life hack: how to buy a used car - by hour
TRANSCRIPT
Life Hack:Buying a Used
Car
© Wise Rides 2015
Presented by
Drive. Smart! ™
© 2016 Wise Rides, LLC
First Let’s Understand Inflation
1985 $100,0002015 $220,000Profit ZERO!!!
1920 $ 0.122015 $ 1.42Diff ZERO!!!
House Price
Bread Price
© 2016 Wise Rides, LLC
Understanding Car Depreciation – A NEW CARNew Car- $ 33,650
1 Minute (.09) - $3,1631 Year (28%) - $7,7402 Year (20%) - $6,730 3 Year (16%) - $5,3844 Year (8%) - $2,6925 Year (6%) - $2,0196 Year (5%) - $1,682 Total 6 Year LOSS – $26,247
Car value loses80% in 6 Years
© 2016 Wise Rides, LLC
Understanding Your Total Driving Cost
Based on AAA 2014 Annual Survey
$0.46 per Mile$6,956 per Year
$0.61 per Mile$9,151 per Year
$0.75 per Mile$11,248 per Year
$0.77 per Mile$11,599 per Year
$0.65 per Mile$9,795 per Year
Life Hack:Walk before ride and ride before you buy!
© 2016 Wise Rides, LLC
What You Can Expect for Loan TermsGood credit 4% and risk up to 8.7%... But we hear war stories more
than 25%! As long as the dealer discloses the interest: IT IS LEGAL!
A longer term with smaller payments is ALWAYS going to
cost you MORE!
© 2016 Wise Rides, LLC
How Interest Rates Effect YOU!
Based on a 5 year loan
Loan Rate Payment Interest Paid Total Cost10,000$ 0% 166$ -$ 10,000$ 10,000$ 5% 188$ 1,599$ 11,599$ 10,000$ 10% 212$ 2,165$ 12,165$ 10,000$ 15% 237$ 2,748$ 12,748$ 10,000$ 20% 264$ 3,346$ 13,346$ 10,000$ 25% 293$ 3,960$ 13,960$ 10,000$ 30% 332$ 4,590$ 14,590$
© 2016 Wise Rides, LLC
Recommend Payments and Savings Accounts
Life Hack: Don’t let car payments define your life!Ratio Based on Full Time (40 hour work week)
Hour Month Annual Car
PaymentMaintenance
SavingsTotal Auto
Spend7.25$ 1,233$ 15,080$ 185$ 123$ 308$ 8.00$ 1,360$ 16,640$ 204$ 136$ 340$ 9.00$ 1,530$ 18,720$ 230$ 153$ 383$
10.00$ 1,700$ 20,800$ 255$ 170$ 425$ 12.00$ 2,040$ 24,960$ 306$ 204$ 510$ 15.00$ 2,550$ 31,200$ 383$ 255$ 638$ 20.00$ 3,400$ 41,600$ 510$ 340$ 850$ 25.00$ 4,250$ 52,000$ 638$ 425$ 1,063$
20/15/10 Rule: 20% Down Payment, 15% of Gross, and 10% for Maintenance Savings Account
© 2016 Wise Rides, LLC
Other Finances to Consider
• Food• Cell• Cable• Clothes/Haircuts• Entertainment• Savings
• Child Support • Toiletries• Smoker?• Drinks?• Credit Cards/Loans
• Gas• Insurance• Tax, title, and delivery fees
• Car Maintenance• Registration and emissions
© 2016 Wise Rides, LLC
The Hard Math…
Remember the guidelines? What is your needed down payment? (and that’s assuming you have an above average credit score!)
© 2016 Wise Rides, LLC
The Hard Math…At about $11 an hour would need to put $16,750 or about 52% Down!
© 2016 Wise Rides, LLC
Thank you!
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