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

• 0:00
  Speaker 1: She's on the Money. She's on the money.
• 0:17
  Speaker 2: Hello, and welcome, She's on the Money. The podcast Millennials
• 0:20
  Speaker 2: who Want Financial Freedom. There is a lot of debate
• 0:24
  Speaker 2: out there when it comes to cars. Should we be
• 0:26
  Speaker 2: buying them new secondhand? Do we buy them outright or
• 0:29
  Speaker 2: do we opt for a personal loan. No matter the
• 0:32
  Speaker 2: option we choose, cars are one of the most substantial purchases.
• 0:35
  Speaker 3: We will ever make.
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  Speaker 2: So today we'll be running through the A to Z
• 0:39
  Speaker 2: of what you need to know if you're buying your
• 0:41
  Speaker 2: very first car, or if maybe you're thinking it's time
• 0:43
  Speaker 2: for an upgrade. If you are coming to the podcast
• 0:47
  Speaker 2: today for the very first time, Welcome. My name is
• 0:50
  Speaker 2: Georgia King. I'm a copywriter and journalism student, and joining
• 0:54
  Speaker 2: me as always is the finance Guru herself, Victoria Define. Hello,
• 1:00
  Speaker 2: you went out something or rather exciting on Monday this week?
• 1:04
  Speaker 3: I did. I've written a book which I'm very excited about,
• 1:09
  Speaker 3: and it is going to be on real life shelves
• 1:11
  Speaker 3: in real life bookstores, not just an e book. Not
• 1:14
  Speaker 3: e books like I haven't writen a ey book. I've
• 1:16
  Speaker 3: written a paper book, got a cover, It's got foil
• 1:20
  Speaker 3: on the cover.
• 1:21
  Speaker 2: Georgia, it's so exciting. How are you feeling about it?
• 1:25
  Speaker 3: I'm very excited about it. Obviously, I've known about this
• 1:27
  Speaker 3: for a while, so I've had time to come to
• 1:29
  Speaker 3: terms with the fact that it is coming out. But
• 1:31
  Speaker 3: it'll be available on the sixteenth of June, and at
• 1:33
  Speaker 3: the moment, it has just launched for pre launch, which
• 1:35
  Speaker 3: happened on Monday, which is super exciting, and our friends
• 1:38
  Speaker 3: from book Topia have given us a sweet, sweet twenty
• 1:40
  Speaker 3: five percent.
• 1:41
  Speaker 2: Of amazing, so you can pre order it and you'll
• 1:43
  Speaker 2: get your hands on it as soon as it comes out.
• 1:45
  Speaker 3: Obviously we'll put the link in the show notes because
• 1:48
  Speaker 3: it's our book and we're going to promo the hell
• 1:50
  Speaker 3: out of this. But also we are so excited about it.
• 1:53
  Speaker 3: Like I cannot tell you how much time and energy
• 1:56
  Speaker 3: and effort I've put into this, but also the rest
• 1:59
  Speaker 3: of the team has, Like the amount of support they
• 2:01
  Speaker 3: have given me throughout this process has been crazy cool,
• 2:04
  Speaker 3: and I am genuinely so excited that this book is
• 2:07
  Speaker 3: a real book.
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  Speaker 2: George, Yeah, can you give listeners a little taste of
• 2:11
  Speaker 2: what they can expect from the book?
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  Speaker 3: I mean, if you're listening to my podcast, you probably
• 2:15
  Speaker 3: know my tone of voice by now. But essentially, just
• 2:18
  Speaker 3: like the podcast, the book is going to be full
• 2:19
  Speaker 3: of real life money stories from members of the She's
• 2:22
  Speaker 3: on the Money community who have candidly shared their experiences.
• 2:25
  Speaker 3: But it's also going to be all about the steps
• 2:28
  Speaker 3: that I think you need to take to budget cleardettes,
• 2:30
  Speaker 3: build savings, start investing by property, and literally everything else.
• 2:34
  Speaker 3: So for me, it'll be the only finance guide you'll
• 2:37
  Speaker 3: ever need.
• 2:38
  Speaker 2: I'm exciting. I might. I got me a signed copy.
• 2:41
  Speaker 3: I don't know. I don't know if I want you
• 2:43
  Speaker 3: to have a signed copy. Hey whoa hey yeah, calm down,
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  Speaker 3: god down.
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  Speaker 2: So excited for you girl. Congratulations. It is a massive
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  Speaker 2: So yeah, as we said, we will link the pre
• 2:54
  Speaker 2: order link in our show notes. Yes, we will, so
• 2:56
  Speaker 2: look out for that one. But let's get into it.
• 2:59
  Speaker 2: Be cars are something that everyone has an opinion on,
• 3:03
  Speaker 2: but obviously you're more qualified than most to talk about them.
• 3:06
  Speaker 2: Should we be buying new secondhand? Do we buy them
• 3:09
  Speaker 2: outright or do we go with the loan?
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  Speaker 3: I mean, I would argue that I'm not more qualified
• 3:12
  Speaker 3: to talk about cars into but when it comes to
• 3:15
  Speaker 3: car financing, that's what I was getting with your girl, yes,
• 3:19
  Speaker 3: but honestly, at the end of the day, it's not
• 3:21
  Speaker 3: actually about what I think about what car you should get.
• 3:23
  Speaker 3: By the way, Toyota Yarra's cross, what a car, But
• 3:26
  Speaker 3: it's absolutely not about what I think. And today I
• 3:29
  Speaker 3: think it's just about going through the common errors in
• 3:31
  Speaker 3: the ways that we can save on this massive purchase,
• 3:33
  Speaker 3: because at the end of the day, this is one
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  Speaker 3: of the biggest purchases we will make outside a family
• 3:38
  Speaker 3: home that we will go all right, well, thirty grand
• 3:41
  Speaker 3: straight up, I'm happy to spend that. Like, no, we
• 3:43
  Speaker 3: need to think about this purchase. This is massive for us,
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  Speaker 3: and we also don't want to lock ourselves away into
• 3:48
  Speaker 3: a loan that we don't quite understand or don't want
• 3:51
  Speaker 3: to actually commit to in the long term.
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  Speaker 2: So what is your take? Then? If I can be
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  Speaker 2: so bold as to ask, what is your opinion on
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  Speaker 2: cars personally?
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  Speaker 3: Obviously I'm just going to be really blunt, is that Okay?
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  Speaker 3: Please don't buy a brand new car, full stop, end
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  Speaker 3: of story. Don't do it, silly idea? Why Because, to
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  Speaker 3: put it simply, it's a depreciating asset that's going to
• 4:12
  Speaker 3: decline in value over time. So terrible idea to be
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  Speaker 3: purchasing an asset absolutely brand new and then expecting it
• 4:20
  Speaker 3: to be worth even close to what you purchased it for.
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  Speaker 3: So they say that cars depreciate between ten and fifteen
• 4:26
  Speaker 3: percent when you drive them out of the dealership, and
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  Speaker 3: on top of that, by the end of the first
• 4:30
  Speaker 3: year of you having the car, another ten to fifteen
• 4:32
  Speaker 3: percent of that car's value is going to be lost.
