In order to produce the podcast and keep content up free for you, I work with partners so this post may contain affiliate links. Please read my full disclosure for more info.
Buying a car can be an extremely stressful situation. You’ve worried about finding a good deal making sure that you have a great car.
Today we’re going to break down how you can prepare your finances to get the best deal on your next car!
What You Need to Know About Car Loans
Cars and car payments are a way of life for many couples.
According to the latest data I could find, there’s a record 2.5 million auto loans originated.
That’s certainly a big chunk of their budget going to cars.
We’re a bit different.
Once we paid off our car loan with the Jetta, we’ve bought our cars outright.
As a personal and financial decision, we choose to go debt free with cars.
And if you’re curious about how that works, then you’ll want to read our guide on buying cars with cash, which takes you through how we save up and buy our cars.
It’s helped us skip having a car payment for the past 10 years.
And personally, I feel like going debt free on cars is the best option, but every couple is different.
Maybe you have a car that’s having to have repairs and because you’ve been throwing money to keep it going you don’t have much of a down payment?
Or you’d like to go for a used car, but your spouse is hesitant and isn’t willing to go that route?
Throughout the seasons, I’ve put out the offer to you to send in your money questions. I did a call for this season as well. And guess what?
Car loans came up. A lot.
Which isn’t surprising, considering that 85% of new car purchases and 53% of used car purchases use a loan.
But if you get a car loan, is there a way to make sure it’s extremely affordable and if you decide to pay it off sooner, would the numbers work in your favor?
It’s a challenge that I want to tackle today.
By examining the numbers and pushing away the hype and ads, I think you can get a clearer picture of the real costs and then figure out what’s the best option for you.
I’m extra excited because one of you lovely listeners is the guest. And Maggie actually pitched this topic to me in person.
Yep, a Raleigh listener.
Maggie and her husband Ben are trying to figure out what their options are for buying a car. And they were kind enough to share their situation and questions.
What’s cool to me about is that David Jacobs VP of Consumer from our sponsor and partner this season, Coastal Credit Union is going to give us some insights on the lending side.
In this episode we’ll discuss:
- how to figure out how much car you really can afford
- getting the best rate on a car loan
- running the numbers to uncover some loan traps – like if those 0% deals on new cars are really a good deal
I want you two to be able to feel confident that you’re getting the best deal you can.
I hope you enjoy!
Essential Resources for Buying a Car
If you two are thinking about buying a car soon, here are some handy resources to help you get the best deal on them!
- Best Budget and Money Apps: Personal Capital, Tiller, Mint, Zeta
- Grow Your Stash Faster: High Yield Savings with CiT Bank
- AutoSmart by Coastal
- How to Raise Your Credit Scores
- Jumpstart Your Marriage and Your Money
- 5 Days to $5K Course
- Buying a Car with Cash- Crazy or Crazy Smart?
- How to Get the Best Deal on Your Next Car
- The 3 Biggest Myths About Credit Scores That Can Ruin Your Finances
Thank You to Our Sponsor Coastal!
Support for this podcast comes from Coastal Credit Union! If you’re living in the Raleigh Durham area and looking to bank better, come check out Coastal today.
If you are hunting for a car loan, take a minute to review competitive rates and deals Coastal is offering now to make buying a car easier!
What Do We Do for Our Next Car?
Elle: So Maggie you and I were talking about this – and this is a kind of a situation that people are dealing with- like what to do with the cars.
And I know right now if it’s correct you’ve paid off your car right?
Maggie: Yeah mine paid off but it’s not his is not. But it’s close. Is it close to being paid off.
Ben: Just a few months and the other will be paid off.
Elle: Wow congratulations on that.
Maggie: Yeah. We’ve been trying to double up on it just get it off as much as possible. But we’ll be excited to free up the funds to try to pay off things like student loans and other [stuff].
Elle: I totally get that. So I know kind of the dilemma or the thing that you guys are talking about and discussing is what to do about your car because you mentioned that your car needs some work.
It’s a little more frequent. Is that right?
Maggie: Yeah It’s about..it’s a Hyundai Accent. It’s about nine to 10 years old. It’s hit that over a hundred thousand miles in it. We’ve put it; recently broke down a couple of months ago and we had to replace a few things on it.
That wasn’t your average maintenance but the car itself, its value isn’t worth much. And then recently it broke down again and we had to put another six hundred or so into it. So it’s getting to the point where we know that a new car is going to be in our future.
Elle: Gotcha. So what’s the time frame you’re thinking Maggie in. How about you? Like. what are you thinking Ben about the time frame of replacing this car?
Maggie: You gonna go first?
Ben: My time frame is like three to five years. I think we can make Maggie’s car last. We will up to probably plan on doing some decent amount of work every year.
To me, I’m looking at the savings of not having a car payment and you know not only getting out of debt but just start saving a good chunk of change each month as well.
So I know that’s an optimistic view of three to five years. I know pushing it for sure. But I like the err on the side of optimism.
Key Takeaways on Car Loans
Before we close up I want to focus on some key takeaways I got when researching for this episode:
- Run the numbers before you start car hunting
- Save up for a down payment
- Ignore the hype
If you’d like to chat more about saving more, please join us in our private and free Facebook group – Thriving Families.
We’re families looking to support and help one another out. Hope to see you there!
Support the Podcast!
Thank you so much for listening to the podcast!
- Spread the word! If you enjoyed this episode and think it can help a buddy get on the path to dumping debt and become financially free, please share.
- Leave a review. Honest feedback and reviews make a big difference and gets the word out about the podcast. Leave your review on Apple or Stitcher.
- Grab a copy of Jumpstart Your Marriage and Your Money. My book is designed for a busy couple to set up their finances in 4 weeks. Get tips and tools that have worked for other couples on their journey of building their marriage and wealth together!
Build Wealth Together
Stop worrying about money and start dumping your debt and building wealth as couple!
Get our free guide on how to hack your goals. Make 2019 your best year ever!