your hands 543 00:23:22,560 --> 00:23:24,639 Speaker 1: as to what your car is actually worth is really helpful, 544 00:23:24,840 --> 00:23:26,719 Speaker 1: totally man. And the reason for this is because we 545 00:23:26,760 --> 00:23:29,919 Speaker 1: can be unfortunately very emotional when it comes to our vehicle, right, 546 00:23:29,920 --> 00:23:32,400 Speaker 1: because we can talk ourselves into doing anything. We can say, 547 00:23:32,400 --> 00:23:34,600 Speaker 1: oh no, my car is worth way more because I've 548 00:23:34,640 --> 00:23:36,440 Speaker 1: taken care of it. Like we recently talked about the 549 00:23:36,520 --> 00:23:39,440 Speaker 1: endowment effect, right, and that's when something you already own, 550 00:23:39,880 --> 00:23:41,960 Speaker 1: like it's you're gonna perceive it as being more valuable 551 00:23:41,960 --> 00:23:43,760 Speaker 1: than it actually is. And so in that case, you 552 00:23:43,840 --> 00:23:46,320 Speaker 1: might think your car is worth way more and so 553 00:23:46,359 --> 00:23:48,439 Speaker 1: you can justify these expenses because you really want to 554 00:23:48,440 --> 00:23:51,000 Speaker 1: hang onto that vehicle, or you might really be hankering 555 00:23:51,040 --> 00:23:52,760 Speaker 1: for like a new car, and so you might think, 556 00:23:52,760 --> 00:23:55,320 Speaker 1: all my car is not worth anything, you know, like, 557 00:23:55,560 --> 00:23:57,920 Speaker 1: is there a worse option than fair? Like, is there crappy? 558 00:23:57,920 --> 00:24:00,199 Speaker 1: Because because I'm gonna sell like that, you know, but 559 00:24:00,240 --> 00:24:02,040 Speaker 1: like be honest with yourself because you want to make 560 00:24:02,080 --> 00:24:05,000 Speaker 1: sure that you are making an informed decision based on facts, 561 00:24:05,040 --> 00:24:07,720 Speaker 1: not just what you are trying to convince yourself into doing. 562 00:24:07,760 --> 00:24:09,760 Speaker 1: You don't want that fake news, Matt, when you're facts 563 00:24:09,760 --> 00:24:13,080 Speaker 1: not fiction when you're making that decision. Yeah, another thing 564 00:24:13,119 --> 00:24:15,520 Speaker 1: that considers does your car have lingering issues, like other 565 00:24:15,680 --> 00:24:18,120 Speaker 1: issues besides the main thing that you feel like needs 566 00:24:18,119 --> 00:24:21,080 Speaker 1: to be repaired, So it's not necessarily just about the 567 00:24:21,119 --> 00:24:24,360 Speaker 1: singular repair. You'll you'll want to take into consideration the 568 00:24:24,359 --> 00:24:27,240 Speaker 1: preponderance of other issues that might be happening with your 569 00:24:27,240 --> 00:24:29,720 Speaker 1: car at this point in time. So if you can't 570 00:24:29,720 --> 00:24:31,359 Speaker 1: remember the last time you took your car into the 571 00:24:31,359 --> 00:24:33,720 Speaker 1: shop even to get the oil change, then there's a 572 00:24:33,720 --> 00:24:36,000 Speaker 1: good chance that there might be other work that's been 573 00:24:36,080 --> 00:24:38,000 Speaker 1: left undone that needs to be completed too. You're like, 574 00:24:38,119 --> 00:24:41,479 Speaker 1: does my car take oil? I'm not sure. Then you're 575 00:24:41,520 --> 00:24:43,879 Speaker 1: in a bad spot. Yeah, well to answer that if 576 00:24:43,920 --> 00:24:47,040 Speaker 1: you have a gasoline vehicle, like, yes, your car takes oil. 577 00:24:48,080 --> 00:24:50,520 Speaker 1: It's also worth considering if you can do the work yourself. 578 00:24:50,880 --> 00:24:53,879 Speaker 1: So neither you nor I are car nerds that know 579 00:24:53,920 --> 00:24:56,679 Speaker 1: how to fix major issues, but learning how to do 580 00:24:56,720 --> 00:24:59,160 Speaker 1: maybe some basic repairs, it could allow you to extend 581 00:24:59,200 --> 00:25:01,800 Speaker 1: the life of that old car. If you're pretty handy 582 00:25:01,920 --> 00:25:04,679 Speaker 1: in mechanically minded, then that's an instance where you can 583 00:25:04,680 --> 00:25:07,080 Speaker 1: put that skill to use. Joe Hery told you about 584 00:25:07,080 --> 00:25:09,720 Speaker 1: the switch I installed on my old Jeep. No, oh man, 585 00:25:09,720 --> 00:25:11,840 Speaker 1: you're gonna love this. So I had an issue with 586 00:25:11,840 --> 00:25:14,480 Speaker 1: my old Jeep to where the the radiator fan it 587 00:25:14,520 --> 00:25:16,280 Speaker 1: wouldn't kick on at the right time, and that's the 588 