• 4:36
  Speaker 3: Add that to however many years you're going to be
• 4:37
  Speaker 3: driving the car around and you're looking at an asset
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  Speaker 3: which has a significantly lower value than what you originally
• 4:43
  Speaker 3: bought it for. So for me, I think brand new.
• 4:46
  Speaker 3: I get it. It's shiny, new car smell. I get it,
• 4:50
  Speaker 3: my friend, but it is not an asset that I
• 4:53
  Speaker 3: would ever recommend you purchase brand new. I'm not saying
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  Speaker 3: you can't have the latest model car. I'm just saying
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  Speaker 3: you can't be the first time Georgia.
• 5:00
  Speaker 2: Ah.
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  Speaker 3: So I'm not saying don't go buy the twenty twenty
• 5:03
  Speaker 3: model of you know, whatever car you want to purchase. Now,
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  Speaker 3: we're here for that, but we want somebody else to
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  Speaker 3: have copped that depreciation on the nose before we pick
• 5:11
  Speaker 3: up that car, so that we're in a significantly better
• 5:14
  Speaker 3: off financial position because our asset won't depreciate as much
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  Speaker 3: as it could.
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  Speaker 2: Just to make it really clear here, what does depreciate
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  Speaker 2: actually mean?
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  Speaker 3: So depreciate essentially means lowers in value, So it means
• 5:28
  Speaker 3: that over time that asset will be worth less and less,
• 5:31
  Speaker 3: and we see this often, so people will say like, oh,
• 5:33
  Speaker 3: my car is twenty five thousand and now it's worth ten,
• 5:36
  Speaker 3: so therefore it has lessened in value. And a depreciating
• 5:40
  Speaker 3: asset includes lots of different things, so it's not necessarily
• 5:43
  Speaker 3: just cars, but we're talking about that today. Can be cars, furniture, boats, tools,
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  Speaker 3: shoes and shoes, et cetera. It goes on and on.
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  Speaker 3: But these are assets that do not contribute to your
• 5:55
  Speaker 3: future wealth. Also, to preface it, I think it's really
• 5:59
  Speaker 3: interesting as well because some financial advisors don't agree with
• 6:02
  Speaker 3: me here, but I don't include your family car as
• 6:06
  Speaker 3: an asset when talking to you as a client. So
• 6:09
  Speaker 3: if you put down, like, oh a little bit, Victoria,
• 6:11
  Speaker 3: my car's worth fifty grand, we're like, okay, cool, are
• 6:13
  Speaker 3: you planning on selling that? No, because it's a mode
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  Speaker 3: of transport for you, It is an actual vehicle that
• 6:19
  Speaker 3: you are using. It's not a disposable asset that you
• 6:22
  Speaker 3: need to get rid of. And I think that unless
• 6:24
  Speaker 3: you are planning on using that asset as a disposable
• 6:28
  Speaker 3: asset which you can liquify and essentially make into cash
• 6:31
  Speaker 3: so that you can invest. Like, I don't really mind
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  Speaker 3: what it is, like, I don't want to hear about it.
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  Speaker 3: I don't want you to tell me that it's an asset,
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  Speaker 3: because it's to me not an asset.
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  Speaker 2: So what's the difference between assets and investments? Then? So
• 6:43
  Speaker 2: assets aren't necessarily investment.
• 6:46
  Speaker 3: No, they can be. They can be both. So I
• 6:48
  Speaker 3: could own shares, and that could be an asset that
• 6:51
  Speaker 3: I own, but that is an asset that increases in
• 6:54
  Speaker 3: value over time hopefully, and a depreciating asset is one
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  Speaker 3: that just decreases in value. It doesn't actually contribute to
• 7:00
  Speaker 3: your future wealth or your retirement plans.
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  Speaker 2: So it's not an investment, no, sir. So I could
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  Speaker 2: if I was on the Superhero app, I could invest
• 7:09
  Speaker 2: in car shares.
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  Speaker 3: Though, yes you could, and that.
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  Speaker 2: Is there and that's invested, and that's an asset.
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  Speaker 3: That's an asset. Where's the actual car to me, it's
• 7:15
  Speaker 3: not an asset unless you're holding a vintage collectible car
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  Speaker 3: that you don't plan on driving so that you can
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  Speaker 3: increase in value and it can become an asset. That's
• 7:23
  Speaker 3: a different story. I've actually historically had clients that have
• 7:26
  Speaker 3: had cars in their superannuation funds, which is wild really,
• 7:30
  Speaker 3: but they can't drive them because they're an asset. What
• 7:32
  Speaker 3: spun exactly?
• 7:35
  Speaker 2: Okay, very interesting. So obviously car loans are the way
• 7:39
  Speaker 2: that most Australians purchased cars. I did a little bit
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  Speaker 2: of article scanning belief, which's.
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  Speaker 3: Really interesting because our Facebook group, a lot of people
• 7:49
  Speaker 3: are saying no, no, no, by a CAI outright, by
• 7:51
  Speaker 3: a Chi outrighter. It's not the case for most Australians.
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  Speaker 2: No. Well, apparently over the twelve months back in twenty eighteen,
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  Speaker 2: we borrowed eight point one billion dollars to serve as
• 8:02
  Speaker 2: car loans.
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  Speaker 3: Gosh, that's a lot of money. It's a lot of billions,
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  Speaker 3: and it's a lot of billions. It's a million millions,
• 8:08
  Speaker 3: that's actually eight billions, eight billions, a billion. Anyway, Ah,
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  Speaker 3: what is your take then on car loans? Are they
• 8:15
  Speaker 3: handy or do they fall into like the bad debt category.
• 8:19
  Speaker 3: So this was a really good article. I did have
• 8:21
  Speaker 3: a squieze three center to me, We've been chatting about
• 8:23
  Speaker 3: this for a little while now. And it also says
• 8:25
  Speaker 3: that Australians pay more than five hundred million dollars in
• 8:28
  Speaker 3: interest on these car loans. That's absolutely wild. And the
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  Speaker 3: average car loan Georgia is actually more than thirty six
• 8:35
  Speaker 3: one thousand dollars with an average interest rate of six
• 8:37
  Speaker 3: point three percent, And that to me is a lot
• 8:41
  Speaker 3: of money, if I do say so myself, which is
• 8:44
  Speaker 3: why I don't love people taking out ridiculous car loans
• 8:46
  Speaker 3: on cars that are actually out of their budget. But
• 8:49
  Speaker 3: that number, at the end of the day doesn't actually
• 8:51
  Speaker 3: shock me at all because this is the way ninety
• 8:53
  Speaker 3: percent of Australians are actually buying their cars. So ninety
• 8:56
  Speaker 3: percent of the cars that you are driving past my
• 8:58
  Speaker 3: friend of financed right crazy.
• 9:01
  Speaker 2: So that's okay, then, is that what we're saying.
