0:00:01.410,0:00:04.440
- So you're looking to buy a car.

0:00:04.440,0:00:06.720
So, I'll at least tell[br]you how I would approach

0:00:06.720,0:00:08.085
buying a car.

0:00:08.085,0:00:09.360
The first thing is thinking[br]about what you can afford.

0:00:09.360,0:00:10.560
And, I would think about that before

0:00:10.560,0:00:13.110
you even look at the types[br]of cars you might wanna buy.

0:00:13.110,0:00:16.140
Because it could be very[br]tempting to get some car,

0:00:16.140,0:00:18.510
and then somehow rationalize[br]that you can afford it.

0:00:18.510,0:00:20.280
So, look at your budget,

0:00:20.280,0:00:22.590
look at how much money you can,

0:00:22.590,0:00:24.180
you think you can put aside.

0:00:24.180,0:00:25.470
Let's say, every month.

0:00:25.470,0:00:29.460
Either for a payment on[br]a car, to lease a car,

0:00:29.460,0:00:31.113
or to save up for a car.

0:00:32.470,0:00:34.800
And if you're going to[br]be financing the car,

0:00:34.800,0:00:36.270
or getting it on a lease,

0:00:36.270,0:00:38.520
you're also gonna have to[br]put some money down there.

0:00:38.520,0:00:40.560
But think about that, what you can budget.

0:00:40.560,0:00:42.000
And then, whatever amount that is,

0:00:42.000,0:00:44.070
remember, it's not just gonna be

0:00:44.070,0:00:47.460
for the payments on the[br]car, or the cost of the car.

0:00:47.460,0:00:50.610
It's also going to be[br]needed for things like gas.

0:00:50.610,0:00:53.430
And things like insurance,[br]and maintenance.

0:00:53.430,0:00:55.260
And maybe even a parking spot,

0:00:55.260,0:00:57.990
if you need to pay for[br]where you're going to

0:00:57.990,0:00:59.610
actually keep your car.

0:00:59.610,0:01:02.070
So, keep all of those things in mind.

0:01:02.070,0:01:03.840
Now, once you have that in place,

0:01:03.840,0:01:07.533
you can think about what kind[br]of car you're going to buy.

0:01:08.844,0:01:11.130
And, I really encourage you to think about

0:01:11.130,0:01:13.200
the car that you need,

0:01:13.200,0:01:16.590
versus some dream about[br]what you might want.

0:01:16.590,0:01:18.450
I think all of us are, as human beings,

0:01:18.450,0:01:20.670
we are very susceptible[br]to market, marketing.

0:01:20.670,0:01:23.047
We imagine, "Hey, if I had this car,

0:01:23.047,0:01:25.380
"my friends are gonna say[br]this, this, and that."

0:01:25.380,0:01:26.703
Usually they won't care.

0:01:27.610,0:01:28.830
And almost any car you buy,

0:01:28.830,0:01:31.980
even if it's a super-fancy[br]exotic sports car,

0:01:31.980,0:01:34.650
within a week or two, it's[br]gonna get old. (chuckling)

0:01:34.650,0:01:37.620
And you're gonna realize[br]it's just something

0:01:37.620,0:01:39.000
to get from point A to point B.

0:01:39.000,0:01:40.050
So, think about what you need.

0:01:40.050,0:01:41.730
How much capacity, storage,

0:01:41.730,0:01:43.950
how many people are you[br]gonna be transporting?

0:01:43.950,0:01:46.860
In terms of cost? Gas.

0:01:46.860,0:01:48.210
How much gas it is using?

0:01:48.210,0:01:49.890
And it's not just the cost of the gas,

0:01:49.890,0:01:51.840
but the convenience, or the inconvenience,

0:01:51.840,0:01:55.380
of having to stop for gas[br]if you're driving a lot.

0:01:55.380,0:01:58.860
Think about, when you think[br]about the cost of the car,

0:01:58.860,0:02:00.900
don't just think about how[br]much you're paying for it.

0:02:00.900,0:02:02.940
Or, don't just think about the payment

0:02:02.940,0:02:05.730
that you're making on either[br]the financing, or a lease.

0:02:05.730,0:02:09.990
Think about what that car[br]might be worth in five years,

0:02:09.990,0:02:11.880
or 10 years, however[br]long you are taking it.

0:02:11.880,0:02:13.440
So, there are definitely scenarios

0:02:13.440,0:02:17.550
where Car A might cost more than Car B,

0:02:17.550,0:02:19.980
but the amount that they have depreciated,

0:02:19.980,0:02:21.450
over say five years,

0:02:21.450,0:02:24.060
the more expensive car[br]has depreciated less.

0:02:24.060,0:02:25.719
So the cost of owning it,

0:02:25.719,0:02:27.870
if you sell either car after five years,

0:02:27.870,0:02:29.940
the cost of owning the more expensive car,

0:02:29.940,0:02:32.220
in some cases, not always,[br]it's usually not the case.

0:02:32.220,0:02:33.570
But sometimes it is,

0:02:33.570,0:02:35.730
the more expensive car[br]could actually be cheaper,

0:02:35.730,0:02:37.653
because it has a higher resale value.

0:02:38.640,0:02:40.950
Once you figure out the[br]type of car you're getting,

0:02:40.950,0:02:42.660
and even if you could afford more car,

0:02:42.660,0:02:44.910
I do encourage, get the car you need.

0:02:44.910,0:02:47.040
And if you have surplus money,[br]put it into your savings,

0:02:47.040,0:02:48.690
invest it, like in all the other videos

0:02:48.690,0:02:50.040
that we've talked about.

0:02:50.040,0:02:51.240
But now you're ready to go,

0:02:51.240,0:02:54.330
to actually go get the car itself.