00:25:16,280 --> 00:25:18,480 Speaker 1: fan that cools your engine. Oh, I think you did 589 00:25:18,480 --> 00:25:19,720 Speaker 1: tell me I tell you about this. I think we 590 00:25:19,760 --> 00:25:22,359 Speaker 1: talked about it on podcast. With the switch Okay, Yeah, 591 00:25:22,359 --> 00:25:24,560 Speaker 1: basically I installed like a manual switch to where I 592 00:25:24,600 --> 00:25:26,800 Speaker 1: would turn that fan on myself because I was sick 593 00:25:26,840 --> 00:25:28,640 Speaker 1: of it kept breaking and I was tired of taking 594 00:25:28,640 --> 00:25:30,960 Speaker 1: it into the shop, and so I was mechanically minded 595 00:25:31,119 --> 00:25:34,119 Speaker 1: enough to install a manual switch. But it probably generally 596 00:25:34,200 --> 00:25:35,920 Speaker 1: thinking wasn't a good idea to kind of mess with 597 00:25:35,960 --> 00:25:38,840 Speaker 1: the electrical installed the switch that bypassed everything else at 598 00:25:38,840 --> 00:25:40,840 Speaker 1: the computers and the car was telling it to do. 599 00:25:41,240 --> 00:25:44,040 Speaker 1: I would not recommend doing that yet, not for use 600 00:25:44,080 --> 00:25:46,760 Speaker 1: at home, but but for for for some people who 601 00:25:46,880 --> 00:25:48,720 Speaker 1: you know. I've changed an alternator before with the help 602 00:25:48,760 --> 00:25:51,639 Speaker 1: of a friend, Yeah, which is uh, depending on what 603 00:25:51,680 --> 00:25:53,439 Speaker 1: where it's located in the car. That can be semi 604 00:25:53,440 --> 00:25:56,639 Speaker 1: easy or really really really hard. And spark plugs whatever, 605 00:25:56,680 --> 00:25:59,159 Speaker 1: stuff like that, whether it's bigger like an alternator or 606 00:25:59,240 --> 00:26:01,520 Speaker 1: or smaller like spark plugs or changing your own oil, 607 00:26:01,720 --> 00:26:04,120 Speaker 1: whatever you can do yourself. And by the way, YouTube 608 00:26:04,240 --> 00:26:07,360 Speaker 1: so helpful, or having mechanically minded friends who can help 609 00:26:07,400 --> 00:26:09,800 Speaker 1: you out, that can be the difference between feeling like 610 00:26:09,840 --> 00:26:11,399 Speaker 1: you need to get rid of your car or or 611 00:26:11,440 --> 00:26:13,720 Speaker 1: being able to kind of salvage some more years out 612 00:26:13,720 --> 00:26:16,760 Speaker 1: of it. And of course d I ying almost anything 613 00:26:16,760 --> 00:26:18,119 Speaker 1: in your life is going to save a whole lot 614 00:26:18,200 --> 00:26:21,200 Speaker 1: of money as opposed to taking something to a professional 615 00:26:21,440 --> 00:26:23,480 Speaker 1: for help. And so yeah, not that we don't need 616 00:26:23,600 --> 00:26:26,040 Speaker 1: mechanics most of the time. I mean, I know I do. 617 00:26:26,119 --> 00:26:28,280 Speaker 1: We do in our family. But if there are those 618 00:26:28,280 --> 00:26:29,919 Speaker 1: little things you feel like you can tackle on your 619 00:26:29,960 --> 00:26:33,080 Speaker 1: own or something you can at least try that can help, 620 00:26:33,160 --> 00:26:36,040 Speaker 1: you know, lower the costs of continuing to keep that 621 00:26:36,119 --> 00:26:39,320 Speaker 1: vehicle on the road and allow you to continue to 622 00:26:39,400 --> 00:26:42,480 Speaker 1: benefit from not having a car payment or having to 623 00:26:42,520 --> 00:26:44,600 Speaker 1: go into debt in order to to get another vehicle. 624 00:26:44,760 --> 00:26:46,439 Speaker 1: That's right, man. And something else to consider is that 625 00:26:46,480 --> 00:26:48,120 Speaker 1: you might even have to make some of these repairs 626 00:26:48,240 --> 00:26:50,680 Speaker 1: anyway just to sell your vehicle if you did want 627 00:26:50,680 --> 00:26:52,199 Speaker 1: to sell it, and if you don't want to make 628 00:26:52,240 --> 00:26:53,840 Speaker 1: these repairs, and you're gonna have to settle for less 629 00:26:53,840 --> 00:26:56,320 Speaker 1: money when it does come time to sell. So keep 630 00:26:56,359 --> 00:26:58,200 Speaker 1: that in mind. Like that's an instance where when you're 631 00:26:58,200 --> 00:27:00,480 Speaker 1: on KPB and you're entering that the condition and some 632 00:27:00,560 --> 00:27:02,080 Speaker 1: of that stuff, you can see how much of an 633 00:27:02,080 --> 00:27:04,240 Speaker 1: impact that is going to have on the resale price. 