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Money Guy Show

What's the Best Way to Buy a New Car?

Money Guy Show

Brian Preston, CPA, CFP®, PFS and Bo Hanson, CFA, CFP® | Fee-Only Fiduciary Advisors

Education, Investing, Business

4.73.1K Ratings

🗓️ 20 August 2021

⏱️ 28 minutes

🧾️ Download transcript

Summary

Is it a bad idea to buy or finance a new car? And do rich people have access to better investments than the average person? We'll walk you through these questions and more in today's Q&A episode! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

It's Brian Preston, the money guy, restoring order to your financial chaos, retirement,

0:07.0

investing, taxing.

0:09.0

You've got financial questions, he's got financial answers.

0:12.6

It's Brian Preston, the money guy.

0:15.6

All right, here's our next question.

0:17.4

This one is from Lawrence.

0:19.8

Lawrence said, with interest rates so low and used car prices through the roof, would

0:26.2

it still be a financial no-no to buy and finance a new car?

0:30.6

So first, we ought to speak to whether it is a financial no-no to buy and finance a new

0:35.4

car.

0:36.4

And this is what Lawrence said.

0:37.4

I could buy it in cash, but financing at 2.5 seems to make more sense.

0:42.4

How should I approach that?

0:44.6

Lawrence, this is a question I think, and this is financial mutants.

0:48.0

We're so good with money that we just, we kind of run wild with the fact that there's

0:54.9

always going to be an arbitrage situation.

0:56.8

You can make a lot more money investing than the cost of the interest.

1:00.4

And you specifically know we do a lot of content on why if you're under 45, prepaying

1:05.3

your mortgage might be a mistake.

1:07.9

But car loans are slightly different.

1:10.0

And look, I know we're in some weird times right now where used cars have actually appreciated

1:15.7

what?

...

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