1 00:00:00,120 --> 00:00:02,920 Speaker 1: Welcome to How the Money. I'm Joel Matt, and today 2 00:00:03,000 --> 00:00:25,759 Speaker 1: we're discussing buying a car the right way. That's right, buddy, Transportation, 3 00:00:25,800 --> 00:00:28,680 Speaker 1: that's one of those big expenses. We spend a lot 4 00:00:28,720 --> 00:00:32,240 Speaker 1: of money on transportation every single year, but every few years, 5 00:00:32,680 --> 00:00:35,639 Speaker 1: hopefully not too much. More often than that, folks are 6 00:00:35,640 --> 00:00:39,479 Speaker 1: oftentimes faced with the very large purchase of a vehicle. 7 00:00:39,880 --> 00:00:43,000 Speaker 1: And we're gonna dedicate an entire episode towards buying a 8 00:00:43,120 --> 00:00:46,040 Speaker 1: car the right way. Yeah, and well, I would say this, 9 00:00:46,120 --> 00:00:48,560 Speaker 1: if you're buying a car every year, you're doing it wrong, okay, 10 00:00:48,760 --> 00:00:50,720 Speaker 1: or definitely you should be leasing if you're doing that, 11 00:00:50,720 --> 00:00:52,559 Speaker 1: And we don't really recommend leasing, but if we need 12 00:00:52,600 --> 00:00:55,080 Speaker 1: a new car, everyone do that either. At least that's 13 00:00:55,120 --> 00:00:57,680 Speaker 1: probably the only situation which that makes sense. We're already 14 00:00:57,720 --> 00:01:00,520 Speaker 1: off to a bad start, and you can do it 15 00:01:00,560 --> 00:01:01,840 Speaker 1: the wrong way. There are ways to do it the 16 00:01:01,840 --> 00:01:03,800 Speaker 1: wrong way, and leasing is kind of sort of the 17 00:01:03,800 --> 00:01:06,000 Speaker 1: wrong way too. Well, yeah, we'll get into all our 18 00:01:06,000 --> 00:01:09,120 Speaker 1: thoughts on that in this episode. But Matt, before we 19 00:01:09,160 --> 00:01:10,840 Speaker 1: get to that, I wanted to mention that there was 20 00:01:10,880 --> 00:01:12,960 Speaker 1: a study that came out from U c l A. 21 00:01:13,400 --> 00:01:16,920 Speaker 1: And this they basically said that there isn't a lot 22 00:01:16,959 --> 00:01:19,520 Speaker 1: of learning loss if you're watching videos or listening to 23 00:01:19,600 --> 00:01:22,240 Speaker 1: content at two X speed. And I thought I was 24 00:01:22,319 --> 00:01:24,160 Speaker 1: gonna say that again for all of our listeners listening 25 00:01:24,160 --> 00:01:28,039 Speaker 1: at two point five. Slow it down, at slow it down, 26 00:01:28,280 --> 00:01:31,600 Speaker 1: and so you can understand me. So I just wanted 27 00:01:31,600 --> 00:01:33,759 Speaker 1: everybody that is listening to the two X is gonna 28 00:01:33,760 --> 00:01:35,880 Speaker 1: hear that, and it's gonna mess with their heads? Did 29 00:01:35,920 --> 00:01:39,520 Speaker 1: I just hear? So? I'm personally the kind of person 30 00:01:39,600 --> 00:01:42,200 Speaker 1: who there's a lot of podcasts I enjoy listening to, 31 00:01:42,680 --> 00:01:44,640 Speaker 1: and I don't quite have enough time to fit them 32 00:01:44,640 --> 00:01:46,360 Speaker 1: all in. And if I want to fit most of 33 00:01:46,400 --> 00:01:48,920 Speaker 1: them in, then I do have to listen at a 34 00:01:48,960 --> 00:01:51,640 Speaker 1: faster speed. And so, depending on the podcast I do listen, 35 00:01:51,640 --> 00:01:54,080 Speaker 1: it somewhere between like one point seven and two X speed. 36 00:01:54,320 --> 00:01:56,440 Speaker 1: And it's good to know that. Like I will say, 37 00:01:56,600 --> 00:01:59,000 Speaker 1: I don't think I'm getting quite as much. I don't 38 00:01:59,000 --> 00:02:00,600 Speaker 1: think I'm retaining quite as which as I would if 39 00:02:00,600 --> 00:02:03,040 Speaker 1: I was to listen at one X. But also it's 40 00:02:03,080 --> 00:02:05,440 Speaker 1: almost harder for me to listen to something at the 41 00:02:05,480 --> 00:02:07,640 Speaker 1: normal speed these days. Shut up. I almost needed to 42 00:02:07,680 --> 00:02:09,160 Speaker 1: be like at least one point two or I'm like, 43 00:02:09,200 --> 00:02:10,920 Speaker 1: what's wrong with these people? It sounds like they're just 44 00:02:10,960 --> 00:02:13,840 Speaker 1: talking way too exactly. Well, okay, so I want to 45 00:02:13,880 --> 00:02:17,480 Speaker 1: call bs on the study because I, like you, I 46 00:02:17,520 --> 00:02:19,000 Speaker 1: listened to a lot of podcasts, we listen to a 47 00:02:19,040 --> 00:02:21,200 Speaker 1: lot of audio books, and I want this to be true, 48 00:02:21,360 --> 00:02:23,840 Speaker 1: right Like, I want to read this study, this report 49 00:02:23,880 --> 00:02:26,440 Speaker 1: and say, there you go, see like you can listen 50 00:02:26,440 --> 00:02:30,000 Speaker 1: to something at two x speed and retain just as 51 00:02:30,080 --> 00:02:33,079 Speaker 1: much information. But dude, come on, this is confirmation by us, 52 00:02:33,160 --> 00:02:35,040 Speaker 1: right like, this is something we want to be true. 53 00:02:35,280 --> 00:02:38,120 Speaker 1: And so you come across the story, it looks like 54 00:02:38,200 --> 00:02:41,120 Speaker 1: it's well researched out there in U. C. L A. 55 00:02:41,160 --> 00:02:42,560 Speaker 1: But if you search, like, there's a lot of other 56 00:02:42,560 --> 00:02:45,160 Speaker 1: studies to that point to the fact that, oh, in fact, 57 00:02:45,240 --> 00:02:48,600 Speaker 1: it does reduce your ability to retain information. But like 58 00:02:48,639 --> 00:02:50,840 Speaker 1: you said, I am okay with that. I think as 59 00:02:50,840 --> 00:02:53,120 Speaker 1: long as folks are able to make the decision knowing 60 00:02:53,360 --> 00:02:55,040 Speaker 1: the facts, and so if I know that I'm only 61 00:02:55,080 --> 00:02:57,480 Speaker 1: going to be able to retain eighty or nine percent 62 00:02:57,560 --> 00:02:59,960 Speaker 1: of the information, but if that means I'm able to 63 00:03:00,000 --> 00:03:02,760 Speaker 1: listen to twice as much stuff because I'm listening to 64 00:03:02,800 --> 00:03:05,480 Speaker 1: it at two x speed, then that's that's a trade off, right, 65 00:03:05,520 --> 00:03:07,560 Speaker 1: Like in all throughout life, we make trade offs, and 66 00:03:07,680 --> 00:03:09,240 Speaker 1: this is one of those. And so if you are 67 00:03:09,280 --> 00:03:12,760 Speaker 1: a high consumer of audio content, yeah, this is good 68 00:03:12,760 --> 00:03:15,200 Speaker 1: news as long as you are aware of the decisions 69 00:03:15,200 --> 00:03:18,480 Speaker 1: you're making. Yeah. So I think maybe the ideal range 70 00:03:18,480 --> 00:03:20,239 Speaker 1: for people is somewhere between like one point five and 71 00:03:20,280 --> 00:03:21,799 Speaker 1: one point seven if you can handle it, if you 72 00:03:21,840 --> 00:03:23,760 Speaker 1: want to listen at that speed, and the first time 73 00:03:23,800 --> 00:03:26,040 Speaker 1: you hear it, you're like, who does this? It's it 74 00:03:26,160 --> 00:03:29,079 Speaker 1: sounds almost garbled. But once once you kind of get 75 00:03:29,120 --> 00:03:31,800 Speaker 1: used to it, Yeah, it's yeah, it's like building a muscle, 76 00:03:31,880 --> 00:03:34,720 Speaker 1: like your brain gets better at it. And I will 77 00:03:34,760 --> 00:03:37,360 Speaker 1: say sometimes I'll flip something on and by default it's 78 00:03:37,360 --> 00:03:38,960 Speaker 1: on at like one point five and k it's like 79 00:03:38,960 --> 00:03:41,800 Speaker 1: whoa whoaa, Like this sounds like it's on warp speed. 80 00:03:42,120 --> 00:03:45,080 Speaker 1: But over the years she has slowly kind of ramped 81 00:03:45,160 --> 00:03:48,040 Speaker 1: up her ability to listen to something faster as well. 82 00:03:48,080 --> 00:03:51,000 Speaker 1: And she's she said specifically that if I listened to 83 00:03:51,040 --> 00:03:53,240 Speaker 1: it first at kind of one point two, she can 84 00:03:53,280 --> 00:03:55,320 Speaker 1: then slowly ramp up because you get used to the 85 00:03:55,320 --> 00:03:58,160 Speaker 1: way somebody speaks to the way they talk and the 86 00:03:58,200 --> 00:04:00,120 Speaker 1: other thing too. Man, it depends on what you're listening 87 00:04:00,240 --> 00:04:02,760 Speaker 1: two as well, right, Because if I'm listening to an 88 00:04:02,760 --> 00:04:06,360 Speaker 1: audio book, like a narrative a story, to even two 89 00:04:06,400 --> 00:04:08,680 Speaker 1: point five is not difficult for me because it it 90 00:04:08,720 --> 00:04:11,800 Speaker 1: oftentimes depends on who's narrating, right. But if it's a 91 00:04:11,840 --> 00:04:14,560 Speaker 1: podcast and they're really diving into like very technical things 92 00:04:14,560 --> 00:04:17,320 Speaker 1: and they're talking about the economy and the jobs report 93 00:04:17,360 --> 00:04:20,560 Speaker 1: and just different things like that, uh, slow that, Yeah, 94 00:04:20,680 --> 00:04:23,600 Speaker 1: you slow down because there's a lot of technical information 95 00:04:24,120 --> 00:04:26,640 Speaker 1: that is more difficult to you know, when you're jumping 96 00:04:26,680 --> 00:04:28,320 Speaker 1: from one bit of information to the next, to the 97 00:04:28,320 --> 00:04:30,040 Speaker 1: next to the next, and none of them are really linked. 98 00:04:30,240 --> 00:04:32,560 Speaker 1: It's difficult, I think, to to follow along on a 99 00:04:32,560 --> 00:04:35,720 Speaker 1: really rapid clip. Yeah, alright, well, just blessings on you. 100 00:04:35,760 --> 00:04:37,000 Speaker 1: If you want to listen to How the Money a 101 00:04:37,040 --> 00:04:38,880 Speaker 1: little bit faster than one x, that's totally cool, And 102 00:04:38,880 --> 00:04:40,760 Speaker 1: a lot of the podcasting apps have made it so 103 00:04:40,839 --> 00:04:43,560 Speaker 1: much easier to to actually do that. I know, Google Podcasts, 104 00:04:43,600 --> 00:04:45,360 Speaker 1: it's like you can you can go one point six, 105 00:04:45,400 --> 00:04:47,840 Speaker 1: one point seven, one point eighty. It literally only used 106 00:04:47,880 --> 00:04:50,720 Speaker 1: to be like one x one point five x two 107 00:04:50,920 --> 00:04:53,480 Speaker 1: x yeah, but now yeah, a lot of and have 108 00:04:53,600 --> 00:04:55,599 Speaker 1: all of those fine adjustments that you can go in 109 00:04:55,600 --> 00:04:58,120 Speaker 1: there and kind of like those beer ratings on untapped, 110 00:04:58,160 --> 00:04:59,960 Speaker 1: you know, and it used to be like half a point, 111 00:05:00,000 --> 00:05:01,400 Speaker 1: and now you can. I think you can dial it 112 00:05:01,440 --> 00:05:04,320 Speaker 1: in pretty specifically. Although I don't really post my beers 113 00:05:04,360 --> 00:05:06,360 Speaker 1: there anymore. So I tried to, but the last time 114 00:05:06,360 --> 00:05:07,360 Speaker 1: I was on there, I thought it was still doing 115 00:05:07,440 --> 00:05:09,000 Speaker 1: just quarter quarter of a point. I thought you can 116 00:05:09,040 --> 00:05:10,600 Speaker 1: dial it in more than that. Maybe maybe I'm wrong. 117 00:05:10,640 --> 00:05:12,400 Speaker 1: I really don't get on there bar Okay, So all right, 118 00:05:12,440 --> 00:05:14,560 Speaker 1: but let's mention the beer that we're having on this episode. 119 00:05:14,560 --> 00:05:17,520 Speaker 1: This one is called Pothole City. It's a rocky road stout. 120 00:05:17,520 --> 00:05:19,800 Speaker 1: It's by Pipeworks Brewing. And we'll let you know our 121 00:05:19,839 --> 00:05:22,000 Speaker 1: thoughts on this one at the end of the episode. 