1 00:00:00,200 --> 00:00:13,320 Speaker 1: She's on the Money. She's on the money. 2 00:00:17,239 --> 00:00:20,960 Speaker 2: Hello, and welcome, She's on the Money. The podcast Millennials 3 00:00:20,960 --> 00:00:24,480 Speaker 2: who Want Financial Freedom. There is a lot of debate 4 00:00:24,520 --> 00:00:26,680 Speaker 2: out there when it comes to cars. Should we be 5 00:00:26,680 --> 00:00:29,960 Speaker 2: buying them new secondhand? Do we buy them outright or 6 00:00:29,960 --> 00:00:32,199 Speaker 2: do we opt for a personal loan. No matter the 7 00:00:32,240 --> 00:00:36,360 Speaker 2: option we choose, cars are one of the most substantial purchases. 8 00:00:35,840 --> 00:00:36,720 Speaker 3: We will ever make. 9 00:00:37,040 --> 00:00:39,040 Speaker 2: So today we'll be running through the A to Z 10 00:00:39,240 --> 00:00:41,080 Speaker 2: of what you need to know if you're buying your 11 00:00:41,280 --> 00:00:43,800 Speaker 2: very first car, or if maybe you're thinking it's time 12 00:00:43,960 --> 00:00:47,040 Speaker 2: for an upgrade. If you are coming to the podcast 13 00:00:47,040 --> 00:00:50,320 Speaker 2: today for the very first time, Welcome. My name is 14 00:00:50,360 --> 00:00:54,120 Speaker 2: Georgia King. I'm a copywriter and journalism student, and joining 15 00:00:54,120 --> 00:00:59,400 Speaker 2: me as always is the finance Guru herself, Victoria Define. Hello, 16 00:01:00,960 --> 00:01:04,400 Speaker 2: you went out something or rather exciting on Monday this week? 17 00:01:04,760 --> 00:01:09,400 Speaker 3: I did. I've written a book which I'm very excited about, 18 00:01:09,440 --> 00:01:11,600 Speaker 3: and it is going to be on real life shelves 19 00:01:11,640 --> 00:01:14,280 Speaker 3: in real life bookstores, not just an e book. Not 20 00:01:14,480 --> 00:01:16,080 Speaker 3: e books like I haven't writen a ey book. I've 21 00:01:16,080 --> 00:01:20,480 Speaker 3: written a paper book, got a cover, It's got foil 22 00:01:20,680 --> 00:01:21,280 Speaker 3: on the cover. 23 00:01:21,480 --> 00:01:24,959 Speaker 2: Georgia, it's so exciting. How are you feeling about it? 24 00:01:25,000 --> 00:01:27,440 Speaker 3: I'm very excited about it. Obviously, I've known about this 25 00:01:27,480 --> 00:01:29,000 Speaker 3: for a while, so I've had time to come to 26 00:01:29,080 --> 00:01:30,920 Speaker 3: terms with the fact that it is coming out. But 27 00:01:31,000 --> 00:01:33,560 Speaker 3: it'll be available on the sixteenth of June, and at 28 00:01:33,560 --> 00:01:35,960 Speaker 3: the moment, it has just launched for pre launch, which 29 00:01:35,959 --> 00:01:38,320 Speaker 3: happened on Monday, which is super exciting, and our friends 30 00:01:38,319 --> 00:01:40,559 Speaker 3: from book Topia have given us a sweet, sweet twenty 31 00:01:40,600 --> 00:01:41,440 Speaker 3: five percent. 32 00:01:41,200 --> 00:01:43,560 Speaker 2: Of amazing, so you can pre order it and you'll 33 00:01:43,560 --> 00:01:45,400 Speaker 2: get your hands on it as soon as it comes out. 34 00:01:45,480 --> 00:01:47,880 Speaker 3: Obviously we'll put the link in the show notes because 35 00:01:48,400 --> 00:01:50,400 Speaker 3: it's our book and we're going to promo the hell 36 00:01:50,480 --> 00:01:53,400 Speaker 3: out of this. But also we are so excited about it. 37 00:01:53,480 --> 00:01:56,520 Speaker 3: Like I cannot tell you how much time and energy 38 00:01:56,520 --> 00:01:59,000 Speaker 3: and effort I've put into this, but also the rest 39 00:01:59,000 --> 00:02:01,640 Speaker 3: of the team has, Like the amount of support they 40 00:02:01,640 --> 00:02:04,480 Speaker 3: have given me throughout this process has been crazy cool, 41 00:02:04,880 --> 00:02:07,720 Speaker 3: and I am genuinely so excited that this book is 42 00:02:07,760 --> 00:02:08,400 Speaker 3: a real book. 43 00:02:08,440 --> 00:02:11,440 Speaker 2: George, Yeah, can you give listeners a little taste of 44 00:02:11,480 --> 00:02:12,960 Speaker 2: what they can expect from the book? 45 00:02:13,000 --> 00:02:15,000 Speaker 3: I mean, if you're listening to my podcast, you probably 46 00:02:15,040 --> 00:02:18,040 Speaker 3: know my tone of voice by now. But essentially, just 47 00:02:18,080 --> 00:02:19,959 Speaker 3: like the podcast, the book is going to be full 48 00:02:19,960 --> 00:02:22,320 Speaker 3: of real life money stories from members of the She's 49 00:02:22,360 --> 00:02:25,480 Speaker 3: on the Money community who have candidly shared their experiences. 50 00:02:25,760 --> 00:02:28,320 Speaker 3: But it's also going to be all about the steps 51 00:02:28,320 --> 00:02:30,760 Speaker 3: that I think you need to take to budget cleardettes, 52 00:02:30,760 --> 00:02:34,480 Speaker 3: build savings, start investing by property, and literally everything else. 53 00:02:34,919 --> 00:02:37,520 Speaker 3: So for me, it'll be the only finance guide you'll 54 00:02:37,560 --> 00:02:38,040 Speaker 3: ever need. 55 00:02:38,520 --> 00:02:41,560 Speaker 2: I'm exciting. I might. I got me a signed copy. 56 00:02:41,639 --> 00:02:42,959 Speaker 3: I don't know. I don't know if I want you 57 00:02:43,000 --> 00:02:46,560 Speaker 3: to have a signed copy. Hey whoa hey yeah, calm down, 58 00:02:47,320 --> 00:02:48,000 Speaker 3: god down. 59 00:02:48,360 --> 00:02:51,040 Speaker 2: So excited for you girl. Congratulations. It is a massive 60 00:02:51,040 --> 00:02:53,960 Speaker 2: So yeah, as we said, we will link the pre 61 00:02:54,160 --> 00:02:56,840 Speaker 2: order link in our show notes. Yes, we will, so 62 00:02:56,960 --> 00:02:59,200 Speaker 2: look out for that one. But let's get into it. 63 00:02:59,280 --> 00:03:02,960 Speaker 2: Be cars are something that everyone has an opinion on, 64 00:03:03,080 --> 00:03:06,320 Speaker 2: but obviously you're more qualified than most to talk about them. 65 00:03:06,760 --> 00:03:09,400 Speaker 2: Should we be buying new secondhand? Do we buy them 66 00:03:09,400 --> 00:03:10,560 Speaker 2: outright or do we go with the loan? 67 00:03:10,840 --> 00:03:12,840 Speaker 3: I mean, I would argue that I'm not more qualified 68 00:03:12,840 --> 00:03:15,520 Speaker 3: to talk about cars into but when it comes to 69 00:03:15,600 --> 00:03:18,560 Speaker 3: car financing, that's what I was getting with your girl, yes, 70 00:03:19,320 --> 00:03:21,120 Speaker 3: but honestly, at the end of the day, it's not 71 00:03:21,160 --> 00:03:23,480 Speaker 3: actually about what I think about what car you should get. 72 00:03:23,600 --> 00:03:26,840 Speaker 3: By the way, Toyota Yarra's cross, what a car, But 73 00:03:26,880 --> 00:03:29,160 Speaker 3: it's absolutely not about what I think. And today I 74 00:03:29,200 --> 00:03:31,120 Speaker 3: think it's just about going through the common errors in 75 00:03:31,160 --> 00:03:33,360 Speaker 3: the ways that we can save on this massive purchase, 76 00:03:33,360 --> 00:03:35,320 Speaker 3: because at the end of the day, this is one 77 00:03:35,320 --> 00:03:37,800 Speaker 3: of the biggest purchases we will make outside a family 78 00:03:38,000 --> 00:03:41,000 Speaker 3: home that we will go all right, well, thirty grand 79 00:03:41,160 --> 00:03:43,600 Speaker 3: straight up, I'm happy to spend that. Like, no, we 80 00:03:43,640 --> 00:03:46,520 Speaker 3: need to think about this purchase. This is massive for us, 81 00:03:46,680 --> 00:03:48,880 Speaker 3: and we also don't want to lock ourselves away into 82 00:03:48,920 --> 00:03:51,760 Speaker 3: a loan that we don't quite understand or don't want 83 00:03:51,800 --> 00:03:53,440 Speaker 3: to actually commit to in the long term. 84 00:03:53,480 --> 00:03:56,320 Speaker 2: So what is your take? Then? If I can be 85 00:03:56,440 --> 00:03:59,000 Speaker 2: so bold as to ask, what is your opinion on 86 00:03:59,080 --> 00:04:01,119 Speaker 2: cars personally? 