She's On The Money - How to buy a car (and also how not to!)

Episode Date: March 23, 2021

Cars are one of the largest purchases we will ever make in our lifetime, so how do we make sure we’re not spending too much or getting ourselves into bad debt in the process? Buckle up (teehee) because today’s episode is going to be one hell of a ride. (We promise there aren’t any car puns in the episode).Do you love the podcast SICK and want more SOTM? Course ya do. Join our Facebook page to share your money wins and money confessions, follow us on Insta for daily inspo to keep you on track and DEFINITELY subscribe to our newsletter https://www.shesonthemoney.com.au/newsletter the written recap of the pod's key takeaways, including some bonus bits you won't want to miss.Finally, if you're in a money mess and need help untangling the muddle - we've got you sorted - simply record your question and send it through to us at [e-mail] and you may just end up on the podcast!The advice shared on She’s on The Money is general in nature and does not consider your individual circumstances. She’s on The Money exists purely for educational purposes and should not be relied upon to make an investment or financial decision. Victoria Devine is an Authorised Representative of Australia Pacific Funds Management Proprietary Limited ABN 34 132 463 257 - AFSL 339151.carSee omnystudio.com/listener for privacy information.

She's on the money. She's on the money. Hello and welcome to She's on the Money, the podcast for millennials who want financial freedom. There is a lot of debate out there when it comes to cars. Should we be buying them new, second hand? Do we buy them outright or do we opt for a personal loan? No matter the option we choose, cars are one of the most substantial purchases we will ever make. So today we'll be running through the A to Z of what you need to know if you're buying your very first car or maybe you're thinking it's time for an upgrade. If you are coming to the podcast today for the

very first time, welcome. My name is Georgia King. I'm a copywriter and journalism student And joining me, as always, is the finance guru herself, Victoria Devine. Hello, Georgia King. Bea, you announced something rather exciting on Monday this week. I did. I've written a book. Which I'm very excited about. And it is going to be on real-life shelves in real-life bookstores. Not just an e-book?

Not an e-book. I haven't written an e-book. I've written a paper book. Holy dooly. It's got a cover. It's got foil on the cover, Georgia. It's so exciting. How are you feeling about it? I'm very excited about it. Obviously, I've known about this for a while, so I've had time to come to terms with the fact that it is coming out, but it'll be available on the 16th of June.

And at the moment, it has just launched for pre-launch, which happened on Monday, which is super exciting. And our friends from Booktopia have given us a sweet, sweet 25% off. Amazing. So you can pre-order it and you'll get your hands on it as soon as it comes out. Obviously, we'll put the link in the show notes because it's our book and we're going to promo the hell out of this. but also we are so excited about it. Like I cannot tell you how much time and energy and effort I've

put into this, but also the rest of the team has. Like the amount of support they have given me throughout this process has been crazy cool. And I am genuinely so excited that this book is a real book, Georgia. Yeah. Can you give listeners a little taste of what they can expect from the book? I mean, if you're listening to my podcast, you probably know my tone of voice by now, but essentially just like the podcast, the book is going to be full of real life money stories from members of the She's On The Money community who have candidly shared their experiences but it's also going to be all about the steps that I think you need to take to budget, clear debts, build savings, start investing, buy property and literally everything else. So for me it'll be

the only finance guide you'll ever need. How exciting. I might get me a signed copy. I don't know. I don't know if I want you to have a signed copy. Hey whoa. Yeah calm down. Calm down. So excited for you girl congratulations it is massive so yeah as as v said we will link the pre-order link in our show notes yes we will so look out for that one but let's get into it v cars are something that everyone has an opinion on but obviously you're more qualified than most to talk about them should we be buying new second hand do we buy them outright or do we go with a loan i mean i would argue that i'm not more qualified to talk about cars in general but when it comes to car finance that's what I was getting at yes um but honestly at the end of the day it's