122 00:05:22,279 --> 00:05:24,400 Speaker 1: But Matt, onto the topic in hand. Let's talk about 123 00:05:24,400 --> 00:05:28,640 Speaker 1: buying a car the right way. Yeah, yeah, exactly. Any 124 00:05:28,800 --> 00:05:31,880 Speaker 1: of your transportation needs, uh, And some of the most 125 00:05:31,920 --> 00:05:36,200 Speaker 1: important financial decisions that we make are done infrequently. And 126 00:05:36,200 --> 00:05:38,080 Speaker 1: because of that, Matt, we we feel like a little 127 00:05:38,120 --> 00:05:41,000 Speaker 1: rusty every time we perform that task. Even just doing 128 00:05:41,000 --> 00:05:42,320 Speaker 1: your taxes, You're like, how do I, how do I 129 00:05:42,360 --> 00:05:44,800 Speaker 1: do this again? It's coming to be that time. Fortunately, 130 00:05:44,839 --> 00:05:46,920 Speaker 1: their software to help you out with that, or or 131 00:05:46,960 --> 00:05:48,560 Speaker 1: if you take someone that you pay, or if you 132 00:05:48,560 --> 00:05:50,440 Speaker 1: take really good notes. That's what I do is I 133 00:05:50,520 --> 00:05:52,400 Speaker 1: kind of keep this document that I refer back to 134 00:05:52,480 --> 00:05:54,400 Speaker 1: and then I just have everything listed out step by step. 135 00:05:54,400 --> 00:05:56,359 Speaker 1: There you go. Makes it super quick, see quick and easy? 136 00:05:56,839 --> 00:05:59,920 Speaker 1: But yeah, so the average person buys a car one 137 00:06:00,160 --> 00:06:03,120 Speaker 1: in every six years, and so that's plenty of time 138 00:06:03,120 --> 00:06:05,640 Speaker 1: for most of us to completely forget how the process 139 00:06:05,680 --> 00:06:07,960 Speaker 1: works by the next time we need to buy a car. 140 00:06:08,120 --> 00:06:10,680 Speaker 1: It makes me think of traveling abroad these days. It's 141 00:06:10,720 --> 00:06:12,680 Speaker 1: been a while for pretty much all of us. I 142 00:06:12,680 --> 00:06:15,159 Speaker 1: know some folks have still been been traveling abroad, but 143 00:06:15,279 --> 00:06:17,480 Speaker 1: there's the truth that there are a lot of countries 144 00:06:17,520 --> 00:06:21,240 Speaker 1: that won't even allow us to visit their shores right now, 145 00:06:21,440 --> 00:06:22,920 Speaker 1: and so there's a lot more questions we have when 146 00:06:22,920 --> 00:06:26,240 Speaker 1: we're booking that trip. Do I need trip insurance? Is 147 00:06:26,320 --> 00:06:29,159 Speaker 1: the country I want to go to even accepting visitors 148 00:06:29,200 --> 00:06:32,839 Speaker 1: from the US. What sort of vaccination documentation do I need? 149 00:06:32,920 --> 00:06:34,760 Speaker 1: How early do I even need to get to the airport. Again, 150 00:06:34,920 --> 00:06:36,599 Speaker 1: those are the kind of questions the funnel and be 151 00:06:36,640 --> 00:06:38,760 Speaker 1: like how long does it take too to go through 152 00:06:38,760 --> 00:06:41,400 Speaker 1: security and stuff like that, Like I've forgotten at this point. 153 00:06:41,440 --> 00:06:43,440 Speaker 1: So we all need this refresher and so that's kind 154 00:06:43,440 --> 00:06:46,120 Speaker 1: of what this episode is. It's a refresher on buying 155 00:06:46,160 --> 00:06:48,760 Speaker 1: a car the right way, And obviously part of that 156 00:06:48,839 --> 00:06:51,320 Speaker 1: has to do with kind of what's currently happening in 157 00:06:51,320 --> 00:06:54,440 Speaker 1: the car space. We've seen a lot of change, that's right. Yeah, 158 00:06:54,560 --> 00:06:57,000 Speaker 1: In a similar way, the car market has experienced a 159 00:06:57,000 --> 00:07:00,000 Speaker 1: lot of turmoil. So if you bought a car six 160 00:07:00,040 --> 00:07:02,120 Speaker 1: years ago, the way that you go about buying a 161 00:07:02,120 --> 00:07:06,359 Speaker 1: car has changed significantly. We've seen a huge shift, especially 162 00:07:06,360 --> 00:07:09,480 Speaker 1: over the past eighteen months, in pricing and just different 163 00:07:09,520 --> 00:07:13,040 Speaker 1: purchasing dynamics. A global pandemic led to a chip shortage, 164 00:07:13,160 --> 00:07:15,200 Speaker 1: and then that chip shortage led to supply chain issues. 165 00:07:15,560 --> 00:07:19,160 Speaker 1: All of the problems created a tighter car market, resulting 166 00:07:19,160 --> 00:07:22,640 Speaker 1: in fewer cars on the lot and much much higher prices. 167 00:07:22,960 --> 00:07:25,000 Speaker 1: Edmonds is even predicting that the average price of a 168 00:07:25,080 --> 00:07:27,840 Speaker 1: used car is going to surpass thirty thousand dollars this year. 169 00:07:28,200 --> 00:07:31,160 Speaker 1: And that's right. I actually said used cars the average 170 00:07:31,320 --> 00:07:34,200 Speaker 1: used cars and o K, that's a lot of money 171 00:07:34,440 --> 00:07:38,320 Speaker 1: for a second and uh form of transportation. And because 172 00:07:38,440 --> 00:07:40,200 Speaker 1: so much is at stake here, it's crucial that you 173 00:07:40,240 --> 00:07:43,400 Speaker 1: take the proper steps to make sure that you're going 174 00:07:43,400 --> 00:07:45,400 Speaker 1: about things in the right way. Yeah, you don't want 175 00:07:45,440 --> 00:07:48,760 Speaker 1: to buy a thirty thou do lemon, that's for sure. 176 00:07:49,040 --> 00:07:51,200 Speaker 1: And so let's talk about kind of more of what's 177 00:07:51,280 --> 00:07:54,240 Speaker 1: changed in recent years and how those shifts impact us 178 00:07:54,280 --> 00:07:56,720 Speaker 1: as consumers. If we're in the car market, Matt, you 179 00:07:56,760 --> 00:07:58,480 Speaker 1: mentioned the average price of a used car is going 180 00:07:58,520 --> 00:08:01,600 Speaker 1: to hit thirty dollars, which is true. I see that 181 00:08:01,680 --> 00:08:04,280 Speaker 1: happening this year. But the average price of a new 182 00:08:04,320 --> 00:08:07,600 Speaker 1: car costs for dollars now, which is a heck of 183 00:08:07,640 --> 00:08:09,360 Speaker 1: a lot more right. And on top of that, even 184 00:08:09,360 --> 00:08:11,760 Speaker 1: fancier new cars are getting launched. For instance, like the 185 00:08:12,040 --> 00:08:15,120 Speaker 1: new Jeep Grand wagoneer. It starts the starting price is 186 00:08:15,120 --> 00:08:17,840 Speaker 1: almost ninety dollars, So you can get that car or 187 00:08:17,880 --> 00:08:20,840 Speaker 1: that ride up into six figures. And I'm sure it's nice. 188 00:08:20,880 --> 00:08:24,440 Speaker 1: It's got the perfectly quaffit interior and the fancy screen 189 00:08:24,560 --> 00:08:28,280 Speaker 1: or something like that. Yeah, everything you could look. I'm 190 00:08:28,280 --> 00:08:31,080 Speaker 1: sure it's lovely, But there's just so much more we 191 00:08:31,120 --> 00:08:34,280 Speaker 1: have to think through as car prices expand and as 192 00:08:34,320 --> 00:08:37,079 Speaker 1: fancier cars are are put out there on the market, 193 00:08:37,080 --> 00:08:39,400 Speaker 1: and there's just so much at stake, Uh, so much 194 00:08:39,440 --> 00:08:42,040 Speaker 1: of your money at stake when with that next car purchase. 195 00:08:42,320 --> 00:08:44,600 Speaker 1: And here's what you need to think about. Two. That 196 00:08:44,679 --> 00:08:48,120 Speaker 1: ninety thousand could easily become a million dollars in thirty 197 00:08:48,160 --> 00:08:50,280 Speaker 1: years if you left it to grow in the stock market. 198 00:08:50,360 --> 00:08:53,160 Speaker 1: So there is this reality that where you allocate your 199 00:08:53,200 --> 00:08:55,560 Speaker 1: money makes a big difference in your ability to build 200 00:08:55,600 --> 00:08:58,360 Speaker 1: more wealth. And if more of your money is going 201 00:08:58,400 --> 00:09:01,319 Speaker 1: towards the four wheels that riding around in, it's gonna 202 00:09:01,400 --> 00:09:04,040 Speaker 1: detract in a big way from your ability to build 203 00:09:04,080 --> 00:09:06,079 Speaker 1: wealth the way you want. It's right, And why's it 204 00:09:06,120 --> 00:09:07,520 Speaker 1: gonna be four wheels? Man? Why can it be one 205 00:09:07,559 --> 00:09:09,800 Speaker 1: of those three wheeled vehicles you see driving down the 206 00:09:09,840 --> 00:09:13,360 Speaker 1: ones that kind of batmobiles. Yeah, yeah, they've got like 207 00:09:13,400 --> 00:09:15,440 Speaker 1: two wheels up front for steering, but there's only like 208 00:09:15,520 --> 00:09:17,800 Speaker 1: one like bigger wheel in the back. I still don't 209 00:09:17,840 --> 00:09:20,760 Speaker 1: understand that, Like white people get those, but they look 210 00:09:20,880 --> 00:09:22,680 Speaker 1: kind of interesting. There's a couple of those that we 211 00:09:22,720 --> 00:09:25,400 Speaker 1: see driving around the neighborhood. But you know, folks already 212 00:09:25,400 --> 00:09:27,240 Speaker 1: know this as well. But one of the other things 213 00:09:27,280 --> 00:09:30,000 Speaker 1: that we've seen change over the years is that folks 214 00:09:30,000 --> 00:09:32,880 Speaker 1: have gotten way more comfortable buying a used car site 215 00:09:32,960 --> 00:09:35,959 Speaker 1: unseen based on just the different pictures of the car 216 00:09:36,120 --> 00:09:40,439 Speaker 1: on the internet descriptions. I'm specifically thinking about Carbona, but 217 00:09:40,520 --> 00:09:43,800 Speaker 1: CarMax as well, that they both have led that charge 218 00:09:44,000 --> 00:09:46,160 Speaker 1: and are the two big names in the used car 219 00:09:46,320 --> 00:09:49,560 Speaker 1: buying market these days. GM they just launched car Bravo 220 00:09:49,760 --> 00:09:52,199 Speaker 1: to be another competitor in the space. Uh and and 221 00:09:52,280 --> 00:09:55,040 Speaker 1: they're not just selling GM vehicles as well, they're selling 222 00:09:55,040 --> 00:09:57,840 Speaker 1: all types of vehicles. So generally speaking, we do like 223 00:09:57,920 --> 00:10:00,280 Speaker 1: these sites. They've made it easier to shop on line 224 00:10:00,400 --> 00:10:03,120 Speaker 1: for a vehicle, and most of us are looking for 225 00:10:03,160 --> 00:10:06,200 Speaker 1: some more convenience in our lives. They'll often deliver it 226 00:10:06,200 --> 00:10:09,720 Speaker 1: to you, right Caravanna they've got that seven day return policy, 227 00:10:09,880 --> 00:10:12,880 Speaker 1: and CarMax they've got that thirty day return policy. This 228 00:10:12,960 --> 00:10:14,840 Speaker 1: gives you plenty of time to take it to the 229 00:10:14,880 --> 00:10:17,840 Speaker 1: mechanic and know if you'll like it. But this is 230 00:10:17,920 --> 00:10:20,960 Speaker 1: another reason we're talking about this because the way just 231 00:10:21,000 --> 00:10:23,160 Speaker 1: the actual mechanics of what it looks like to purchase 232 00:10:23,200 --> 00:10:26,160 Speaker 1: a new vehicle has changed significantly. Yeah, five years ago, 233 00:10:26,400 --> 00:10:28,800 Speaker 1: buying a car on the internet was not really a 234 00:10:28,800 --> 00:10:30,599 Speaker 1: thing or we're taking a risk. Yeah, exactly. It was 235 00:10:30,640 --> 00:10:32,520 Speaker 1: a new thing. Like I mean that we purchased our 236 00:10:32,960 --> 00:10:36,360 Speaker 1: Honda Odyssey on CarMax like about I guess it's like 237 00:10:36,360 --> 00:10:37,720 Speaker 1: four or five years ago. Yeah, that was kind of 238 00:10:37,720 --> 00:10:40,160 Speaker 1: even towards the beginning. Really it was kind of like 239 00:10:40,160 --> 00:10:42,640 Speaker 1: this novel idea and you and I were talking, We're like, oh, 240 00:10:42,800 --> 00:10:44,199 Speaker 1: do we get to see it come down like the 241 00:10:44,600 --> 00:10:49,960 Speaker 1: car vending machine, like for picturing it like two little kids, 242 00:10:50,040 --> 00:10:52,000 Speaker 1: like we're gonna watch a gunball like go down the spiral. 243 00:10:53,040 --> 00:10:55,480 Speaker 1: That was kind of tradition. The fame was that vending machine. 244 00:10:55,679 --> 00:10:58,200 Speaker 1: And now they have one literally like down the Downtown 245 00:10:58,240 --> 00:11:00,720 Speaker 1: Connector in Atlanta, and now they've built ones in other 246 00:11:00,760 --> 00:11:03,320 Speaker 1: locations too as they've expanded nationwide. Always look at it. It 247 00:11:03,240 --> 00:11:05,480 Speaker 1: It is cool. Yeah, but it is this new way 248 00:11:05,520 --> 00:11:07,520 Speaker 1: of buying a car, and I guess not so new anymore, 249 00:11:07,679 --> 00:11:09,920 Speaker 1: but but it is one of those things where it's 250 00:11:09,960 --> 00:11:14,280 Speaker 1: important to note that buying online is is really helpful. 251 00:11:14,320 --> 00:11:15,600 Speaker 1: I think in a lot of ways, or at least 252 00:11:15,600 --> 00:11:18,280 Speaker 1: searching online some of those sites has made the car 253 00:11:18,360 --> 00:11:21,360 Speaker 1: buying used car buying process a little more transparent. But 254 00:11:21,480 --> 00:11:24,360 Speaker 1: in addition to those newer companies that have gotten pretty 255 00:11:24,360 --> 00:11:27,200 Speaker 1: dominant in recent years, some of the older companies like 256 00:11:27,280 --> 00:11:30,520 Speaker 1: Craigslist and auto trader, even the just the classic for 257 00:11:30,600 --> 00:11:33,160 Speaker 1: sales sign in the car window, those are still legitimate 258 00:11:33,160 --> 00:11:35,920 Speaker 1: ways to buy the car. All those options are still around. 259 00:11:36,160 --> 00:11:38,720 Speaker 1: And the great thing is that, unlike those other sites 260 00:11:38,800 --> 00:11:42,400 Speaker 1: we mentioned, the price isn't fixed, whereas like carbona, you're 261 00:11:42,440 --> 00:11:44,319 Speaker 1: not gonna be able to negotiate and be like, can 262 00:11:44,320 --> 00:11:46,559 Speaker 1: I get bucks off that price? And they're like, nope, 263 00:11:46,600 --> 00:11:49,560 Speaker 1: the prices the price, Well, you can stay, that's right. 