87 00:04:01,400 --> 00:04:05,000 Speaker 3: Obviously I'm just going to be really blunt, is that Okay? 88 00:04:05,160 --> 00:04:07,280 Speaker 3: Please don't buy a brand new car, full stop, end 89 00:04:07,320 --> 00:04:10,200 Speaker 3: of story. Don't do it, silly idea? Why Because, to 90 00:04:10,240 --> 00:04:12,680 Speaker 3: put it simply, it's a depreciating asset that's going to 91 00:04:12,720 --> 00:04:16,080 Speaker 3: decline in value over time. So terrible idea to be 92 00:04:16,240 --> 00:04:20,400 Speaker 3: purchasing an asset absolutely brand new and then expecting it 93 00:04:20,440 --> 00:04:22,920 Speaker 3: to be worth even close to what you purchased it for. 94 00:04:23,400 --> 00:04:26,320 Speaker 3: So they say that cars depreciate between ten and fifteen 95 00:04:26,320 --> 00:04:28,400 Speaker 3: percent when you drive them out of the dealership, and 96 00:04:28,480 --> 00:04:30,080 Speaker 3: on top of that, by the end of the first 97 00:04:30,160 --> 00:04:32,560 Speaker 3: year of you having the car, another ten to fifteen 98 00:04:32,600 --> 00:04:35,800 Speaker 3: percent of that car's value is going to be lost. 99 00:04:36,160 --> 00:04:37,880 Speaker 3: Add that to however many years you're going to be 100 00:04:37,960 --> 00:04:40,320 Speaker 3: driving the car around and you're looking at an asset 101 00:04:40,520 --> 00:04:43,839 Speaker 3: which has a significantly lower value than what you originally 102 00:04:43,880 --> 00:04:46,560 Speaker 3: bought it for. So for me, I think brand new. 103 00:04:46,720 --> 00:04:50,080 Speaker 3: I get it. It's shiny, new car smell. I get it, 104 00:04:50,160 --> 00:04:53,320 Speaker 3: my friend, but it is not an asset that I 105 00:04:53,360 --> 00:04:56,000 Speaker 3: would ever recommend you purchase brand new. I'm not saying 106 00:04:56,040 --> 00:04:58,919 Speaker 3: you can't have the latest model car. I'm just saying 107 00:04:58,960 --> 00:05:00,760 Speaker 3: you can't be the first time Georgia. 108 00:05:00,839 --> 00:05:01,560 Speaker 2: Ah. 109 00:05:01,560 --> 00:05:03,479 Speaker 3: So I'm not saying don't go buy the twenty twenty 110 00:05:03,520 --> 00:05:06,320 Speaker 3: model of you know, whatever car you want to purchase. Now, 111 00:05:06,360 --> 00:05:08,479 Speaker 3: we're here for that, but we want somebody else to 112 00:05:08,520 --> 00:05:11,800 Speaker 3: have copped that depreciation on the nose before we pick 113 00:05:11,880 --> 00:05:14,160 Speaker 3: up that car, so that we're in a significantly better 114 00:05:14,200 --> 00:05:18,400 Speaker 3: off financial position because our asset won't depreciate as much 115 00:05:18,440 --> 00:05:19,000 Speaker 3: as it could. 116 00:05:19,360 --> 00:05:22,440 Speaker 2: Just to make it really clear here, what does depreciate 117 00:05:22,640 --> 00:05:23,360 Speaker 2: actually mean? 118 00:05:23,560 --> 00:05:28,320 Speaker 3: So depreciate essentially means lowers in value, So it means 119 00:05:28,360 --> 00:05:31,080 Speaker 3: that over time that asset will be worth less and less, 120 00:05:31,120 --> 00:05:33,360 Speaker 3: and we see this often, so people will say like, oh, 121 00:05:33,440 --> 00:05:35,880 Speaker 3: my car is twenty five thousand and now it's worth ten, 122 00:05:36,360 --> 00:05:40,680 Speaker 3: so therefore it has lessened in value. And a depreciating 123 00:05:40,720 --> 00:05:43,760 Speaker 3: asset includes lots of different things, so it's not necessarily 124 00:05:43,880 --> 00:05:48,880 Speaker 3: just cars, but we're talking about that today. Can be cars, furniture, boats, tools, 125 00:05:49,000 --> 00:05:52,160 Speaker 3: shoes and shoes, et cetera. It goes on and on. 126 00:05:52,440 --> 00:05:55,720 Speaker 3: But these are assets that do not contribute to your 127 00:05:55,800 --> 00:05:59,279 Speaker 3: future wealth. Also, to preface it, I think it's really 128 00:05:59,279 --> 00:06:02,360 Speaker 3: interesting as well because some financial advisors don't agree with 129 00:06:02,440 --> 00:06:06,000 Speaker 3: me here, but I don't include your family car as 130 00:06:06,000 --> 00:06:09,039 Speaker 3: an asset when talking to you as a client. So 131 00:06:09,080 --> 00:06:10,919 Speaker 3: if you put down, like, oh a little bit, Victoria, 132 00:06:11,000 --> 00:06:13,400 Speaker 3: my car's worth fifty grand, we're like, okay, cool, are 133 00:06:13,440 --> 00:06:17,279 Speaker 3: you planning on selling that? No, because it's a mode 134 00:06:17,279 --> 00:06:19,600 Speaker 3: of transport for you, It is an actual vehicle that 135 00:06:19,640 --> 00:06:22,200 Speaker 3: you are using. It's not a disposable asset that you 136 00:06:22,279 --> 00:06:24,640 Speaker 3: need to get rid of. And I think that unless 137 00:06:24,680 --> 00:06:28,000 Speaker 3: you are planning on using that asset as a disposable 138 00:06:28,000 --> 00:06:31,080 Speaker 3: asset which you can liquify and essentially make into cash 139 00:06:31,120 --> 00:06:33,359 Speaker 3: so that you can invest. Like, I don't really mind 140 00:06:33,400 --> 00:06:35,320 Speaker 3: what it is, like, I don't want to hear about it. 141 00:06:35,360 --> 00:06:37,200 Speaker 3: I don't want you to tell me that it's an asset, 142 00:06:37,520 --> 00:06:39,479 Speaker 3: because it's to me not an asset. 143 00:06:39,920 --> 00:06:43,720 Speaker 2: So what's the difference between assets and investments? Then? So 144 00:06:43,800 --> 00:06:46,520 Speaker 2: assets aren't necessarily investment. 145 00:06:46,160 --> 00:06:48,440 Speaker 3: No, they can be. They can be both. So I 146 00:06:48,520 --> 00:06:50,919 Speaker 3: could own shares, and that could be an asset that 147 00:06:51,000 --> 00:06:54,039 Speaker 3: I own, but that is an asset that increases in 148 00:06:54,160 --> 00:06:57,680 Speaker 3: value over time hopefully, and a depreciating asset is one 149 00:06:57,680 --> 00:07:00,200 Speaker 3: that just decreases in value. It doesn't actually contribute to 150 00:07:00,240 --> 00:07:02,080 Speaker 3: your future wealth or your retirement plans. 151 00:07:02,080 --> 00:07:05,880 Speaker 2: So it's not an investment, no, sir. So I could 152 00:07:05,920 --> 00:07:08,960 Speaker 2: if I was on the Superhero app, I could invest 153 00:07:09,000 --> 00:07:09,880 Speaker 2: in car shares. 154 00:07:09,640 --> 00:07:10,960 Speaker 3: Though, yes you could, and that. 155 00:07:11,040 --> 00:07:13,040 Speaker 2: Is there and that's invested, and that's an asset. 156 00:07:13,080 --> 00:07:15,680 Speaker 3: That's an asset. Where's the actual car to me, it's 157 00:07:15,720 --> 00:07:18,000 Speaker 3: not an asset unless you're holding a vintage collectible car 158 00:07:18,040 --> 00:07:20,560 Speaker 3: that you don't plan on driving so that you can 159 00:07:20,600 --> 00:07:23,040 Speaker 3: increase in value and it can become an asset. That's 160 00:07:23,080 --> 00:07:26,400 Speaker 3: a different story. I've actually historically had clients that have 161 00:07:26,560 --> 00:07:30,360 Speaker 3: had cars in their superannuation funds, which is wild really, 162 00:07:30,400 --> 00:07:32,560 Speaker 3: but they can't drive them because they're an asset. What 163 00:07:32,760 --> 00:07:34,240 Speaker 3: spun exactly? 164 00:07:35,280 --> 00:07:39,760 Speaker 2: Okay, very interesting. So obviously car loans are the way 165 00:07:39,760 --> 00:07:42,960 Speaker 2: that most Australians purchased cars. I did a little bit 166 00:07:42,960 --> 00:07:47,120 Speaker 2: of article scanning belief, which's. 167 00:07:46,560 --> 00:07:49,480 Speaker 3: Really interesting because our Facebook group, a lot of people 168 00:07:49,520 --> 00:07:51,280 Speaker 3: are saying no, no, no, by a CAI outright, by 169 00:07:51,320 --> 00:07:54,040 Speaker 3: a Chi outrighter. It's not the case for most Australians. 170 00:07:54,120 --> 00:07:58,520 Speaker 2: No. Well, apparently over the twelve months back in twenty eighteen, 171 00:07:58,720 --> 00:08:02,800 Speaker 2: we borrowed eight point one billion dollars to serve as 172 00:08:02,880 --> 00:08:03,440 Speaker 2: car loans. 173 00:08:03,760 --> 00:08:06,200 Speaker 3: Gosh, that's a lot of money. It's a lot of billions, 174 00:08:06,200 --> 00:08:08,760 Speaker 3: and it's a lot of billions. It's a million millions, 175 00:08:08,800 --> 00:08:13,000 Speaker 3: that's actually eight billions, eight billions, a billion. Anyway, Ah, 176 00:08:13,640 --> 00:08:15,800 Speaker 3: what is your take then on car loans? Are they 177 00:08:15,840 --> 00:08:18,960 Speaker 3: handy or do they fall into like the bad debt category. 178 00:08:19,160 --> 00:08:21,200 Speaker 3: So this was a really good article. I did have 179 00:08:21,240 --> 00:08:23,480 Speaker 3: a squieze three center to me, We've been chatting about 180 00:08:23,480 --> 00:08:25,640 Speaker 3: this for a little while now. And it also says 181 00:08:25,640 --> 00:08:28,480 Speaker 3: that Australians pay more than five hundred million dollars in 182 00:08:28,480 --> 00:08:31,760 Speaker 3: interest on these car loans. That's absolutely wild. And the 183 00:08:31,840 --> 00:08:35,199 Speaker 3: average car loan Georgia is actually more than thirty six 184 00:08:35,280 --> 00:08:37,880 Speaker 3: one thousand dollars with an average interest rate of six 185 00:08:37,920 --> 00:08:41,920 Speaker 3: point three percent, And that to me is a lot 186 00:08:41,920 --> 00:08:44,160 Speaker 3: of money, if I do say so myself, which is 187 00:08:44,160 --> 00:08:46,559 Speaker 3: why I don't love people taking out ridiculous car loans 188 00:08:46,559 --> 00:08:48,920 Speaker 3: on cars that are actually out of their budget. But 189 00:08:49,040 --> 00:08:51,040 Speaker 3: that number, at the end of the day doesn't actually 190 00:08:51,120 --> 00:08:53,520 Speaker 3: shock me at all because this is the way ninety 191 00:08:53,520 --> 00:08:56,720 Speaker 3: percent of Australians are actually buying their cars. So ninety 192 00:08:56,760 --> 00:08:58,280 Speaker 3: percent of the cars that you are driving past my 193 00:08:58,320 --> 00:09:00,520 Speaker 3: friend of financed right crazy. 