• 9:04
  Speaker 3: Look, it is okay because at the end of the day,
• 9:07
  Speaker 3: to purchase a car outright includes a lot of privilege,
• 9:10
  Speaker 3: Like if you have been able to save up and
• 9:12
  Speaker 3: you're able to allocate savings to a car, to buy
• 9:15
  Speaker 3: outright like that is a very, very beautiful privilege to have.
• 9:19
  Speaker 3: I'm not saying at the end of the day, car
• 9:20
  Speaker 3: loans are bad, and I think that's something we should
• 9:22
  Speaker 3: preface really early on here. I am not saying don't
• 9:25
  Speaker 3: do it, because at the end of the day, lots
• 9:27
  Speaker 3: of people actually need a car loan to be able
• 9:29
  Speaker 3: to get the car that they need. Say you are
• 9:31
  Speaker 3: pregnant and you're about to have a baby, and part
• 9:33
  Speaker 3: of your financial plan is to purchase a new car.
• 9:35
  Speaker 3: One of the best ways you can actually do that
• 9:37
  Speaker 3: is through a car loan with a really low interest rate.
• 9:40
  Speaker 3: The point here is I don't want you to be
• 9:42
  Speaker 3: paying exorbitant amounts of interest on a car that is
• 9:45
  Speaker 3: going to decrease in value, because you could just head
• 9:48
  Speaker 3: over to our friends at Superhero and start investing properly
• 9:51
  Speaker 3: and actually start creating wealth. Because too often do we think, Okay, well,
• 9:55
  Speaker 3: I'm paying it off, I've got this interest rate, i
• 9:57
  Speaker 3: get this asset at the end of it, and we
• 9:59
  Speaker 3: get tol looted in a way into thinking that we
• 10:02
  Speaker 3: are creating wealth for ourselves. You'll say yourself, well, at
• 10:04
  Speaker 3: the end of the day, I'll own it outright, and
• 10:06
  Speaker 3: I'll own that asset. It's like you will, but you
• 10:09
  Speaker 3: would have spent so much more on that asset than
• 10:11
  Speaker 3: what it is actually worth. And over time, that asset
• 10:14
  Speaker 3: is going to cost you money. So not only will
• 10:17
  Speaker 3: it cost you money because you lost money on its
• 10:19
  Speaker 3: original purchase price, but you're going to be paying for fuel,
• 10:22
  Speaker 3: You're going to be paying for service, You're going to
• 10:24
  Speaker 3: be paying for tolls, registration, insurance. Literally, you just throw
• 10:27
  Speaker 3: money at cars, and I think we need to just
• 10:30
  Speaker 3: call it what it is, Like, Yeah, it's nice, don't
• 10:32
  Speaker 3: get me wrong. I really want a beautiful car as well,
• 10:35
  Speaker 3: But if I buy a car, I need it to
• 10:37
  Speaker 3: be the right structure for me and my future wealth
• 10:40
  Speaker 3: creation strategy, not necessarily like, oh my gosh, that one's
• 10:43
  Speaker 3: so pretty. I wonder if I can afford the month
• 10:45
  Speaker 3: of your payments, because that is not what we should
• 10:47
  Speaker 3: be looking at, gotcha. But at the end of the day,
• 10:50
  Speaker 3: as you said, gee, car purchases are really up there
• 10:52
  Speaker 3: with the really big purchases that we're going to make
• 10:54
  Speaker 3: in our lifetime. And the key with car loans is
• 10:57
  Speaker 3: to find a loan that doesn't have a ridiculous interest
• 10:59
  Speaker 3: rate that will, so you're paying way more for the
• 11:01
  Speaker 3: car than what it's actually worth. And I'm sure we're
• 11:04
  Speaker 3: going to touch on that a little bit later in
• 11:05
  Speaker 3: the show because it's something I'm going to harp on about.
• 11:07
  Speaker 3: I'm sorry.
• 11:08
  Speaker 2: So then, be, off the top of your head, what
• 11:11
  Speaker 2: would the average interest rate on a car be or
• 11:14
  Speaker 2: what should we be looking for?
• 11:16
  Speaker 3: So that is a very fickle question because there's no
• 11:19
  Speaker 3: hard and fast rule. Some car loans can be up
• 11:22
  Speaker 3: to seventeen eighteen percent because they are unsecured. That it's ridiculous.
• 11:26
  Speaker 3: Do not do it. I'm sorry, it's trap like, it's
• 11:28
  Speaker 3: a terrible idea. You can get car loans for much
• 11:31
  Speaker 3: much less. At the end of the day, it depends
• 11:33
  Speaker 3: on your personal situation and what you have access to,
• 11:37
  Speaker 3: because if you're getting a car loan and you already
• 11:39
  Speaker 3: have assets, you could be getting a secured car loan,
• 11:42
  Speaker 3: which is obviously going to cost you less and you're
• 11:45
  Speaker 3: going to get a lower interest rate. But I think
• 11:47
  Speaker 3: it's about understanding what options are around and something that
• 11:52
  Speaker 3: you're probably not going to want to hear from me
• 11:54
  Speaker 3: is kind of reverse engineering it and going Okay, cool,
• 11:58
  Speaker 3: I need a new car. This is actually purchase that
• 12:00
  Speaker 3: I need to make instead of oh, hey, v I
• 12:03
  Speaker 3: really want to buy car X and I'm going to
• 12:06
  Speaker 3: find a way to do that. Obviously, the higher the
• 12:08
  Speaker 3: interest rate, the less I would agree with it. But
• 12:11
  Speaker 3: I think reverse engineering your options can be really good.
• 12:14
  Speaker 3: So work out where you're going to get the best
• 12:16
  Speaker 3: finance deal, because at the end of the day, we're
• 12:18
  Speaker 3: trying to make good money decisions. Now, a lot of
• 12:20
  Speaker 3: you are going to go, yeah, but Victoria, I really
• 12:22
  Speaker 3: really want to drive a brand NEWBMW. I'll go yeah, right,
• 12:27
  Speaker 3: But that is your value set. I'm not saying that's
• 12:29
  Speaker 3: a bad thing, go ahead and do it. I'm saying,
• 12:31
  Speaker 3: from a financial standpoint, this is the way you should
• 12:34
  Speaker 3: be making that decision. And that is where can I
• 12:37
  Speaker 3: get the lowest car interest rate? Where can I get
• 12:40
  Speaker 3: a loan that is going to work hard for me
• 12:42
  Speaker 3: in comparison to me just paying through the nose for it?
• 12:45
  Speaker 3: And I know at the moment you can get car
• 12:48
  Speaker 3: finance loans for zero percent for one percent. It's going
• 12:51
  Speaker 3: to depend on your car dealership. Usually they're really specific
• 12:54
  Speaker 3: tow car dealerships. For example, Keon, I might say okay
• 12:58
  Speaker 3: on this particular car you can get at one point
• 13:00
  Speaker 3: five percent financing, which is fine, And that's an example.