264 00:11:50,240 --> 00:11:53,440 Speaker 1: When it's a private sale, you can haggle. And that's 265 00:11:53,440 --> 00:11:56,120 Speaker 1: a beautiful thing that that might sound awful to you, though, 266 00:11:56,120 --> 00:11:58,560 Speaker 1: I think that some people they're like, haggling, I don't 267 00:11:58,600 --> 00:12:00,840 Speaker 1: want to interact with another human being exactly. Let me 268 00:12:00,960 --> 00:12:02,440 Speaker 1: do what I want to do, and some people don't 269 00:12:02,440 --> 00:12:04,440 Speaker 1: take joy in that. I personally do take joy in that. 270 00:12:04,880 --> 00:12:06,520 Speaker 1: I like to kind of negotiate the price, but some 271 00:12:06,559 --> 00:12:09,360 Speaker 1: people find that to be appalling and I get it, 272 00:12:09,840 --> 00:12:12,480 Speaker 1: but yeah, you want to take extra precautions to say 273 00:12:12,480 --> 00:12:15,360 Speaker 1: safe if you're meeting private car sellers all over your town. 274 00:12:15,760 --> 00:12:17,679 Speaker 1: We would say meeting in the parking lot of a 275 00:12:17,720 --> 00:12:20,559 Speaker 1: police station is certainly one way to help keep yourself 276 00:12:21,120 --> 00:12:24,640 Speaker 1: safer when you're buying a used car from an individual. 277 00:12:24,960 --> 00:12:27,199 Speaker 1: But just remember, even with the advent of these online 278 00:12:27,240 --> 00:12:29,800 Speaker 1: buying services there, you can still go the old school 279 00:12:29,880 --> 00:12:32,000 Speaker 1: route and sometimes that is actually going to save you 280 00:12:32,240 --> 00:12:35,320 Speaker 1: the most money. In large part mat because some of 281 00:12:35,320 --> 00:12:38,400 Speaker 1: those online car buying sites they don't really have many 282 00:12:38,480 --> 00:12:41,520 Speaker 1: older models up for sale, so the starting price point 283 00:12:41,559 --> 00:12:44,320 Speaker 1: is usually fourteen fifteen dollars, and if you're looking for 284 00:12:44,400 --> 00:12:46,760 Speaker 1: a car, a great used car in the five to 285 00:12:46,920 --> 00:12:48,959 Speaker 1: fifteen thousand dollar range, you're not going to find that. 286 00:12:49,000 --> 00:12:51,600 Speaker 1: There's yeah, it cannot be difficult, and honestly, that's what 287 00:12:51,640 --> 00:12:53,840 Speaker 1: we found when we purchased our vans. We purchased about 288 00:12:53,960 --> 00:12:56,240 Speaker 1: about five years ago, and at the time it was 289 00:12:56,240 --> 00:12:59,240 Speaker 1: about five years old, and that was the oldest and 290 00:12:59,480 --> 00:13:01,880 Speaker 1: honestly that we could find. And for us then we 291 00:13:01,880 --> 00:13:04,880 Speaker 1: were like, okay, this is used, but we were still 292 00:13:04,920 --> 00:13:08,120 Speaker 1: paying a lot of money for a vehicle. That was 293 00:13:08,160 --> 00:13:09,640 Speaker 1: something that we had to grapple with and if we 294 00:13:09,640 --> 00:13:11,920 Speaker 1: wanted to save more, we would have had to look 295 00:13:12,040 --> 00:13:15,120 Speaker 1: at a more traditional method of buying. That's right for 296 00:13:15,160 --> 00:13:16,240 Speaker 1: a lot of for a lot of how the money 297 00:13:16,280 --> 00:13:18,520 Speaker 1: listeners who who do want to save a lot, they 298 00:13:18,520 --> 00:13:21,959 Speaker 1: want to drive something that is older and cheaper. Online 299 00:13:21,960 --> 00:13:24,320 Speaker 1: shopping is is probably not going to get the job done. 300 00:13:24,360 --> 00:13:25,640 Speaker 1: You're gonna have to look at some of those more 301 00:13:25,640 --> 00:13:27,320 Speaker 1: old school methods. You're gonna have to look at something 302 00:13:27,360 --> 00:13:29,920 Speaker 1: a little bit older than five years old. Uh. One 303 00:13:29,920 --> 00:13:32,320 Speaker 1: of the other changes we've seen, too, man like in 304 00:13:32,320 --> 00:13:34,679 Speaker 1: the past several years, is that we've seen the number 305 00:13:34,720 --> 00:13:38,959 Speaker 1: of electric vehicles on the road skyrocket. However, that being said, 306 00:13:39,440 --> 00:13:42,080 Speaker 1: range anxiety like that is still an issue when it 307 00:13:42,120 --> 00:13:46,840 Speaker 1: comes to electric vehicle adoption, but massive strides have already 308 00:13:46,880 --> 00:13:50,440 Speaker 1: been made since the first evs debuted. For instance, I 309 00:13:50,440 --> 00:13:53,160 Speaker 1: saw the Mercedes. They just revealed this concept car that 310 00:13:53,200 --> 00:13:54,800 Speaker 1: they claim is going to have a range of six 311 00:13:55,040 --> 00:13:58,000 Speaker 1: d and twenty miles, which is awesome. That's impressive. Yeah, 312 00:13:58,000 --> 00:14:01,360 Speaker 1: it's comparable to what a typical busttion engine powered vehicle 313 00:14:01,400 --> 00:14:03,439 Speaker 1: would be able to get on one fill up. Yeah, 314 00:14:03,520 --> 00:14:05,760 Speaker 1: but you know, like once automakers are able to hit 315 00:14:05,800 --> 00:14:08,240 Speaker 1: the like the five to seven hundred mile range on 316 00:14:08,280 --> 00:14:11,760 Speaker 1: a single charge, mass adoption is likely going to occur. 317 00:14:12,080 --> 00:14:15,240 Speaker 1: I truly believe that's what's kept folks from jumping on 318 00:14:15,360 --> 00:14:18,520 Speaker 1: evs even more because you can't have this benefit, right, 319 00:14:18,559 --> 00:14:21,440 Speaker 1: So with a typical gasoline powered car, you can't have 320 00:14:21,440 --> 00:14:24,440 Speaker 1: a car that where you could drive six miles if 321 00:14:24,440 --> 00:14:26,680 Speaker 1: you wanted to without stopping and then take it away. 322 00:14:26,800 --> 00:14:29,920 Speaker 1: I think for most people that's what caused the anxiety, Like, 323 00:14:29,920 --> 00:14:32,640 Speaker 1: that's what caused the problems. However, like if in some 324 00:14:32,680 --> 00:14:36,120 Speaker 1: bizarro world, if gasoline powered cars only got like two 325 00:14:36,160 --> 00:14:39,120 Speaker 1: hundred or three hundred miles per fill up, there would 326 00:14:39,120 --> 00:14:41,080 Speaker 1: be no hesitation. I think when it came to folks 327 00:14:41,120 --> 00:14:43,080 Speaker 1: switching over to evs, because that's what they would be 328 00:14:43,160 --> 00:14:44,520 Speaker 1: used to, I would say, I think you're a little 329 00:14:44,520 --> 00:14:46,320 Speaker 1: bit wrong on this because I think the average gas 330 00:14:46,320 --> 00:14:48,640 Speaker 1: car when you want my miles, man, well, when you 331 00:14:48,640 --> 00:14:51,120 Speaker 1: do the miles, you're not getting five miles before you 332 00:14:51,200 --> 00:14:55,560 Speaker 1: fill up. You're getting maybe and so it's important to 333 00:14:55,560 --> 00:14:57,920 Speaker 1: to to realize that that's probably But here's the thing. 334 00:14:58,400 --> 00:15:00,320 Speaker 1: So thirty miles per gallon on a twenty gall take. 335 00:15:01,400 --> 00:15:04,320 Speaker 1: Not not on the odyssey, but dude, a lot of 336 00:15:04,320 --> 00:15:06,360 Speaker 1: people are on I mean, and not not even to mention. 337 00:15:08,000 --> 00:15:09,440 Speaker 1: I'm just saying, like, I think, maybe, let's say you're 338 00:15:09,440 --> 00:15:11,520 Speaker 1: getting three fifty. But here's the thing. When you fill 339 00:15:11,600 --> 00:15:13,240 Speaker 1: up at the gas station, it's much quicker than it 340 00:15:13,320 --> 00:15:15,440 Speaker 1: is to charge, and that's part of the slow nure 341 00:15:15,600 --> 00:15:18,160 Speaker 1: in adoption is because the charging still takes so long. 342 00:15:18,360 --> 00:15:20,720 Speaker 1: And so that's why the greater mileage I think is 343 00:15:20,760 --> 00:15:24,480 Speaker 1: needed for in order for people to adopt evis in 344 00:15:24,560 --> 00:15:27,280 Speaker 1: higher numbers totally. But I think even just like the idea, 345 00:15:27,440 --> 00:15:30,040 Speaker 1: like the fact that this was something that was available 346 00:15:30,080 --> 00:15:32,080 Speaker 1: to people, even if they weren't taking advantage of it, 347 00:15:32,200 --> 00:15:34,480 Speaker 1: or even if maybe on a in a perfect world, 348 00:15:34,640 --> 00:15:36,280 Speaker 1: the mileage sheet says that you should be able to 349 00:15:36,360 --> 00:15:38,160 Speaker 1: do this to then take that away. People don't like 350 00:15:38,200 --> 00:15:39,920 Speaker 1: things being taken away from them, right, and so from 351 00:15:39,920 --> 00:15:42,400 Speaker 1: a psychological standpoint, I think that that has been a 352 00:15:42,440 --> 00:15:44,880 Speaker 1: major hurdle for folks as well. But there's good news, right, 353 00:15:44,920 --> 00:15:47,520 Speaker 1: because the median range of a new electric vehicle surpassed 354 00:15:47,520 --> 00:15:50,520 Speaker 1: two fifty miles last year, and that's plenty of range 355 00:15:50,560 --> 00:15:52,720 Speaker 1: for the way that most folks drive. And so while 356 00:15:52,840 --> 00:15:56,240 Speaker 1: evs are typically more expensive upfront, some of them still 357 00:15:56,280 --> 00:15:59,280 Speaker 1: come with a federal tax credit. And plus they're gonna 358 00:15:59,280 --> 00:16:02,160 Speaker 1: save you a holide chunk on gas and maintenance over time. 359 00:16:02,400 --> 00:16:04,040 Speaker 1: And then on top of that, if a two to 360 00:16:04,120 --> 00:16:07,360 Speaker 1: three year old EV makes sense for your family, you 361 00:16:07,360 --> 00:16:09,720 Speaker 1: can save even more by letting someone else take that 362 00:16:09,800 --> 00:16:11,920 Speaker 1: depreciation hit. That's right, because those first three years of 363 00:16:11,960 --> 00:16:15,360 Speaker 1: ownership where you see the biggest depreciation hit come. And 364 00:16:15,400 --> 00:16:18,360 Speaker 1: so yeah, if you're often for that slightly older electric vehicle, 365 00:16:18,640 --> 00:16:20,120 Speaker 1: that might be the sweet spot for a lot of people, 366 00:16:20,680 --> 00:16:22,200 Speaker 1: as also as the range works for you. So do 367 00:16:22,240 --> 00:16:24,080 Speaker 1: you when we were talking about electric vehicles, do you 368 00:16:24,120 --> 00:16:26,600 Speaker 1: say e V typically? Like? So the reason I the 369 00:16:26,680 --> 00:16:28,880 Speaker 1: reason I asked this is because so our oldest daughter, 370 00:16:28,880 --> 00:16:31,240 Speaker 1: her name is Evy, and eight years ago when we 371 00:16:31,360 --> 00:16:35,400 Speaker 1: named her evs as electric vehicles, as a popular term 372 00:16:35,480 --> 00:16:37,360 Speaker 1: like that wasn't on our radar at all. I mean, 373 00:16:37,400 --> 00:16:39,760 Speaker 1: electric vehicles existed, but I think you just called them, Oh, 374 00:16:39,800 --> 00:16:42,040 Speaker 1: that's an electric car or something like that. But we 375 00:16:42,120 --> 00:16:44,800 Speaker 1: often refer to electric cars now as e v's, and 376 00:16:44,880 --> 00:16:46,920 Speaker 1: I feel like we name it's. It's like ten years ago, 377 00:16:47,040 --> 00:16:51,560 Speaker 1: somebody named their daughter Siri or Alexa. Like, it's probably 378 00:16:51,600 --> 00:16:54,840 Speaker 1: pretty annoying right now. Yeah, but yeah, obviously I think 379 00:16:54,880 --> 00:17:00,160 Speaker 1: people are going to be nearly as ubiquitous in our language. Well, 380 00:17:00,160 --> 00:17:02,760 Speaker 1: and at this point I'll share it, like, I I'm 381 00:17:02,800 --> 00:17:05,760 Speaker 1: sorry for everybody whose devices just activated. I just realized 382 00:17:06,280 --> 00:17:09,080 Speaker 1: you're not supposed to actually say those names podcasts more, 383 00:17:09,080 --> 00:17:10,919 Speaker 1: aren't you? No, I don't think so, sorry everybody. Well, 384 00:17:10,960 --> 00:17:12,679 Speaker 1: so I'll share that I I had an Evy for 385 00:17:12,680 --> 00:17:15,680 Speaker 1: a long time. I bought a Nissan Leaf. In part 386 00:17:15,680 --> 00:17:17,680 Speaker 1: of it was because of the tech tax credit that 387 00:17:17,720 --> 00:17:20,760 Speaker 1: you mentioned, Matt, which helped plunge the price down in 388 00:17:20,800 --> 00:17:23,880 Speaker 1: a big way. And you know, there weren't a lot 389 00:17:23,880 --> 00:17:25,760 Speaker 1: of other folks at that period of time, almost ten 390 00:17:25,840 --> 00:17:28,959 Speaker 1: years ago, willing to take that plunge into the electric 391 00:17:29,040 --> 00:17:31,280 Speaker 1: vehicle market. And you're an early adopter. Yeah, well I 392 00:17:31,320 --> 00:17:34,280 Speaker 1: get it. There was a big, big discrepancy in what 393 00:17:34,440 --> 00:17:36,880 Speaker 1: you got then versus what you can get now there 394 00:17:37,040 --> 00:17:38,719 Speaker 1: and so yeah, the range on my Leaf I think 395 00:17:38,760 --> 00:17:40,840 Speaker 1: was something like eighty miles to the charge. That was 396 00:17:40,840 --> 00:17:44,719 Speaker 1: on a warm day. That's right. Well, the condition certainly affects, 397 00:17:44,720 --> 00:17:46,240 Speaker 1: like how many miles you're gonna get out of it, right, 398 00:17:46,480 --> 00:17:48,320 Speaker 1: And so it worked great for us as a two 399 00:17:48,320 --> 00:17:51,439 Speaker 1: car family living in town where my my job was, 400 00:17:51,600 --> 00:17:53,520 Speaker 1: you know, five or six miles away from the house. 