194 00:09:01,160 --> 00:09:04,080 Speaker 2: So that's okay, then, is that what we're saying. 195 00:09:04,120 --> 00:09:06,880 Speaker 3: Look, it is okay because at the end of the day, 196 00:09:07,040 --> 00:09:10,280 Speaker 3: to purchase a car outright includes a lot of privilege, 197 00:09:10,320 --> 00:09:12,160 Speaker 3: Like if you have been able to save up and 198 00:09:12,200 --> 00:09:15,280 Speaker 3: you're able to allocate savings to a car, to buy 199 00:09:15,440 --> 00:09:18,800 Speaker 3: outright like that is a very, very beautiful privilege to have. 200 00:09:19,240 --> 00:09:20,800 Speaker 3: I'm not saying at the end of the day, car 201 00:09:20,880 --> 00:09:22,800 Speaker 3: loans are bad, and I think that's something we should 202 00:09:22,800 --> 00:09:25,600 Speaker 3: preface really early on here. I am not saying don't 203 00:09:25,600 --> 00:09:27,080 Speaker 3: do it, because at the end of the day, lots 204 00:09:27,080 --> 00:09:29,080 Speaker 3: of people actually need a car loan to be able 205 00:09:29,120 --> 00:09:31,280 Speaker 3: to get the car that they need. Say you are 206 00:09:31,320 --> 00:09:33,320 Speaker 3: pregnant and you're about to have a baby, and part 207 00:09:33,320 --> 00:09:35,199 Speaker 3: of your financial plan is to purchase a new car. 208 00:09:35,559 --> 00:09:37,440 Speaker 3: One of the best ways you can actually do that 209 00:09:37,559 --> 00:09:39,920 Speaker 3: is through a car loan with a really low interest rate. 210 00:09:40,160 --> 00:09:42,280 Speaker 3: The point here is I don't want you to be 211 00:09:42,320 --> 00:09:45,720 Speaker 3: paying exorbitant amounts of interest on a car that is 212 00:09:45,760 --> 00:09:48,560 Speaker 3: going to decrease in value, because you could just head 213 00:09:48,559 --> 00:09:51,079 Speaker 3: over to our friends at Superhero and start investing properly 214 00:09:51,320 --> 00:09:55,360 Speaker 3: and actually start creating wealth. Because too often do we think, Okay, well, 215 00:09:55,360 --> 00:09:57,520 Speaker 3: I'm paying it off, I've got this interest rate, i 216 00:09:57,559 --> 00:09:59,400 Speaker 3: get this asset at the end of it, and we 217 00:09:59,520 --> 00:10:02,120 Speaker 3: get tol looted in a way into thinking that we 218 00:10:02,160 --> 00:10:04,880 Speaker 3: are creating wealth for ourselves. You'll say yourself, well, at 219 00:10:04,920 --> 00:10:06,600 Speaker 3: the end of the day, I'll own it outright, and 220 00:10:06,640 --> 00:10:09,160 Speaker 3: I'll own that asset. It's like you will, but you 221 00:10:09,200 --> 00:10:11,720 Speaker 3: would have spent so much more on that asset than 222 00:10:11,760 --> 00:10:14,840 Speaker 3: what it is actually worth. And over time, that asset 223 00:10:14,920 --> 00:10:17,360 Speaker 3: is going to cost you money. So not only will 224 00:10:17,400 --> 00:10:19,600 Speaker 3: it cost you money because you lost money on its 225 00:10:19,679 --> 00:10:22,480 Speaker 3: original purchase price, but you're going to be paying for fuel, 226 00:10:22,480 --> 00:10:23,959 Speaker 3: You're going to be paying for service, You're going to 227 00:10:24,040 --> 00:10:27,760 Speaker 3: be paying for tolls, registration, insurance. Literally, you just throw 228 00:10:27,880 --> 00:10:30,160 Speaker 3: money at cars, and I think we need to just 229 00:10:30,240 --> 00:10:32,560 Speaker 3: call it what it is, Like, Yeah, it's nice, don't 230 00:10:32,559 --> 00:10:34,840 Speaker 3: get me wrong. I really want a beautiful car as well, 231 00:10:35,200 --> 00:10:37,160 Speaker 3: But if I buy a car, I need it to 232 00:10:37,200 --> 00:10:40,080 Speaker 3: be the right structure for me and my future wealth 233 00:10:40,080 --> 00:10:43,400 Speaker 3: creation strategy, not necessarily like, oh my gosh, that one's 234 00:10:43,440 --> 00:10:45,240 Speaker 3: so pretty. I wonder if I can afford the month 235 00:10:45,240 --> 00:10:47,560 Speaker 3: of your payments, because that is not what we should 236 00:10:47,559 --> 00:10:50,280 Speaker 3: be looking at, gotcha. But at the end of the day, 237 00:10:50,320 --> 00:10:52,800 Speaker 3: as you said, gee, car purchases are really up there 238 00:10:52,840 --> 00:10:54,720 Speaker 3: with the really big purchases that we're going to make 239 00:10:54,720 --> 00:10:57,400 Speaker 3: in our lifetime. And the key with car loans is 240 00:10:57,400 --> 00:10:59,520 Speaker 3: to find a loan that doesn't have a ridiculous interest 241 00:10:59,600 --> 00:11:01,720 Speaker 3: rate that will, so you're paying way more for the 242 00:11:01,720 --> 00:11:04,160 Speaker 3: car than what it's actually worth. And I'm sure we're 243 00:11:04,200 --> 00:11:05,640 Speaker 3: going to touch on that a little bit later in 244 00:11:05,679 --> 00:11:07,560 Speaker 3: the show because it's something I'm going to harp on about. 245 00:11:07,559 --> 00:11:08,040 Speaker 3: I'm sorry. 246 00:11:08,200 --> 00:11:11,440 Speaker 2: So then, be, off the top of your head, what 247 00:11:11,520 --> 00:11:14,880 Speaker 2: would the average interest rate on a car be or 248 00:11:14,920 --> 00:11:16,280 Speaker 2: what should we be looking for? 249 00:11:16,600 --> 00:11:19,360 Speaker 3: So that is a very fickle question because there's no 250 00:11:19,440 --> 00:11:22,520 Speaker 3: hard and fast rule. Some car loans can be up 251 00:11:22,600 --> 00:11:25,920 Speaker 3: to seventeen eighteen percent because they are unsecured. That it's ridiculous. 252 00:11:26,000 --> 00:11:28,079 Speaker 3: Do not do it. I'm sorry, it's trap like, it's 253 00:11:28,120 --> 00:11:30,920 Speaker 3: a terrible idea. You can get car loans for much 254 00:11:31,040 --> 00:11:33,920 Speaker 3: much less. At the end of the day, it depends 255 00:11:33,960 --> 00:11:36,680 Speaker 3: on your personal situation and what you have access to, 256 00:11:37,120 --> 00:11:39,920 Speaker 3: because if you're getting a car loan and you already 257 00:11:39,920 --> 00:11:42,520 Speaker 3: have assets, you could be getting a secured car loan, 258 00:11:42,679 --> 00:11:45,360 Speaker 3: which is obviously going to cost you less and you're 259 00:11:45,400 --> 00:11:47,560 Speaker 3: going to get a lower interest rate. But I think 260 00:11:47,559 --> 00:11:51,800 Speaker 3: it's about understanding what options are around and something that 261 00:11:52,520 --> 00:11:54,480 Speaker 3: you're probably not going to want to hear from me 262 00:11:54,640 --> 00:11:57,920 Speaker 3: is kind of reverse engineering it and going Okay, cool, 263 00:11:58,000 --> 00:12:00,720 Speaker 3: I need a new car. This is actually purchase that 264 00:12:00,800 --> 00:12:03,400 Speaker 3: I need to make instead of oh, hey, v I 265 00:12:03,440 --> 00:12:06,000 Speaker 3: really want to buy car X and I'm going to 266 00:12:06,080 --> 00:12:08,480 Speaker 3: find a way to do that. Obviously, the higher the 267 00:12:08,520 --> 00:12:10,960 Speaker 3: interest rate, the less I would agree with it. But 268 00:12:11,040 --> 00:12:14,040 Speaker 3: I think reverse engineering your options can be really good. 269 00:12:14,360 --> 00:12:16,360 Speaker 3: So work out where you're going to get the best 270 00:12:16,440 --> 00:12:18,400 Speaker 3: finance deal, because at the end of the day, we're 271 00:12:18,400 --> 00:12:20,800 Speaker 3: trying to make good money decisions. Now, a lot of 272 00:12:20,800 --> 00:12:22,760 Speaker 3: you are going to go, yeah, but Victoria, I really 273 00:12:22,920 --> 00:12:27,040 Speaker 3: really want to drive a brand NEWBMW. I'll go yeah, right, 274 00:12:27,480 --> 00:12:29,839 Speaker 3: But that is your value set. I'm not saying that's 275 00:12:29,880 --> 00:12:31,720 Speaker 3: a bad thing, go ahead and do it. I'm saying, 276 00:12:31,760 --> 00:12:34,280 Speaker 3: from a financial standpoint, this is the way you should 277 00:12:34,280 --> 00:12:36,920 Speaker 3: be making that decision. And that is where can I 278 00:12:37,000 --> 00:12:40,160 Speaker 3: get the lowest car interest rate? Where can I get 279 00:12:40,200 --> 00:12:42,400 Speaker 3: a loan that is going to work hard for me 280 00:12:42,840 --> 00:12:45,320 Speaker 3: in comparison to me just paying through the nose for it? 281 00:12:45,520 --> 00:12:48,079 Speaker 3: And I know at the moment you can get car 282 00:12:48,120 --> 00:12:51,560 Speaker 3: finance loans for zero percent for one percent. It's going 283 00:12:51,600 --> 00:12:54,760 Speaker 3: to depend on your car dealership. Usually they're really specific 284 00:12:54,880 --> 00:12:58,199 Speaker 3: tow car dealerships. For example, Keon, I might say okay 285 00:12:58,240 --> 00:13:00,600 Speaker 3: on this particular car you can get at one point 286 00:13:00,640 --> 00:13:03,400 Speaker 3: five percent financing, which is fine, And that's an example. 