• 13:03
  Speaker 3: I don't know if that's true or not, sorry, Hendi,
• 13:05
  Speaker 3: but that is going to put you in a significantly
• 13:08
  Speaker 3: better financial position. And then on top of that, you're
• 13:12
  Speaker 3: not going to buy it new. You're going to go
• 13:13
  Speaker 3: to that dealership and say, okay, cool, I want a
• 13:16
  Speaker 3: car for this. I actually want to buy a secondhand one.
• 13:19
  Speaker 3: I want one that's either been traded in, or I
• 13:21
  Speaker 3: want a demo model, which is kind of like the
• 13:24
  Speaker 3: win right. Like the demo model, it's never been owned
• 13:27
  Speaker 3: by anybody else, but it's also been driven around, so
• 13:30
  Speaker 3: it's kind of clocked up.
• 13:31
  Speaker 2: Some that depreciations happen.
• 13:33
  Speaker 3: Yeah, the depreciations happened. So you can usually get some
• 13:36
  Speaker 3: pretty good deals on demo models of cars if your
• 13:39
  Speaker 3: heart is set on a brand new car, So you
• 13:40
  Speaker 3: get that brand new car feeling, you're going to drive
• 13:42
  Speaker 3: it out of a dealership, but you are not going
• 13:45
  Speaker 3: to be stung through the nose in the same way
• 13:46
  Speaker 3: you would if the odometer had zero kilometers on it,
• 13:49
  Speaker 3: which I think is a really good way to still
• 13:52
  Speaker 3: get the best of world's in a way. Sure for me.
• 13:56
  Speaker 3: It's actually about shopping the loan around first and going, well,
• 13:58
  Speaker 3: where can I get the lowest interest rate? Like can
• 14:01
  Speaker 3: I get it for less than one or two percent?
• 14:03
  Speaker 3: And if that's the case, money win. I'm not saying
• 14:06
  Speaker 3: everywhere does it, but if that is the case, and
• 14:10
  Speaker 3: we compare this right, and we'll go back to that
• 14:13
  Speaker 3: example before you mentioned Superhero and I think this is
• 14:15
  Speaker 3: a really good example. If you said, hey, Victoria, I've
• 14:19
  Speaker 3: got thirty thousand dollars I want to buy a brand
• 14:22
  Speaker 3: new car, and I go, great, Georgia, I didn't know
• 14:24
  Speaker 3: you were buying a family vehicle yet, but this is
• 14:26
  Speaker 3: very exciting news. And you say, do I go and
• 14:29
  Speaker 3: purchase it outright? Or that same car I'm able to
• 14:33
  Speaker 3: get one percent or two percent finance on. I'll be like, great, Georgia,
• 14:36
  Speaker 3: that loan actually makes a lot of sense to you
• 14:38
  Speaker 3: right now, because what you're telling me is, Victoria, I
• 14:41
  Speaker 3: have thirty thousand dollars lump some cash that I can
• 14:44
  Speaker 3: do anything with. Right now. I need a car, so
• 14:47
  Speaker 3: I'm going to go get that for one or two
• 14:48
  Speaker 3: percent finance That is less than the average share market return.
• 14:53
  Speaker 3: So the share market in Australia. We always say returns
• 14:56
  Speaker 3: about seven and a half percent. It's higher than that,
• 14:58
  Speaker 3: but like we work on averages, So that means you
• 15:01
  Speaker 3: could probably go over to our friends at Superhero, invest
• 15:04
  Speaker 3: your money and make sure that you're actually making a
• 15:08
  Speaker 3: good return on your thirty thousand dollars while then paying
• 15:11
  Speaker 3: off that car loan over the long term and financially,
• 15:13
  Speaker 3: you're going to be in a better position than had
• 15:16
  Speaker 3: you put that thirty thousand dollars just on a car
• 15:18
  Speaker 3: that's then going to depreciate in going to depreciate in value.
• 15:23
  Speaker 3: Does that make sense? So in that aspect, it might
• 15:27
  Speaker 3: be smarter for you to invest your money and to
• 15:29
  Speaker 3: have a car loan while still maintaining that lump some
• 15:33
  Speaker 3: of cash, because at the end of the day, if
• 15:34
  Speaker 3: you went and put that lump some of cash on
• 15:36
  Speaker 3: that car instantly, you're going to lose a fair chunk
• 15:39
  Speaker 3: of it. Hopefully not. And I know a lot of
• 15:41
  Speaker 3: people go, oh, I didn't lose money when I saw
• 15:43
  Speaker 3: my car, Like, well done, amazing. That is not the
• 15:46
  Speaker 3: common value. Like most people do lose money on cars,
• 15:49
  Speaker 3: and that's okay, but we're here to deal with it
• 15:52
  Speaker 3: rather than just go, oh, well, cars are about asset,
• 15:54
  Speaker 3: don't buy them like great, that's not the point of this.
• 15:57
  Speaker 3: This is buying cars in the smartest way possible and
• 16:00
  Speaker 3: making sure that we're getting a good.
• 16:02
  Speaker 2: Deal in terms of interest and stuff there v My
• 16:05
  Speaker 2: next question is, if we have the means to be
• 16:09
  Speaker 2: buying a car out right, is that a better choice
• 16:13
  Speaker 2: than financing because we don't have to pay that interest.
• 16:16
  Speaker 3: No, So that's what I was talking about. It's about
• 16:19
  Speaker 3: opportunity cost. So you're telling me you can pay one
• 16:23
  Speaker 3: percent finance on a thirty thousand dollars car loan over
• 16:26
  Speaker 3: there and invest your thirty thousand dollars and get an
• 16:29
  Speaker 3: average of seven and a half percent return over here.
• 16:31
  Speaker 3: Kind of balances out and your financial net position is
• 16:35
  Speaker 3: going to be better off than had you not done that.
• 16:37
  Speaker 3: If you took that thirty thousand dollars and spent it
• 16:39
  Speaker 3: on a car, you're now losing the opportunity of making
• 16:43
  Speaker 3: seven and a half percent on thirty thousand dollars in
• 16:45
  Speaker 3: the share market. So the opportunity cost there is that.
• 16:50
  Speaker 2: Does that make sense? So yeah, maybe it's.
• 16:52
  Speaker 3: Better for you. And I'm not saying that investing is
• 16:54
  Speaker 3: even the right decision for you. At this point, I'm saying,
• 16:56
  Speaker 3: let's understand our choices and our options. But that's also
• 17:00
  Speaker 3: why I'd never say, okay, Georgia, go and get like
• 17:02
  Speaker 3: a thirteen percent car loan and invest like that's a
• 17:05
  Speaker 3: terrible idea. If you cannot access really low finance, then yes,
• 17:09
  Speaker 3: of course purchasing it outright is going to be something
• 17:12
  Speaker 3: that is going to put you in a better financial position.