634 00:27:04,400 --> 00:27:06,920 Speaker 1: Experiment there figure out what the actual impact of those 635 00:27:06,920 --> 00:27:09,359 Speaker 1: repairs are going to have on that resale value and 636 00:27:09,359 --> 00:27:11,400 Speaker 1: you can make an informed decision from there. And Matt 637 00:27:11,440 --> 00:27:13,680 Speaker 1: will also link to a calculator that has detailed inputs 638 00:27:13,680 --> 00:27:15,920 Speaker 1: that can help you make that decision with the numbers 639 00:27:16,000 --> 00:27:18,600 Speaker 1: in hand. Yeah, what's great about that calculator specifically is 640 00:27:18,600 --> 00:27:20,840 Speaker 1: that it takes a new account other factors, not just 641 00:27:20,880 --> 00:27:23,480 Speaker 1: repair costs as well. Right, Like it's taking into account insurance, 642 00:27:23,800 --> 00:27:26,199 Speaker 1: sales tax, or ad valorum if you're purchasing a new 643 00:27:26,280 --> 00:27:29,040 Speaker 1: vehicle gas mileage. There are a number of factors that 644 00:27:29,080 --> 00:27:31,240 Speaker 1: you do want to keep into account when you're considering 645 00:27:31,240 --> 00:27:33,320 Speaker 1: a new vehicle. Yeah, for sure. All right, but let's 646 00:27:33,320 --> 00:27:36,680 Speaker 1: say you've determined that your car is right for the 647 00:27:36,720 --> 00:27:38,560 Speaker 1: chopping block and you need to sell it. We have 648 00:27:38,640 --> 00:27:40,679 Speaker 1: to cover the best ways to go about selling that 649 00:27:40,760 --> 00:27:44,159 Speaker 1: vehicle and to go about buying another vehicle that that 650 00:27:44,200 --> 00:27:46,240 Speaker 1: works better for you, that's more reliable. And we'll get 651 00:27:46,240 --> 00:27:57,960 Speaker 1: to some thoughts on that right after this break. All right, 652 00:27:58,040 --> 00:27:59,600 Speaker 1: Joel back from the break, and let's go ahead and 653 00:27:59,680 --> 00:28:01,879 Speaker 1: keep talking and about cars. And we're gonna talk about 654 00:28:01,880 --> 00:28:04,960 Speaker 1: how you can sell your ride. Right, if you've determined 655 00:28:05,200 --> 00:28:07,159 Speaker 1: that it's time to sell your car, one of the 656 00:28:07,200 --> 00:28:09,280 Speaker 1: biggest things we want you to take away is to 657 00:28:09,320 --> 00:28:12,400 Speaker 1: remember to not trade your car into the dealer. Why 658 00:28:12,440 --> 00:28:15,520 Speaker 1: is that, Matthew Well funny that you ask, because you 659 00:28:15,520 --> 00:28:18,000 Speaker 1: get a much smaller amount for that car when you 660 00:28:18,000 --> 00:28:20,320 Speaker 1: trade it in as opposed to selling your car to 661 00:28:20,359 --> 00:28:22,840 Speaker 1: an individual buyer. You're gonna see that difference if you 662 00:28:22,840 --> 00:28:24,639 Speaker 1: look at your car's value on a site like KBB 663 00:28:24,760 --> 00:28:28,119 Speaker 1: dot com, you're gonna see that discrepancy between what you're 664 00:28:28,119 --> 00:28:30,879 Speaker 1: going to get as a private seller versus versus what 665 00:28:30,960 --> 00:28:32,760 Speaker 1: the trading value is going to be. Yeah, that descrepmancy 666 00:28:32,800 --> 00:28:34,560 Speaker 1: can be huge. When you're playing around on KBB and 667 00:28:34,560 --> 00:28:36,200 Speaker 1: you're trying to figure out how much your car is worth. 668 00:28:36,600 --> 00:28:38,600 Speaker 1: It literally has a couple of buttons, and one of 669 00:28:38,640 --> 00:28:40,920 Speaker 1: them is to press to see what it's worth if 670 00:28:40,960 --> 00:28:42,600 Speaker 1: you're selling to an individual, and the other one is 671 00:28:42,640 --> 00:28:44,840 Speaker 1: to press what your car is worth if you're trading 672 00:28:44,840 --> 00:28:48,480 Speaker 1: it in. And the difference can be huge, thousands of dollars. 673 00:28:48,920 --> 00:28:50,920 Speaker 1: And what's interesting too, is that that's it's one of 674 00:28:50,960 --> 00:28:52,960 Speaker 1: the first things that you click. It's not like a 675 00:28:52,960 --> 00:28:55,160 Speaker 1: final option, so where you can go back just one 676 00:28:55,160 --> 00:28:57,360 Speaker 1: step and and kind of bounce between the two. It's 677 00:28:57,400 --> 00:28:59,120 Speaker 1: interesting that they put it at the very beginning, and 678 00:28:59,120 --> 00:29:01,280 Speaker 1: they kind of make you commit to doing one versus 679 00:29:01,320 --> 00:29:04,280 Speaker 1: the other. And so I would challenge folks to, you know, 680 00:29:04,400 --> 00:29:06,400 Speaker 1: go through all those steps again and actually see what 681 00:29:06,440 --> 00:29:08,320 Speaker 1: it would be if you were to do a dealer 682 00:29:08,360 --> 00:29:11,600 Speaker 1: trade in and compare that to private sale, because I think, 683 00:29:11,680 --> 00:29:14,360 Speaker 1: you know, seeing that, you know, multi thousand dollar difference 684 00:29:14,480 --> 00:29:15,800 Speaker 1: like that would be enough of the kick in the 685 00:29:15,800 --> 00:29:17,880 Speaker 1: pants to make you pull up your fancy iPhone or 686 00:29:17,880 --> 00:29:20,160 Speaker 1: whatever phone you have and snap some really nice pictures 687 00:29:20,160 --> 00:29:21,520 Speaker 1: of your car, shine it up, you know, take it 688 00:29:21,560 --> 00:29:23,600 Speaker 1: to the car wash, have a looking real good before 689 00:29:23,640 --> 00:29:25,800 Speaker 1: you list it yourself. Yeah. So, on that note, Matt, 690 00:29:26,000 --> 00:29:28,320 Speaker 1: for someone trying to sell their car, I think we 691 00:29:28,360 --> 00:29:29,960 Speaker 1: would say that the best way to do that to 692 00:29:30,040 --> 00:29:33,320 Speaker 1: get the most money for your vehicle is to sell 693 00:29:33,400 --> 00:29:35,960 Speaker 1: it to another private individual. And I've kind of thought 694 00:29:35,960 --> 00:29:37,400 Speaker 1: through it. I think the best way for someone to 695 00:29:37,440 --> 00:29:40,760 Speaker 1: approach this, Matt, is especially if they have like a 696 00:29:40,800 --> 00:29:43,600 Speaker 1: week or so that they want to sell their car. Well, 697 00:29:43,960 --> 00:29:47,120 Speaker 1: there are giant used car companies like Carbona and CarMax 698 00:29:47,320 --> 00:29:48,960 Speaker 1: that you could tell your vehicle too. You could get 699 00:29:49,080 --> 00:29:52,520 Speaker 1: a quote from them quickly. Carbona Online in almost no time. CarMax. 700 00:29:52,600 --> 00:29:54,560 Speaker 1: Take your car there, they'll tell you what your car 701 00:29:54,640 --> 00:29:57,160 Speaker 1: is worth, and they will actually literally hand you the 702 00:29:57,200 --> 00:29:59,360 Speaker 1: amount that they will buy your car for and it's 703 00:29:59,360 --> 00:30:01,080 Speaker 1: good for a full a week. So what I would 704 00:30:01,080 --> 00:30:03,280 Speaker 1: say is you're gonna say that they'll hange your money, 705 00:30:03,480 --> 00:30:06,240 Speaker 1: and if you give them the car, the cash sticks around. 706 00:30:06,280 --> 00:30:08,000 Speaker 1: But if you hang under your car, then then then 707 00:30:08,080 --> 00:30:10,280 Speaker 1: the cash just disappears. Well that would be one way 708 00:30:10,120 --> 00:30:13,880 Speaker 1: of sweet magic. But basically what you're doing is you're 709 00:30:13,880 --> 00:30:16,160 Speaker 1: getting this guarantee that you can go back the very 710 00:30:16,160 --> 00:30:17,840 Speaker 1: next weekend and sell your car for the amount of 711 00:30:17,840 --> 00:30:20,400 Speaker 1: money that they promised. And so what I would suggest 712 00:30:20,440 --> 00:30:22,200 Speaker 1: is go to car Max, get that number in hand, 713 00:30:22,360 --> 00:30:24,479 Speaker 1: and then for the next week, try to sell your 714 00:30:24,520 --> 00:30:27,960 Speaker 1: car via like Craigslist and the Facebook marketplace. Matt and 715 00:30:28,160 --> 00:30:30,600 Speaker 1: the car that we sold most recently we sold on 716 00:30:30,640 --> 00:30:32,640 Speaker 1: the Facebook marketplace. That was where we got the most 717 00:30:32,640 --> 00:30:34,560 Speaker 1: buzz and it's free to list it. So yeah, like 718 00:30:34,560 --> 00:30:36,680 Speaker 1: you said, take some good picks with your phone, write 719 00:30:36,720 --> 00:30:39,160 Speaker 1: up a listing for your car that makes it sound appealing, 720 00:30:39,400 --> 00:30:41,600 Speaker 1: and see what trickles in over the next week. Listing 721 00:30:41,600 --> 00:30:44,800 Speaker 1: it closer to that private party value that you've been 722 00:30:44,800 --> 00:30:47,200 Speaker 1: able to determine from Kelly Blue Book, right, and so 723 00:30:47,520 --> 00:30:50,120 Speaker 1: you'll notice that there's a big discrepancy. But at minimum, 724 00:30:50,240 --> 00:30:52,120 Speaker 1: we think it's important to give yourself a week to 725 00:30:52,160 --> 00:30:54,400 Speaker 1: try to sell it privately because it will make a 726 00:30:54,400 --> 00:30:56,600 Speaker 1: big difference in the return