How to Get a Great Deal on a Car Purchase! 

06:55 Normally, If you buy a vehicle 5 years later, you will get it 60% cheaper. 07:30 You have pay to keep them cars: Insurance, Taxes, Fuel, Servicing, etc. 09:06 The 20-3-8 rule: You should put 20% down, pay it off in 3 years. You car payment should be less than 8% of your income. 11:25 What you deposit in your investment account should be greater than your car payment for that month. 15:14 Car is a "Use Asset" and depreciates. An "Investment Asset" appreciates in value over time. 16:25 New cars depreciate rapidly until they are 3 years old. So, buy used car that are 3-6 years old. 19:43 Another benefit of buying a used car is lower Insurance. 20:08 Financial Advice: You should not put how cool you look ahead of where your financial life is going. 21:51 The only exception to buying a new car: If you are saving 25% of your income, have enough money to pay your bills, though it is a bad financial decision, Money Guy approves of it . 24:13 Brand matters: because Land Rover, Jaguar and Mercedes cars lose 48% of their value in first 3 years. Whereas Subaru, Toyota and Hyundai depreciate only 29%. 27:43 If you are buying the less depreciating Cars, You can buy them as new. 36:46 Find 2-3 cars on car sales sites that are exactly like what you are after. Then you can avoid these False Scarcity Traps. 38:43 The 3 Components of buying a car: Purchase Price, Trade In & Financing 39:06 Purchase Price - MSRP: You can buy cars for way less than Manufacturer Suggested Retail Price. 39:46 Purchase Price - Dealers Invoice: You can also get way cheaper than Dealers invoice, because they get way cheaper from Manufacturers and they mark up the prices of their services by a lot. 44:19 When you trade in, if the dealer argues he has given the lowest on the new car, then ask for more price for the car you are trading in. 47:21 Nowadays, car dealers are paid a lot by Financiers if they make the buyer to sign up for a loan. 49:20 If you are paying by cash, ask if the dealer can reduce the price if you go with financing. You can pay off after 2-3 months. 51:11 Tip 1: Buy at the end of the month or end of the year. 51:34 Tip 2: Ask for extra's like floor mats, free services, taxes etc. 53:36 Tip 3: If you don't have time, pay someone to find a good deal for you. Eg: Costco, CarBargains, Local Credit Unions. You can save min $1500 by spending $250 on them.

I’m 56 and have never purchased a brand new car. I’ve had great cars that I always loved but I also loved the money I’ve saved.

Brian is EXACTLY right about getting the same deal as everyone else. I HATE it. I want to put in the preparation work and get the best deal.

OK think I got it. Don’t tell the spouse, finance over 84 months, roll in negative equity, pay at least 5% interest, let the salesman talk to you about monthly payments & ignore the total cost, pay $1200 for them to fill the tires w nitrogen, and get the most comprehensive extended warranty. All set now!

My wife would literally kill me if I bought a car without her. Not to mention she is the most picky person on Earth so there's zero chance I'd get the right one.

Another point--for a while our son operated an auto shop. Many parts were identical between Toyota-Lexus, Nissan-Infiniti, Honda-Acura, and VW-Audi. We offered the customers a choice of the same part with whichever label he wanted, but they came from the same production lines. There are probably other manufacturer pairs too but I don't recall them now. We had to order parts for off-brand use by part number because sellers were forbidden to sell if they knew it was to be used on the other brand. Therefore, going back to the subject's beginning, on the car itself you can buy a fancier name if you want to but the running gear is the same.

In my experience the best way to go is to buy a car that is a year old which comes back from a lease or is used by a salesman for a year or a car that people used for a daily repair rental from a dealer. That is because the options are great for the user experience so that the repair inconvenience (and cost) is not perceived to be as bad. I do that and only go for toyotas as they last longer and end up paying me because in my opinion, every month that a car runs that I dont have a payment 'pays me' as I am not paying for it and the opportunity cost is diminished. I also ask the salesman for which car of that criteria has been in the lot for the longest as I know that they want the spot in the lot for a newer car. Hope this makes sense.

I actually waited until after the end of the year and got a great deal on a family swag wagon. Financed it through the dealership and paid it off early. It was the same price as the new base model but with all the bells and whistles. I'm not ashamed at all that our mini van is a model year older. Lol Thanks guys

My parents bought a mercedes because they said those were better at getting to high mileage (haven't heard that anywhere else and looks like Toyota may be better). Bought with 40,000 miles and crashed it at about 60,000...(they were OK)

I love the photo of the family "taking a back seat" to Dad's new car purchase, haha

I'm sitting here in July 2021 going ... yeah, inventory shortage ... $6k over MSRP in my area for a new car. I'm walking to work.

I have 2 cars and one of them barely depreciates at all because it's so sought after. It's a 2011 Mitsubishi Lancer Evolution and every time I look at it's trade in value it barely moves at all and even gains values at times depending on the time of year. I bought it new so I took the initial depreciation but it was also nice to know it's full history and has been super reliable so far. even with me doing all my own maintenance. I still believe buying a 2-3 year old car is your better bet to save money but still have a reliable car which I did on my second vehicle but driving a car for 10 years does get a reasonable value out of them versus buying new and replacing every 2-3 years which would be the worst case scenario. Great info guys!

I used to listen to this on my iPhone but I really needed to see the slides. Thanks for all the content!