• 17:14
  Speaker 3: But that is an opportunity that is not available to
• 17:17
  Speaker 3: a lot of us because a lot of us do
• 17:19
  Speaker 3: not have thirty thousand dollars sitting around to buy a
• 17:21
  Speaker 3: new car. And thirty thousand dollars that's just a trivial
• 17:24
  Speaker 3: number that I've pulled out of nowhere. That's not my
• 17:26
  Speaker 3: expectation for what cars should cost. That's just a random
• 17:29
  Speaker 3: number that I've picked. Could be five grand, could be
• 17:32
  Speaker 3: ten grand. But you best believe most of us don't
• 17:35
  Speaker 3: have that there to spend on a.
• 17:36
  Speaker 2: Vehicle, gotcha. So what about European cars then, because that's
• 17:40
  Speaker 2: something that often comes up in the discussion of cars.
• 17:43
  Speaker 2: People like, Oh, European cars, they're perceived to be more
• 17:46
  Speaker 2: lux they're more expensive to buy, probably to finance and
• 17:50
  Speaker 2: to service. That's a killer.
• 17:53
  Speaker 3: So is that true that they're more expensive. Yes, it
• 17:56
  Speaker 3: is true more expensive, but I also think it's very
• 18:01
  Speaker 3: outdated way of looking at things. I understand that European
• 18:04
  Speaker 3: cars historically were really good value and we're really well made.
• 18:09
  Speaker 3: But now we have these beautiful Japanese cars coming through
• 18:12
  Speaker 3: and Australian cars coming through that are genuinely really really
• 18:16
  Speaker 3: great quality, and I don't think we can compare them
• 18:19
  Speaker 3: in a way anymore. Like lots of European car dealerships
• 18:23
  Speaker 3: are now producing in India and producing offshore, and we
• 18:26
  Speaker 3: just assume that they're still made in Europe and they're
• 18:29
  Speaker 3: still of the same quality when they're not interesting.
• 18:33
  Speaker 2: I have my Mazda too, actually, so a big shout
• 18:36
  Speaker 2: out to that sweet beast.
• 18:38
  Speaker 3: I do drive a European car, though it is a
• 18:42
  Speaker 3: bit more expensive than not. I mean, but that's all
• 18:44
  Speaker 3: two thousand and four, guys, So please don't think. Don't
• 18:47
  Speaker 3: shut down my throat and be like, oh my gosh,
• 18:49
  Speaker 3: she's boogey like I try. But my car is from
• 18:52
  Speaker 3: two thousand and four and I have no intention of
• 18:54
  Speaker 3: changing that anytime soon.
• 18:55
  Speaker 2: But if you are looking for a little workhoorse if
• 18:58
  Speaker 2: there's any seventeen year olds looking for their first car.
• 19:01
  Speaker 2: That was my first car, the Master two, And.
• 19:03
  Speaker 3: Mass is right.
• 19:05
  Speaker 2: It's just been like so cheap to fuel never like
• 19:09
  Speaker 2: just nothing's ever gone wrong with it. It's a little beast.
• 19:12
  Speaker 3: Probably it's my first car. My first car was a
• 19:15
  Speaker 3: Toyota Avalon. And if you don't know what that is,
• 19:18
  Speaker 3: google it you'll be like, oh, Victoria, what are you doing?
• 19:21
  Speaker 3: But I was kindly. I got that from my parents,
• 19:25
  Speaker 3: so that like that's what it was. And it was
• 19:28
  Speaker 3: a cheap car at the time that I could afford
• 19:30
  Speaker 3: to use. Got you from A to B, me from
• 19:33
  Speaker 3: A to B, get me to UNI every single day.
• 19:35
  Speaker 3: Loved it, dream car, dream car, dream car. Loved it
• 19:38
  Speaker 3: all we want. Then I upgraded to my two thousand
• 19:41
  Speaker 3: and four. You're a hang car.
• 19:43
  Speaker 2: Do you think as well that there is a perception
• 19:46
  Speaker 2: that secondhand cars of a less equality. I feel like
• 19:50
  Speaker 2: that's something that you think, but it's not true.
• 19:53
  Speaker 3: Like at the end of the day, I want you
• 19:55
  Speaker 3: to know that there's still great quality, there's still a
• 19:58
  Speaker 3: great car. It doesn't mean it's chea, but doesn't mean
• 20:00
  Speaker 3: it's bad. I think it's a really great financial decision.
• 20:03
  Speaker 3: I think it's such a backwards mentality to think that
• 20:06
  Speaker 3: if someone doesn't buy a new car, they might not
• 20:08
  Speaker 3: have enough money or they might not be wealthy. Like
• 20:10
  Speaker 3: there's something very attractive about making good financial decisions and going,
• 20:14
  Speaker 3: you know what, like I'm going to buy this car.
• 20:16
  Speaker 3: It's a really good car. Like why can't we just
• 20:19
  Speaker 3: have the older model of a really good car. It's
• 20:23
  Speaker 3: gonna be cheaper, it's going to be great for you. You
• 20:25
  Speaker 3: don't need the brand new, flashy versions of anything. And
• 20:30
  Speaker 3: I know that that sounds a little bit maybe not condescending,
• 20:33
  Speaker 3: but it just to me cars aren't progressing obviously, unless
• 20:37
  Speaker 3: we're talking about hybrid, in which case that's a different story.
• 20:40
  Speaker 3: But like, what more can you add to a car
• 20:43
  Speaker 3: that snakes? It better to have the twenty twenty one
• 20:46
  Speaker 3: model versus the twenty eighteen or the twenty seventeen model.
• 20:50
  Speaker 2: The only thing I can think of was the car
• 20:51
  Speaker 2: doors that like go up instead of opening, Like yeah,
• 20:54
  Speaker 2: like pre need's handles when you can just press that.
• 20:56
  Speaker 3: Unless your car's electric or hybrid, in which takes like
• 21:00
  Speaker 3: get while you're investing the money there, And that's you know,
• 21:03
  Speaker 3: and again that's a personal choice. But my two thousand
• 21:06
  Speaker 3: and four car, we've got Georgia, We've got CD player,
• 21:09
  Speaker 3: we have Bluetooth. That's wild.
• 21:11
  Speaker 2: From my two thousand and four that is impressive.
• 21:14
  Speaker 3: Yeah, thank you. I've got indicators, I've got lights. I
• 21:16
  Speaker 3: literally have everything I need to drive the car. It's crazy. Yeah,
• 21:20
  Speaker 3: But at the end of the day, I think that
• 21:22
  Speaker 3: that's a really good point because I think sometimes when
• 21:24
  Speaker 3: we are looking for cars, we get really caught up
• 21:27
  Speaker 3: in those shiny features like heated steering wheels and you know,
• 21:31
  Speaker 3: the Apple car plan. And while those things are so
• 21:34
  Speaker 3: attractive and they are shiny and they are nice, I
• 21:37
  Speaker 3: get it, do they actually add the value that you
• 21:40
  Speaker 3: are paying for them? And if they do, great, go
• 21:43
  Speaker 3: ahead purchase. But if they don't, maybe have a little
• 21:46
  Speaker 3: bit of a think about what you actually require.
