Should You Buy A Car Now? Money For Life With Eric Roberge, CFP podcast

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Should You Buy a Car Now?

2d ago 41:43

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Thinking about buying a car? “Should I buy a car now, or wait?” has been an extremely popular question among our financial planning clients this year. So today, we’re discussing the reality of car prices in 2025, how we think prices are likely to evolve (or not) over the coming months, and the planning considerations to take into account if you decide to buy now.

We’re also sharing our own real-world, personal experiences with buying two new cars in 2025 for fair market prices given the specific make and trim models of each, along with what we learned through the process and what we might do differently next time.

We explained the exact negotiation strategies we used, including where to research fair market value, how to push for below invoice cost, the importance of focusing quotes on out-the-door pricing, and insights on avoiding sales pressure tactics at the dealership.

Throughout this episode, you’ll learn:

Current car market trends and why prices likely won't drop
Cash vs. financing: when each option makes sense
How to research and prepare before visiting a dealership
Practical negotiation tactics that work to ensure you’re getting a reasonable deal
Understanding out-the-door pricing and invoice costs
Why timing matters: end-of-month vs. mid-month purchases
Leasing considerations and when it might make sense
Balancing car purchases with retirement savings and other goal

And you’ll hear Kali have a *moment* about a Mazda (maybe more than one; she’s a fan).

Whether you're considering a practical family vehicle or a luxury purchase, this episode will help you approach your car-buying decision with confidence and make sure it fits within the context of your other financial priorities this year.

KEY TAKEAWAYS:

Don't time the market (with cars, stocks, anything!). It probably does not make sense to try and wait for prices to drop if you need to buy a car and you have the cash to do so. Car prices are unlikely to decrease in the coming years due to supply and demand alongside impacts of inflation and tariffs.
Cash is (usually) king for car purchases. Paying interest on a depreciating asset isn’t the best financial move. If you must finance, aim to pay off the loan in under a year.
Know exactly what you want before visiting a dealership. Research the specific make, model, trim, and color you want. Use resources like YouTube reviews from car enthusiasts and experts, like Throttle House, to compare vehicles and gather information.
Focus on out-the-door price, not monthly payments. Dealerships will try to focus your attention on monthly payments, which allows them to manipulate loan terms in their favor. Always negotiate based on the total out-the-door price.
Invoice price isn't the floor. Dealerships can and will sell below invoice price because manufacturers often provide holdbacks and other incentives that aren't disclosed upfront to buyers.
Two effective negotiation approaches: (1) Email multiple dealerships for quotes before visiting, or (2) Visit in person armed with fair market value research and be willing to walk away. End-of-month or end-of-quarter timing gives you more leverage.
Be prepared for upsells after the purchase. Dealerships make a lot of their profit on warranties, maintenance packages, and add-ons… not necessarily the car itself. Default to saying no unless you have specific reasons to accept.
Balance car purchases with long-term goals. Even if you have cash available, consider whether buying a car will impact your retirement savings rate (ideally 20-25% of income) or other important financial goals.

Ready to create, use, and enjoy money for life? Request a complimentary consultation with us at BYH and discover how to optimize your investments, reduce your tax burden, and grow your wealth: https://beyondyourhammock.com/schedule

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