0:02:54.330,0:02:58.080
Now, if when you're selecting[br]a car, be sure to test drive.

0:02:58.080,0:03:01.560
Think about the warranty if[br]you're getting a used car.

0:03:01.560,0:03:04.350
Make sure you get the vehicle[br]identification number,

0:03:04.350,0:03:06.570
the VIN number, so that you can make sure

0:03:06.570,0:03:08.040
that it hasn't been damaged,

0:03:08.040,0:03:09.600
it hasn't been in an accident before,

0:03:09.600,0:03:12.420
there isn't some shady history[br]associated with the car,

0:03:12.420,0:03:14.100
that you don't know about.

0:03:14.100,0:03:15.450
And then, once you identify a car,

0:03:15.450,0:03:16.283
everything looks good,

0:03:16.283,0:03:17.730
it looks like a car you can afford,

0:03:17.730,0:03:19.290
it's the car that you need.

0:03:19.290,0:03:20.880
Then, you have to think about[br]how you're gonna pay for it.

0:03:20.880,0:03:23.520
And of course, if you've[br]saved up money for a car,

0:03:23.520,0:03:26.400
maybe you could pay with cash,[br]or significant down payment,

0:03:26.400,0:03:27.990
finance the rest.

0:03:27.990,0:03:30.360
Financing, as we talked[br]about in other videos,

0:03:30.360,0:03:32.610
it's gonna be dependent[br]on your credit score.

0:03:32.610,0:03:35.490
Definitely look carefully[br]at the interest rate.

0:03:35.490,0:03:38.490
And then, leasing could also be option.

0:03:38.490,0:03:41.610
Now leasing, if you own[br]a business of some kind,

0:03:41.610,0:03:43.320
especially a business that requires a car,

0:03:43.320,0:03:44.700
a lease can be interesting,

0:03:44.700,0:03:46.860
because it might be tax deductible.

0:03:46.860,0:03:48.990
So it helps to reduce your tax burden.

0:03:48.990,0:03:50.820
But in most cases,

0:03:50.820,0:03:53.040
a lease ends up when you do the math,

0:03:53.040,0:03:55.800
actually becomes more[br]expensive than financing it.

0:03:55.800,0:03:58.740
And there's some limitations[br]to leasing, as well.

0:03:58.740,0:04:00.750
You can only drive it so many miles

0:04:00.750,0:04:02.790
over the course of a year.

0:04:02.790,0:04:05.010
Beyond that, the company might charge you.

0:04:05.010,0:04:07.200
And then, you might lease[br]it for two or three years,

0:04:07.200,0:04:09.300
and then after that point,

0:04:09.300,0:04:10.980
you have to get in another lease.

0:04:10.980,0:04:13.230
Sometimes they will[br]allow you to buy that car

0:04:13.230,0:04:14.610
at a discounted price.

0:04:14.610,0:04:18.900
But once again, usually[br]you should do the numbers.

0:04:18.900,0:04:20.220
It's gonna cost a little bit more

0:04:20.220,0:04:21.600
than if you just bought it out right,

0:04:21.600,0:04:23.190
or if you were to finance the car.

0:04:23.190,0:04:25.920
But think about how you're[br]going to pay for the car.

0:04:25.920,0:04:28.860
It's a very important consideration there.

0:04:28.860,0:04:32.163
And then, you get the car.

0:04:33.473,0:04:38.473
And there, the paperwork can[br]be really involved sometimes.

0:04:40.286,0:04:42.926
I encourage you, call ahead of time.

0:04:42.926,0:04:45.266
Do as much negotiating as[br]you can do on the phone.

0:04:47.514,0:04:49.134
It's like, okay, this is a firm price,

0:04:49.134,0:04:50.574
this is what we're gonna do.

0:04:50.574,0:04:51.804
Get them to say, "Yes."

0:04:51.804,0:04:53.664
And even on price, you can look up things

0:04:53.664,0:04:56.694
like the MSRP, the Manufactured[br]Suggested Retail Price.

0:04:56.694,0:04:59.664
And you can also look the invoice price,

0:04:59.664,0:05:02.184
which is essentially what the dealer is,

0:05:02.184,0:05:03.834
what it cost for the[br]dealer to get the car.

0:05:03.834,0:05:05.184
Now, if your car is on demand,

0:05:05.184,0:05:06.774
if there's a shortage, a wait list,

0:05:06.774,0:05:08.904
you're not gonna be able to[br]get close to the invoice price.

0:05:08.904,0:05:09.984
It probably will be closer to

0:05:09.984,0:05:11.724
the Manufactured Suggested Retail Price,

0:05:11.724,0:05:12.774
maybe even a little bit more,

0:05:12.774,0:05:14.544
if it's a really high-demand car.

0:05:14.544,0:05:16.734
But if it's not a super high-demand car,

0:05:16.734,0:05:18.774
there's a lot of inventory[br]at the dealership,

0:05:18.774,0:05:20.904
you could actually[br]discount a pretty good bit.

0:05:20.904,0:05:22.554
And you could even get invoice,

0:05:22.554,0:05:24.924
or in many cases, you[br]can even sometimes get

0:05:28.970,0:05:31.040
Be really thoughtful on price.

0:05:31.040,0:05:32.450
Don't necessarily,

0:05:32.450,0:05:34.130
unless it's an option[br]that you really want,

0:05:36.683,0:05:39.083
and usually you're gonna[br]have to get insurance

0:05:39.083,0:05:42.143
within a few days of[br]bringing the car home,

0:05:42.143,0:05:44.996
or sometimes you have to have[br]the insurance immediately

0:05:44.996,0:05:46.226
when you get it.