287 00:13:03,440 --> 00:13:05,520 Speaker 3: I don't know if that's true or not, sorry, Hendi, 288 00:13:05,920 --> 00:13:08,480 Speaker 3: but that is going to put you in a significantly 289 00:13:08,520 --> 00:13:12,160 Speaker 3: better financial position. And then on top of that, you're 290 00:13:12,200 --> 00:13:13,840 Speaker 3: not going to buy it new. You're going to go 291 00:13:13,920 --> 00:13:16,160 Speaker 3: to that dealership and say, okay, cool, I want a 292 00:13:16,200 --> 00:13:18,959 Speaker 3: car for this. I actually want to buy a secondhand one. 293 00:13:19,000 --> 00:13:21,360 Speaker 3: I want one that's either been traded in, or I 294 00:13:21,480 --> 00:13:24,120 Speaker 3: want a demo model, which is kind of like the 295 00:13:24,200 --> 00:13:27,120 Speaker 3: win right. Like the demo model, it's never been owned 296 00:13:27,120 --> 00:13:30,760 Speaker 3: by anybody else, but it's also been driven around, so 297 00:13:30,800 --> 00:13:31,679 Speaker 3: it's kind of clocked up. 298 00:13:31,720 --> 00:13:33,200 Speaker 2: Some that depreciations happen. 299 00:13:33,280 --> 00:13:35,920 Speaker 3: Yeah, the depreciations happened. So you can usually get some 300 00:13:36,000 --> 00:13:39,160 Speaker 3: pretty good deals on demo models of cars if your 301 00:13:39,160 --> 00:13:40,720 Speaker 3: heart is set on a brand new car, So you 302 00:13:40,760 --> 00:13:42,720 Speaker 3: get that brand new car feeling, you're going to drive 303 00:13:42,760 --> 00:13:45,120 Speaker 3: it out of a dealership, but you are not going 304 00:13:45,160 --> 00:13:46,920 Speaker 3: to be stung through the nose in the same way 305 00:13:46,920 --> 00:13:49,920 Speaker 3: you would if the odometer had zero kilometers on it, 306 00:13:49,960 --> 00:13:52,679 Speaker 3: which I think is a really good way to still 307 00:13:52,760 --> 00:13:56,200 Speaker 3: get the best of world's in a way. Sure for me. 308 00:13:56,360 --> 00:13:58,960 Speaker 3: It's actually about shopping the loan around first and going, well, 309 00:13:58,960 --> 00:14:01,280 Speaker 3: where can I get the lowest interest rate? Like can 310 00:14:01,320 --> 00:14:03,200 Speaker 3: I get it for less than one or two percent? 311 00:14:03,520 --> 00:14:06,679 Speaker 3: And if that's the case, money win. I'm not saying 312 00:14:06,720 --> 00:14:10,280 Speaker 3: everywhere does it, but if that is the case, and 313 00:14:10,360 --> 00:14:13,040 Speaker 3: we compare this right, and we'll go back to that 314 00:14:13,120 --> 00:14:15,560 Speaker 3: example before you mentioned Superhero and I think this is 315 00:14:15,559 --> 00:14:19,240 Speaker 3: a really good example. If you said, hey, Victoria, I've 316 00:14:19,280 --> 00:14:22,360 Speaker 3: got thirty thousand dollars I want to buy a brand 317 00:14:22,360 --> 00:14:24,480 Speaker 3: new car, and I go, great, Georgia, I didn't know 318 00:14:24,560 --> 00:14:26,600 Speaker 3: you were buying a family vehicle yet, but this is 319 00:14:26,720 --> 00:14:29,200 Speaker 3: very exciting news. And you say, do I go and 320 00:14:29,240 --> 00:14:33,120 Speaker 3: purchase it outright? Or that same car I'm able to 321 00:14:33,160 --> 00:14:36,720 Speaker 3: get one percent or two percent finance on. I'll be like, great, Georgia, 322 00:14:36,800 --> 00:14:38,760 Speaker 3: that loan actually makes a lot of sense to you 323 00:14:38,840 --> 00:14:41,000 Speaker 3: right now, because what you're telling me is, Victoria, I 324 00:14:41,080 --> 00:14:44,200 Speaker 3: have thirty thousand dollars lump some cash that I can 325 00:14:44,200 --> 00:14:46,960 Speaker 3: do anything with. Right now. I need a car, so 326 00:14:47,080 --> 00:14:48,680 Speaker 3: I'm going to go get that for one or two 327 00:14:48,680 --> 00:14:53,000 Speaker 3: percent finance That is less than the average share market return. 328 00:14:53,600 --> 00:14:56,360 Speaker 3: So the share market in Australia. We always say returns 329 00:14:56,360 --> 00:14:58,080 Speaker 3: about seven and a half percent. It's higher than that, 330 00:14:58,160 --> 00:15:01,560 Speaker 3: but like we work on averages, So that means you 331 00:15:01,560 --> 00:15:04,560 Speaker 3: could probably go over to our friends at Superhero, invest 332 00:15:04,640 --> 00:15:08,000 Speaker 3: your money and make sure that you're actually making a 333 00:15:08,000 --> 00:15:11,280 Speaker 3: good return on your thirty thousand dollars while then paying 334 00:15:11,320 --> 00:15:13,880 Speaker 3: off that car loan over the long term and financially, 335 00:15:13,880 --> 00:15:16,240 Speaker 3: you're going to be in a better position than had 336 00:15:16,280 --> 00:15:18,440 Speaker 3: you put that thirty thousand dollars just on a car 337 00:15:18,480 --> 00:15:23,440 Speaker 3: that's then going to depreciate in going to depreciate in value. 338 00:15:23,560 --> 00:15:27,080 Speaker 3: Does that make sense? So in that aspect, it might 339 00:15:27,160 --> 00:15:29,840 Speaker 3: be smarter for you to invest your money and to 340 00:15:29,840 --> 00:15:32,920 Speaker 3: have a car loan while still maintaining that lump some 341 00:15:33,000 --> 00:15:34,800 Speaker 3: of cash, because at the end of the day, if 342 00:15:34,800 --> 00:15:36,520 Speaker 3: you went and put that lump some of cash on 343 00:15:36,600 --> 00:15:39,320 Speaker 3: that car instantly, you're going to lose a fair chunk 344 00:15:39,320 --> 00:15:41,720 Speaker 3: of it. Hopefully not. And I know a lot of 345 00:15:41,720 --> 00:15:43,480 Speaker 3: people go, oh, I didn't lose money when I saw 346 00:15:43,520 --> 00:15:46,720 Speaker 3: my car, Like, well done, amazing. That is not the 347 00:15:46,760 --> 00:15:49,600 Speaker 3: common value. Like most people do lose money on cars, 348 00:15:49,840 --> 00:15:52,280 Speaker 3: and that's okay, but we're here to deal with it 349 00:15:52,360 --> 00:15:54,560 Speaker 3: rather than just go, oh, well, cars are about asset, 350 00:15:54,640 --> 00:15:57,640 Speaker 3: don't buy them like great, that's not the point of this. 351 00:15:57,640 --> 00:16:00,640 Speaker 3: This is buying cars in the smartest way possible and 352 00:16:00,680 --> 00:16:02,360 Speaker 3: making sure that we're getting a good. 353 00:16:02,200 --> 00:16:05,640 Speaker 2: Deal in terms of interest and stuff there v My 354 00:16:05,720 --> 00:16:09,280 Speaker 2: next question is, if we have the means to be 355 00:16:09,280 --> 00:16:13,120 Speaker 2: buying a car out right, is that a better choice 356 00:16:13,680 --> 00:16:16,160 Speaker 2: than financing because we don't have to pay that interest. 357 00:16:16,680 --> 00:16:19,600 Speaker 3: No, So that's what I was talking about. It's about 358 00:16:19,640 --> 00:16:22,960 Speaker 3: opportunity cost. So you're telling me you can pay one 359 00:16:23,040 --> 00:16:26,160 Speaker 3: percent finance on a thirty thousand dollars car loan over 360 00:16:26,160 --> 00:16:29,040 Speaker 3: there and invest your thirty thousand dollars and get an 361 00:16:29,040 --> 00:16:31,520 Speaker 3: average of seven and a half percent return over here. 362 00:16:31,920 --> 00:16:35,000 Speaker 3: Kind of balances out and your financial net position is 363 00:16:35,040 --> 00:16:37,560 Speaker 3: going to be better off than had you not done that. 364 00:16:37,800 --> 00:16:39,800 Speaker 3: If you took that thirty thousand dollars and spent it 365 00:16:39,880 --> 00:16:43,560 Speaker 3: on a car, you're now losing the opportunity of making 366 00:16:43,600 --> 00:16:45,640 Speaker 3: seven and a half percent on thirty thousand dollars in 367 00:16:45,680 --> 00:16:49,680 Speaker 3: the share market. So the opportunity cost there is that. 368 00:16:50,160 --> 00:16:52,480 Speaker 2: Does that make sense? So yeah, maybe it's. 369 00:16:52,280 --> 00:16:54,080 Speaker 3: Better for you. And I'm not saying that investing is 370 00:16:54,120 --> 00:16:56,880 Speaker 3: even the right decision for you. At this point, I'm saying, 371 00:16:56,960 --> 00:17:00,720 Speaker 3: let's understand our choices and our options. But that's also 372 00:17:00,760 --> 00:17:02,840 Speaker 3: why I'd never say, okay, Georgia, go and get like 373 00:17:02,880 --> 00:17:05,359 Speaker 3: a thirteen percent car loan and invest like that's a 374 00:17:05,440 --> 00:17:09,399 Speaker 3: terrible idea. If you cannot access really low finance, then yes, 375 00:17:09,440 --> 00:17:12,320 Speaker 3: of course purchasing it outright is going to be something 376 00:17:12,359 --> 00:17:14,600 Speaker 3: that is going to put you in a better financial position. 