not actually about what I think about what car you should get by the way Toyota Yaris Cross what a car um but it's absolutely not about what I think and today I think it's just about going through the common errors and the ways that we can save on this massive purchase because at the end of the day this is one of the biggest purchases we'll make outside a family home that we will go all right well 30 grand straight up I'm happy to spend that like no we need to think about this purchase this is massive for us and we also don't want to lock ourselves away into a loan that we don't quite understand or don't want to actually commit to in the long term so what is your take then if if i can be so bold as to ask what is your opinion on cars personally personally obviously i'm just

going to be really blunt is that okay please don't buy a brand new car full stop end of story don't do it silly idea why because to put it simply it's a depreciating asset that's going to decline in value over time. So terrible idea to be purchasing an asset absolutely brand new and then expecting it to be worth even close to what you purchased it for. So they say that cars depreciate between 10 and 15% when you drive them out of the dealership. And on top of that, by the end of the first year of you having the car, another 10 to 15% of that car's value is going to be lost. Add that to however many years you're going to be driving the car around and you're looking at an asset which has a significantly lower value than what you originally bought it for so for me

I think brand new I get it it's shiny that new car smell I get it my friend but it is not an asset that I would ever recommend you purchase brand new I'm not saying you can't have like the latest model car I'm just saying you can't be the first owner of Georgia so I'm not saying don't go buy the 2020 model of you know whatever car you want to purchase now we're here for that but we want somebody else to have copped that depreciation on the nose before we pick up that car so that we're in a significantly better off financial position because our asset won't depreciate as much as it could. Just to make it really clear here, what does depreciate actually mean? So depreciate essentially means lowers in value. So it means that over time that asset will be worth

less and less. And we see this often. So people will say like, oh, my car was $25,000 and now it's worth 10. So therefore it has lessened in value and a depreciating asset includes lots of different things. So it's not necessarily just cars, but we're talking about that today. It can be cars, furniture, boats, tools, shoes, etc. It goes on and on. But these are assets that do not contribute to your future wealth. Also to preface it, I think it's really interesting as well, because some financial advisors don't agree with me here but I don't include your family car as an asset when talking to you as a client so if you put down like oh Victoria my car's worth 50 grand we're like okay cool are you planning on selling that no because it's a mode of transport for you

it is an actual vehicle that you are using it's not a disposable asset that you need to get rid of and I think that unless you are planning on using that asset as a disposable asset which you can liquefy and essentially make into cash so that you can invest like I don't really mind what it is like I don't want to hear about it I don't want you to tell me that it's an asset because it's to me not an asset so what's the difference between assets and investments then so assets aren't necessarily investments no they can be they can be both so and I could own shares and that could be an asset that I own but that is an asset that increases in value over time hopefully and a depreciating asset is one that just decreases in value and doesn't actually

contribute to your future wealth or your retirement plan so it's not an investment no sir so i could if i was on the superhero app i could invest in car shares though yes you could and that is and that's invested and that's an asset that's an asset whereas the actual car to me it's not an asset unless you're holding a vintage collectible car that you don't plan on driving so that it can increase in value and it can become an asset that's a different story i've actually historically had clients that have had cars in their superannuation funds which is wild really but they can't drive them because they're an asset what's the point exactly oh okay very interesting yeah um so obviously car loans are the way that most australians purchase cars i did a

little bit of article scanning contrary to popular belief yeah it's really interesting because our facebook group a lot of people are saying no no buy a car outright buy a car outright but it's not the case for most Australians. No, well, apparently over the 12 months back in 2018, we borrowed $8.1 billion to service car loans. Oh my gosh, that's a lot of money. It's a lot of billions. That is a lot of billions. It's a million millions. That's actually eight billions. Eight billions, a billion. Anyway, what is your take then on car loans? Are they handy or are they, do they fall into like the bad debt category? So this was a really good article. I did have a Squiz3 sent it to me. We've been chatting about this for a little while now. And it also says