401 00:17:53,800 --> 00:17:56,720 Speaker 1: But I get that it wasn't it didn't make sense 402 00:17:56,720 --> 00:17:58,600 Speaker 1: for a lot of folks. But like you said, that's 403 00:17:58,720 --> 00:18:01,679 Speaker 1: changed quite a bit. If the the average range on 404 00:18:01,720 --> 00:18:03,800 Speaker 1: a new e V is two d and fifty miles 405 00:18:03,840 --> 00:18:05,680 Speaker 1: as of last year, that's a big jump for a 406 00:18:05,720 --> 00:18:07,880 Speaker 1: lot of folks, and it pushes that into the range 407 00:18:07,880 --> 00:18:10,080 Speaker 1: of making sense. So I would say, yeah, with the 408 00:18:10,119 --> 00:18:12,679 Speaker 1: added variety of electric vehicles that are on the market, 409 00:18:12,960 --> 00:18:15,120 Speaker 1: the far superior battery range, a lot more options, there's 410 00:18:15,160 --> 00:18:17,000 Speaker 1: just so many more, yeah, for people to consider. I 411 00:18:17,040 --> 00:18:18,720 Speaker 1: think it makes sense and it's something that people should 412 00:18:18,720 --> 00:18:20,440 Speaker 1: look into. Uh. I'll keep an eye out for the 413 00:18:20,520 --> 00:18:23,479 Speaker 1: first electric van that that rolls out. I'm looking, Well, 414 00:18:23,480 --> 00:18:26,560 Speaker 1: that's supposed to be the Voltswangen van. Yeah. You were 415 00:18:26,600 --> 00:18:28,680 Speaker 1: talking about the the I D bus or whatever for 416 00:18:28,680 --> 00:18:31,240 Speaker 1: forever now, but we're you know, we were recently talking 417 00:18:31,320 --> 00:18:34,080 Speaker 1: about how Rivian they need to put that they need 418 00:18:34,119 --> 00:18:36,679 Speaker 1: to create a van, a minivan on their you know, 419 00:18:37,040 --> 00:18:39,600 Speaker 1: RT whatever, their rivian truck is called Uh, they need 420 00:18:39,640 --> 00:18:42,520 Speaker 1: to build a sweet looking van on that truck platform, 421 00:18:42,560 --> 00:18:44,000 Speaker 1: and that will be the first time that I am 422 00:18:44,000 --> 00:18:48,119 Speaker 1: actually tempted to consider a new vehicle, but I'm probably 423 00:18:48,119 --> 00:18:51,200 Speaker 1: still not gonna do it even Yeah. Well, and well 424 00:18:51,280 --> 00:18:53,040 Speaker 1: the other thing too, when you look at the numbers, 425 00:18:53,359 --> 00:18:55,399 Speaker 1: and when we're talking about how much we're spending on 426 00:18:55,440 --> 00:18:57,119 Speaker 1: a car, it's it's easy to look at just a 427 00:18:57,160 --> 00:18:58,879 Speaker 1: sticker price, but really we need to look at the 428 00:18:58,880 --> 00:19:01,680 Speaker 1: total cost of ownership over a period of time. And 429 00:19:01,800 --> 00:19:04,280 Speaker 1: the one, the one additional thing that electric vehicles have 430 00:19:04,359 --> 00:19:08,000 Speaker 1: going for them is, over you know, ten fifteen years, 431 00:19:08,280 --> 00:19:11,480 Speaker 1: a much lower cost of ownership because there's less to 432 00:19:11,520 --> 00:19:13,800 Speaker 1: go wrong with those vehicles and you're not paying for 433 00:19:14,280 --> 00:19:16,679 Speaker 1: yes Phillips every week, right, So it's going to make 434 00:19:16,760 --> 00:19:20,000 Speaker 1: a big difference over time if you decide to go electric. 435 00:19:20,040 --> 00:19:22,720 Speaker 1: But enough about electric vehicles. We have more to get to. 436 00:19:23,080 --> 00:19:24,800 Speaker 1: There's a whole lot of stuff you need to think 437 00:19:24,800 --> 00:19:27,159 Speaker 1: about before you even start browsing the internet for that 438 00:19:27,320 --> 00:19:29,600 Speaker 1: new car, and we'll get to our thoughts on that 439 00:19:29,880 --> 00:19:41,520 Speaker 1: right after this break. We're back and we're talking about 440 00:19:41,600 --> 00:19:44,320 Speaker 1: buying cars the right way and u. Yeah, you know, 441 00:19:44,440 --> 00:19:45,840 Speaker 1: like you mentioned, we've got a lot more to talk 442 00:19:45,840 --> 00:19:48,960 Speaker 1: about on the how to front here, but it's also 443 00:19:49,000 --> 00:19:51,600 Speaker 1: important to explain maybe a bit more about how we 444 00:19:51,680 --> 00:19:55,200 Speaker 1: think about cars because we think of them mainly as 445 00:19:55,359 --> 00:19:59,040 Speaker 1: point A to point be transportation vehicles. That's true. So 446 00:19:59,080 --> 00:20:01,080 Speaker 1: you know, people who think of their cars as their baby, 447 00:20:01,480 --> 00:20:04,720 Speaker 1: they're gonna come to a different conclusion about how much 448 00:20:04,720 --> 00:20:06,160 Speaker 1: they should pay for a car. You know, the people 449 00:20:06,160 --> 00:20:09,080 Speaker 1: who are putting the fake hilashes on the headlights, we 450 00:20:09,080 --> 00:20:11,320 Speaker 1: don't do that. Yeah, we don't do that, or the 451 00:20:11,600 --> 00:20:15,320 Speaker 1: antlers at Christmas. Uh, that's a different breed of folks 452 00:20:15,320 --> 00:20:17,439 Speaker 1: as well. But the pure and simple fact is that 453 00:20:17,560 --> 00:20:20,639 Speaker 1: cars are liabilities, they're not assets. And so keep this 454 00:20:20,680 --> 00:20:22,919 Speaker 1: in mind that buying a car that's seven to ten 455 00:20:22,960 --> 00:20:25,320 Speaker 1: years old, it won't just save you quite a bit 456 00:20:25,320 --> 00:20:27,719 Speaker 1: of money. We think that, uh, it actually comes with 457 00:20:27,760 --> 00:20:32,239 Speaker 1: some legitimate psychological benefits as well, because man, sometimes we 458 00:20:32,240 --> 00:20:34,040 Speaker 1: think that a big purchase like a new car, we 459 00:20:34,080 --> 00:20:36,439 Speaker 1: think it's gonna make us happy. But we're here to 460 00:20:36,480 --> 00:20:38,800 Speaker 1: tell you that it won't. No one is judging you 461 00:20:38,840 --> 00:20:41,679 Speaker 1: for the car that you drive, uh, or actually if 462 00:20:41,680 --> 00:20:44,200 Speaker 1: they are like that's their own problem. Don't let those 463 00:20:44,320 --> 00:20:47,119 Speaker 1: social pressures cause you to overspend on something that you 464 00:20:47,480 --> 00:20:50,919 Speaker 1: really actually don't care all that much about. Being comfortable 465 00:20:51,000 --> 00:20:54,280 Speaker 1: driving an older car is a good thing. The ability 466 00:20:54,320 --> 00:20:55,800 Speaker 1: for you to take that money that you're saving and 467 00:20:55,800 --> 00:20:58,200 Speaker 1: put that towards retirement, that is a good thing. It's 468 00:20:58,240 --> 00:21:01,240 Speaker 1: not necessarily that we want you to deny yourself. However, 469 00:21:01,480 --> 00:21:04,639 Speaker 1: we do want you to focus on other goals that 470 00:21:04,720 --> 00:21:06,600 Speaker 1: might be a bit more important. Yeah, man, I think 471 00:21:06,600 --> 00:21:09,400 Speaker 1: you're right. And I think sometimes those societal pressures can 472 00:21:09,440 --> 00:21:12,200 Speaker 1: cause us to make decisions with our money that don't 473 00:21:12,200 --> 00:21:14,240 Speaker 1: align with our values, or that don't align with our 474 00:21:14,400 --> 00:21:17,240 Speaker 1: desires for what our life is gonna look like. It's 475 00:21:17,240 --> 00:21:19,199 Speaker 1: just kind of like everybody else is around me is 476 00:21:19,240 --> 00:21:21,200 Speaker 1: doing this, and so maybe I should do it too. 477 00:21:21,560 --> 00:21:24,119 Speaker 1: And I think when we when we reconsider what a 478 00:21:24,200 --> 00:21:26,520 Speaker 1: vehicle looks like our means to us in our lives, 479 00:21:26,680 --> 00:21:28,320 Speaker 1: it can cause us actually to dig a little deeper 480 00:21:28,320 --> 00:21:30,560 Speaker 1: and address what it is that's truly going to make 481 00:21:30,600 --> 00:21:32,679 Speaker 1: us happy. Because it's not the car that's gonna make 482 00:21:32,760 --> 00:21:34,760 Speaker 1: us happy. It's stuff. The new car sent doesn't last 483 00:21:34,880 --> 00:21:37,440 Speaker 1: very long, you know, and so why not cut straight 484 00:21:37,480 --> 00:21:40,000 Speaker 1: to the chase and figure out that it's the things 485 00:21:40,000 --> 00:21:43,240 Speaker 1: like close relationships, meaningful work that actually, you know, make 486 00:21:43,320 --> 00:21:46,560 Speaker 1: us happy instead of taking a forty seven thousand dollar 487 00:21:46,600 --> 00:21:49,879 Speaker 1: detour car price yeah further down the road, or a 488 00:21:49,920 --> 00:21:52,159 Speaker 1: thirty thousand dollar de tour by spending the average amount 489 00:21:52,200 --> 00:21:54,360 Speaker 1: on a used car. Plus you and I, we kind 490 00:21:54,359 --> 00:21:56,840 Speaker 1: of view crossing that two hundred thousand mile mark as 491 00:21:56,880 --> 00:21:58,719 Speaker 1: a badge of honor, Like, if you've been driving your 492 00:21:58,720 --> 00:22:01,000 Speaker 1: car long enough that you've hit that, you take some 493 00:22:01,040 --> 00:22:04,320 Speaker 1: pride in in hitting that number, you should, yeah and so, 494 00:22:04,440 --> 00:22:07,080 Speaker 1: And with car reliability being pretty great across the board 495 00:22:07,119 --> 00:22:10,000 Speaker 1: these days, even that threshold isn't a death sentence for 496 00:22:10,080 --> 00:22:15,199 Speaker 1: your car personally. Matt, I'm at miles on Homer. What 497 00:22:15,240 --> 00:22:17,080 Speaker 1: how many of you have? I think a little over 498 00:22:17,080 --> 00:22:21,080 Speaker 1: a hundred on how? Which are the names of our vans? 499 00:22:21,119 --> 00:22:23,840 Speaker 1: By the way, if folks were wondering, listeners actually named 500 00:22:23,840 --> 00:22:26,000 Speaker 1: our vans. So when stuck with the h motifs, since 501 00:22:26,000 --> 00:22:29,600 Speaker 1: we're talking about Honda's How is for the sci fi robot. 502 00:22:29,680 --> 00:22:32,800 Speaker 1: Homer is for the Atlanta Braves mascot that likes to 503 00:22:32,960 --> 00:22:35,960 Speaker 1: run around and mess with people in the stands, and 504 00:22:35,960 --> 00:22:38,399 Speaker 1: so that naming convention won the contests, right, Yeah, And 505 00:22:38,440 --> 00:22:40,720 Speaker 1: so I think, really, you know, my car is a 506 00:22:40,760 --> 00:22:42,880 Speaker 1: two thousand and six. I think part of this is 507 00:22:42,880 --> 00:22:45,439 Speaker 1: is we just need a mental reframe on, you know, 508 00:22:45,480 --> 00:22:47,960 Speaker 1: when it comes to how we view our car. And 509 00:22:48,000 --> 00:22:49,720 Speaker 1: it's okay for some people to be car obsessed and 510 00:22:49,760 --> 00:22:51,480 Speaker 1: to say that's my craft beer equivalent and I put 511 00:22:51,480 --> 00:22:53,400 Speaker 1: more of my money there, but for most of us, 512 00:22:53,480 --> 00:22:55,119 Speaker 1: for most of us, this is a place where we 513 00:22:55,160 --> 00:22:58,720 Speaker 1: can save substantial amounts of money, enabling us to live 514 00:22:58,760 --> 00:23:01,000 Speaker 1: the lives we actually want. Yeah, and I was thinking 515 00:23:01,040 --> 00:23:02,840 Speaker 1: you mentioned how like it should be a badge of honor. 