377 00:17:14,920 --> 00:17:17,520 Speaker 3: But that is an opportunity that is not available to 378 00:17:17,560 --> 00:17:19,359 Speaker 3: a lot of us because a lot of us do 379 00:17:19,440 --> 00:17:21,240 Speaker 3: not have thirty thousand dollars sitting around to buy a 380 00:17:21,240 --> 00:17:24,119 Speaker 3: new car. And thirty thousand dollars that's just a trivial 381 00:17:24,200 --> 00:17:26,000 Speaker 3: number that I've pulled out of nowhere. That's not my 382 00:17:26,119 --> 00:17:29,439 Speaker 3: expectation for what cars should cost. That's just a random 383 00:17:29,520 --> 00:17:32,760 Speaker 3: number that I've picked. Could be five grand, could be 384 00:17:32,840 --> 00:17:35,320 Speaker 3: ten grand. But you best believe most of us don't 385 00:17:35,359 --> 00:17:36,560 Speaker 3: have that there to spend on a. 386 00:17:36,520 --> 00:17:40,520 Speaker 2: Vehicle, gotcha. So what about European cars then, because that's 387 00:17:40,520 --> 00:17:43,560 Speaker 2: something that often comes up in the discussion of cars. 388 00:17:43,560 --> 00:17:46,400 Speaker 2: People like, Oh, European cars, they're perceived to be more 389 00:17:46,480 --> 00:17:50,320 Speaker 2: lux they're more expensive to buy, probably to finance and 390 00:17:50,840 --> 00:17:52,480 Speaker 2: to service. That's a killer. 391 00:17:53,200 --> 00:17:56,399 Speaker 3: So is that true that they're more expensive. Yes, it 392 00:17:56,520 --> 00:18:00,440 Speaker 3: is true more expensive, but I also think it's very 393 00:18:01,119 --> 00:18:04,600 Speaker 3: outdated way of looking at things. I understand that European 394 00:18:04,640 --> 00:18:09,000 Speaker 3: cars historically were really good value and we're really well made. 395 00:18:09,359 --> 00:18:12,560 Speaker 3: But now we have these beautiful Japanese cars coming through 396 00:18:12,680 --> 00:18:16,200 Speaker 3: and Australian cars coming through that are genuinely really really 397 00:18:16,240 --> 00:18:19,080 Speaker 3: great quality, and I don't think we can compare them 398 00:18:19,119 --> 00:18:23,440 Speaker 3: in a way anymore. Like lots of European car dealerships 399 00:18:23,440 --> 00:18:26,679 Speaker 3: are now producing in India and producing offshore, and we 400 00:18:26,800 --> 00:18:29,600 Speaker 3: just assume that they're still made in Europe and they're 401 00:18:29,640 --> 00:18:32,919 Speaker 3: still of the same quality when they're not interesting. 402 00:18:33,280 --> 00:18:36,280 Speaker 2: I have my Mazda too, actually, so a big shout 403 00:18:36,320 --> 00:18:38,200 Speaker 2: out to that sweet beast. 404 00:18:38,520 --> 00:18:41,960 Speaker 3: I do drive a European car, though it is a 405 00:18:42,000 --> 00:18:44,959 Speaker 3: bit more expensive than not. I mean, but that's all 406 00:18:44,960 --> 00:18:47,720 Speaker 3: two thousand and four, guys, So please don't think. Don't 407 00:18:47,720 --> 00:18:49,280 Speaker 3: shut down my throat and be like, oh my gosh, 408 00:18:49,359 --> 00:18:52,399 Speaker 3: she's boogey like I try. But my car is from 409 00:18:52,440 --> 00:18:54,040 Speaker 3: two thousand and four and I have no intention of 410 00:18:54,359 --> 00:18:55,600 Speaker 3: changing that anytime soon. 411 00:18:55,840 --> 00:18:58,200 Speaker 2: But if you are looking for a little workhoorse if 412 00:18:58,240 --> 00:19:01,320 Speaker 2: there's any seventeen year olds looking for their first car. 413 00:19:01,720 --> 00:19:03,560 Speaker 2: That was my first car, the Master two, And. 414 00:19:03,640 --> 00:19:04,960 Speaker 3: Mass is right. 415 00:19:05,320 --> 00:19:09,840 Speaker 2: It's just been like so cheap to fuel never like 416 00:19:09,960 --> 00:19:12,440 Speaker 2: just nothing's ever gone wrong with it. It's a little beast. 417 00:19:12,520 --> 00:19:15,280 Speaker 3: Probably it's my first car. My first car was a 418 00:19:15,320 --> 00:19:18,280 Speaker 3: Toyota Avalon. And if you don't know what that is, 419 00:19:18,320 --> 00:19:20,879 Speaker 3: google it you'll be like, oh, Victoria, what are you doing? 420 00:19:21,840 --> 00:19:25,200 Speaker 3: But I was kindly. I got that from my parents, 421 00:19:25,760 --> 00:19:28,399 Speaker 3: so that like that's what it was. And it was 422 00:19:28,440 --> 00:19:30,639 Speaker 3: a cheap car at the time that I could afford 423 00:19:30,800 --> 00:19:33,080 Speaker 3: to use. Got you from A to B, me from 424 00:19:33,080 --> 00:19:35,400 Speaker 3: A to B, get me to UNI every single day. 425 00:19:35,840 --> 00:19:38,840 Speaker 3: Loved it, dream car, dream car, dream car. Loved it 426 00:19:38,880 --> 00:19:41,040 Speaker 3: all we want. Then I upgraded to my two thousand 427 00:19:41,040 --> 00:19:42,040 Speaker 3: and four. You're a hang car. 428 00:19:43,560 --> 00:19:46,080 Speaker 2: Do you think as well that there is a perception 429 00:19:46,240 --> 00:19:50,560 Speaker 2: that secondhand cars of a less equality. I feel like 430 00:19:50,600 --> 00:19:53,560 Speaker 2: that's something that you think, but it's not true. 431 00:19:53,680 --> 00:19:55,320 Speaker 3: Like at the end of the day, I want you 432 00:19:55,359 --> 00:19:58,439 Speaker 3: to know that there's still great quality, there's still a 433 00:19:58,440 --> 00:20:00,639 Speaker 3: great car. It doesn't mean it's chea, but doesn't mean 434 00:20:00,680 --> 00:20:03,080 Speaker 3: it's bad. I think it's a really great financial decision. 435 00:20:03,119 --> 00:20:05,920 Speaker 3: I think it's such a backwards mentality to think that 436 00:20:06,119 --> 00:20:08,159 Speaker 3: if someone doesn't buy a new car, they might not 437 00:20:08,240 --> 00:20:10,480 Speaker 3: have enough money or they might not be wealthy. Like 438 00:20:10,520 --> 00:20:14,800 Speaker 3: there's something very attractive about making good financial decisions and going, 439 00:20:14,840 --> 00:20:16,800 Speaker 3: you know what, like I'm going to buy this car. 440 00:20:16,880 --> 00:20:19,840 Speaker 3: It's a really good car. Like why can't we just 441 00:20:19,920 --> 00:20:23,480 Speaker 3: have the older model of a really good car. It's 442 00:20:23,480 --> 00:20:26,000 Speaker 3: gonna be cheaper, it's going to be great for you. You 443 00:20:25,920 --> 00:20:30,240 Speaker 3: don't need the brand new, flashy versions of anything. And 444 00:20:30,280 --> 00:20:33,640 Speaker 3: I know that that sounds a little bit maybe not condescending, 445 00:20:33,720 --> 00:20:37,280 Speaker 3: but it just to me cars aren't progressing obviously, unless 446 00:20:37,280 --> 00:20:39,960 Speaker 3: we're talking about hybrid, in which case that's a different story. 447 00:20:40,200 --> 00:20:42,600 Speaker 3: But like, what more can you add to a car 448 00:20:43,160 --> 00:20:46,560 Speaker 3: that snakes? It better to have the twenty twenty one 449 00:20:46,600 --> 00:20:49,840 Speaker 3: model versus the twenty eighteen or the twenty seventeen model. 450 00:20:50,320 --> 00:20:51,800 Speaker 2: The only thing I can think of was the car 451 00:20:51,880 --> 00:20:54,760 Speaker 2: doors that like go up instead of opening, Like yeah, 452 00:20:54,880 --> 00:20:56,920 Speaker 2: like pre need's handles when you can just press that. 453 00:20:56,880 --> 00:20:59,919 Speaker 3: Unless your car's electric or hybrid, in which takes like 454 00:21:00,080 --> 00:21:02,919 Speaker 3: get while you're investing the money there, And that's you know, 455 00:21:03,080 --> 00:21:06,520 Speaker 3: and again that's a personal choice. But my two thousand 456 00:21:06,520 --> 00:21:09,280 Speaker 3: and four car, we've got Georgia, We've got CD player, 457 00:21:09,720 --> 00:21:11,760 Speaker 3: we have Bluetooth. That's wild. 458 00:21:11,840 --> 00:21:13,920 Speaker 2: From my two thousand and four that is impressive. 