that you get when you 727 00:30:56,680 --> 00:30:58,960 Speaker 1: do decide to to sell a car. Yeah, maybe another 728 00:30:58,960 --> 00:31:00,560 Speaker 1: way to look at it is think about that difference 729 00:31:00,640 --> 00:31:02,760 Speaker 1: almost as a commission that you get to pay yourself, 730 00:31:02,760 --> 00:31:04,480 Speaker 1: Like this is extra money that's going to be rolling 731 00:31:04,480 --> 00:31:07,240 Speaker 1: in were you to do that yourself. And Jel you mentioned, 732 00:31:07,240 --> 00:31:08,800 Speaker 1: you know, making sure you take some nice pictures of it, 733 00:31:08,920 --> 00:31:10,760 Speaker 1: make sure you have that car nice and clean to 734 00:31:10,880 --> 00:31:12,920 Speaker 1: like take it to the car wash, maybe splurge on 735 00:31:12,960 --> 00:31:15,600 Speaker 1: like the sixty dollar car wash where there's actual people 736 00:31:15,720 --> 00:31:17,320 Speaker 1: touching your car, you know, like like not just the 737 00:31:17,400 --> 00:31:19,880 Speaker 1: drive through, but they're kind of detailing your car. That's 738 00:31:19,880 --> 00:31:22,080 Speaker 1: gonna go a long ways and how your car shows 739 00:31:22,120 --> 00:31:23,640 Speaker 1: and people are gonna want to pounce on that. Yeah. 740 00:31:23,640 --> 00:31:25,120 Speaker 1: I don't know if it was frugal or cheap, but 741 00:31:25,800 --> 00:31:28,320 Speaker 1: I just took mine down the street to the five 742 00:31:28,320 --> 00:31:30,360 Speaker 1: dollar car wash and I vacuumed it out really nicely, 743 00:31:30,400 --> 00:31:32,560 Speaker 1: and I did you get some arm or all like 744 00:31:32,560 --> 00:31:34,040 Speaker 1: like to make stuff shiny? I feel like that that 745 00:31:34,280 --> 00:31:37,360 Speaker 1: like a wet wipe kind of like down the dash 746 00:31:37,360 --> 00:31:39,800 Speaker 1: so shiny for a second and then they got dull 747 00:31:39,840 --> 00:31:42,320 Speaker 1: and dusty looking exactly. Yeah, yeah, but you know it 748 00:31:42,360 --> 00:31:44,240 Speaker 1: did the trick. It works fine. But yeah, you'll be 749 00:31:44,240 --> 00:31:46,200 Speaker 1: surprised at how good your car looks after one of 750 00:31:46,200 --> 00:31:48,360 Speaker 1: those car washes. Let's talk about if you are going 751 00:31:48,440 --> 00:31:50,640 Speaker 1: to buy like quote unquote new. If you do make 752 00:31:50,640 --> 00:31:53,080 Speaker 1: the decision that replacing your car is best, you'll have 753 00:31:53,120 --> 00:31:55,240 Speaker 1: a decision to make. You know, do you buy used 754 00:31:55,360 --> 00:31:57,640 Speaker 1: or are you gonna buy new? We much prefer that 755 00:31:57,680 --> 00:32:00,680 Speaker 1: you buy used, but there are certainly some paces where 756 00:32:00,760 --> 00:32:03,680 Speaker 1: buying new makes sense. We have an article up on 757 00:32:03,720 --> 00:32:05,960 Speaker 1: the site at how to money dot com that Joel 758 00:32:05,960 --> 00:32:08,520 Speaker 1: wrote that helps you to decide when buying a new 759 00:32:08,600 --> 00:32:10,680 Speaker 1: vehicle might make sense for you. Just like a lot 760 00:32:10,680 --> 00:32:12,680 Speaker 1: of the different financial decisions we make in our lives, 761 00:32:12,760 --> 00:32:15,040 Speaker 1: there are a lot of different considerations than things you 762 00:32:15,040 --> 00:32:16,680 Speaker 1: want to think through. And may you did a good 763 00:32:16,760 --> 00:32:19,400 Speaker 1: job and kind of walking us through that process. But 764 00:32:19,520 --> 00:32:22,200 Speaker 1: if you opt for a used car, then probably the 765 00:32:22,240 --> 00:32:24,080 Speaker 1: most important thing that you can do is to make 766 00:32:24,120 --> 00:32:26,720 Speaker 1: sure that you have it checked out by a private mechanic. 