516 00:23:03,000 --> 00:23:06,480 Speaker 1: Somebody should make like a bumper sticker with different mileage 517 00:23:06,480 --> 00:23:08,800 Speaker 1: amounts on there, sort of like achievement badges, you know, 518 00:23:08,880 --> 00:23:11,040 Speaker 1: like if it's all about gamification, and if we can 519 00:23:11,080 --> 00:23:14,680 Speaker 1: find different ways to like mentally shift not only how 520 00:23:14,920 --> 00:23:16,880 Speaker 1: you see your own vehicle, but how like the people 521 00:23:16,920 --> 00:23:19,199 Speaker 1: around you see it, we should literally be wearing that 522 00:23:19,240 --> 00:23:21,320 Speaker 1: as a badge of honor. And then as you progress 523 00:23:21,400 --> 00:23:23,520 Speaker 1: in miles, you get to add like new stickers, and 524 00:23:23,760 --> 00:23:25,600 Speaker 1: all of a sudden, like instead of like thirteen point 525 00:23:25,640 --> 00:23:28,680 Speaker 1: one for like a half you know, twenty six point two. 526 00:23:29,400 --> 00:23:31,720 Speaker 1: I want it to be actual miles that your car 527 00:23:31,800 --> 00:23:34,560 Speaker 1: is currently on. There you go, were there? Yeah, advertise 528 00:23:34,640 --> 00:23:36,480 Speaker 1: it to everyone. I always like the bumper sticker that 529 00:23:36,480 --> 00:23:38,720 Speaker 1: people would put on like a crumby old Toyota camera 530 00:23:38,800 --> 00:23:40,280 Speaker 1: or something that's like twenty years old, and it said, 531 00:23:40,400 --> 00:23:42,480 Speaker 1: don't let this car fuol you my treasures in heaven, 532 00:23:42,720 --> 00:23:45,760 Speaker 1: And it's just ironic. I like that. One of the 533 00:23:45,800 --> 00:23:48,560 Speaker 1: other steps to buying a car that you must not 534 00:23:48,720 --> 00:23:51,480 Speaker 1: skip is to ask yourself if you even need this car. 535 00:23:51,560 --> 00:23:54,520 Speaker 1: We want you to assess your current situation. Just because 536 00:23:54,520 --> 00:23:58,119 Speaker 1: you've always gotten a new ride every for six years, 537 00:23:58,480 --> 00:24:00,639 Speaker 1: that doesn't mean that you should continue a trend. We 538 00:24:00,680 --> 00:24:02,719 Speaker 1: want you to ask yourself, can we get by as 539 00:24:02,760 --> 00:24:05,119 Speaker 1: a one car family? Like, what's the current and future 540 00:24:05,119 --> 00:24:06,679 Speaker 1: state of working from home? What does that look like 541 00:24:06,720 --> 00:24:09,040 Speaker 1: for you? Something like one in seven jobs are at 542 00:24:09,040 --> 00:24:11,240 Speaker 1: work from home now. And if you used to go 543 00:24:11,280 --> 00:24:13,680 Speaker 1: into the office but you don't anymore, it's worth questioning 544 00:24:13,720 --> 00:24:16,199 Speaker 1: whether or not you actually need another car before you 545 00:24:16,240 --> 00:24:18,200 Speaker 1: buy it. Yeah, you might be all about the idea 546 00:24:18,200 --> 00:24:19,800 Speaker 1: of replacing that car because it's getting too old, and 547 00:24:19,800 --> 00:24:21,880 Speaker 1: then you're like wait a second, I don't drive nearly 548 00:24:21,880 --> 00:24:23,359 Speaker 1: as much as I used to write. A second, our 549 00:24:23,400 --> 00:24:25,159 Speaker 1: cars sitting the driveway nine and nine percent of the 550 00:24:25,200 --> 00:24:27,440 Speaker 1: time anyway, and there's always at least one home. Uh, 551 00:24:27,480 --> 00:24:29,600 Speaker 1: maybe we only need one car exactly. And that is 552 00:24:29,680 --> 00:24:31,720 Speaker 1: so true about cars, is that they sit idle so 553 00:24:31,800 --> 00:24:34,320 Speaker 1: much of the time, something like of the time your 554 00:24:34,320 --> 00:24:36,280 Speaker 1: car is not in use. And so yeah, if you 555 00:24:36,280 --> 00:24:38,040 Speaker 1: can figure out that extra four percent of the time, 556 00:24:38,440 --> 00:24:41,480 Speaker 1: you can save a bundle. And yeah, there are other 557 00:24:41,480 --> 00:24:43,960 Speaker 1: ways to get around besides cars. That's part of it too, Matt. 558 00:24:44,000 --> 00:24:46,119 Speaker 1: And that's what we want to emphasize is cargo bikes 559 00:24:46,119 --> 00:24:48,720 Speaker 1: are one of our favorite ways for for people to 560 00:24:48,920 --> 00:24:52,359 Speaker 1: haul their stuff around, haul their kiddos around, go get groceries, 561 00:24:52,640 --> 00:24:54,800 Speaker 1: and just get dropped my kids morning at school on 562 00:24:54,840 --> 00:24:57,440 Speaker 1: the bike, even though it was thirty five degrees. Uh 563 00:24:57,720 --> 00:24:59,840 Speaker 1: it's fun. Yeah, yeah it is. And can I say 564 00:24:59,840 --> 00:25:02,000 Speaker 1: how the Sometimes they'll complain, but we make a it's 565 00:25:02,000 --> 00:25:03,960 Speaker 1: an event true. And what we're asking people to do 566 00:25:04,160 --> 00:25:07,719 Speaker 1: is to look ahead and forecast their needs, not just 567 00:25:07,960 --> 00:25:10,640 Speaker 1: get what they want. And Matt, you mentioned working from home, 568 00:25:10,680 --> 00:25:12,760 Speaker 1: but I'm also thinking about size of the family here. Right. 569 00:25:12,800 --> 00:25:15,120 Speaker 1: If you're if you're thinking about growing your family, maybe 570 00:25:15,160 --> 00:25:17,840 Speaker 1: adding a kiddo or two into the mix, then that 571 00:25:17,920 --> 00:25:20,680 Speaker 1: motorcycle probably isn't gonna cut it anymore. Or the two 572 00:25:20,720 --> 00:25:23,240 Speaker 1: door Honda Civic, like, it's just it's not going to 573 00:25:23,320 --> 00:25:24,800 Speaker 1: be the best purchase. And so I'm not going to 574 00:25:24,840 --> 00:25:26,960 Speaker 1: be able to get the kid out of the car seat, 575 00:25:27,240 --> 00:25:28,879 Speaker 1: uh in the back of a two door. Yes, but 576 00:25:28,920 --> 00:25:30,760 Speaker 1: it's possible. I know there are people who listening right 577 00:25:30,760 --> 00:25:32,600 Speaker 1: now who have done that. However, we tried that one 578 00:25:32,600 --> 00:25:35,640 Speaker 1: time in a friend's car and it was extremely extremely difficult. 579 00:25:36,160 --> 00:25:38,080 Speaker 1: Well true, and I think you know, for other folks, 580 00:25:38,119 --> 00:25:40,800 Speaker 1: let's say they've already got a station Wagon and they're 581 00:25:40,840 --> 00:25:43,680 Speaker 1: about to to bring home their second kiddo. Well, station 582 00:25:43,720 --> 00:25:45,879 Speaker 1: wagon still works for a family affort, so you might 583 00:25:45,920 --> 00:25:48,119 Speaker 1: not necessarily need to upgrade. These are the kind of 584 00:25:48,160 --> 00:25:51,399 Speaker 1: questions you're gonna want to ask before you actually start shopping, 585 00:25:51,480 --> 00:25:53,359 Speaker 1: is like, do I need this? Do I have other 586 00:25:53,400 --> 00:25:56,600 Speaker 1: alternate forms of transportation? Am I actually driving nearly as 587 00:25:56,680 --> 00:25:58,159 Speaker 1: much as I used to? Like? Do we need to 588 00:25:58,160 --> 00:25:59,520 Speaker 1: be a two car family? Could we be a one 589 00:25:59,520 --> 00:26:01,720 Speaker 1: car family? If you start to ask these questions, you 590 00:26:01,800 --> 00:26:04,840 Speaker 1: might find that your need, or like the need you 591 00:26:04,880 --> 00:26:07,399 Speaker 1: thought you had for to buy a new car, goes 592 00:26:07,440 --> 00:26:09,879 Speaker 1: away completely. That's right. You might just discover that it 593 00:26:09,920 --> 00:26:11,760 Speaker 1: was in fact a want. So you want to make 594 00:26:11,760 --> 00:26:13,480 Speaker 1: sure that the car that you're buying, you know, works 595 00:26:13,520 --> 00:26:15,320 Speaker 1: for your family and your lifestyle, but you also want 596 00:26:15,359 --> 00:26:17,840 Speaker 1: to make sure that it fits with your budget. And 597 00:26:18,160 --> 00:26:19,920 Speaker 1: a good rule of thumb that we've come up with 598 00:26:20,160 --> 00:26:22,240 Speaker 1: that makes sense to us is that if you combine 599 00:26:22,600 --> 00:26:25,439 Speaker 1: your net worth with your annual salary and then you 600 00:26:25,480 --> 00:26:27,959 Speaker 1: take ten percent of that total, well, we feel that 601 00:26:27,960 --> 00:26:30,240 Speaker 1: that is how much car that you should be able 602 00:26:30,280 --> 00:26:32,440 Speaker 1: to afford. So, for example, let's say that you're in 603 00:26:32,480 --> 00:26:35,520 Speaker 1: your twenties. Maybe you've got twenty five dollars in student 604 00:26:35,560 --> 00:26:38,440 Speaker 1: loans still, but you make a hundred thousand dollars a year, 605 00:26:38,480 --> 00:26:40,720 Speaker 1: so that gets you to seventy five thou right, so 606 00:26:40,760 --> 00:26:42,880 Speaker 1: you should be looking at a car that costs around 607 00:26:43,200 --> 00:26:46,719 Speaker 1: seventy dollars. I think a lot of folks listening right 608 00:26:46,720 --> 00:26:49,520 Speaker 1: now they're not gonna like this formula, but we feel 609 00:26:49,520 --> 00:26:51,080 Speaker 1: that this is a good practice. We think this is 610 00:26:51,080 --> 00:26:53,480 Speaker 1: a good method, a good rule of thumb in order 611 00:26:53,560 --> 00:26:57,919 Speaker 1: to spend less on vehicles, spend less on expenses that 612 00:26:57,960 --> 00:27:00,040 Speaker 1: don't need to cost so much, and instead funnel that 613 00:27:00,160 --> 00:27:03,480 Speaker 1: money towards long term investing. Uh So, another example, maybe 614 00:27:03,480 --> 00:27:05,719 Speaker 1: you're in your thirties. Let's say you've got some assets, 615 00:27:05,720 --> 00:27:08,119 Speaker 1: You've got a hundred thousand dollars in retirement, maybe you 616 00:27:08,160 --> 00:27:10,439 Speaker 1: make a hundred and fifty thousand dollars. Uh And so 617 00:27:10,600 --> 00:27:13,040 Speaker 1: for you, if that's your situation, that means you can 618 00:27:13,080 --> 00:27:15,800 Speaker 1: afford a twenty five dollar car. I'm pretty sure we're 619 00:27:15,800 --> 00:27:17,640 Speaker 1: gonna get some pushback from a lot of people who 620 00:27:17,680 --> 00:27:20,880 Speaker 1: have vehicles that cost more than maybe what this little 621 00:27:20,920 --> 00:27:23,960 Speaker 1: formula would allow them to purchase. But again, we think 622 00:27:23,960 --> 00:27:25,640 Speaker 1: that this is if you are able to sit down 623 00:27:25,640 --> 00:27:28,480 Speaker 1: with some easy, simple back of the napkin math, we 624 00:27:28,520 --> 00:27:29,960 Speaker 1: think that this is going to get you within the 625 00:27:30,080 --> 00:27:33,840 Speaker 1: range of what we think is financially responsible, especially as 626 00:27:33,880 --> 00:27:36,200 Speaker 1: you are seeking to pursue something like some financial freedom 627 00:27:36,280 --> 00:27:38,600 Speaker 1: or financial independence. I've always like to go even more 628 00:27:38,640 --> 00:27:41,439 Speaker 1: stringent than this rule for myself, because my goals for 629 00:27:41,520 --> 00:27:44,360 Speaker 1: my money are not support into a two B transportation. 630 00:27:44,520 --> 00:27:47,560 Speaker 1: So it all depends also on how you think about cars, 631 00:27:47,680 --> 00:27:49,800 Speaker 1: and so for us, we're saying we don't prioritize it 632 00:27:50,119 --> 00:27:52,480 Speaker 1: them all that heavily. And you're listening to a podcast 633 00:27:52,480 --> 00:27:54,639 Speaker 1: about personal finance, so of course we are going to 634 00:27:54,640 --> 00:27:57,359 Speaker 1: try to persuade you to think similarly to the way 635 00:27:57,440 --> 00:27:59,600 Speaker 1: we think when it comes to your money, and how 636 00:27:59,640 --> 00:28:02,080 Speaker 1: more of money should be going towards investing so that 637 00:28:02,119 --> 00:28:05,320 Speaker 1: you can grow it, not towards a depreciating asset totally. 638 00:28:05,400 --> 00:28:07,800 Speaker 1: And let's let's keep talking about like what you need 639 00:28:07,840 --> 00:28:10,320 Speaker 1: to do when it comes to to researching that. Certainly 640 00:28:10,400 --> 00:28:12,840 Speaker 1: you need to research your budget how much you can afford, 641 00:28:12,880 --> 00:28:15,080 Speaker 1: but then you also need to look into the reliability 642 00:28:15,160 --> 00:28:17,239 Speaker 1: of the car that you want. That's one of those 643 00:28:17,280 --> 00:28:19,360 Speaker 1: things that you want to assess before you start hitting 644 00:28:19,400 --> 00:28:22,120 Speaker 1: up used car lots or scouring Craigslist, and so, yeah, 645 00:28:22,200 --> 00:28:24,560 Speaker 1: does does the car that you want actually tend to 646 00:28:24,600 --> 00:28:27,199 Speaker 1: hold up over time? You've talked Matt many times on 647 00:28:27,200 --> 00:28:29,920 Speaker 1: the podcast about your the car you drove in college 648 00:28:30,000 --> 00:28:32,520 Speaker 1: and how it was not very reliable and how I 649 00:28:32,600 --> 00:28:34,600 Speaker 1: ended up costing you a lot of money because of that. 650 00:28:34,640 --> 00:28:36,560 Speaker 1: So it's not just the sticker price to the car, 651 00:28:36,600 --> 00:28:38,320 Speaker 1: but it's how much you're gonna be putting into it. 652 00:28:38,360 --> 00:28:41,640 Speaker 1: Along the way. It's probably the least reliable vehicle and 653 00:28:41,720 --> 00:28:45,760 Speaker 1: most expensive to have service yea, and Consumer Reports consistently 654 00:28:45,840 --> 00:28:48,320 Speaker 1: ranks it as like one of the least reliable vehicles. 