459 00:21:14,040 --> 00:21:16,399 Speaker 3: Yeah, thank you. I've got indicators, I've got lights. I 460 00:21:16,480 --> 00:21:20,720 Speaker 3: literally have everything I need to drive the car. It's crazy. Yeah, 461 00:21:20,800 --> 00:21:22,199 Speaker 3: But at the end of the day, I think that 462 00:21:22,200 --> 00:21:24,360 Speaker 3: that's a really good point because I think sometimes when 463 00:21:24,400 --> 00:21:26,920 Speaker 3: we are looking for cars, we get really caught up 464 00:21:27,160 --> 00:21:31,119 Speaker 3: in those shiny features like heated steering wheels and you know, 465 00:21:31,280 --> 00:21:33,520 Speaker 3: the Apple car plan. And while those things are so 466 00:21:34,240 --> 00:21:37,399 Speaker 3: attractive and they are shiny and they are nice, I 467 00:21:37,520 --> 00:21:40,520 Speaker 3: get it, do they actually add the value that you 468 00:21:40,600 --> 00:21:43,560 Speaker 3: are paying for them? And if they do, great, go 469 00:21:43,600 --> 00:21:46,200 Speaker 3: ahead purchase. But if they don't, maybe have a little 470 00:21:46,200 --> 00:21:48,080 Speaker 3: bit of a think about what you actually require. 471 00:21:48,440 --> 00:21:51,320 Speaker 2: So be like in saying all of this, there are 472 00:21:51,359 --> 00:21:53,359 Speaker 2: still a few little things you should do if you 473 00:21:53,400 --> 00:21:54,840 Speaker 2: are buying a car second hand. 474 00:21:54,800 --> 00:21:57,560 Speaker 3: Right, absolutely, And I think it's really important to be 475 00:21:57,720 --> 00:21:59,960 Speaker 3: savvy on this and understand it. It's not just seen 476 00:22:00,119 --> 00:22:02,159 Speaker 3: a pretty car on car sales dot Com going and 477 00:22:02,200 --> 00:22:04,080 Speaker 3: looking at it and going, yeah, it looks like it's 478 00:22:04,080 --> 00:22:06,439 Speaker 3: never been in a crash. There is what's called a 479 00:22:06,520 --> 00:22:10,399 Speaker 3: VIN number, so a vehicle identification number, and that number 480 00:22:10,480 --> 00:22:13,800 Speaker 3: is a seventeen character serial code. If you are planning 481 00:22:13,800 --> 00:22:16,720 Speaker 3: on buying a secondhand car, ask the current owner for 482 00:22:16,800 --> 00:22:19,480 Speaker 3: what that code is, or open the car door and 483 00:22:19,520 --> 00:22:21,520 Speaker 3: take a photo of it when you're there. But there 484 00:22:21,560 --> 00:22:24,720 Speaker 3: is an Australian government website called the PPR, so the 485 00:22:24,760 --> 00:22:28,560 Speaker 3: Personal Property Securities Register, where you can look that up 486 00:22:28,600 --> 00:22:31,880 Speaker 3: and see if that car is registered or not and 487 00:22:32,560 --> 00:22:34,880 Speaker 3: see where it is and what's going on, and more 488 00:22:34,880 --> 00:22:36,480 Speaker 3: often than not you can see if it's been in 489 00:22:36,520 --> 00:22:38,119 Speaker 3: a crash or if it's a good car or not. 490 00:22:38,520 --> 00:22:41,240 Speaker 3: So I think it's really really important to be aware 491 00:22:41,320 --> 00:22:43,280 Speaker 3: of that because you can also look it up on 492 00:22:43,400 --> 00:22:46,800 Speaker 3: VIC roads or like I'm assuming your local government. Yeah, 493 00:22:46,840 --> 00:22:50,320 Speaker 3: for cars, to make sure that everything's all well and 494 00:22:50,359 --> 00:22:54,000 Speaker 3: good in the car hasn't been stolen, yeah imagine, yeah, 495 00:22:54,119 --> 00:22:56,240 Speaker 3: yeah that but also just making sure that the car 496 00:22:56,280 --> 00:22:59,280 Speaker 3: hasn't been in any crashes. And you know some cars 497 00:22:59,720 --> 00:23:02,120 Speaker 3: which wh you know, it's not great, but some people 498 00:23:02,160 --> 00:23:03,880 Speaker 3: will be like no, no, no, the car is absolutely 499 00:23:03,880 --> 00:23:05,960 Speaker 3: perfectly fine. And then you find out it actually was 500 00:23:06,000 --> 00:23:08,400 Speaker 3: a write off and it was rebuilt. You don't want 501 00:23:08,400 --> 00:23:10,760 Speaker 3: that car. You can't ensure it properly. It's not safe 502 00:23:10,760 --> 00:23:14,040 Speaker 3: for you or your family. So take car safety really 503 00:23:14,080 --> 00:23:17,600 Speaker 3: seriously and do ask the questions, do understand it, and 504 00:23:17,680 --> 00:23:20,080 Speaker 3: make sure that it does have a roadworthy Like at 505 00:23:20,119 --> 00:23:21,760 Speaker 3: the end of the day, we're not here to go 506 00:23:21,920 --> 00:23:24,440 Speaker 3: just buy secondhand. It'll be fine. Like, there are a 507 00:23:24,520 --> 00:23:26,400 Speaker 3: lot of things you do need to look at. Yeah, 508 00:23:26,400 --> 00:23:28,160 Speaker 3: but it's not that hard once you wrap your head 509 00:23:28,200 --> 00:23:30,440 Speaker 3: around what you can and can't look for and how 510 00:23:30,480 --> 00:23:33,000 Speaker 3: to ask the questions and lean into the shes on 511 00:23:33,000 --> 00:23:35,960 Speaker 3: the money community, ask us post in the group. We 512 00:23:36,040 --> 00:23:38,360 Speaker 3: have literally thousands of people. 513 00:23:38,080 --> 00:23:41,000 Speaker 2: That are willing to help one hundred percent. Alrighty, we 514 00:23:41,040 --> 00:23:43,760 Speaker 2: are going to take a quick little break here, friends, 515 00:23:43,800 --> 00:23:46,080 Speaker 2: but when we return, we'll be talking at the biggest 516 00:23:46,080 --> 00:23:48,840 Speaker 2: mistakes of vcs when it comes to buying cars and 517 00:23:49,119 --> 00:23:52,520 Speaker 2: servicing car loans. Plus will chat interest rates and should 518 00:23:52,560 --> 00:23:57,000 Speaker 2: tell mortgages chatel chattel. I don't know. I don't know 519 00:23:57,000 --> 00:23:59,119 Speaker 2: what they are, but v will let us know. So 520 00:23:59,200 --> 00:24:08,960 Speaker 2: stick around, friends, Guys, don't forget that the podcast is 521 00:24:09,000 --> 00:24:11,760 Speaker 2: not the only place you can hear the dulcet tones 522 00:24:11,800 --> 00:24:17,240 Speaker 2: of Victoria Divine and Georgia King. We're also on Facebook, Instagram, 523 00:24:17,359 --> 00:24:21,560 Speaker 2: TikTok new wegut newsletter, so very goodly, YouTube where everywhere? 524 00:24:21,720 --> 00:24:24,080 Speaker 2: So YouTube, We're on the tube. 525 00:24:24,200 --> 00:24:26,000 Speaker 3: You know what, you really should have been born in 526 00:24:26,040 --> 00:24:26,560 Speaker 3: the seventies. 527 00:24:26,600 --> 00:24:29,760 Speaker 2: Away, I knows it. I'm sad I wasn't, but. 528 00:24:29,760 --> 00:24:32,639 Speaker 3: I'm sad you were. No. Actually I'm not sad you weren't. Anyway, 529 00:24:32,720 --> 00:24:34,399 Speaker 3: let's move on. Do you want to talk more about 530 00:24:34,440 --> 00:24:35,479 Speaker 3: cars with me? Alright? 531 00:24:35,480 --> 00:24:37,200 Speaker 2: If let's zoom into it. 532 00:24:37,320 --> 00:24:39,080 Speaker 3: Oh gosh, you should be on a Mazda AD. 533 00:24:39,160 --> 00:24:42,639 Speaker 2: Thank you. Some problem is okay? So what are the 534 00:24:42,680 --> 00:24:45,200 Speaker 2: biggest mistakes people are making when it comes to cars? 535 00:24:45,240 --> 00:24:47,720 Speaker 3: Okay, you're not going to be surprised. The first mistake 536 00:24:47,960 --> 00:24:50,560 Speaker 3: is getting an examplitant car loan on a car that 537 00:24:50,720 --> 00:24:51,640 Speaker 3: you can't afford. 538 00:24:51,840 --> 00:24:52,119 Speaker 2: Right. 539 00:24:52,320 --> 00:24:54,680 Speaker 3: There was a post in our group recently from our 540 00:24:54,760 --> 00:24:57,160 Speaker 3: friend to Autumn who posted a photo of herself five 541 00:24:57,240 --> 00:24:59,639 Speaker 3: years ago with her brand new car with a big 542 00:24:59,720 --> 00:25:01,760 Speaker 3: red bowl on it, and she explained in the post 543 00:25:01,960 --> 00:25:05,120 Speaker 3: how much she learned from buying that car on finance. 