767 00:32:27,200 --> 00:32:29,200 Speaker 1: They'll usually charge you maybe for an hour of their 768 00:32:29,280 --> 00:32:31,560 Speaker 1: time to go over the car, but man, that small 769 00:32:31,560 --> 00:32:34,720 Speaker 1: fee can save you thousands of dollars and a ton 770 00:32:34,720 --> 00:32:37,320 Speaker 1: of hassle. Man. You can ask Google, you can ask Siri, 771 00:32:37,600 --> 00:32:40,520 Speaker 1: obviously in those instances you'll get some highly rated local mechanics, 772 00:32:40,680 --> 00:32:43,000 Speaker 1: but also don't overlook a personal recommendation or a word 773 00:32:43,000 --> 00:32:45,080 Speaker 1: of mouth. I know, when we're looking for a specific 774 00:32:45,120 --> 00:32:47,840 Speaker 1: mechanic for for our van, I guess around the neighborhood 775 00:32:47,880 --> 00:32:50,480 Speaker 1: and there are multiple folks that mentioned this one mechanic 776 00:32:50,760 --> 00:32:53,080 Speaker 1: that they've been going to for over fifteen years. So 777 00:32:53,160 --> 00:32:55,240 Speaker 1: of course it was a super easy decision for me 778 00:32:55,280 --> 00:32:57,160 Speaker 1: to check him out. And we couldn't agree more. Man, 779 00:32:57,160 --> 00:32:58,880 Speaker 1: we've been going there for years now. Yeah. Man, I've 780 00:32:58,920 --> 00:33:01,479 Speaker 1: totally had next give me the thumbs up and the 781 00:33:01,600 --> 00:33:03,760 Speaker 1: or the thumbs down on a car that I've brought there. 782 00:33:03,880 --> 00:33:06,160 Speaker 1: And I really appreciate that if you go to a 783 00:33:06,200 --> 00:33:08,560 Speaker 1: mechanic that you know and trust, who is going to 784 00:33:08,600 --> 00:33:10,960 Speaker 1: be able to shoot straight with you and and tell 785 00:33:11,000 --> 00:33:13,840 Speaker 1: you you know what this car has enough problems that 786 00:33:13,960 --> 00:33:16,160 Speaker 1: it doesn't make sense for you to jump into it, Well, 787 00:33:16,200 --> 00:33:18,960 Speaker 1: then I would listen. And it has helped me avoid 788 00:33:19,000 --> 00:33:20,960 Speaker 1: buying a car that I thought, on the surface looked 789 00:33:20,960 --> 00:33:22,800 Speaker 1: really good, looked like it was kept up nicely, but 790 00:33:22,840 --> 00:33:25,800 Speaker 1: I didn't realize all the issues that were lingering. So, yeah, 791 00:33:25,840 --> 00:33:27,520 Speaker 1: that's a really important step. Yeah, that could save you 792 00:33:27,520 --> 00:33:29,520 Speaker 1: a lot of heartache and a lot of hassle. Yeah, completely. 793 00:33:29,520 --> 00:33:31,840 Speaker 1: And on that note, we know that repairing a car 794 00:33:32,200 --> 00:33:34,120 Speaker 1: can be a hassle, right, but when you compare that 795 00:33:34,200 --> 00:33:36,880 Speaker 1: cost to the years of new car payments that you 796 00:33:36,880 --> 00:33:40,280 Speaker 1: will incur by upgrading yourself and getting something a whole 797 00:33:40,280 --> 00:33:42,600 Speaker 1: lot newer or buying a new car, it will likely 798 00:33:42,680 --> 00:33:44,440 Speaker 1: for you make sense to fix your car instead of 799 00:33:44,520 --> 00:33:47,200 Speaker 1: dumping it, especially if owning a really nice car just 800 00:33:47,440 --> 00:33:49,760 Speaker 1: isn't high on your list of values. And the highest 801 00:33:49,800 --> 00:33:52,520 Speaker 1: cost of car ownership isn't the cost of the repair, 802 00:33:52,920 --> 00:33:55,520 Speaker 1: which when we're faced with the repair, especially in expensive repair, 803 00:33:55,720 --> 00:33:57,480 Speaker 1: that's all we can think about in our minds is 804 00:33:57,600 --> 00:33:59,120 Speaker 1: how do I get into something new or that's not 805 00:33:59,120 --> 00:34:01,000 Speaker 1: gonna break down on me and make me pay the 806 00:34:01,040 --> 00:34:03,480 Speaker 1: mechanic money. That's just kind of the way our brain works. 807 00:34:03,800 --> 00:34:06,600 Speaker 1: But the actual most expensive cost of owning a car 808 00:34:07,160 --> 00:34:09,680 Speaker 1: is the cost of depreciation, And so when we're faced 809 00:34:09,680 --> 00:34:11,120 Speaker 1: with the cost of repair, we just have to have 810 00:34:11,160 --> 00:34:13,399 Speaker 1: that in the forefront of our brains. Okay, if I 811 00:34:13,440 --> 00:34:16,720 Speaker 1: do decide to sell this car and upgrade into something nicer, 812 00:34:16,880 --> 00:34:18,879 Speaker 1: I just have to know that one of the trade 813 00:34:18,880 --> 00:34:20,520 Speaker 1: offs is I'm going to pay a lot more in 814 00:34:20,600 --> 00:34:23,319 Speaker 1: depreciation in the coming years. That is where my money 815 00:34:23,400 --> 00:34:24,560 Speaker 1: is going to go. It might not be going to 816 00:34:24,560 --> 00:34:27,040 Speaker 1: the mechanic to to fix this car that has a 817 00:34:27,040 --> 00:34:29,560 Speaker 1: couple of issues with it, but it's definitely over a 818 00:34:29,600 --> 00:34:33,320 Speaker 1: longer period of time, going to massive amounts of depreciation 819 00:34:33,680 --> 00:34:36,640 Speaker 1: if we decide to upgrade instead of to continue rolling 820 