655 00:28:48,440 --> 00:28:52,240 Speaker 1: We're talking about I had early nineties land Rover range Rover. Yes, 656 00:28:52,400 --> 00:28:54,320 Speaker 1: so there you go, yep. Yeah, and so if you 657 00:28:54,440 --> 00:28:58,320 Speaker 1: if you eat, I'll be on a beautiful dope car. Yeah. However, 658 00:28:58,360 --> 00:28:59,800 Speaker 1: if when you're looking at the money, it doesn't make 659 00:28:59,800 --> 00:29:01,560 Speaker 1: any sense. They look great, they cost you a lot 660 00:29:01,600 --> 00:29:03,760 Speaker 1: of money. So you know, we place a high importance 661 00:29:03,840 --> 00:29:06,520 Speaker 1: on on reliability as a metric when buying the used car, 662 00:29:06,880 --> 00:29:09,960 Speaker 1: and some brands consistently perform better. But but be sure 663 00:29:10,040 --> 00:29:12,760 Speaker 1: to check into the specific year, make, and model because 664 00:29:13,040 --> 00:29:15,760 Speaker 1: reliability varies over time. You might find that the two 665 00:29:15,760 --> 00:29:18,480 Speaker 1: thousand nine model was not so great, but the two 666 00:29:18,480 --> 00:29:20,640 Speaker 1: thousand eleven they had improved it quite a bit, and 667 00:29:20,680 --> 00:29:22,120 Speaker 1: so you're just gonna kind of want to dig into 668 00:29:22,120 --> 00:29:25,479 Speaker 1: those details. Checking the reliability rankings can be helpful when 669 00:29:25,520 --> 00:29:27,360 Speaker 1: it comes to ensuring that you're not buying, you know, 670 00:29:27,400 --> 00:29:29,680 Speaker 1: a car that's gonna present a lot of issues once 671 00:29:29,720 --> 00:29:31,680 Speaker 1: it's yours. Like you're talking about maintenance costs, but that's 672 00:29:31,680 --> 00:29:33,440 Speaker 1: something else that you want to factor in, because that 673 00:29:33,560 --> 00:29:35,400 Speaker 1: might be one of the reasons that you would prefer 674 00:29:35,440 --> 00:29:37,560 Speaker 1: to go with a new car, right you don't wanna 675 00:29:37,800 --> 00:29:39,480 Speaker 1: have to deal with the hassle or the cost of 676 00:29:39,560 --> 00:29:41,880 Speaker 1: going to the mechanic. But the truth is that what 677 00:29:41,960 --> 00:29:44,760 Speaker 1: you'll pay to maintain a used vehicle, if you've been 678 00:29:44,800 --> 00:29:47,960 Speaker 1: savvy as a consumer, it really isn't all that much. 679 00:29:48,200 --> 00:29:50,880 Speaker 1: The average ten year old car cost just over fos 680 00:29:50,960 --> 00:29:53,960 Speaker 1: to maintain every single year. Uh, you're gonna pay less 681 00:29:54,040 --> 00:29:57,160 Speaker 1: than one year owning and driving a used car than 682 00:29:57,200 --> 00:29:59,760 Speaker 1: just what one monthly payment would cost you on a 683 00:30:00,120 --> 00:30:03,640 Speaker 1: one So keep that in mind. Oftentimes we overblow maintenance costs, 684 00:30:03,640 --> 00:30:06,320 Speaker 1: but in reality it is much much less. That's right, man. 685 00:30:06,360 --> 00:30:09,200 Speaker 1: I think we we often overestimate the amount of money 686 00:30:09,200 --> 00:30:11,200 Speaker 1: that we're gonna spend fixing up the old car that 687 00:30:11,240 --> 00:30:13,320 Speaker 1: we have. We're like, that's just gonna be a money pit. 688 00:30:13,600 --> 00:30:16,000 Speaker 1: But when you look at the numbers, that's just not true. 689 00:30:16,320 --> 00:30:18,520 Speaker 1: That a ten year old car is actually is gonna 690 00:30:18,600 --> 00:30:20,760 Speaker 1: cost you a whole lot less, and it's also actually 691 00:30:20,760 --> 00:30:23,640 Speaker 1: gonna be for the most part, reliable. Obviously, you want 692 00:30:23,680 --> 00:30:25,840 Speaker 1: to make sure that you find a used car that's 693 00:30:26,000 --> 00:30:29,320 Speaker 1: more reliable than just the average one. But let's let's 694 00:30:29,320 --> 00:30:31,920 Speaker 1: just talk about how we feel about new cars. And 695 00:30:32,560 --> 00:30:34,840 Speaker 1: I'm sure people can infer at this point that we're 696 00:30:34,840 --> 00:30:36,960 Speaker 1: not big fans, that we don't usually push people in 697 00:30:36,960 --> 00:30:39,360 Speaker 1: the direction of buying a new car. And we already 698 00:30:39,360 --> 00:30:41,360 Speaker 1: talked about how pricey new cars are, how they're there's 699 00:30:41,400 --> 00:30:44,400 Speaker 1: so much more expensive than used ones. Although there are 700 00:30:44,440 --> 00:30:46,760 Speaker 1: some cases when buying a new car isn't the worst 701 00:30:46,800 --> 00:30:49,280 Speaker 1: thing that you could do. Actually, I wrote an article 702 00:30:49,280 --> 00:30:51,120 Speaker 1: on our site about when it might make sense for 703 00:30:51,200 --> 00:30:53,200 Speaker 1: some folks to buy a new car, And so if 704 00:30:53,200 --> 00:30:55,160 Speaker 1: you're the kind of person who's up for keeping the 705 00:30:55,200 --> 00:30:57,320 Speaker 1: same car for at least a decade, then I would 706 00:30:57,320 --> 00:30:59,720 Speaker 1: say buying new isn't a terrible idea if you're like, listen, 707 00:31:00,000 --> 00:31:01,440 Speaker 1: I want to know what's wrong with it. I don't 708 00:31:01,440 --> 00:31:04,720 Speaker 1: want to chance it to a previous owner. I want 709 00:31:04,760 --> 00:31:06,640 Speaker 1: to make all these decisions for this car. But I'm 710 00:31:06,680 --> 00:31:08,400 Speaker 1: gonna own it for a long time. I think that's 711 00:31:08,400 --> 00:31:12,280 Speaker 1: a different situation. And if you're in money year number seven, basically, 712 00:31:12,560 --> 00:31:14,840 Speaker 1: if you've reached this point of financial independence, and I 713 00:31:14,840 --> 00:31:17,000 Speaker 1: feel like this is a splurge that you can make. 714 00:31:17,400 --> 00:31:19,720 Speaker 1: You can afford to buy a new car at this point, 715 00:31:19,880 --> 00:31:22,480 Speaker 1: because it's basically it's a drop in the in the 716 00:31:22,520 --> 00:31:26,080 Speaker 1: bucket compared to your overall net worth. And yeah, for 717 00:31:26,080 --> 00:31:27,680 Speaker 1: for most folks that we would say, it's still a 718 00:31:27,680 --> 00:31:30,720 Speaker 1: bad financial move. And it's an even worse financial move 719 00:31:30,800 --> 00:31:33,800 Speaker 1: if you're looking to buy a new luxury car. And 720 00:31:33,800 --> 00:31:35,920 Speaker 1: and that is because of like what you mentioned, Matt, 721 00:31:35,960 --> 00:31:38,760 Speaker 1: with the rising ev adoption, you stay to lose even 722 00:31:38,800 --> 00:31:43,080 Speaker 1: more money now buying, especially a luxury gas powered car, 723 00:31:43,520 --> 00:31:46,600 Speaker 1: because those are going to depreciate I'm predicting more quickly 724 00:31:46,800 --> 00:31:48,800 Speaker 1: in the coming years because there's gonna be so many 725 00:31:48,840 --> 00:31:51,880 Speaker 1: great luxury evs that people are gravitating towards. Absolutely, dude, Yeah, 726 00:31:51,920 --> 00:31:54,160 Speaker 1: I mean, and those are the ones that we're really seeing, 727 00:31:54,600 --> 00:31:58,400 Speaker 1: Uh stand out. Have you seen pictures of the lucid Sedan? Yeah, 728 00:31:58,400 --> 00:32:02,880 Speaker 1: I think is pure awesome. Note like so it's fancy, 729 00:32:03,360 --> 00:32:05,960 Speaker 1: look so freaking cool. And you know another thing too, 730 00:32:06,080 --> 00:32:08,000 Speaker 1: like you can buy a nice used car and it 731 00:32:08,000 --> 00:32:10,320 Speaker 1: doesn't have to cost an arm and a leg. Consumer 732 00:32:10,320 --> 00:32:12,880 Speaker 1: Reports they always make a like these great lists of 733 00:32:12,920 --> 00:32:15,720 Speaker 1: the best used cars to buy under a certain price point, 734 00:32:16,160 --> 00:32:17,880 Speaker 1: and so we'll make sure to link to their their 735 00:32:17,920 --> 00:32:19,800 Speaker 1: list of I think they've got a list of best 736 00:32:19,880 --> 00:32:22,240 Speaker 1: used cars that's under ten thousand dollars. We will make 737 00:32:22,280 --> 00:32:24,920 Speaker 1: sure to put that in our show notes for this episode. 738 00:32:25,160 --> 00:32:27,400 Speaker 1: But don't think that just because the average price of 739 00:32:27,440 --> 00:32:29,600 Speaker 1: a used car is that thirty thou dollars, that you 740 00:32:30,040 --> 00:32:33,000 Speaker 1: have to come even close to that number, because you don't. Yeah, 741 00:32:33,040 --> 00:32:35,200 Speaker 1: I think so. I think we we benchmark against that number. 742 00:32:35,240 --> 00:32:37,080 Speaker 1: We're like, all right, I'm gonna go I'm gonna go 743 00:32:37,080 --> 00:32:38,840 Speaker 1: super cheap and I'll buy something that's twenty five thousand. 744 00:32:38,920 --> 00:32:40,400 Speaker 1: It's like, no, you don't even have to do that 745 00:32:40,640 --> 00:32:42,720 Speaker 1: or even or even just like worse than that, right, 746 00:32:42,760 --> 00:32:44,680 Speaker 1: subscribing to the average and saying, all right, I guess 747 00:32:44,760 --> 00:32:47,280 Speaker 1: you know, we're gonna shoot for something around thirty thousand dollars. 748 00:32:47,280 --> 00:32:49,320 Speaker 1: Maybe we'll even go a little bit above average because 749 00:32:49,680 --> 00:32:53,680 Speaker 1: we're unique, special, we're treating ourselves right, well, I think yeah. 750 00:32:53,800 --> 00:32:55,880 Speaker 1: Another question that comes up when people are buying a 751 00:32:56,000 --> 00:32:58,880 Speaker 1: used car is what about certified pre owned? Is that 752 00:32:58,880 --> 00:33:00,920 Speaker 1: the best way to go? Does? And I think a 753 00:33:00,960 --> 00:33:04,600 Speaker 1: lot of people instantly assume that if it's a certified 754 00:33:04,600 --> 00:33:07,560 Speaker 1: pre owned vehicle that it's been taking care of so 755 00:33:07,680 --> 00:33:10,360 Speaker 1: much better, or it is, of course it's worth the 756 00:33:10,440 --> 00:33:12,960 Speaker 1: extra a few thousand dollars that the dealership is trying 757 00:33:12,960 --> 00:33:14,560 Speaker 1: to charge for that. I mean, they told me there 758 00:33:14,640 --> 00:33:16,880 Speaker 1: was a one thousand point inspection on that vehicle, so 759 00:33:16,920 --> 00:33:18,920 Speaker 1: it must be worth the price that they're asking for. 760 00:33:18,960 --> 00:33:22,160 Speaker 1: You will give yours the ten thousand points. It's like, 761 00:33:22,520 --> 00:33:25,040 Speaker 1: what do these points mean? Right? Exact meaning anything anymore? 762 00:33:25,760 --> 00:33:29,280 Speaker 1: But we would say not all CPO designations are made 763 00:33:29,280 --> 00:33:31,880 Speaker 1: the same, like a different dealerships take a different tact 764 00:33:31,920 --> 00:33:34,760 Speaker 1: towards what that means. And like I was saying, you're 765 00:33:34,760 --> 00:33:37,160 Speaker 1: gonna pay a good bit more for any certified pre 766 00:33:37,200 --> 00:33:39,800 Speaker 1: owned vehicle, So if you're looking to find the best value, 767 00:33:40,120 --> 00:33:42,320 Speaker 1: that's not the best route to take. Whether you go 768 00:33:42,400 --> 00:33:44,560 Speaker 1: certified pre owned or not, we still want you to 769 00:33:44,600 --> 00:33:46,959 Speaker 1: have that car inspected by a mechanic that you trust. 770 00:33:47,320 --> 00:33:50,280 Speaker 1: Because yeah, we're not completely against certified pre owned as 771 00:33:50,280 --> 00:33:53,040 Speaker 1: a designation, but it's not a silver bullet for buying 772 00:33:53,120 --> 00:33:55,120 Speaker 1: used cars. It's not like, all right, if I go 773 00:33:55,160 --> 00:33:57,000 Speaker 1: in that direction, I'm not gonna have any headaches. That is, 774 00:33:57,040 --> 00:33:59,000 Speaker 1: that is not the case, that's right. Uh, And so 775 00:33:59,040 --> 00:34:00,840 Speaker 1: we've talked a lot. There's been a lot of lead 776 00:34:00,920 --> 00:34:03,480 Speaker 1: up to actually buying a vehicle. But after the break 777 00:34:03,480 --> 00:34:06,040 Speaker 1: we're gonna get to how you can actually make that purchase. 778 00:34:15,239 --> 00:34:17,320 Speaker 1: All right, Matt, I feel like we've been long winded 779 00:34:17,400 --> 00:34:18,880 Speaker 1: as far as there's been a lot to talk about 780 00:34:18,880 --> 00:34:20,520 Speaker 1: when it comes to buying a car. But it is 781 00:34:21,160 --> 00:34:23,200 Speaker 1: is fun, Yeah, it is. I think it's fun. I 782 00:34:23,239 --> 00:34:25,040 Speaker 1: think it is too, I mean, and I think that's awesome. 