• 21:48
  Speaker 2: So be like in saying all of this, there are
• 21:51
  Speaker 2: still a few little things you should do if you
• 21:53
  Speaker 2: are buying a car second hand.
• 21:54
  Speaker 3: Right, absolutely, And I think it's really important to be
• 21:57
  Speaker 3: savvy on this and understand it. It's not just seen
• 22:00
  Speaker 3: a pretty car on car sales dot Com going and
• 22:02
  Speaker 3: looking at it and going, yeah, it looks like it's
• 22:04
  Speaker 3: never been in a crash. There is what's called a
• 22:06
  Speaker 3: VIN number, so a vehicle identification number, and that number
• 22:10
  Speaker 3: is a seventeen character serial code. If you are planning
• 22:13
  Speaker 3: on buying a secondhand car, ask the current owner for
• 22:16
  Speaker 3: what that code is, or open the car door and
• 22:19
  Speaker 3: take a photo of it when you're there. But there
• 22:21
  Speaker 3: is an Australian government website called the PPR, so the
• 22:24
  Speaker 3: Personal Property Securities Register, where you can look that up
• 22:28
  Speaker 3: and see if that car is registered or not and
• 22:32
  Speaker 3: see where it is and what's going on, and more
• 22:34
  Speaker 3: often than not you can see if it's been in
• 22:36
  Speaker 3: a crash or if it's a good car or not.
• 22:38
  Speaker 3: So I think it's really really important to be aware
• 22:41
  Speaker 3: of that because you can also look it up on
• 22:43
  Speaker 3: VIC roads or like I'm assuming your local government. Yeah,
• 22:46
  Speaker 3: for cars, to make sure that everything's all well and
• 22:50
  Speaker 3: good in the car hasn't been stolen, yeah imagine, yeah,
• 22:54
  Speaker 3: yeah that but also just making sure that the car
• 22:56
  Speaker 3: hasn't been in any crashes. And you know some cars
• 22:59
  Speaker 3: which wh you know, it's not great, but some people
• 23:02
  Speaker 3: will be like no, no, no, the car is absolutely
• 23:03
  Speaker 3: perfectly fine. And then you find out it actually was
• 23:06
  Speaker 3: a write off and it was rebuilt. You don't want
• 23:08
  Speaker 3: that car. You can't ensure it properly. It's not safe
• 23:10
  Speaker 3: for you or your family. So take car safety really
• 23:14
  Speaker 3: seriously and do ask the questions, do understand it, and
• 23:17
  Speaker 3: make sure that it does have a roadworthy Like at
• 23:20
  Speaker 3: the end of the day, we're not here to go
• 23:21
  Speaker 3: just buy secondhand. It'll be fine. Like, there are a
• 23:24
  Speaker 3: lot of things you do need to look at. Yeah,
• 23:26
  Speaker 3: but it's not that hard once you wrap your head
• 23:28
  Speaker 3: around what you can and can't look for and how
• 23:30
  Speaker 3: to ask the questions and lean into the shes on
• 23:33
  Speaker 3: the money community, ask us post in the group. We
• 23:36
  Speaker 3: have literally thousands of people.
• 23:38
  Speaker 2: That are willing to help one hundred percent. Alrighty, we
• 23:41
  Speaker 2: are going to take a quick little break here, friends,
• 23:43
  Speaker 2: but when we return, we'll be talking at the biggest
• 23:46
  Speaker 2: mistakes of vcs when it comes to buying cars and
• 23:49
  Speaker 2: servicing car loans. Plus will chat interest rates and should
• 23:52
  Speaker 2: tell mortgages chatel chattel. I don't know. I don't know
• 23:57
  Speaker 2: what they are, but v will let us know. So
• 23:59
  Speaker 2: stick around, friends, Guys, don't forget that the podcast is
• 24:09
  Speaker 2: not the only place you can hear the dulcet tones
• 24:11
  Speaker 2: of Victoria Divine and Georgia King. We're also on Facebook, Instagram,
• 24:17
  Speaker 2: TikTok new wegut newsletter, so very goodly, YouTube where everywhere?
• 24:21
  Speaker 2: So YouTube, We're on the tube.
• 24:24
  Speaker 3: You know what, you really should have been born in
• 24:26
  Speaker 3: the seventies.
• 24:26
  Speaker 2: Away, I knows it. I'm sad I wasn't, but.
• 24:29
  Speaker 3: I'm sad you were. No. Actually I'm not sad you weren't. Anyway,
• 24:32
  Speaker 3: let's move on. Do you want to talk more about
• 24:34
  Speaker 3: cars with me? Alright?
• 24:35
  Speaker 2: If let's zoom into it.
• 24:37
  Speaker 3: Oh gosh, you should be on a Mazda AD.
• 24:39
  Speaker 2: Thank you. Some problem is okay? So what are the
• 24:42
  Speaker 2: biggest mistakes people are making when it comes to cars?
• 24:45
  Speaker 3: Okay, you're not going to be surprised. The first mistake
• 24:47
  Speaker 3: is getting an examplitant car loan on a car that
• 24:50
  Speaker 3: you can't afford.
• 24:51
  Speaker 2: Right.
• 24:52
  Speaker 3: There was a post in our group recently from our
• 24:54
  Speaker 3: friend to Autumn who posted a photo of herself five
• 24:57
  Speaker 3: years ago with her brand new car with a big
• 24:59
  Speaker 3: red bowl on it, and she explained in the post
• 25:01
  Speaker 3: how much she learned from buying that car on finance.
• 25:05
  Speaker 3: So she said that the Weekly repayments were about one
• 25:07
  Speaker 3: hundred and fifty bucks a week, which she said didn't
• 25:09
  Speaker 3: seem too bad at the time of signing, so she
• 25:11
  Speaker 3: bought the car and went on her way. But as
• 25:14
  Speaker 3: she explained in her post, the reality of that loan
• 25:17
  Speaker 3: was that it was a twenty five thousand dollar car
• 25:19
  Speaker 3: with four thousand dollar loan insurance, plus she was paying
• 25:23
  Speaker 3: seventeen percent interest over a seven year loan period and
• 25:28
  Speaker 3: all together. This is where it kind of like hits
• 25:31
  Speaker 3: you in the chest. She for that twenty five thousand
• 25:34
  Speaker 3: dollar car, paid a total of fifty thousand dollars in repayments,
• 25:38
  Speaker 3: but the car she was paying for was worth significantly
• 25:42
  Speaker 3: less than that the seven years later, which is wild.
