How To Make A Smart Car Purchase

How To Make A Smart Car Purchase

As we’ve been doing this millionaire research one of the pieces of data that we’ve discovered is by studying 10,000 millionaires that the average millionaire drives a 4-year old car with 41,000 miles on it and of course it’s paid for and they haven’t had car payments in decades which is how they became a millionaire because the average car payment now is over

Five hundred dollars about five hundred four dollars a month over eighty four months if you invest five hundred and four dollars from age 30 to age 70 you’ll have somewhere around five million dollars in your roth ira i hope you like your car our advice knowing that car is lose 60 to 70 percent of their value in the first four years is to buy a quality used car

Unless you have a net worth in excess of a million dollars then if you want to buy a new car you can afford to take the loss on it but the worst car accidents do happen on the showroom floor well dave i’m always worried about buying a used car well what are you driving if you’re driving a car that you bought two months ago it’s now a used car if you buy on driving

A car you bought five years ago it’s a used car what are you driving listen the vehicle quality is so high now that you we get through 300 thousand miles out of a car most of these cars run and run and run and run and run if you have take care of them so don’t buy a new car unless you’ve got a net worth in excess of a million dollars now how do you negotiate the

Best deal on the car well the same way you do a lot of things a couple of keys to negotiating one is he with the most knowledge wins so study learn about that car go on trader.com go on kelley blue book and edmunds.com and look up stuff about the car google the car read articles about the car look at different versions of the car different packages that are on

The car a luxury package the standard package the two-door the four-door the different engines that are in that particular car to learn all about a honda civic if you’re going to buy a honda civic learn people impulse a big purchase like a car that makes you stupid you don’t impulse that you study that and then pay cash of course now most the time paying cash

Means that you are doing a bank transfer but sometimes you can walk in with the cash and just lay it on the table it’s not that much money i mean $7,000 $10,000 $15,000 whatever it kind of blows a dealer of dealers mind but certainly if you’re buying from an individual when you put cash on the table it says we have a deal it doesn’t say oh i need to check with

My banker you ever sold a car on craigslist i need to check with my banker and then you never hear from him again i’ll take it but my banker i’m doing they’re here from again when you like cash on the table there’s no i need you taking that banker in there it’s a done deal baby it’s locked in right and listen doc just don’t get married to one car be prepared to

Walk away listen when you bought something emotionally even the most inept seller recognizes the body language changes i mean you guys know when somebody’s bought something right even though they haven’t done the deal the negotiation is over once they know you’re married i marry this car so just be quiet let them talk the seller that is tell them you know you’ve

Looked this car up you’ve studied a lot this seems a little high and then be quiet let them talk you can negotiate online there’s a lot of ways you can do it you can have the car inspected and a good thing to do too is check with one of our endorsed local providers on the insurance side and find out what it costs to insure that car you might be looking at one

Seven thousand dollar car that’s almost twice as much to insure as another seven thousand dollar car you can get a quote from one of them or on your existing cars jump in there and get from the lp most people that get a quote from our lps because they’re brokers they shop among a bunch of different people and they get the best possible deal they save like 700

Bucks that’s the average so and one in three drivers 33% of you buy your insurance and you don’t shop your insurance before you buy it that’s just dumb it’s an expensive thing just like not shopping the car before you buy that stuff don’t do that

Transcribed from video
How To Make A Smart Car Purchase By The Ramsey Show – Highlights