that Australians pay more than $500 million in interest on these car loans. That's absolutely wild. And the average car loan, Georgia, is actually more than $36,000 with an average interest rate of 6.3%. And that to me is a lot of money, if I do say so myself, which is why I don't love people taking out ridiculous car loans on cars that are actually out of their budget. But that number at the end of the day doesn't actually shock me at all because this is the way 90% of Australians are actually buying their cars so 90% of the cars that you're driving past my friend are financed right crazy so that's okay then is that what we're saying look it is okay because at the end of the day to purchase a car outright includes a lot of privilege like if you have been

able to save up and you're able to allocate savings to a car to buy outright like that is a very, very beautiful privilege to have. I'm not saying at the end of the day car loans are bad and I think that's something we should preface really early on here. I am not saying don't do it because at the end of the day, lots of people actually need a car loan to be able to get the car that they need. Say you are pregnant and you're about to have a baby and part of your financial plan is to purchase a new car. One of the best ways you can actually do that is through a car loan with a really low interest rate. The point here is I don't want you to be paying exorbitant amounts of interest on a car that is going to decrease in value because you could just

head over to our friends at superhero and start investing properly and actually start creating wealth because too often do we think okay well i'm paying it off i've got this interest rate i get this asset at the end of it and we get deluded in a way into thinking that we are creating wealth for ourselves you'll say to yourself well at the end of the day i'll own it outright and i'll own that asset it's like you will but you would have spent so much more on that asset than what it is actually worth and over time that asset is going to cost you money so not only will it cost you money because you lost money on its original purchase price but you're going to be paying for fuel you're going to be paying for service you're going to be paying

for tolls registration insurance literally you just throw money at cars and I think we need to just call it what it is like yeah it's nice don't get me wrong I really want a beautiful car as well but if I buy a car I need it to be the right structure for me and my future wealth creation strategy not necessarily like oh my gosh that one's so pretty I wonder if I can afford the monthly repayments because that is not what we should be looking at gotcha but at the end of as you said gee car purchases are really up there with the really big purchases that we're going to make in our lifetime and the key with car loans is to find a loan that doesn't have a ridiculous interest rate that will see you paying way more for the car than what it's actually worth and I'm

sure we're going to touch on that a little bit later in the show because it's something I'm going to harp on about. I'm sorry. So then Bea, off the top of your head, what would the average interest rate on a car be or what should we be looking for? So that is a very fickle question because there's no hard and fast rule. Some car loans can be up to 17, 18% because they are unsecured. That is ridiculous. Do not do it. I'm sorry. It's a trap. It's a terrible idea. You can get car loans for much much less. At the end of the day it depends on your personal situation and what you have access to because if you're getting a car loan and you already have assets you could be getting a secured car loan which is obviously going to cost you less and you're going to get a

lower interest rate but I think it's about understanding what options are around and something that you're probably not going to want to hear from me is kind of reverse engineering it and going okay cool i need a new car this is actually a purchase that i need to make instead of oh hey v i really want to buy car x um and i'm going to find a way to do that obviously the higher the interest rate the less i would agree with it but i think reverse engineering your options can be really good so work out where you're going to get the best finance deal because at the end of the day we're trying to make good money decisions now a lot of you are going to go yeah but victoria Yeah, I really, really want to drive a brand new BMW.

I'll go, yeah. Right. But that is your value set. I'm not saying that's a bad thing. Go ahead and do it. I'm saying from a financial standpoint, this is the way you should be making that decision. And that is where can I get the lowest car interest rate?

Where can I get a loan that is going to work hard for me in comparison to me just paying through the nose for it? And I know at the moment you can get car finance loans for 0%, for 1%. it's going to depend on your car dealership usually they're really specific to car dealerships for example Hyundai might say okay on this particular car you can get 1.5 financing which is fine and that's an example I don't know if that's true or not sorry Hyundai but that is going to put you in a significantly better financial position and then on top of that you're not going to buy it new you're going to go to that dealership and say okay cool I want a car for this I actually

want to buy a secondhand one I want one that's either been traded in or I want a demo model which is kind of like the win right like a demo model it's never been owned by anybody else but it's also been driven around so it's kind of clocked up some that depreciations happen yeah the depreciations happened so you can usually get some pretty good deals on demo models of cars if your heart is set on a brand new car so you get that brand new car feeling you're going to drive it out of a dealership but you are not going to be stung through the nose in the same way you would if the odometer had zero kilometers on it which I think is a really good way to still get the best of both worlds in a way for sure for me it's actually about shopping the loan around first