• 25:45
  Speaker 3: The full story is really awesome and really great to read,
• 25:48
  Speaker 3: and I'm actually really grateful that Autumn shared it because
• 25:50
  Speaker 3: I think that real stories about people, you know, their
• 25:54
  Speaker 3: mistakes and missteps, help us learn. But also it really
• 25:58
  Speaker 3: just reality checks it. Instead of me going, oh, a
• 26:00
  Speaker 3: carloon can cost you a lot, you kind of go, yeah, great, Victoria,
• 26:03
  Speaker 3: but it gets me to where I want to go. Yeah. No,
• 26:05
  Speaker 3: The reality of a carloon in autumn situation was that
• 26:08
  Speaker 3: she purchased a twenty five thousand dollar brand new car
• 26:10
  Speaker 3: for fifty thousand dollars, and that is a lot. That
• 26:14
  Speaker 3: is a big mistake and misstep, and I think that
• 26:17
  Speaker 3: that is not necessarily something to hound yourself over, especially
• 26:20
  Speaker 3: if you've got a car loan right now. We make
• 26:22
  Speaker 3: decisions with our best intentions at heart. We might not
• 26:24
  Speaker 3: have had the right education that we needed or even
• 26:27
  Speaker 3: had the right information that we wish we had at
• 26:29
  Speaker 3: that time. But I think if you're in this situation
• 26:32
  Speaker 3: right now, like it is what it is, friend, don't
• 26:35
  Speaker 3: hound yourself over this. Don't be upset about this. Just
• 26:38
  Speaker 3: it is what it is. You can work your way
• 26:40
  Speaker 3: out of it. But I think if you are in
• 26:41
  Speaker 3: a situation where you are now considering a car like
• 26:44
  Speaker 3: this is why you wouldn't moving on from that though,
• 26:48
  Speaker 3: Another big mistake I see is people not doing enough research.
• 26:51
  Speaker 3: And we know that car salespeople saying people not men,
• 26:54
  Speaker 3: they do have some are slippery reputation. So you need
• 26:57
  Speaker 3: to really own your purchasing decision and go in with
• 27:00
  Speaker 3: as much information as possible. Now, obviously, women are a
• 27:03
  Speaker 3: massive percentage of the listeners to this podcast, and unfortunately
• 27:06
  Speaker 3: there are still car salespeople who are going to assume
• 27:09
  Speaker 3: that because you're female, they can actually squeeze more money
• 27:11
  Speaker 3: out of you because they assume you don't really know
• 27:13
  Speaker 3: what's going on. But prove them wrong by studying, comparing,
• 27:17
  Speaker 3: looking at different packages and whatever is available, and make
• 27:20
  Speaker 3: sure that you're kind of go in knowing what you want.
• 27:22
  Speaker 3: I think one of the worst things you can say
• 27:24
  Speaker 3: to a salesperson is oh, yeah, I don't really know
• 27:27
  Speaker 3: what I want or I don't know what that means,
• 27:29
  Speaker 3: Like I get it, you might not. You might want
• 27:32
  Speaker 3: to ask them questions. I think when push comes to
• 27:34
  Speaker 3: shove and you're trying to understand what to purchase, like
• 27:38
  Speaker 3: go to a different car dealership, go do your research there,
• 27:40
  Speaker 3: tell them you don't know, and then when you do
• 27:43
  Speaker 3: want to purchase, go to a completely brand new car
• 27:45
  Speaker 3: dealership and be like, Hi, I'm Jeorjia King, I would
• 27:47
  Speaker 3: like to buy a Mazda too. These are the respects
• 27:49
  Speaker 3: I want. Please find me that car, this is my
• 27:51
  Speaker 3: price range, and kind of just pull it out.
• 27:53
  Speaker 2: Yeah there and go go in there with confidence so
• 27:56
  Speaker 2: she knows what she's talking about.
• 27:57
  Speaker 3: Evidence yep, and whatever add ons they are. Try trying
• 28:00
  Speaker 3: to sell. You be super super wary of them because
• 28:03
  Speaker 3: more often than not, they are super marked up and
• 28:06
  Speaker 3: definitely not something that you want to spend your dollar
• 28:09
  Speaker 3: use on.
• 28:10
  Speaker 2: It's so hard as just a girl to say no
• 28:14
  Speaker 2: when they're so pushy, though.
• 28:17
  Speaker 3: And that's why I'm saying, go in, just do your
• 28:19
  Speaker 3: research separately, and then when push comes to shove, go
• 28:22
  Speaker 3: and buy it. I don't think it's a bad thing
• 28:24
  Speaker 3: to take a friend either. Take a friend if you've
• 28:27
  Speaker 3: got a dad that's willing to go fantastic. I know
• 28:29
  Speaker 3: that it is twenty twenty one and we shouldn't have
• 28:31
  Speaker 3: to do these things, but we're not talking about, you know,
• 28:34
  Speaker 3: getting away from the slippery salesman. We're actually just talking
• 28:37
  Speaker 3: about our own self confidence and if it makes you
• 28:39
  Speaker 3: feel a little bit more confident having a mate there
• 28:41
  Speaker 3: to you know, do the negotiation or be like, hey, Gie,
• 28:44
  Speaker 3: you said you didn't want to do that. I think
• 28:46
  Speaker 3: that can actually just make you feel a little bit
• 28:48
  Speaker 3: better about the whole situation, because it can be overwhelming.
• 28:54
  Speaker 2: I was scanning the group when I was putting together
• 28:56
  Speaker 2: my questions for today's episode B and came across the
• 28:59
  Speaker 2: term should tell mortgage. Yeah, that's a chappelle chutel shuttle.
• 29:04
  Speaker 2: I don't know what it is. It came up more
• 29:06
  Speaker 2: than once, is my point. What what does that even mean? Like,
• 29:10
  Speaker 2: what is a chattel mortgage?
• 29:12
  Speaker 3: Ninety nine percent of us would never have heard of these? Okay, Essentially,
• 29:15
  Speaker 3: I should tell mortgage is a loan product designed for
• 29:18
  Speaker 3: commercial car purchases, so it is essentially a business loan.
• 29:21
  Speaker 3: It is car loan or a finance loan. There it's
• 29:24
  Speaker 3: just a fancy way of saying it, but it means
• 29:26
  Speaker 3: that car will be used for at least fifty percent
• 29:28
  Speaker 3: of business for most of the time. And say you're
• 29:31
  Speaker 3: a tradee and you use a you to get from
• 29:33
  Speaker 3: A to B like that is often the route that
• 29:35
  Speaker 3: you'll go down. Nowadays, I don't believe that banks really
• 29:39
  Speaker 3: call it a shoutel mortgage. They just call it asset
• 29:41
  Speaker 3: finance or like business okay, finance loans or whatever, so
• 29:45
  Speaker 3: you might not hear it as often. But essentially chouttel
• 29:48
  Speaker 3: is a car and a shouldtel mortgage is made up
• 29:51
  Speaker 3: of two parts, So the first part being should tell
• 29:54
  Speaker 3: your car, and then the mortgage, which is the loan.