783 00:34:25,120 --> 00:34:27,439 Speaker 1: Times why folks end up spending a little bit more 784 00:34:27,480 --> 00:34:29,640 Speaker 1: on their vehicles because it's just something, you know, we 785 00:34:29,719 --> 00:34:31,600 Speaker 1: say that, oh, it's just transportation from point A to 786 00:34:31,600 --> 00:34:34,839 Speaker 1: point B, but it is. It's got this other thing 787 00:34:35,239 --> 00:34:38,239 Speaker 1: wrapped up in it, right, and it causes us oftentimes 788 00:34:38,320 --> 00:34:40,680 Speaker 1: to spend more than we know we should. Well, and 789 00:34:40,680 --> 00:34:42,759 Speaker 1: we've all got non negotiables when it comes to what 790 00:34:42,840 --> 00:34:44,400 Speaker 1: we want in a car, and that is okay. It 791 00:34:44,480 --> 00:34:46,959 Speaker 1: is okay to have some standards. Like for us, once 792 00:34:47,000 --> 00:34:49,080 Speaker 1: we had our third kid, it was it was the 793 00:34:49,080 --> 00:34:52,440 Speaker 1: the power soutomatics. Yes, we're like, we're not getting but 794 00:34:52,480 --> 00:34:54,760 Speaker 1: we were able to find literally a five thousand dollar 795 00:34:55,080 --> 00:34:58,160 Speaker 1: Honda Odyssey, a couple of years ago that had that feature, 796 00:34:58,160 --> 00:34:59,920 Speaker 1: and it had some other things that we weren't even expecting. 797 00:35:00,080 --> 00:35:01,880 Speaker 1: We're like, wow, they made them really nice into other 798 00:35:01,960 --> 00:35:04,160 Speaker 1: six Like I was, I was shocked that they had 799 00:35:04,200 --> 00:35:06,719 Speaker 1: that many features back then. But there have to be 800 00:35:06,760 --> 00:35:08,640 Speaker 1: some things that you're willing to say no to in 801 00:35:08,760 --> 00:35:12,000 Speaker 1: order to save money, right, That's kind of life is 802 00:35:12,000 --> 00:35:14,239 Speaker 1: a series of trade offs. And yeah, if you want 803 00:35:14,280 --> 00:35:16,560 Speaker 1: to be able to invest more of your money, well 804 00:35:16,600 --> 00:35:18,600 Speaker 1: then buying a cheaper vehicle is one way to help 805 00:35:18,640 --> 00:35:21,440 Speaker 1: you do that. But enough about that, let's start discussing 806 00:35:21,440 --> 00:35:24,759 Speaker 1: how to go about buying and let's maybe start with 807 00:35:24,800 --> 00:35:28,080 Speaker 1: talking about financing a car and our thoughts on that, 808 00:35:28,160 --> 00:35:30,720 Speaker 1: let's do it all right, Well that basically our advice 809 00:35:30,760 --> 00:35:33,000 Speaker 1: is don't do it. Don't do it. End of discussion, 810 00:35:33,840 --> 00:35:36,480 Speaker 1: And yeah, do you have any more points? Well, basically 811 00:35:36,520 --> 00:35:39,040 Speaker 1: just that you know, we've seen a massive amount of 812 00:35:39,120 --> 00:35:41,759 Speaker 1: inflation in used car and new car prices, that those 813 00:35:41,800 --> 00:35:44,560 Speaker 1: have been the leading edge of some of those inflationary 814 00:35:44,600 --> 00:35:47,400 Speaker 1: numbers that we've been seeing. And in normal times, though, 815 00:35:47,760 --> 00:35:51,080 Speaker 1: cars are a depreciating asset and so we prefer for 816 00:35:51,120 --> 00:35:53,920 Speaker 1: you not to finance something that's quickly going to depreciate 817 00:35:53,960 --> 00:35:56,600 Speaker 1: in value. We would say, save up, pay cash. Is 818 00:35:56,600 --> 00:35:59,600 Speaker 1: it incredibly easy to save up ten grand, twenty grand 819 00:35:59,840 --> 00:36:02,160 Speaker 1: or more even to buy that car you want. No, 820 00:36:02,440 --> 00:36:04,919 Speaker 1: it's not easy, but it's the best move money wise. 821 00:36:04,960 --> 00:36:07,040 Speaker 1: And so not everyone agrees with this. I know some 822 00:36:07,080 --> 00:36:10,759 Speaker 1: people think, well, what's the big deal of financing a vehicle? Well, 823 00:36:10,840 --> 00:36:13,080 Speaker 1: we would say, yeah, you can always buy a solid 824 00:36:13,239 --> 00:36:16,920 Speaker 1: used car in that five to price range, and so 825 00:36:17,120 --> 00:36:19,480 Speaker 1: we would say that's where you should opt instead if 826 00:36:19,480 --> 00:36:21,640 Speaker 1: you don't have the cash on hand in order to 827 00:36:21,719 --> 00:36:24,600 Speaker 1: buy the more expensive car that you really want. All right, 828 00:36:24,640 --> 00:36:26,120 Speaker 1: so now that you know our stance right that we 829 00:36:26,120 --> 00:36:28,840 Speaker 1: would prefer you to pay cash for a car, please 830 00:36:28,840 --> 00:36:31,680 Speaker 1: please please pay cash for your car. But are you 831 00:36:31,719 --> 00:36:34,799 Speaker 1: begging now? Yes? Uh? But the thing is, like, I know, 832 00:36:34,880 --> 00:36:36,799 Speaker 1: not everybody is going to listen to us, and so 833 00:36:36,840 --> 00:36:38,719 Speaker 1: if you do decide that you don't want to listen 834 00:36:38,760 --> 00:36:40,799 Speaker 1: to us, you're gonna be you and you are going 835 00:36:40,840 --> 00:36:42,359 Speaker 1: to take out a loan. We want you to be 836 00:36:42,440 --> 00:36:44,279 Speaker 1: smart about it. We don't want you to become a 837 00:36:44,280 --> 00:36:47,680 Speaker 1: payment buyer where you are only focused on the amount 838 00:36:47,719 --> 00:36:50,400 Speaker 1: that you're paying every single month. When you have to 839 00:36:50,440 --> 00:36:52,560 Speaker 1: make that car payment. So many, so many people, they 840 00:36:52,600 --> 00:36:55,600 Speaker 1: focus on the payment that they're gonna pay, and they're 841 00:36:55,600 --> 00:36:58,200 Speaker 1: willing to stretch out that car loan and definitely is 842 00:36:58,280 --> 00:37:00,879 Speaker 1: essentially to make that car payment make sense for exactly. Yeah, 843 00:37:00,880 --> 00:37:01,920 Speaker 1: we want you to keep the length of your car 844 00:37:01,960 --> 00:37:05,080 Speaker 1: loan reasonable, like around thirty six months, because that would 845 00:37:05,160 --> 00:37:07,160 Speaker 1: ensure that you aren't buying a car that you can't afford. 846 00:37:07,440 --> 00:37:09,600 Speaker 1: Because yeah, if you if you do have to stretch 847 00:37:09,680 --> 00:37:11,399 Speaker 1: that out to something like seventy two months or even 848 00:37:11,480 --> 00:37:13,319 Speaker 1: more in order to buy the car that you want, 849 00:37:13,600 --> 00:37:15,040 Speaker 1: you need to go back to the drawing board and 850 00:37:15,040 --> 00:37:16,440 Speaker 1: you need to pick another car or something that you 851 00:37:16,440 --> 00:37:18,880 Speaker 1: can afford. If you don't do this, you are setting 852 00:37:18,880 --> 00:37:22,080 Speaker 1: yourself up for potentially big financial problems. If you finance 853 00:37:22,080 --> 00:37:24,000 Speaker 1: a car over a longer period of time, that's when 854 00:37:24,000 --> 00:37:25,839 Speaker 1: you might end up only more on the car than 855 00:37:25,880 --> 00:37:28,120 Speaker 1: it's actually worth because it's been years since you actually 856 00:37:28,160 --> 00:37:29,680 Speaker 1: purchased the day things right, then you get in an 857 00:37:29,680 --> 00:37:32,799 Speaker 1: accident and you're you're underwater, and that puts you in 858 00:37:33,000 --> 00:37:35,839 Speaker 1: a bind financially. And so the other thing too is 859 00:37:36,000 --> 00:37:38,600 Speaker 1: where you get financing matters, right, This could be the 860 00:37:38,640 --> 00:37:41,000 Speaker 1: difference between an interest rate of like two and a 861 00:37:41,040 --> 00:37:44,719 Speaker 1: half percent or twelve percent or even bigger, and the 862 00:37:44,840 --> 00:37:47,320 Speaker 1: app could be even larger, and that's going to impact 863 00:37:47,320 --> 00:37:49,560 Speaker 1: your monthly payment as well as a total amount that 864 00:37:49,640 --> 00:37:51,839 Speaker 1: you pay an interest over the life of that loan. 865 00:37:52,160 --> 00:37:54,759 Speaker 1: And so instead of just going to a lot, a 866 00:37:54,880 --> 00:37:57,160 Speaker 1: used car lot, and buying that car there and financing 867 00:37:57,200 --> 00:37:59,239 Speaker 1: it as well, the best thing to do, and the 868 00:37:59,280 --> 00:38:01,640 Speaker 1: simplest thing to you, is to check with your local 869 00:38:01,640 --> 00:38:04,879 Speaker 1: credit union before you head out to go shopping. Get 870 00:38:04,880 --> 00:38:07,520 Speaker 1: a proof for alone there before you start to look 871 00:38:07,520 --> 00:38:10,239 Speaker 1: around for vehicles. But again we would say skip all 872 00:38:10,280 --> 00:38:12,719 Speaker 1: this hassle and just pay with cash. That is by 873 00:38:12,719 --> 00:38:14,560 Speaker 1: far the best method. But if you are going to 874 00:38:14,600 --> 00:38:16,760 Speaker 1: finance your car, make sure that you're getting that financing 875 00:38:16,760 --> 00:38:18,760 Speaker 1: from a local credit union. That's where you're gonna get 876 00:38:18,800 --> 00:38:21,799 Speaker 1: the best rates and that's gonna save your money over time. 877 00:38:21,800 --> 00:38:24,480 Speaker 1: But again again, forget all that and just pay cash. 878 00:38:24,600 --> 00:38:27,400 Speaker 1: Pay cash. All right, let's keep moving. Let's say you 879 00:38:27,480 --> 00:38:30,440 Speaker 1: found your car. It's adorable, uh, and you can easily 880 00:38:30,480 --> 00:38:33,120 Speaker 1: afford it. That's great, right. What is next is that 881 00:38:33,160 --> 00:38:35,440 Speaker 1: you need to run a vehicle history report on a 882 00:38:35,480 --> 00:38:37,400 Speaker 1: site like Carfax. You want to make sure that you 883 00:38:37,440 --> 00:38:40,239 Speaker 1: are getting it checked out. That's gonna tip you off 884 00:38:40,280 --> 00:38:41,960 Speaker 1: to the history of the car. It's gonna let you 885 00:38:42,040 --> 00:38:44,440 Speaker 1: the previous ownership, any accidents that may have occurred, and 886 00:38:44,440 --> 00:38:46,279 Speaker 1: then after that, you actually want to get it checked 887 00:38:46,280 --> 00:38:49,640 Speaker 1: out by an independent mechanic before you purchase it. This 888 00:38:49,719 --> 00:38:52,120 Speaker 1: is one of those instances where you gotta do something. 889 00:38:52,360 --> 00:38:53,960 Speaker 1: You know you should do it, but you're going to 890 00:38:54,040 --> 00:38:55,880 Speaker 1: be so tempted to skip the step because it's going 891 00:38:55,920 --> 00:38:58,439 Speaker 1: to require some extra legwork from you. If you're body 892 00:38:58,440 --> 00:39:00,719 Speaker 1: from CarMax or Carbonna, you can go ahead and buy 893 00:39:00,719 --> 00:39:03,520 Speaker 1: it because of that seven day return window. That's something 894 00:39:03,560 --> 00:39:05,440 Speaker 1: I was able to take advantage of when we purchased 895 00:39:05,440 --> 00:39:08,440 Speaker 1: our Odyssey from Carbona. I had plenty of time to 896 00:39:08,480 --> 00:39:11,120 Speaker 1: go get that checked out at a Honda mechanic and 897 00:39:11,160 --> 00:39:13,239 Speaker 1: he was able to discover that that timing belt needed 898 00:39:13,280 --> 00:39:16,000 Speaker 1: to be replaced, and that was something that carbon A 899 00:39:16,239 --> 00:39:18,719 Speaker 1: covered for me. So again, that's one of the advantages 900 00:39:18,840 --> 00:39:21,400 Speaker 1: for some of those big sites like that. But if 901 00:39:21,400 --> 00:39:24,040 Speaker 1: you're buying from a private seller, this needs to be 902 00:39:24,320 --> 00:39:26,239 Speaker 1: a condition of the sale. You need to have worked 903 00:39:26,239 --> 00:39:28,520 Speaker 1: out ahead of time. That you have the option or 904 00:39:28,520 --> 00:39:31,080 Speaker 1: the ability to go and get this thing checked out. 905 00:39:31,719 --> 00:39:33,920 Speaker 1: You know that the pain job might look sweet, but 906 00:39:33,960 --> 00:39:35,560 Speaker 1: you want to make sure that you aren't buying a 907 00:39:35,600 --> 00:39:37,600 Speaker 1: money pit. Yeah, for sure. I've done that many times, 908 00:39:37,640 --> 00:39:40,279 Speaker 1: Matt taking that car to my mechanic and sometimes he's like, Yep, 909 00:39:40,320 --> 00:39:41,879 Speaker 1: it looks great, you should buy this, And other times 910 00:39:41,880 --> 00:39:44,160 Speaker 1: he's like, oh, not so much, and I have to 911 00:39:44,160 --> 00:39:47,200 Speaker 1: say bye, thank you, but I'm not going to purchase 912 00:39:47,200 --> 00:39:49,480 Speaker 1: your car. And one other thing I think that makes 913 00:39:49,480 --> 00:39:53,359 Speaker 1: sense in today's climate that's worth stressing when you want 914 00:39:53,400 --> 00:39:55,920 Speaker 1: to find a good deal on a used car is 915 00:39:55,960 --> 00:39:58,600 Speaker 1: that it might even make sense to fly somewhere to 916 00:39:58,680 --> 00:40:01,040 Speaker 1: buy the car that you want. That might sound strange, 917 00:40:01,040 --> 00:40:02,839 Speaker 1: It's like, well, aren't there plenty of used cars right 918 00:40:02,880 --> 00:40:05,880 Speaker 1: near where I live. Well, yeah, but it's similar to 919 00:40:05,920 --> 00:40:09,080 Speaker 1: real estate pricing dynamics fluctuating different parts of the country, 920 00:40:09,280 --> 00:40:11,560 Speaker 1: and supply chain issues might mean you've got to get 921 00:40:11,600 --> 00:40:13,440 Speaker 1: on a plane to get what you want at the 922 00:40:13,480 --> 00:40:16,719 Speaker 1: same time. But but even before the supply chain issues, Matt, 923 00:40:16,760 --> 00:40:18,520 Speaker 1: I had a friend looking to buy, of course, a 924 00:40:18,560 --> 00:40:21,040 Speaker 1: Honda Odyssey, just like just like you and I drive. 