and going well where can I get the lowest interest rate like can I get it for less than one or two percent and if that's the case money win I'm not saying everywhere does it but if that is the case and we compare this right and we'll go back to that example before you mentioned superhero and I think this is a really good example if you said hey Victoria I've got $30,000 I want to buy a brand new car and I go great Georgia I didn't know you were buying a family vehicle yet but this is very exciting news and you say do I go and purchase it outright or that same car I'm able to get one percent or two percent finance on I'll be like great Georgia that loan actually makes a lot of sense for you right now because what you're telling me is Victoria I have $30,000 lump sum

cash that I can do anything with right now. I need a car. So I'm going to go get that for one or 2% finance. That is less than the average share market return. So the share market in Australia, we always say returns about seven and a half percent. It's higher than that, but like we work on averages. So that means you could probably go over to our friends at superhero, invest your money and make sure that you're actually making a good return on your $30,000 while then paying off that car loan over the long term and financially you're going to be in a better position than had you put that $30,000 just on a car that's then going to depreciate in going to depreciate in value does that make sense yeah so in that aspect it might be smarter for you

to invest your money and have a car loan while still maintaining that lump sum of cash because at the end of the day if you went and put that lump sum of cash on that car instantly you're going to lose a fair chunk of it hopefully not and I know a lot of people go oh I didn't lose money when I saw my car like well done amazing that is not the commonality like most people do lose money on cars that's okay but we're here to deal with it rather than just go oh well cars are a bad asset don't buy them like great that's that's not the point of this this is buying cars in the smartest way possible and making sure that we're getting a good deal in terms of interest in stuff there v my next question is if we have the means to be buying a car outright is that a better

choice than financing because we don't have to pay that interest no so that's what i was talking about it's about opportunity cost so you're telling me you can pay one percent finance on a thirty thousand dollar car loan over there and invest your thirty thousand dollars and get an average of seven and a half percent return over here kind of balances out and your financial net position is going to be better off than had you not done that. If you took that $30,000 and spent it on a car, you're now losing the opportunity of making seven and a half percent on $30,000 in the share market. So the opportunity cost there is that. Does that make sense? So maybe it's better for you. And I'm not saying that investing is even the right decision for you

at this point I'm saying let's understand our choices and our options but that's also why I'd never say okay Georgia go and get like a 13 car loan and invest like that's a terrible idea yeah if you cannot access really low finance then yes of course purchasing it outright is going to be something that is going to put you in a better financial position but that is an opportunity that is not available to a lot of us because a lot of us do not have $30,000 sitting around to buy a new car yeah and $30,000 that's just a trivial number that I've pulled out of nowhere that's not my expectation for what cars should cost that's just a rando number that i've picked could be five grand could be 10 grand but you best believe most of us don't have that there

to spend on a vehicle gotcha so what about european cars then because that's something that often comes up in the discussion of cars people like european cars they're perceived to be more lux they're more expensive to buy probably to finance and then to service that's the killer so is that true that they're more expensive yes it is true okay more expensive but I also think it's a very uh outdated way of looking at things I understand that European cars historically were really good value and were really well made but now we have these beautiful Japanese cars coming through and Australian cars coming through that are genuinely really really great quality and I don't think we can compare them in a way anymore like lots of european car dealerships are now

producing in india and producing offshore and we just assume that they're still made in europe and they're still of the same quality when they're not interesting i have my mazda 2 actually so big shout out to that sweet beast i do drive a european car though it is a bit more expensive than not i mean it's from 2004 guys yeah please don't think don't jump down my throat and be like oh my gosh she's bougie like i try but my car is from 2004 and i have no intention of changing that anytime soon but if you are looking for a little workhorse if there's any 17 year olds looking uh for their first car that was my first car the mazda 2 and mazda 2 is a cute right it's just been like the so cheap to fuel uh never like just nothing's ever gone wrong with it it's a little