544 00:25:05,560 --> 00:25:07,399 Speaker 3: So she said that the Weekly repayments were about one 545 00:25:07,440 --> 00:25:09,440 Speaker 3: hundred and fifty bucks a week, which she said didn't 546 00:25:09,440 --> 00:25:11,560 Speaker 3: seem too bad at the time of signing, so she 547 00:25:11,640 --> 00:25:14,120 Speaker 3: bought the car and went on her way. But as 548 00:25:14,119 --> 00:25:17,080 Speaker 3: she explained in her post, the reality of that loan 549 00:25:17,280 --> 00:25:19,560 Speaker 3: was that it was a twenty five thousand dollar car 550 00:25:19,720 --> 00:25:23,159 Speaker 3: with four thousand dollar loan insurance, plus she was paying 551 00:25:23,440 --> 00:25:28,639 Speaker 3: seventeen percent interest over a seven year loan period and 552 00:25:28,760 --> 00:25:31,600 Speaker 3: all together. This is where it kind of like hits 553 00:25:31,640 --> 00:25:34,760 Speaker 3: you in the chest. She for that twenty five thousand 554 00:25:34,800 --> 00:25:38,359 Speaker 3: dollar car, paid a total of fifty thousand dollars in repayments, 555 00:25:38,400 --> 00:25:42,200 Speaker 3: but the car she was paying for was worth significantly 556 00:25:42,280 --> 00:25:45,200 Speaker 3: less than that the seven years later, which is wild. 557 00:25:45,680 --> 00:25:48,560 Speaker 3: The full story is really awesome and really great to read, 558 00:25:48,560 --> 00:25:50,800 Speaker 3: and I'm actually really grateful that Autumn shared it because 559 00:25:50,840 --> 00:25:54,160 Speaker 3: I think that real stories about people, you know, their 560 00:25:54,160 --> 00:25:58,200 Speaker 3: mistakes and missteps, help us learn. But also it really 561 00:25:58,280 --> 00:26:00,440 Speaker 3: just reality checks it. Instead of me going, oh, a 562 00:26:00,520 --> 00:26:03,359 Speaker 3: carloon can cost you a lot, you kind of go, yeah, great, Victoria, 563 00:26:03,359 --> 00:26:05,400 Speaker 3: but it gets me to where I want to go. Yeah. No, 564 00:26:05,480 --> 00:26:08,239 Speaker 3: The reality of a carloon in autumn situation was that 565 00:26:08,240 --> 00:26:10,800 Speaker 3: she purchased a twenty five thousand dollar brand new car 566 00:26:10,920 --> 00:26:14,000 Speaker 3: for fifty thousand dollars, and that is a lot. That 567 00:26:14,160 --> 00:26:17,000 Speaker 3: is a big mistake and misstep, and I think that 568 00:26:17,000 --> 00:26:20,320 Speaker 3: that is not necessarily something to hound yourself over, especially 569 00:26:20,320 --> 00:26:22,120 Speaker 3: if you've got a car loan right now. We make 570 00:26:22,160 --> 00:26:24,679 Speaker 3: decisions with our best intentions at heart. We might not 571 00:26:24,720 --> 00:26:27,640 Speaker 3: have had the right education that we needed or even 572 00:26:27,680 --> 00:26:29,760 Speaker 3: had the right information that we wish we had at 573 00:26:29,760 --> 00:26:32,080 Speaker 3: that time. But I think if you're in this situation 574 00:26:32,200 --> 00:26:34,520 Speaker 3: right now, like it is what it is, friend, don't 575 00:26:35,160 --> 00:26:38,040 Speaker 3: hound yourself over this. Don't be upset about this. Just 576 00:26:38,119 --> 00:26:39,960 Speaker 3: it is what it is. You can work your way 577 00:26:40,000 --> 00:26:41,879 Speaker 3: out of it. But I think if you are in 578 00:26:41,920 --> 00:26:44,439 Speaker 3: a situation where you are now considering a car like 579 00:26:44,520 --> 00:26:48,200 Speaker 3: this is why you wouldn't moving on from that though, 580 00:26:48,240 --> 00:26:51,480 Speaker 3: Another big mistake I see is people not doing enough research. 581 00:26:51,720 --> 00:26:54,600 Speaker 3: And we know that car salespeople saying people not men, 582 00:26:54,960 --> 00:26:57,760 Speaker 3: they do have some are slippery reputation. So you need 583 00:26:57,800 --> 00:27:00,399 Speaker 3: to really own your purchasing decision and go in with 584 00:27:00,520 --> 00:27:03,679 Speaker 3: as much information as possible. Now, obviously, women are a 585 00:27:03,680 --> 00:27:06,840 Speaker 3: massive percentage of the listeners to this podcast, and unfortunately 586 00:27:06,840 --> 00:27:09,399 Speaker 3: there are still car salespeople who are going to assume 587 00:27:09,440 --> 00:27:11,720 Speaker 3: that because you're female, they can actually squeeze more money 588 00:27:11,760 --> 00:27:13,720 Speaker 3: out of you because they assume you don't really know 589 00:27:13,800 --> 00:27:17,520 Speaker 3: what's going on. But prove them wrong by studying, comparing, 590 00:27:17,560 --> 00:27:20,639 Speaker 3: looking at different packages and whatever is available, and make 591 00:27:20,680 --> 00:27:22,760 Speaker 3: sure that you're kind of go in knowing what you want. 592 00:27:22,840 --> 00:27:24,480 Speaker 3: I think one of the worst things you can say 593 00:27:24,520 --> 00:27:27,399 Speaker 3: to a salesperson is oh, yeah, I don't really know 594 00:27:27,480 --> 00:27:29,719 Speaker 3: what I want or I don't know what that means, 595 00:27:29,760 --> 00:27:32,200 Speaker 3: Like I get it, you might not. You might want 596 00:27:32,200 --> 00:27:34,679 Speaker 3: to ask them questions. I think when push comes to 597 00:27:34,720 --> 00:27:38,119 Speaker 3: shove and you're trying to understand what to purchase, like 598 00:27:38,400 --> 00:27:40,800 Speaker 3: go to a different car dealership, go do your research there, 599 00:27:40,880 --> 00:27:42,919 Speaker 3: tell them you don't know, and then when you do 600 00:27:43,040 --> 00:27:45,040 Speaker 3: want to purchase, go to a completely brand new car 601 00:27:45,080 --> 00:27:47,280 Speaker 3: dealership and be like, Hi, I'm Jeorjia King, I would 602 00:27:47,280 --> 00:27:49,280 Speaker 3: like to buy a Mazda too. These are the respects 603 00:27:49,280 --> 00:27:51,080 Speaker 3: I want. Please find me that car, this is my 604 00:27:51,119 --> 00:27:53,280 Speaker 3: price range, and kind of just pull it out. 605 00:27:53,359 --> 00:27:55,520 Speaker 2: Yeah there and go go in there with confidence so 606 00:27:56,200 --> 00:27:57,200 Speaker 2: she knows what she's talking about. 607 00:27:57,200 --> 00:28:00,200 Speaker 3: Evidence yep, and whatever add ons they are. Try trying 608 00:28:00,280 --> 00:28:03,639 Speaker 3: to sell. You be super super wary of them because 609 00:28:03,680 --> 00:28:06,640 Speaker 3: more often than not, they are super marked up and 610 00:28:06,960 --> 00:28:09,359 Speaker 3: definitely not something that you want to spend your dollar 611 00:28:09,480 --> 00:28:09,800 Speaker 3: use on. 612 00:28:10,000 --> 00:28:14,200 Speaker 2: It's so hard as just a girl to say no 613 00:28:14,600 --> 00:28:16,600 Speaker 2: when they're so pushy, though. 614 00:28:17,080 --> 00:28:19,280 Speaker 3: And that's why I'm saying, go in, just do your 615 00:28:19,280 --> 00:28:22,280 Speaker 3: research separately, and then when push comes to shove, go 616 00:28:22,320 --> 00:28:24,239 Speaker 3: and buy it. I don't think it's a bad thing 617 00:28:24,280 --> 00:28:27,080 Speaker 3: to take a friend either. Take a friend if you've 618 00:28:27,080 --> 00:28:29,600 Speaker 3: got a dad that's willing to go fantastic. I know 619 00:28:29,720 --> 00:28:31,800 Speaker 3: that it is twenty twenty one and we shouldn't have 620 00:28:31,880 --> 00:28:34,600 Speaker 3: to do these things, but we're not talking about, you know, 621 00:28:34,720 --> 00:28:37,400 Speaker 3: getting away from the slippery salesman. We're actually just talking 622 00:28:37,400 --> 00:28:39,520 Speaker 3: about our own self confidence and if it makes you 623 00:28:39,560 --> 00:28:41,640 Speaker 3: feel a little bit more confident having a mate there 624 00:28:41,680 --> 00:28:44,360 Speaker 3: to you know, do the negotiation or be like, hey, Gie, 625 00:28:44,480 --> 00:28:46,800 Speaker 3: you said you didn't want to do that. I think 626 00:28:46,880 --> 00:28:48,720 Speaker 3: that can actually just make you feel a little bit 627 00:28:48,720 --> 00:28:51,840 Speaker 3: better about the whole situation, because it can be overwhelming. 628 00:28:54,160 --> 00:28:56,800 Speaker 2: I was scanning the group when I was putting together 629 00:28:56,840 --> 00:28:59,560 Speaker 2: my questions for today's episode B and came across the 630 00:28:59,640 --> 00:29:03,880 Speaker 2: term should tell mortgage. Yeah, that's a chappelle chutel shuttle. 631 00:29:04,160 --> 00:29:06,160 Speaker 2: I don't know what it is. It came up more 632 00:29:06,200 --> 00:29:10,520 Speaker 2: than once, is my point. What what does that even mean? Like, 633 00:29:10,640 --> 00:29:12,480 Speaker 2: what is a chattel mortgage? 634 00:29:12,720 --> 00:29:15,720 Speaker 3: Ninety nine percent of us would never have heard of these? Okay, Essentially, 635 00:29:15,800 --> 00:29:18,000 Speaker 3: I should tell mortgage is a loan product designed for 636 00:29:18,040 --> 00:29:21,880 Speaker 3: commercial car purchases, so it is essentially a business loan. 637 00:29:21,960 --> 00:29:24,400 Speaker 3: It is car loan or a finance loan. There it's 638 00:29:24,520 --> 00:29:26,720 Speaker 3: just a fancy way of saying it, but it means 639 00:29:26,720 --> 00:29:28,800 Speaker 3: that car will be used for at least fifty percent 640 00:29:28,840 --> 00:29:31,520 Speaker 3: of business for most of the time. And say you're 641 00:29:31,520 --> 00:29:33,440 Speaker 3: a tradee and you use a you to get from 642 00:29:33,480 --> 00:29:35,800 Speaker 3: A to B like that is often the route that 643 00:29:35,840 --> 00:29:39,320 Speaker 3: you'll go down. Nowadays, I don't believe that banks really 644 00:29:39,320 --> 00:29:41,480 Speaker 3: call it a shoutel mortgage. They just call it asset 645 00:29:41,560 --> 00:29:45,040 Speaker 3: finance or like business okay, finance loans or whatever, so 646 00:29:45,080 --> 00:29:48,440 Speaker 3: you might not hear it as often. But essentially chouttel 647 00:29:48,600 --> 00:29:50,959 Speaker 3: is a car and a shouldtel mortgage is made up 648 00:29:51,000 --> 00:29:53,960 Speaker 3: of two parts, So the first part being should tell 649 00:29:54,120 --> 00:29:56,040 Speaker 3: your car, and then the mortgage, which is the loan. 650 00:29:56,160 --> 00:29:58,840 Speaker 3: So it's not as complicated, as I think people seem 651 00:29:58,880 --> 00:30:01,160 Speaker 3: to assume it is a that's where all the questions 652 00:30:01,200 --> 00:30:04,360 Speaker 3: come from. But similarly to a secured car loan, your 653 00:30:04,480 --> 00:30:07,040 Speaker 3: lender provides funds to you to purchase the car, and 654 00:30:07,080 --> 00:30:10,440 Speaker 3: then the lender takes a mortgage over your car. So 655 00:30:10,600 --> 00:30:13,240 Speaker 3: essentially the bank owns it until you've paid it all off, 656 00:30:13,480 --> 00:30:15,360 Speaker 3: and then once the contract is up and you've paid 657 00:30:15,400 --> 00:30:17,280 Speaker 3: it all off, the car is yours and you'll own 658 00:30:17,320 --> 00:30:17,840 Speaker 3: it outright. 