00:34:36,640 --> 00:34:38,799 Speaker 1: with the car that we we currently have. Yeah, man, 821 00:34:38,960 --> 00:34:40,680 Speaker 1: you know, and we think that whether or not you're 822 00:34:40,680 --> 00:34:43,239 Speaker 1: going to repair a vehicle or you're going to replace it, 823 00:34:43,480 --> 00:34:44,839 Speaker 1: you want to make sure that you're doing that from 824 00:34:44,840 --> 00:34:47,719 Speaker 1: a standpoint of financial security. Right Like, if you're going 825 00:34:47,760 --> 00:34:49,400 Speaker 1: to hang on to an older vehicle, you know that 826 00:34:49,440 --> 00:34:52,040 Speaker 1: you're going to incur these repair costs, so start putting 827 00:34:52,040 --> 00:34:56,000 Speaker 1: money aside into maybe an emergency fund. But like ideally 828 00:34:56,000 --> 00:34:58,799 Speaker 1: you would have a separate fund specifically for repair costs, 829 00:34:58,800 --> 00:35:01,279 Speaker 1: repair and maintenance. It's going to cost you money to 830 00:35:01,440 --> 00:35:03,959 Speaker 1: maintain that vehicles. To start setting that money aside now, 831 00:35:04,400 --> 00:35:05,879 Speaker 1: or if you know that in the near future you're 832 00:35:05,880 --> 00:35:08,080 Speaker 1: going to replace that vehicle, well you need to set 833 00:35:08,120 --> 00:35:10,760 Speaker 1: aside even more money because we don't want you financing 834 00:35:10,760 --> 00:35:12,680 Speaker 1: that vehicle. That's something that we again want you to 835 00:35:12,719 --> 00:35:15,160 Speaker 1: do from a position of strength, to start saving now 836 00:35:15,560 --> 00:35:17,400 Speaker 1: for a new or newer car before you get to 837 00:35:17,440 --> 00:35:19,600 Speaker 1: that point of having to make a tough decision that 838 00:35:19,600 --> 00:35:22,319 Speaker 1: could hurt you financially. Yeah, Matt, having cash in the 839 00:35:22,360 --> 00:35:26,560 Speaker 1: bank when you're making this decision and not scrambling, because 840 00:35:26,840 --> 00:35:29,319 Speaker 1: cash in the bank changes the game completely. You don't 841 00:35:29,360 --> 00:35:33,600 Speaker 1: have to make a rash decision that will actually, maybe 842 00:35:33,640 --> 00:35:36,279 Speaker 1: in the short term, be better for your incoming and 843 00:35:36,280 --> 00:35:40,000 Speaker 1: outgoing cash flow, but ultimately is going to lead you 844 00:35:40,040 --> 00:35:42,680 Speaker 1: into more debt and a lower net worth right and 845 00:35:42,680 --> 00:35:45,759 Speaker 1: and and having an expensive car that you're paying on 846 00:35:45,800 --> 00:35:49,520 Speaker 1: monthly is a detriment to your overall wealth building process. 847 00:35:49,840 --> 00:35:52,040 Speaker 1: And so fixing that older car it might or might 848 00:35:52,080 --> 00:35:53,759 Speaker 1: not be the best decision. There are certainly a lot 849 00:35:53,800 --> 00:35:55,520 Speaker 1: of factors at play. Here, But it makes it so 850 00:35:55,600 --> 00:35:57,960 Speaker 1: much easier for us to make a rational decision if 851 00:35:58,000 --> 00:36:00,840 Speaker 1: we have a well stocked emergency fund, if we have 852 00:36:00,960 --> 00:36:03,880 Speaker 1: been saving and investing consistently, and if we're able to 853 00:36:03,880 --> 00:36:07,120 Speaker 1: make this, like you said, decision from a position of 854 00:36:07,200 --> 00:36:09,480 Speaker 1: financial strength as opposed to financial weakness, it just means 855 00:36:09,480 --> 00:36:12,040 Speaker 1: we're gonna make a better decision ultimately, no matter which 856 00:36:12,080 --> 00:36:14,000 Speaker 1: side of the aisle we come down on, whether we 857 00:36:14,040 --> 00:36:17,040 Speaker 1: buy a nicer used car or a brand new car 858 00:36:17,320 --> 00:36:19,759 Speaker 1: that is inexpensive because we're gonna own it for more 859 00:36:19,800 --> 00:36:22,399 Speaker 1: than ten years, or we decide to repair that car 860 00:36:22,440 --> 00:36:24,440 Speaker 1: and roll with it for a couple more years because 861 00:36:24,480 --> 00:36:27,560 Speaker 1: that's best for our finances. Either way, doing it from 862 00:36:27,680 --> 00:36:31,120 Speaker 1: a place of financial security and stability is is gonna 863 00:36:31,120 --> 00:36:32,960 Speaker 1: be a game changer, and it's gonna be a whole 864 00:36:33,000 --> 00:36:36,279 Speaker 1: lot less anxiety producing too, well, said Buddy. All right, 865 00:36:36,320 --> 00:36:38,040 Speaker 1: let's take it back to the beer. This episode, we 866 00:36:38,120 --> 00:36:41,840 Speaker 1: were drinking Zombie Dust and this is by three Floyd's 867 00:36:41,920 --> 00:36:44,360 Speaker 1: out of Indiana, and this one was donated to the 868 00:36:44,400 --> 00:36:47,160 Speaker 1: show by Doug. So Doug thinks so much for this beer. Um, 869 00:36:47,200 --> 00:36:49,440 Speaker 1: I'll go ahead and give you give you my thoughts 870 00:36:49,440 --> 00:36:51,680 Speaker 1: on this one, Buddy, Like, so it poured a clear 871 00:36:51,760 --> 00:36:54,080 Speaker 1: kind of golden color right, like, just a nice looking 872 00:36:54,080 --> 00:36:55,840 Speaker 1: pale ale. And for a pale, I feel like it 873 00:36:55,920 --> 00:36:58,080 Speaker 1: kind of had like a nice kind of pineapple citrusy 874 00:36:58,160 --> 00:36:59,680 Speaker 1: kind of hot presence going on, but at the same 875 00:36:59,719 --> 00:37:03,040 Speaker 1: time is balanced with this kind of nice, bready maltiness. 876 00:37:03,040 --> 00:37:05,359 Speaker 1: It was just a well balanced, easy to drink pale ale. 877 00:37:05,400 --> 00:37:08,320 Speaker 1: I feel like it's a now it's a classic example 878 00:37:08,360 --> 00:37:10,760 Speaker 1: of what a pale ale should be in the US. 879 00:37:11,040 --> 00:37:13,239 Speaker 1: Really enjoyed this one, buddy, Um, Yeah, but your thoughts 880 00:37:13,239 --> 00:37:15,200 Speaker 1: on it. I feel like this beer was what made 881 00:37:15,239 --> 00:37:18,239 Speaker 1: brewers start to make pale ales actually taste good. Yes, 882 00:37:18,480 --> 00:37:20,560 Speaker 1: this beer has been around for a while, and they 883 00:37:20,600 --> 00:37:23,680 Speaker 1: really brought a ton of tasty hops to the game 884 00:37:23,880 --> 00:37:25,759 Speaker 1: in this one. And I love three Floys. I love 885 00:37:25,840 --> 00:37:28,279 Speaker 1: their braining, I love their style, I love their kind 886 00:37:28,280 --> 00:37:31,319 Speaker 1: of brash attitude, and and this beer was kind of 887 00:37:31,320 --> 00:37:33,879 Speaker 1: at the forefront of that attitude, bringing just a lot 888 00:37:33,920 --> 00:37:37,080 Speaker 1: of hops into the beer and making it taste superb. 889 00:37:37,520 --> 00:37:39,520 Speaker 1: I totally agree they kind of put pale ales back 890 00:37:39,520 --> 00:37:42,520 Speaker 1: on the map. Yeah, most beer nerds usually relegate pale 891 00:37:42,520 --> 00:37:44,960 Speaker 1: ales to the back of the line then, and this 892 00:37:45,000 --> 00:37:47,239 Speaker 1: beer definitely does not deserve to be there because it 893 00:37:47,280 --> 00:37:49,280 Speaker 1: really has stood the test of time. It's a fantastic 894 00:37:49,320 --> 00:37:51,960 Speaker 1: beer full of all sorts of hot flavor. So yeah, 895 00:37:52,000 --> 00:37:53,839 Speaker 1: I really enjoyed this one. Big thanks to listener Doug 896 00:37:53,880 --> 00:37:55,439 Speaker 1: for sending it our way. All Right, man, that's gonna 897 00:37:55,480 --> 00:37:57,440 Speaker 1: be it for this episode. For listeners who want the 898 00:37:57,440 --> 00:37:59,600 Speaker 1: show notes for this episode to see that calculator. That's 899 00:37:59,640 --> 00:38:02,040 Speaker 1: gonna help if you make this informed decision on whether 900 00:38:02,120 --> 00:38:04,000 Speaker 1: to repair or place your old car, well, you can 901 00:38:04,040 --> 00:38:06,200 Speaker 1: go to our website how to money dot com and 902 00:38:06,280 --> 00:38:08,160 Speaker 1: wherever it is that you listen to your podcast. We 903 00:38:08,160 --> 00:38:11,240 Speaker 1: would be incredibly thankful if you mash that subscribe button 904 00:38:11,640 --> 00:38:14,320 Speaker 1: right now, if you are not already subscribe to our show, 905 00:38:14,600 --> 00:38:16,600 Speaker 1: and if you haven't yet already leave us a review 906 00:38:16,640 --> 00:38:19,160 Speaker 1: over at Apple Podcasts. It helps others to to find 907 00:38:19,160 --> 00:38:21,920 Speaker 1: the show who haven't already discovered the beauties of personal finance, 908 00:38:22,000 --> 00:38:23,799 Speaker 1: as well as the huge impact that it really does 909 00:38:23,840 --> 00:38:26,560 Speaker 1: have on our lives, on our everyday lives. Agreed, Buddy Man. 910 00:38:26,600 --> 00:38:28,000 Speaker 1: All right man, that's gonna be it for this episode. 911 00:38:28,080 --> 00:38:30,399 Speaker 1: Until next time. Best Friends Out, Best Friends Out,