beast probably i'm like 27 what's my first car my first car was a toyota avalon oh if you don't know what that is google it you'll be like oh victoria what are you doing um but i was kindly um i got that from my parents so that like that's what it was and it was a cheap car at the time that i could afford to use got you from a to b me from a to b got me to uni every single day loved it. Dream car. Dream car. Dream car. Loved it. That's all we want. Then I upgraded to my 2004 European car. Do you think Faye as well, that there is a perception that secondhand cars are of a lesser quality? I feel like that's something that you probably hear out there. But it's not true. Like at the end of the day, I want you to know that

that's still great quality. There's still a great car. It doesn't mean it's cheap. It doesn't mean it's bad. I think it's a really great financial decision. I think it's such a backwards mentality to think that if someone doesn't buy a new car, they might not have enough money or they might not be wealthy. Like there's something very attractive about making good financial decisions and going, you know what, like I'm going to buy this car. It's a really good car. Like why can't we just have the older model of a really good car? It's going to be cheaper. It's going to be great for you. You don't need the brand new flashy versions of anything. And I know that that sounds a little bit maybe not condescending but it just to me cars aren't progressing obviously unless

we're talking about hybrid in which case that's a different story but like what more can you add to a car that makes it better to have the 2021 model versus the 2018 or the 2017 model the only thing I can think of is the car doors that like go up instead of opening like yeah like who needs handles when you can just press that unless your car's electric or hybrid in which case I get why you're investing the money there and that's you know and again that's a personal choice but like my 2004 car we've got georgia we've got cd player we have bluetooth that's wild from 2004 that is impressive yeah thank you i've got indicators i've got lights i literally have everything i need to drive the car it's crazy yeah but at the end of the day i think that that's a really good point

because i think sometimes when we are looking for cars we get really caught up in those shiny features like heated steering wheels and you know the apple car play and while those things are so attractive and they are shiny and they are nice i get it do they actually add the value that you are paying for them and if they do great go ahead purchase but if they don't maybe have a little bit of a think about what you actually require so v in like in saying all of this there are still a few little things you should do if you are buying a car secondhand right absolutely and i think it's really important to be savvy on this and understand it. It's not just seeing a pretty car on carsales.com going and looking at it and going, yeah, it looks like it's never been in a crash. There is what's

called a VIN number. So a vehicle identification number. And that number is a 17 character serial code. If you are planning on buying a secondhand car, ask the current owner for what that code is or open the car door and take a photo of it when you're there. But there is an Australian government website called the PPR so the personal property securities register where you can look that up and see if that car is registered or not and see where it is and what's going on and more often than not you can see if it's been in a crash or if it's a good car or not so I think it's really really important to be aware of that because you can also look it up on VicRoads or like I'm assuming your local government yeah for cars to make sure that everything's all well and good

the car hasn't been stolen yeah imagine that yeah yeah that but also just making sure that the car hasn't been in any crashes and you know some cars which you know it's not great but some people will be like no no the car's absolutely perfectly fine and then you find out it actually was a write-off and it was rebuilt you don't want that car you can't insure it properly it's not safe for you or your family so take car safety really seriously and do ask the questions do understand it and make sure that it does have a roadworthy like at the end of the day we're not here to go just by second hand it'll be fine like there are a lot of things you do need to look at yeah but it's not that hard once you wrap your head around what you can and can't look for yeah how to ask the

questions and lean into the she's on the money community ask us post in the group we have literally thousands of people that are willing to help 100 all righty we are going to take a quick little break here friends but when we return we'll be talking at the biggest mistakes vcs when it comes to buying cars and servicing car loans. Plus, we'll chat interest rates and Chattel mortgages. Chattel, I don't know. I don't know what they are, but V will let us know. So stick around, friends. Guys, don't forget that the podcast is not the only place you can hear the dulcet tones of Victoria Devine. And Georgia King. And Georgia King. We're also on Facebook, instagram tiktok we've got a newsletter it's a very good youtube we're everywhere so join us

