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
4.7 • 3.1K Ratings
🗓️ 20 August 2021
⏱️ 28 minutes
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Summary
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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