Got 6000+ off our car. We kept bargaining. It was at the end of day and they really wanted to close on the car. We were ready to walk away. We bargained 4 times! 🤣 We told them weren’t desperate and could always shop around. If they want to sell, better come down on the price and they did! 😂

Buy new if you plan on keeping it at least 10 years. Then depreciation doesn't matter. I violated my rule by trading in my 4 year old car for a new one because I wanted the latest safety features. I did pay cash and it doesn't affect my investments, so I still followed what you said about buying a car and not having it slow down investing.

If your wife looks at vehicles as appliances the husband’s dream of a sports car is forever screwed. With me at 55 and her at 48 and worth 1.5 million plus a full 100k a year pension/defined benefits plan in the very near future the 50k sports car is still an extravagant toy in her opinion.

You should always buy a car with the assumption you will lose ALL that money. However, it is true that there are brands and cars that have gone up, my experience has been both. If you buy a luxury/supercar etc.. I've always said it shouldn't effect aggressive saving and investing. I like the 1 year rule to add to that. If you can't do both, then you don't have the wealth to do it.

Two years ago, we bought a new VW Tiguan with all the accessories for $33. We have German engineering like Audi, Bayerishe Motoren Werke, and Daimler-Benz at a VW price. For that matter, many parts are the same as Audi with a different mark on them. Do you want a car or just a mark?

I've only bought new vehicles since I was 16. All 3 of them so far and I'm 36. I get rid of them before major issues show up. The dependability for that long is worth more than patting myself on the back for saving a few grand. I've never hesitated to drive cross country. Can you say the same about your 10 year old car when you're a year out from needing a head gasket or transmission?

Bo! I got my 90 Mustang 5.0 it’s our era muscle car go get one before they price themselves out! Mines gone up in value.

Great information guys! Completely different content than the investing side of finances. I learned a lot.

I overpaid for a 2008 Kia Rio seven years ago because I was lazy and didn't want to go through typical negation hassles. But since I bought the right car, it doesn't really matter. Insurance has been cheap, and it hasn't needed much maintenance. Actually, I neglect it far too much because I don't drive much anymore (I'm due for the annual oil change as I type this). But I paid cash for it, and the annual wallet drain since I got it has been around $1000 to $1500 for everything. That's not too bad. When it dies, I'll probably just stick with biking and rent or uber when I actually need a car.

I'm saving money for an ATS-V :). Also waiting for that 4 year discount. 1 more year!

Funny thing is, 13 years ago my first car was an 89 Mustang 5.0, and I still have it.

My biggest finance mistake was to lease a brand new car at 25 years old. Never again ahah

2200 savings a month But a 600 car payment is to much for an appliance let alone a ‘toy’ Went at least 9 of the last 20 years without a car payment but kept saving the 2200 a month

USAA does discounts for car buying too.

"Yeah Brian and I"m really excited about this show because" This is now a classic and it always makes me giggle.

As soon as you said car commercial, this is the commercial I immediately thought of! :-)

I did the same exact thing with my wife’s car and got $7500 off the purchase price.

How about a video on how to get a great deal on renovation or landscaping projects? Is that out of your scope?

if you can get a 72month loan at 0% interest is it better than 36 months?

Unobtainium, I mean paint protection add-on is enough to make me walk out.

The Model 3 is just outside of my affordability range according to the money guy table, guess I have to wait until the Model 2!

Are the prices in this episode still valid?

When doing the Net Worth statement, how often should you update the valuation of illiquid assets, i.e. cars, home, art, etc?

At this point in mine and my spouses life, 51 and 48 yrs old, we only buy 2 yr old or older vehicles and pay them off in about one year... although there was a time when I would buy new every 2-3 yrs, never going without car payments... BOY WAS I DUMB

You guys should collab with “The Homework Guy” some time. He’s the best on stuff like this.

My wife bought me a new car for my birthday without me knowing. I was kind of shocked when my daughter met me outside the garage and I looked in the garage was a new Honda Accord Hybrid with a ribbon wrapped around it. What are you going to do when that happens?

Easy >$150K worth of vehicles. 2020 GMC Denali and Yukon XL

Never take out debt for a car, worst mistake you can ever make. Simple as that. Buy a 5,000 dollar dependable car... they exist. Truth hurts.

I know it's not a brand but you should have shown jeep wrangler.

What kind of implications are there by adding a daughter or son to a bank account???

What if you were to get two cars in your household? Would that be 8% for both? Or for each one?

I don't get the point of paying off a car in 3 years, for used cars specifically. Interest rates are so low now that I got a 2% interest rate on a used car purchase on a 5 year term. After inflation, that interest rate is basically 1% or less. Sure, the car is a depreciating asset, but my dollars are worth more today than they will be in a year, two years, 3 years, etc, so why make the depreciation worse by paying it off sooner than I have too, rather than letting inflation depreciate my dollars going towards paying it off each month over 5 years

I think Tesla has given people the false illusion about it being the "revolutionary car of the future, will help save the environment" and all the hype they invented to get the buyer thinking that purchasing this car is non-negotable and if they want one, they pay full price.

I was expecting a talk on how you never ever ever lease a car! Why would people even lease a car??

I'm 51 and have owned a total of 4 cars in my life.

I would rather go to an all-night dentist than go through the new car buying process. It's a product, like any other product: Figure our what it costs to mfg it, how much to sell it, and a reasonable profit margin and give me a bottom line price. Why do we have to go through the the stupid Kabuki dance when I know almost to the dollar what we're going to end up paying.

All the Christmas car commercials are about as un-Christ-mas as can be !!!

why does he feel the need to read off the names of all those streaming platforms? Just say "listening on the podcast", or "not watching on RU-vid"