Articles, Blog

How to Buy a Car!

How to Buy a Car!


Mike & Emma: Hey! Emma: And vroom, vroom, let’s talk about how
to buy a car. Part 1: Budget. Mike: Unfortunately, first-time car buyers
tend to have to pay more for their car financing and insurance, but there are some ways to
lessen the ouch. Emma: While paying in cash might be ideal,
most of us don’t have that option. Financing comes in two flavors. You can take a traditional
loan and make payments over time plus interest, or you can lease the vehicle, which is basically
like renting the vehicle and then trading it in after a certain amount of time for an
even newer vehicle. Today we’re gonna skip leasing, because according
to Consumer Reports, owning is almost always the more financially preferable option, but
if you wanna know more about leasing, let us know in the comments section below and
we can talk about it in a future video. Mike: For the most common five-year loan plan,
you can calculate how much car you can actually afford, by using a simple formula. A five-year
car loan will cost you about $20/month for every $1,000 you borrow. So, if you borrow
$10,000, it means that your monthly payment will be around $200. Emma: A note on financing, you’ll likely get
a much better deal from a credit union or a bank than you would from the dealer. We
should also mention that to get the most giddy-up for your buck, used cars are almost always
the better value. A new car loses an average of almost 20% of its value in the first year
alone. Cars should maintain their value. Mike: Yeah. Emma: They should become more valuable to
you as you come to love them. Mike: That’s why I am in favor of switching
our economic barometer from GDP– Emma: Okay. Mike: –to GDL. Gross Domestic Love. Emma: OK (laughs) I endorse that. Mike: Yeah. Part 2: Wants vs Needs. So you
might really want the new Ford super-duty, but your budget might tell you that a Ford
Fiesta is more appropriate. Larger vehicles ten to get lower gas mileage and cost more
to insure, so getting a smaller car could save a lot over time. Emma: I feel like we should be doing this
like car salesmen. Mike: I think we should specialize in superhero
cars. Emma: Like novelty cars? Mike: Yeah. Emma: OK. Mike: A popemodible maybe, Batmobile. Emma: Ice cream truck. Mike: Ice cream truck. Emma: The DeLorean. Mike: DeLorean, yes! What are your favorite
fictional cars? Emma: Novelty vehicles. Mike: Please let us know. Yeah. Emma: Yeah. We’ll sell them at our dealership.
Mills and Martin, we’re here for you! Mike: Clown car! And you’re not gonna believe
how many people keep coming out of it. Emma: Part 3: To The Research! Several different
websites, which we’ll link you to in the doobly doo offer many reviews and prices for both
new and used cars. Mike: Other things you want to look for before
heading to the dealership: what others are paying to make sure you get a good deal, average
lifetime maintenance costs, miles per gallon, crash safety ratings, whether the flux capacitor
is included or costs extra. That’s a big deal for me. No way. Emma: It has to be inclusive. Mike: It’s just good manners. Emma: (laughing) Flux capacitor inclusive.
Part 4: Insurance. So you’ll need car insurance before you drive your car off the lot. If
you know the make, year and model of your car, you can contact your insurance agent
and set up your insurance so that it starts the day you buy your car. Mike: If you aren’t sure about your future
purchase, you can just wait to call your insurance agent from the lot after you’ve made your
final decision. They can issue your insurance effective immediately, so then you can just
like peel out and pop some wheelies and like wink at your friends on the sidewalk who–
they thought you were gonna give them a ride home but your not. Emma: See you guys!
Seriously though, never drive without insurance, it’s not a good idea. Not even around the
block, not even with a flux capacitor. Part 5: Test Drive. I wish we could have like
a zshoom. Mike: Oh, we can. Emma: OK. Mike: In fact, we just did. The dealership
may have their own mechanic but we recommend taking the car to an outside mechanic who
you can totally trust. Emma: Part 6, You are the Negotiator. Time
to sign on the dotted line, not quite yet. You can negotiate not only the price of the
car but everything else from features to included maintenance. If you’re financing through the
dealer, you can also negotiate financing as well. Mike: Maybe you have some anxiety about negotiating
with the salesman. I never feel very comfortable doing that. Emma: It can be tough to do that stuff face
to face. Mike: Well then here’s an adulthood secret: Emma: OK. Mike: You can negotiate before you even get
there through e-mail. Emma: OK Mike: Like Alan, the guy who wrote this script
and is one of the adultiest adults we know, he negotiated everything in advance, so he
just went in and signed the contract, and just drove away, popped wheelies threw change
at Hank on the sidewalk. (Emma laughs) Part 7: Take Care to Take Care of Your Car
Care. A car is one of the biggest purchases of your adult life. Figure our the maintenance
schedule and stick to it. In addition to getting oil changed, you’re also gonna need to change
tires and filters. Emma: If you have any stories or strategies
about car-buying experiences, we would love to hear from you in the comment section below. Mike: In the meantime, I just got an email
from our local catchphrase dealer– Emma: OK. Mike: and he is trying to pressure me into
revealing the catchphrase. Well sir, I’m afraid that
is non-negotiable. (beep)
Viewers. Lovelies. If I were going to get a job– Emma: A traditional job, you know like a nine
to five, maybe. Mike: Yes. What do you think I would be good
at? It can’t be– I know you’re gonna be tempted to say “Be on America Ninja Warrior” But I’m
just not ready emotionally to go back to that place.

Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Leave a Reply

Your email address will not be published. Required fields are marked *