EPISODE SUMMARY
Today's episode focuses on buying a vehicle. Buying a car is one of the first major purchases that a person will make but you're also likely to own over 10 vehicles over the course of your life. Buying a vehicle the wrong way can get you into lots of financial trouble so this episode should give you some tips to stay on track with a vehicle you'll be happy with for a long time.
**Note** this isn't a podcast of how to negotiate the best price or which vehicle to buy. I wanted to provide some realistic education on what the process of buying a vehicle is like so you can make the best choice for your unique situation.
Quick tips:
1. Buying a used car with cash is likely the cheapest way to own a vehicle. Certified pre-owned is a nice sweet spot that offers warranty, low kms, a dealer inspection and someone else has paid most of the depreciation already.
2. Leasing is the most expensive way to "own" a vehicle over time even though the monthly payments are lower. Generally only a good option if you use the vehicle to travel for work can expense the payment.
3. Financing is the most common method of buying but try to stick to the 20/4/10 rule to keep your interest low and payments on budget. 20% down, 4 year term, payment is less than 10% of your monthly take-home income.
4. Do your homework before going to the dealership: know the model and trim level you're interested in, know the MSRP and what you're willing to negotiate on, know your budget and don't deviate from it.
5. Avoid the "extras" like undercoating, extra warranty, life insurance on the loan (own your own insurance policy instead!)
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OTHER EPISODES
43. Should you Rent or Buy a Home
12. Buying a House featuring Kindra Sowden
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