we're on the tube you know what you really should have been born in the 70s or 80s i'm convinced of it i'm sad i wasn't yeah i'm sad you weren't no actually i'm not sad you weren't anyway let's move on do you want to talk more about cars with me all right if you let's zoom into it oh gosh you should be on a mazda ad thank you no problem mazda twos uh okay so what are the biggest mistakes people are making when it comes to cars okay you're not going to be surprised the first mistake is getting an exorbitant car loan on a car that you can't afford right there was a post in our group recently from our friend autumn who posted a photo of herself five years ago with her brand new car with a big red bow on it and she explained in the post how much she learned

from buying that car on finance so she said that the weekly repayments were about 150 bucks a week which she said didn't seem too bad at the time of signing so she bought the car went on her way but as she explained in her post the reality of that loan was that it was a $25,000 car with $4,000 loan insurance plus she was paying 17% interest over a seven-year loan period and altogether this is where it kind of like hits you in the chest she for that $25,000 car paid a total of $50,000 in repayments but the car she was paying for was worth significantly less than that the seven years later which is wild the full story is really awesome and really great to read and I'm actually really grateful that Autumn shared it because I think that real stories about

people you know their mistakes and missteps help us learn but also it really just reality checks it instead of me going oh a car loan can cost you a lot you kind of go yeah great Victoria but it gets me to where I want to go yeah um no the reality of a car loan in Autumn's situation was that she purchased a $25,000 brand new car for $50,000. And that is a lot. That is a big mistake and misstep. And I think that that is not necessarily something to hound yourself over, especially if you've got a car loan right now. We make decisions with our best intentions at heart. We might not have had the right education that we needed or even had the right information that we wish we had at that time. But I think if you're in this situation right now, like it is what it is,

friend don't don't hound yourself over this don't be upset about this just it is what it is you can work your way out of it but i think if you are in a situation where you are now considering a car like this is why you wouldn't um moving on from that though another big mistake i see is people not doing enough research and we know that car sales people we're saying people not men they do have some slippery reputation so you need to really own your purchasing decision and go in there with as much information as possible. Now, obviously women are a massive percentage of the listeners to this podcast. And unfortunately there are still car salespeople who are going to assume that because you're female, they can actually squeeze more money out of you because they assume

you don't really know what's going on, but prove them wrong by studying, comparing, looking at different packages and whatever is available and make sure that you kind of go in knowing what you want. I think one of the worst things you can say to a salesperson is, oh yeah, I don't really know what I want or I don't know what that means like I get it you might not you might want to ask them questions I think when push comes to shove and you're trying to understand what to purchase like go to a different car dealership go do your research there tell them you don't know and then when you do want to purchase go to a completely brand new car dealership be like hi I'm Georgia King I would like to buy a Mazda 2 these are the specs I want please find me that

car this is my price range and kind of just pull it out yeah there and go in there with confidence so they can be like she knows what she's talking about confidence yep and whatever add-ons they are trying to sell you be super super wary of them because more often than not they are super marked up and definitely not something that you want to spend your dollar rules on it's so hard as just a gal to say no when they're so pushy though and that's why i'm saying go and just do your research separately yeah and then when push comes to shove go and buy it i don't think it's a bad thing to take a friend either they take a friend if you've got a dad that's willing to go fantastic I know that it is 2021 and we shouldn't have to do these things but we're not talking about you know getting

away from the slippery salesman we're actually just talking about our own self-confidence and if it makes you feel a little bit more confident having a mate there to you know do the negotiation or be like hey gee you said you didn't want to do that I think that can actually just make you feel a little bit better about the whole situation because it can be overwhelming. 100%. I was scanning the group when I was putting together my questions for today's episode V and came across the term Chattel mortgage. Yeah, that's a thing. Chappelle, Chattel, Chattel. I don't know what it is. It came up more than once is my point. What does that even mean? Like what is a Chattel mortgage?