659 00:30:18,320 --> 00:30:22,480 Speaker 2: Okay, what a dream? So good idea, bad idea, neutral idea, 660 00:30:22,840 --> 00:30:24,960 Speaker 2: just an idea. It's a car loan, Okay. 661 00:30:24,960 --> 00:30:27,240 Speaker 3: It depends on what the interest rate is and whether 662 00:30:27,280 --> 00:30:30,600 Speaker 3: it actually works for your personal financial situation. It's absolutely 663 00:30:31,000 --> 00:30:33,480 Speaker 3: not a bad way about going about it, especially if 664 00:30:33,520 --> 00:30:36,320 Speaker 3: you're a business owner, because when it comes to business 665 00:30:36,320 --> 00:30:40,160 Speaker 3: and owning assets like a car, you can actually claim 666 00:30:40,200 --> 00:30:43,520 Speaker 3: depreciation on them over time, which means you can claim 667 00:30:43,520 --> 00:30:46,640 Speaker 3: it on tax. So there are a few other cheeky 668 00:30:46,720 --> 00:30:49,280 Speaker 3: reasons why you, as a business owner might go and 669 00:30:49,320 --> 00:30:51,600 Speaker 3: buy a new car from a dealership because it makes 670 00:30:51,640 --> 00:30:54,160 Speaker 3: sense tax wise, or it might make sense to your business. 671 00:30:54,160 --> 00:30:56,640 Speaker 3: But that is a decision that is not up to 672 00:30:56,640 --> 00:30:59,040 Speaker 3: shees on the money because we're not a business. 673 00:30:58,720 --> 00:31:00,640 Speaker 2: Podcast, my friend, No, no, we are not. 674 00:31:00,880 --> 00:31:02,200 Speaker 3: That's the business Bible's job. 675 00:31:02,240 --> 00:31:05,160 Speaker 2: That is the business Bible's job. Alrighty, So today's episode 676 00:31:05,200 --> 00:31:07,720 Speaker 2: in a nutshell I feel like is just do not 677 00:31:08,040 --> 00:31:10,680 Speaker 2: buy new cars. I think that would be the main 678 00:31:10,760 --> 00:31:11,680 Speaker 2: one thing I want you. 679 00:31:11,680 --> 00:31:14,000 Speaker 3: To take out of there is if you're considering purchasing 680 00:31:14,040 --> 00:31:15,680 Speaker 3: a new car, see if you can get a demo 681 00:31:15,760 --> 00:31:18,120 Speaker 3: model or a model that is a couple of years old, 682 00:31:18,400 --> 00:31:21,680 Speaker 3: so that the depreciation on that asset has already happened. 683 00:31:21,920 --> 00:31:24,280 Speaker 3: The longer the better. Obviously, I don't want you going 684 00:31:24,320 --> 00:31:26,840 Speaker 3: and buying old cars that end up costing you a 685 00:31:26,840 --> 00:31:29,880 Speaker 3: whole heap in repairs. That's a completely different story. But 686 00:31:30,080 --> 00:31:31,880 Speaker 3: a lot of the time you can actually go and 687 00:31:31,920 --> 00:31:35,800 Speaker 3: buy a two or three year old car and extend 688 00:31:35,920 --> 00:31:39,280 Speaker 3: the warranty and extend the servicing plan so it acts 689 00:31:39,360 --> 00:31:41,840 Speaker 3: like a new car, but the depreciation has already happened 690 00:31:41,840 --> 00:31:44,160 Speaker 3: on it. And if you're in a position where you 691 00:31:44,320 --> 00:31:47,000 Speaker 3: need a loan, then fantastic. That is not a bad 692 00:31:47,080 --> 00:31:50,040 Speaker 3: thing if you actually need that. But it comes down 693 00:31:50,080 --> 00:31:52,280 Speaker 3: to need, and I think that we really need to 694 00:31:52,280 --> 00:31:55,760 Speaker 3: differentiate here. The difference between need and want. Like you 695 00:31:55,880 --> 00:31:59,040 Speaker 3: might want a brand new car and feel like you 696 00:31:59,080 --> 00:32:00,800 Speaker 3: need it, but the end of the day, if you 697 00:32:00,840 --> 00:32:03,240 Speaker 3: already have a car that's getting you from A to B, 698 00:32:03,760 --> 00:32:06,200 Speaker 3: then maybe the need and the want have been a 699 00:32:06,240 --> 00:32:09,760 Speaker 3: little bit confused. I think on top of that as well, 700 00:32:09,800 --> 00:32:12,560 Speaker 3: if you genuinely need a car, we then need to 701 00:32:12,600 --> 00:32:16,720 Speaker 3: differentiate the difference between do I need a beamw or 702 00:32:16,760 --> 00:32:19,080 Speaker 3: a shiny fancy car, or do I need a car 703 00:32:19,120 --> 00:32:21,280 Speaker 3: that's just going to be a good or faithful like 704 00:32:21,320 --> 00:32:23,040 Speaker 3: your master too, that's going to get you from A 705 00:32:23,080 --> 00:32:24,960 Speaker 3: to B and do the job. So I think it's 706 00:32:24,960 --> 00:32:28,240 Speaker 3: about you know, just understanding our values. If you say no, V, 707 00:32:28,440 --> 00:32:31,120 Speaker 3: I really need the shiny fancy cart, great. I want 708 00:32:31,120 --> 00:32:33,280 Speaker 3: you to live life to your values. I'm not here 709 00:32:33,360 --> 00:32:35,040 Speaker 3: to judge you. I'm not here to say that they're 710 00:32:35,040 --> 00:32:37,320 Speaker 3: a bad thing. I'm here to make sure that you 711 00:32:37,400 --> 00:32:40,600 Speaker 3: are making the right decision for you and your decisions 712 00:32:40,640 --> 00:32:42,520 Speaker 3: have been reflected to you before you make them. 713 00:32:43,040 --> 00:32:45,960 Speaker 2: Amazing. Couldn't have said it any better myself. 714 00:32:46,160 --> 00:32:46,640 Speaker 3: I'm glad. 715 00:32:47,000 --> 00:32:50,800 Speaker 2: If anyone does need further convincing, there is a really 716 00:32:50,840 --> 00:32:55,000 Speaker 2: good video from your v Dave Ramsey talking about cars. 717 00:32:55,000 --> 00:32:57,360 Speaker 2: He's just so savage. It's hilarious. 718 00:32:57,400 --> 00:32:59,880 Speaker 3: I haven't seen it shown. 719 00:33:00,120 --> 00:33:00,920 Speaker 2: It's so good. 720 00:33:01,040 --> 00:33:02,560 Speaker 3: Put it in the show notes. But also let's put 721 00:33:02,560 --> 00:33:04,280 Speaker 3: it in the pod group. Start a chat, all right, 722 00:33:04,320 --> 00:33:06,480 Speaker 3: So just before we head off, we'd like to acknowledge 723 00:33:06,480 --> 00:33:09,520 Speaker 3: and pay respect to Australia's Aboriginal and Torres Strait Island. 724 00:33:09,600 --> 00:33:12,719 Speaker 3: To people's they're the traditional custodians at the lands, the 725 00:33:12,720 --> 00:33:16,400 Speaker 3: waterways and the skies all across Australia. We thank you 726 00:33:16,440 --> 00:33:18,400 Speaker 3: for sharing and for carying on the land which we 727 00:33:18,520 --> 00:33:21,280 Speaker 3: are able to learn. We pay respects to Elder's mast 728 00:33:21,360 --> 00:33:23,920 Speaker 3: in present and we share our friendship and our kindness. 729 00:33:24,120 --> 00:33:26,440 Speaker 2: The advice sheared on She's on the Money is general 730 00:33:26,480 --> 00:33:30,160 Speaker 2: in nature and does not consider your individual circumstances. She's 731 00:33:30,200 --> 00:33:33,480 Speaker 2: on the Money exists purely for educational purposes and should 732 00:33:33,480 --> 00:33:35,840 Speaker 2: not be relied upon to make an investment or a 733 00:33:35,880 --> 00:33:39,960 Speaker 2: financial decision. No sir, No sir, and we promise. Victoria 734 00:33:39,960 --> 00:33:43,640 Speaker 2: Divine is an authorized representative of Australia Pacific Funds Management 735 00:33:43,720 --> 00:33:46,720 Speaker 2: Proprietary Limited ABN three four one three two four six 736 00:33:46,800 --> 00:33:50,760 Speaker 2: three two five seven AFOSL three three nine one five one, 737 00:33:51,200 --> 00:33:54,560 Speaker 2: and a big thank you to Arian John for putting 738 00:33:54,560 --> 00:33:56,400 Speaker 2: together today's little episode. 739 00:33:56,520 --> 00:34:00,240 Speaker 3: What a legend to bed ten teh great here was 740 00:34:00,320 --> 00:34:03,920 Speaker 3: forced him numerating aim. 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