• 29:56
  Speaker 3: So it's not as complicated, as I think people seem
• 29:58
  Speaker 3: to assume it is a that's where all the questions
• 30:01
  Speaker 3: come from. But similarly to a secured car loan, your
• 30:04
  Speaker 3: lender provides funds to you to purchase the car, and
• 30:07
  Speaker 3: then the lender takes a mortgage over your car. So
• 30:10
  Speaker 3: essentially the bank owns it until you've paid it all off,
• 30:13
  Speaker 3: and then once the contract is up and you've paid
• 30:15
  Speaker 3: it all off, the car is yours and you'll own
• 30:17
  Speaker 3: it outright.
• 30:18
  Speaker 2: Okay, what a dream? So good idea, bad idea, neutral idea,
• 30:22
  Speaker 2: just an idea. It's a car loan, Okay.
• 30:24
  Speaker 3: It depends on what the interest rate is and whether
• 30:27
  Speaker 3: it actually works for your personal financial situation. It's absolutely
• 30:31
  Speaker 3: not a bad way about going about it, especially if
• 30:33
  Speaker 3: you're a business owner, because when it comes to business
• 30:36
  Speaker 3: and owning assets like a car, you can actually claim
• 30:40
  Speaker 3: depreciation on them over time, which means you can claim
• 30:43
  Speaker 3: it on tax. So there are a few other cheeky
• 30:46
  Speaker 3: reasons why you, as a business owner might go and
• 30:49
  Speaker 3: buy a new car from a dealership because it makes
• 30:51
  Speaker 3: sense tax wise, or it might make sense to your business.
• 30:54
  Speaker 3: But that is a decision that is not up to
• 30:56
  Speaker 3: shees on the money because we're not a business.
• 30:58
  Speaker 2: Podcast, my friend, No, no, we are not.
• 31:00
  Speaker 3: That's the business Bible's job.
• 31:02
  Speaker 2: That is the business Bible's job. Alrighty, So today's episode
• 31:05
  Speaker 2: in a nutshell I feel like is just do not
• 31:08
  Speaker 2: buy new cars. I think that would be the main
• 31:10
  Speaker 2: one thing I want you.
• 31:11
  Speaker 3: To take out of there is if you're considering purchasing
• 31:14
  Speaker 3: a new car, see if you can get a demo
• 31:15
  Speaker 3: model or a model that is a couple of years old,
• 31:18
  Speaker 3: so that the depreciation on that asset has already happened.
• 31:21
  Speaker 3: The longer the better. Obviously, I don't want you going
• 31:24
  Speaker 3: and buying old cars that end up costing you a
• 31:26
  Speaker 3: whole heap in repairs. That's a completely different story. But
• 31:30
  Speaker 3: a lot of the time you can actually go and
• 31:31
  Speaker 3: buy a two or three year old car and extend
• 31:35
  Speaker 3: the warranty and extend the servicing plan so it acts
• 31:39
  Speaker 3: like a new car, but the depreciation has already happened
• 31:41
  Speaker 3: on it. And if you're in a position where you
• 31:44
  Speaker 3: need a loan, then fantastic. That is not a bad
• 31:47
  Speaker 3: thing if you actually need that. But it comes down
• 31:50
  Speaker 3: to need, and I think that we really need to
• 31:52
  Speaker 3: differentiate here. The difference between need and want. Like you
• 31:55
  Speaker 3: might want a brand new car and feel like you
• 31:59
  Speaker 3: need it, but the end of the day, if you
• 32:00
  Speaker 3: already have a car that's getting you from A to B,
• 32:03
  Speaker 3: then maybe the need and the want have been a
• 32:06
  Speaker 3: little bit confused. I think on top of that as well,
• 32:09
  Speaker 3: if you genuinely need a car, we then need to
• 32:12
  Speaker 3: differentiate the difference between do I need a beamw or
• 32:16
  Speaker 3: a shiny fancy car, or do I need a car
• 32:19
  Speaker 3: that's just going to be a good or faithful like
• 32:21
  Speaker 3: your master too, that's going to get you from A
• 32:23
  Speaker 3: to B and do the job. So I think it's
• 32:24
  Speaker 3: about you know, just understanding our values. If you say no, V,
• 32:28
  Speaker 3: I really need the shiny fancy cart, great. I want
• 32:31
  Speaker 3: you to live life to your values. I'm not here
• 32:33
  Speaker 3: to judge you. I'm not here to say that they're
• 32:35
  Speaker 3: a bad thing. I'm here to make sure that you
• 32:37
  Speaker 3: are making the right decision for you and your decisions
• 32:40
  Speaker 3: have been reflected to you before you make them.
• 32:43
  Speaker 2: Amazing. Couldn't have said it any better myself.
• 32:46
  Speaker 3: I'm glad.
• 32:47
  Speaker 2: If anyone does need further convincing, there is a really
• 32:50
  Speaker 2: good video from your v Dave Ramsey talking about cars.
• 32:55
  Speaker 2: He's just so savage. It's hilarious.
• 32:57
  Speaker 3: I haven't seen it shown.
• 33:00
  Speaker 2: It's so good.
• 33:01
  Speaker 3: Put it in the show notes. But also let's put
• 33:02
  Speaker 3: it in the pod group. Start a chat, all right,
• 33:04
  Speaker 3: So just before we head off, we'd like to acknowledge
• 33:06
  Speaker 3: and pay respect to Australia's Aboriginal and Torres Strait Island.
• 33:09
  Speaker 3: To people's they're the traditional custodians at the lands, the
• 33:12
  Speaker 3: waterways and the skies all across Australia. We thank you
• 33:16
  Speaker 3: for sharing and for carying on the land which we
• 33:18
  Speaker 3: are able to learn. We pay respects to Elder's mast
• 33:21
  Speaker 3: in present and we share our friendship and our kindness.
• 33:24
  Speaker 2: The advice sheared on She's on the Money is general
• 33:26
  Speaker 2: in nature and does not consider your individual circumstances. She's
• 33:30
  Speaker 2: on the Money exists purely for educational purposes and should
• 33:33
  Speaker 2: not be relied upon to make an investment or a
• 33:35
  Speaker 2: financial decision. No sir, No sir, and we promise. Victoria
• 33:39
  Speaker 2: Divine is an authorized representative of Australia Pacific Funds Management
• 33:43
  Speaker 2: Proprietary Limited ABN three four one three two four six
• 33:46
  Speaker 2: three two five seven AFOSL three three nine one five one,
• 33:51
  Speaker 2: and a big thank you to Arian John for putting
• 33:54
  Speaker 2: together today's little episode.
• 33:56
  Speaker 3: What a legend to bed ten teh great here was
• 34:00
  Speaker 3: forced him numerating aim. We would love it if you
• 34:04
  Speaker 3: joined our Facebook group where our community shares money tips
• 34:06
  Speaker 3: and tricks every single day, free of judgment. So She's
• 34:10
  Speaker 3: on the money on Facebook and join us. If Facebook's
• 34:12
  Speaker 3: not your thing, you can find us on Instagram where
• 34:14
  Speaker 3: She's on the Money a US. And don't forget to
• 34:16
  Speaker 3: buy my book Friends Yay.
• 34:18
  Speaker 2: Link in the show notes. We'll see you on Friday, Guys,