When To Buy a NEW CAR
Updated: November 19, 2024
Summary
The video discusses the ideal timing for buying a car, noting the decreasing vehicle values and overall approval rates which suggest it might be a good time. Recommendations include opting for economy cars, purchasing slightly used cars with cash, and exploring deals with credit unions. Buying used luxury SUVs, SUVs, and trucks is advised to avoid depreciation, while caution is advised against buying exotic cars due to massive depreciation hits. Investing in classic cars, especially manual or naturally aspirated vehicles, is encouraged for their increasing value potential and predicted market growth in the next few years.
Introduction to Buying Cars
The speaker discusses whether it is the right time to buy a car, emphasizing the importance of determining if it is a want or a need. He highlights the trend of decreasing vehicle values and overall approval rates, suggesting that now might be a good time to buy a car.
Economy Cars
Advice on buying economy cars, recommending buying slightly used cars with cash instead of new ones due to high interest, payments, and insurance on new vehicles. Prices of older cars are increasing due to the affordability crisis of new cars.
Financing Economy Cars
The segment focuses on financing economy cars, mentioning that banks are reluctant to lend for economy cars under a certain price range. Recommendations include checking deals with local credit unions and knowing the requirements before car shopping.
Luxury SUVs, SUVs, and Trucks
Suggestion to buy used luxury SUVs, SUVs, and trucks to avoid depreciation hit. Mention of overpricing in new car prices and advice on negotiating deals with manufacturers to avoid overpaying for additional packages.
Financing Luxury Vehicles
Discussion on the challenges of financing luxury vehicles due to high prices and interest rates. Emphasis on the need for large down payments and strategies to navigate financing options with banks and credit unions.
Exotic Cars
Cautionary advice on buying exotic cars, warning about massive depreciation hits and difficulties in financing. The speaker advises waiting for better deals and building a relationship with a bank or credit union before considering purchasing an exotic car.
Classic Cars
Encouragement to invest in classic cars due to their increasing value, especially for manual or naturally aspirated vehicles. The speaker predicts a significant market growth for classic cars in the next five years and advises acting promptly to purchase them.
FAQ
Q: Why does the speaker emphasize the importance of determining if buying a car is a want or a need?
A: The speaker emphasizes this to help individuals assess if it is a necessary purchase or just a desire, which can influence their decision-making process.
Q: What is the trend highlighted regarding vehicle values and approval rates that suggests it might be a good time to buy a car?
A: The trend mentioned is the decreasing vehicle values and overall approval rates, indicating a potentially favorable market for car buyers.
Q: Why does the speaker recommend buying slightly used economy cars with cash instead of new ones?
A: This recommendation is due to high interest rates, payments, and insurance costs associated with new vehicles, making slightly used cars a more cost-effective option.
Q: Why are the prices of older cars increasing, according to the speaker?
A: The prices of older cars are increasing due to the affordability crisis of new cars, pushing more buyers towards used vehicles.
Q: What is the reason banks are reluctant to lend for economy cars under a certain price range?
A: Banks are reluctant to lend for economy cars under a certain price range due to perceived higher risks and lower profit margins associated with these cheaper vehicles.
Q: Why does the speaker suggest buying used luxury SUVs, SUVs, and trucks to avoid depreciation hits?
A: The suggestion is made to avoid depreciation hit as luxury vehicles tend to lose value faster than slightly used ones, and buying used can offset this.
Q: What advice is given on negotiating deals with manufacturers to avoid overpaying for additional packages?
A: The advice is to negotiate deals with manufacturers to avoid overpaying for unnecessary additional packages that can inflate the total price of a new car.
Q: Why does the speaker caution against buying exotic cars?
A: The caution is due to the massive depreciation hits and challenges in financing associated with exotic cars, making them riskier investments.
Q: Why does the speaker encourage investing in classic cars?
A: The encouragement is based on the increasing value of classic cars, particularly manual or naturally aspirated vehicles, with a predicted significant market growth in the next five years.
Q: What strategy does the speaker recommend before considering purchasing an exotic car?
A: The speaker advises individuals to wait for better deals and build a relationship with a bank or credit union to navigate the challenges of financing exotic cars effectively.
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