925 00:40:21,320 --> 00:40:23,680 Speaker 1: She found that the best deal was on a van 926 00:40:23,760 --> 00:40:26,239 Speaker 1: down in Orlando, Florida, and so she flew down, she 927 00:40:26,280 --> 00:40:28,799 Speaker 1: bought it and drove it home. That's small inconvenience saved 928 00:40:28,800 --> 00:40:30,799 Speaker 1: her a couple of thousand dollars. And so I would 929 00:40:30,840 --> 00:40:33,520 Speaker 1: suggest if people expand your car search beyond the town 930 00:40:33,520 --> 00:40:35,520 Speaker 1: that you live in, if you want to save even more. 931 00:40:35,760 --> 00:40:38,160 Speaker 1: You know, it's not it's not necessarily going to always 932 00:40:38,200 --> 00:40:40,000 Speaker 1: be the best move for you, but especially if you 933 00:40:40,000 --> 00:40:42,360 Speaker 1: can fly to a city where the plane ticket is 934 00:40:42,360 --> 00:40:45,040 Speaker 1: gonna cost you bucks and the gas on the way 935 00:40:45,040 --> 00:40:47,120 Speaker 1: back is going to cost you another hunter bucks, but 936 00:40:47,160 --> 00:40:49,080 Speaker 1: you can say fift ndred on the price of the car, 937 00:40:49,320 --> 00:40:51,120 Speaker 1: then that flight is going to make sense for you. 938 00:40:51,239 --> 00:40:53,160 Speaker 1: That's right, and then you can binge listen to how 939 00:40:53,160 --> 00:40:55,759 Speaker 1: the money all the way from lucky you at two 940 00:40:55,840 --> 00:40:59,600 Speaker 1: x speed. One other thing to mention, given the pricing 941 00:40:59,600 --> 00:41:01,960 Speaker 1: insane the in the car market these days, it just 942 00:41:02,000 --> 00:41:04,120 Speaker 1: makes a lot of sense to hold off as long 943 00:41:04,120 --> 00:41:06,640 Speaker 1: as you can before upgrading your car if you've determined 944 00:41:06,680 --> 00:41:09,440 Speaker 1: that you do need to replace it. Timing matters now 945 00:41:09,480 --> 00:41:11,720 Speaker 1: more than it normally does, because we believe that prices 946 00:41:11,760 --> 00:41:13,279 Speaker 1: are going to come back down to earth. But the 947 00:41:13,320 --> 00:41:16,440 Speaker 1: car market isn't going to get sorted out instantly, right, 948 00:41:16,480 --> 00:41:18,400 Speaker 1: It's gonna take an overtime. And so if you can 949 00:41:18,440 --> 00:41:20,680 Speaker 1: wait until either you know, later this year, even wait 950 00:41:20,760 --> 00:41:23,640 Speaker 1: until three, that is likely going to ensure that you 951 00:41:23,680 --> 00:41:27,160 Speaker 1: aren't paying an inflated price due to the supply chain 952 00:41:27,239 --> 00:41:30,080 Speaker 1: and chip issues that we mentioned earlier, right, And ultimately, 953 00:41:30,080 --> 00:41:32,120 Speaker 1: when it comes down to it, Matt, we want how 954 00:41:32,120 --> 00:41:34,319 Speaker 1: the money listeners to build wealth. And it's not that 955 00:41:34,400 --> 00:41:36,759 Speaker 1: we want you to drive the crumbiest card that you 956 00:41:36,840 --> 00:41:39,560 Speaker 1: absolutely hate. It's not punishment exactly that that is not 957 00:41:39,600 --> 00:41:42,040 Speaker 1: what we want either, like I really like my two 958 00:41:42,040 --> 00:41:44,040 Speaker 1: thousand and six hond Odyssey. We just want what's best 959 00:41:44,080 --> 00:41:46,520 Speaker 1: for you, for future you, not for right now you. 960 00:41:46,640 --> 00:41:48,000 Speaker 1: And going back to kind of what we said earlier, 961 00:41:48,000 --> 00:41:50,640 Speaker 1: if you can reframe this choice and you can say, look, 962 00:41:50,760 --> 00:41:53,200 Speaker 1: it's allowing me to live my life even more fully 963 00:41:53,200 --> 00:41:55,600 Speaker 1: in these other areas because it's allowing me to reach 964 00:41:55,640 --> 00:41:58,440 Speaker 1: that goal of financial independence even quicker. It's giving me 965 00:41:58,520 --> 00:42:01,799 Speaker 1: greater choice in what I do with my day to 966 00:42:01,840 --> 00:42:04,040 Speaker 1: day when it comes to my job. Like we would say, 967 00:42:04,080 --> 00:42:07,160 Speaker 1: wealth is the fancy car that you don't drive, and 968 00:42:07,200 --> 00:42:09,759 Speaker 1: so yeah, if you want to build wealth, I've got 969 00:42:09,800 --> 00:42:14,239 Speaker 1: fancy cars. They're parked in the garage of Marathaira. Those 970 00:42:14,280 --> 00:42:16,560 Speaker 1: are future fancy cars that I could potentially buy, right 971 00:42:16,840 --> 00:42:19,040 Speaker 1: And so, yeah, you're listening to How the Money because 972 00:42:19,239 --> 00:42:22,080 Speaker 1: you want help building wealth, not because you want to 973 00:42:22,120 --> 00:42:24,480 Speaker 1: buy a the fanciest of the fancy cars. And some 974 00:42:24,520 --> 00:42:26,600 Speaker 1: of our listeners do like cars more than others. And 975 00:42:26,719 --> 00:42:29,440 Speaker 1: again that's okay, do your thing. You don't have to 976 00:42:29,480 --> 00:42:31,720 Speaker 1: do it exactly the way we do it. But yeah, 977 00:42:32,200 --> 00:42:34,560 Speaker 1: if you really want to build wealth, if that's you know, 978 00:42:34,600 --> 00:42:36,480 Speaker 1: one of your top tier goals, you'll be more willing 979 00:42:36,480 --> 00:42:38,759 Speaker 1: to drive something that doesn't look as pristine. You'll be 980 00:42:38,760 --> 00:42:42,040 Speaker 1: willing to forsake some of those finest amenities or the 981 00:42:42,080 --> 00:42:44,840 Speaker 1: fanciest new touch screen in your car in order to 982 00:42:45,000 --> 00:42:47,160 Speaker 1: drive something that's going to help you reach that goal 983 00:42:47,160 --> 00:42:50,080 Speaker 1: of financial independence more quickly. You might be able to recognize, 984 00:42:50,200 --> 00:42:52,080 Speaker 1: just like I can, just like Matt can, that the 985 00:42:52,120 --> 00:42:54,560 Speaker 1: new Rivians are the best looking truck ever made in 986 00:42:54,560 --> 00:42:57,560 Speaker 1: this world, and that you absolutely really really want one, 987 00:42:57,800 --> 00:42:59,800 Speaker 1: but at the same time say, Nope, not going to 988 00:42:59,880 --> 00:43:02,239 Speaker 1: do it, because my other goals are more important for 989 00:43:02,280 --> 00:43:04,720 Speaker 1: the time being, that's right. One of the thing real quick, 990 00:43:05,000 --> 00:43:07,280 Speaker 1: the most popular cars for wealthy folks, this is according 991 00:43:07,320 --> 00:43:12,000 Speaker 1: to the Millionaire next Door are Toyotas and Honda's so 992 00:43:12,280 --> 00:43:15,000 Speaker 1: cameries and handah accords like these are the top pick 993 00:43:15,040 --> 00:43:18,319 Speaker 1: for folks who have a million dollar net worth. The 994 00:43:18,320 --> 00:43:21,680 Speaker 1: majority of those people aren't driving luxury vehicles, and so 995 00:43:22,040 --> 00:43:23,759 Speaker 1: it comes down to the question do you want to 996 00:43:23,760 --> 00:43:26,520 Speaker 1: look rich or do you want to be rich? The 997 00:43:26,520 --> 00:43:28,440 Speaker 1: car that you drive has a lot to do with 998 00:43:28,480 --> 00:43:31,239 Speaker 1: that eventual outcome, and that's why we want you to 999 00:43:31,280 --> 00:43:34,360 Speaker 1: buy cars the right way. Yeah, so hopefully that was helpful. 1000 00:43:34,400 --> 00:43:36,000 Speaker 1: And Matt, I think one of the things we mentioned 1001 00:43:36,000 --> 00:43:38,439 Speaker 1: before too is if you have an extra car sitting around, 1002 00:43:38,440 --> 00:43:39,920 Speaker 1: now it's a great time to sell it. Now, it's 1003 00:43:39,920 --> 00:43:41,920 Speaker 1: a great time to actually maybe rethink. If you're driving 1004 00:43:42,120 --> 00:43:43,960 Speaker 1: two nice of a car and you're like man, Matt 1005 00:43:43,960 --> 00:43:45,680 Speaker 1: and Joel, they just they just kind of got got 1006 00:43:45,800 --> 00:43:47,520 Speaker 1: under my skin, and now I want to do something 1007 00:43:47,719 --> 00:43:49,919 Speaker 1: and maybe get rid of this car payment, or find 1008 00:43:49,920 --> 00:43:52,920 Speaker 1: a way to drive something that's even cheaper. Well, selling 1009 00:43:53,000 --> 00:43:55,400 Speaker 1: one of your cars and becoming a one car family, 1010 00:43:55,520 --> 00:43:58,560 Speaker 1: or or downgrading to something cheaper and taking that extra 1011 00:43:58,560 --> 00:44:00,279 Speaker 1: cash so that you can stock it a way for 1012 00:44:00,480 --> 00:44:02,600 Speaker 1: your future. Now it's a perfect time to do that, 1013 00:44:02,640 --> 00:44:05,719 Speaker 1: take advantage kind of of the current market dynamics and 1014 00:44:05,760 --> 00:44:07,920 Speaker 1: save you some money. And actually, I just realized we 1015 00:44:07,960 --> 00:44:10,680 Speaker 1: did an entire episode dedicated to becoming a one car family. 1016 00:44:11,160 --> 00:44:13,520 Speaker 1: I just looked it up on my phone two forty two. 1017 00:44:13,520 --> 00:44:16,239 Speaker 1: That's episode two forty two if you want to be 1018 00:44:16,560 --> 00:44:19,560 Speaker 1: swayed even more to becoming a one carr family. And 1019 00:44:19,600 --> 00:44:22,000 Speaker 1: we recorded that while I was while we were a 1020 00:44:22,000 --> 00:44:25,120 Speaker 1: two car family. And shortly there after that's I took 1021 00:44:25,120 --> 00:44:26,919 Speaker 1: my own medicine. Oh, I love it, and we became 1022 00:44:26,960 --> 00:44:28,880 Speaker 1: a one car family. And so hopefully, maybe maybe this 1023 00:44:28,920 --> 00:44:31,279 Speaker 1: episode will help push some people in that direction. To 1024 00:44:31,480 --> 00:44:34,160 Speaker 1: all right, let's quickly mention the beer that we enjoyed 1025 00:44:34,239 --> 00:44:36,560 Speaker 1: during this episode. You and I enjoyed a Pothole City, 1026 00:44:36,760 --> 00:44:39,680 Speaker 1: which is a rocky road stout by Pipe Works Brewing 1027 00:44:39,680 --> 00:44:42,880 Speaker 1: Company out of Chicago, Illinois. What were your thoughts on 1028 00:44:42,880 --> 00:44:45,600 Speaker 1: this one? Bud? All Right, I'm gonna say chocolate marshamallowy. 1029 00:44:45,640 --> 00:44:48,960 Speaker 1: It was a perfect winter beer, Like It's a good 1030 00:44:49,200 --> 00:44:52,600 Speaker 1: deep dark stout like this is very dark beer perfect 1031 00:44:52,600 --> 00:44:55,319 Speaker 1: for these like cold winter months. Yeah. Absolutely, Yeah, it was, dude. 1032 00:44:55,320 --> 00:44:57,880 Speaker 1: It was super toasty and like roasty um. You know, 1033 00:44:57,920 --> 00:44:59,160 Speaker 1: I was I was totally picking up some of those 1034 00:44:59,160 --> 00:45:02,200 Speaker 1: marshmallow vibes. But it wasn't like the fresh out of 1035 00:45:02,239 --> 00:45:05,840 Speaker 1: the plastic bag marshmallow. It was like like a dark brown, 1036 00:45:06,320 --> 00:45:09,640 Speaker 1: maybe two charred marshmallow, like like you're getting like you're 1037 00:45:09,640 --> 00:45:11,640 Speaker 1: doing some smores like it. It had like some of 1038 00:45:11,640 --> 00:45:14,040 Speaker 1: that bet on a fire for a minute and you're like, oh, shoot, 1039 00:45:14,160 --> 00:45:15,719 Speaker 1: can you like blow it out real quick? But it 1040 00:45:15,760 --> 00:45:17,480 Speaker 1: had some of those bitter notes going on, but it 1041 00:45:17,520 --> 00:45:19,040 Speaker 1: provides that balance when you have when you've got that 1042 00:45:19,120 --> 00:45:21,320 Speaker 1: multi sweetness going on, you need some of that roasty 1043 00:45:21,360 --> 00:45:23,520 Speaker 1: bitterness to kind of bounce it out. Otherwise you just 1044 00:45:23,560 --> 00:45:27,120 Speaker 1: have this pure dessert beer, which isn't always gonna fly 1045 00:45:27,200 --> 00:45:28,799 Speaker 1: with folks. So I'm glad you and I got to 1046 00:45:28,920 --> 00:45:32,560 Speaker 1: enjoy this one Pothole City by Pipe Works Brewing, no doubt. 1047 00:45:32,560 --> 00:45:34,720 Speaker 1: All Right, Matt, Well, that's gonna do it for this episode. 1048 00:45:34,760 --> 00:45:36,960 Speaker 1: For listeners who want show notes links to some of 1049 00:45:36,960 --> 00:45:40,040 Speaker 1: the articles we mentioned in this episode, go to our 1050 00:45:40,080 --> 00:45:42,399 Speaker 1: website how to money dot Com. You'll find them there. 1051 00:45:42,440 --> 00:45:45,000 Speaker 1: That's right, buddy. So until next time, best friends out, 1052 00:45:45,000 --> 00:45:46,160 Speaker 1: best friends out,