I feel like 99% of us would never have heard of this. But essentially a Chattel mortgage is a loan product designed for commercial car purchases. So it is essentially a business loan. It is car loan or a finance loan. It's just a fancy way of saying it, but it means that car will be used for at least 50% of business for most of the time. And say you're a tradie and you use a ute to get from A to B, like that is often the route that you'll go down. Nowadays, I don't believe that banks really call it a Chattel mortgage. They just call it asset finance or like business okay finance loans or whatever so you might not hear it as often but essentially chattel is a car and a chattel mortgage is made up of two parts so the first part being chattel your car and then

the mortgage which is the loan so it's not as complicated as i think people seem to assume it is and that's where all the questions come from but similarly to a secured car loan your lender provides funds to you to purchase the car and then the lender takes a mortgage over your car so essentially the bank owns it until you've paid it all off and then once the contract is up and you've paid it all off the car is yours and you'll own it outright okay what a dream so good idea bad idea neutral idea just an idea it's a car loan okay depends on what the interest rate is and whether it actually works for your personal financial situation it's absolutely not a bad way about going about it especially if you're a business owner because when it comes to business

and owning assets like a car, you can actually claim depreciation on them over time, which means you can claim it on tax. So there are a few other, you know, cheeky reasons why you as a business owner might go and buy a new car from a dealership because it makes sense tax wise, or it might make sense to your business. But that is a decision that is not up to She's On The Money because we're not a business podcast, my friend. No, no, we are not. That's the business Bible's job. that is the business bible's job all righty so today's episode in a nutshell i feel like is just do not buy new cars i think that's the main message i want you to take out of there is if you're considering purchasing a new car see if you can get a demo model or a model that is a

couple of years old so that the depreciation on that asset has already happened the longer the better obviously i don't want you going and buying old cars that end up costing you a whole heap in repairs that's a completely different story but a lot of the time you can actually go and buy a two or three year old car and extend the warranty and extend the servicing plan so it acts like a new car but the depreciation has already happened on it and if you're in a position where you need a loan then fantastic that is not a bad thing if you actually need that but it comes down to need and I think that we really need to differentiate here the difference between need and want like you might want a brand new car and feel like you need it but at the end of the day

if you already have a car that's getting you from a to b then maybe the need and the want have been a little bit confused i think on top of that as well if you genuinely need a car we then need to differentiate the difference between do i need a beam w or a shiny fancy car or do i need a car that's just going to be a good old faithful like your mazda 2 that's going to get you from a to b and do the job. So I think it's about, you know, just understanding our values. If you say, no, V, I really need the shiny fancy car. Great. I want you to live life to your values. I'm not here to judge you. I'm not here to say that they're a bad thing. I'm here to make sure that you are making the right decision for you and your decisions have been reflected to you before you

make them. Amazing. Couldn't have said it any better myself. I'm glad. If anyone does need further convincing there is a really good video from your mate v dave ramsey oh talking about cars he's just so savage it's hilarious i haven't seen it we should we should link it in the show notes so good put it in the show notes but also let's put it in the pod group start a chat all right so just before we head off we'd like to acknowledge and pay respect to australia's aboriginal and torres strait islander peoples they're the traditional custodians of the lands the waterways and the skies all across australia we thank you for sharing and for caring on the land which we are able to learn. We pay our respects to elders past and present and we share

our friendship and our kindness. The advice shared on She's on the Money is general in nature and does not consider your individual circumstances. She's on the Money exists purely for educational purposes and should not be relied upon to make an investment or a financial decision. No sir. No sir. And we promise Victoria Devine is an authorised representative of Australia Pacific Funds Management, Proprietary Limited, ABN 34132463257, AFSL 339151. And a big thank you to Rai and John for putting together today's little episode. What a legend. 10 out of 10. 10 out of 10. If I was forced to give him a rating out of 10. We would love it if you joined our Facebook group where our community shares money, tips and tricks every single day free

of judgment search she's on the money on facebook and join us if facebook's not your thing you can find us on instagram we're at she's on the money aus and don't forget to buy my book friends yay link in the show notes we'll see you on friday guys