Beginners Guide To Car Buying: Everything You Should Know BEFORE Buying a Car

How Much Should Your Car Down Payment Be? Into into Car Buying
Everything You Need to Know Before Buying A Car

Buying a car can be a stressful process with so much to think about.  Are you getting the best deal?  How much car can I afford?  Does it come with a rear view camera?  For the first time ever, I am looking to buy a car from a dealership and I am not in a position to buy the car outright.  I have never had a car note before and the idea of an additional monthly expense gives me anxiety.    So how does one make such a large purchase with confidence?  The answer is going into it well informed so that you don’t get hustled by the vision of you riding off into the sunset with sexy new wheels or hustled by a salesperson trying to make their quota.  Over the next few weeks, I will break down everything need to consider before buying a car.  Today, we will focus on two of my favorite starting points- New vs. Used and Down Payments.  So buckle up and join me on this car-buying excursion.

Everything You Need to Know Before Buying A Car

The New New

There is this character in the 2006 movie ATL whose nickname was “New New”.  New New got her name because she was known to have the latest and greatest of everything.  If she were looking for a car in the year 2017, she would be considering a 2018 because the 17 model just wasn’t new enough for her.  Even though New New is a character in a movie, many people out there share the same mindset.  The thing is she places her money in items that depreciate in value at an accelerated rate.  In fact, just by driving your new car for the first time as a new owner decreases its value by 11%.  The $30,000 car you just drove off the lot is now worth $26,700 by the time you get to the highway.  Instead, consider a used car that is between two and three years old.  They are often still under warranty, they offer many of the same features, and comes with a lower price point.

Cash Is Queen

I understand that most people cannot afford to pay cash for a car.  I did it by dealing directly with private sellers on Craigslist, buying older models, and going into the process with a set amount to spend.  It worked for me and I did it at a time when the cars on Craigslist were good deals for both buyers and private sellers.  I am a regular person who found a way to make the money work for me.  Financial guru, Dave Ramsey, reflects on people who give him push back that regular people cannot afford to pay cash for a car in his book Complete Guide to Money (a must read, click the here for a FREE download with the app).  According to Ramsey, “people don’t buy with cash because they are rich; they’re rich because they buy cars with cash”.  I must agree with his statement.  I am in a better financial position today because I decided I couldn’t afford to have a monthly car note.

Assuming you can’t buy the entire car with cash, consider how much you can pay for up front to keep the overall price of the car as low as possible.  Whenever you finance a car, you are paying interest on that auto loan.  Instead of financing the entire amount, you should aim to have 20% or more as a down payment to avoid wasting thousands of your hard-earned money on interest.  Additionally, taxes and extra fees should not be considered when calculating your 20% down payment because you should NEVER finance taxes and fees.  Before you even set foot in a car dealership you need to ask yourself, can you actually afford the car you have been researching?  Rich people ask “how much?”  Broke people ask “how much down and how much per month?”  A salesperson will tell you the lowest down payment to get you to sign on the dotted line but going into negotiations well equipped with the knowledge of best down payment to make, you know you can do better…and if you can’t, that means you cannot afford that car. Ramsey explains, “When a rich person says she can afford it, she means she can actually afford the car.  When a broke person says she can afford it, she means she can probably make the monthly payments as long as there are no emergencies and she doesn’t lose her job”.    Think about it, could you afford your monthly car payment if you were out of work for a month?  How about 3 months?  These are all things to think about before you buy a car.  Stay tuned next week for Part II as we discuss  Every Thing You Need to Know About Leasing and Financing a Car!

How to Have the Best Monday Ever!

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How Lifestyle Inflation Is Keeping You From Getting Rich

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Rapper Notorious B.I.G. wasn’t lying when he said “mo money, mo problems”.  That because of something called Lifestyle Inflation where your “lifestyle” needs increase as your income increases; thus, keeping you in the same financial situation.  This reality creeps up when people have debt, don’t save, don’t invest.  They don’t keep up with the Joneses, they are the Joneses.  By no means do I believe that one doesn’t deserve nice things.  In fact, I believe no one should have to sacrifice a quality lifestyle because of lack of resources.   A quality lifestyle comes at a price but let’s try to not dig ourselves into a money pit to experience the finer things in life.

CONFESSION OF A  LIFESTYLE INFLATING MILLENNIAL

I remember being at my job out of college and making around an entry level salary. I owned my car outright, had my student loans paid a year in advance, and was on my way to buying my first house. Back then, you couldn’t tell me I wasn’t living a rich life. I wasn’t rich from a financial standpoint but it was the first time where I was “adulting” and was able to fund my lifestyle by myself.  This was a big deal considering a year and a half before that, I was a senior at Spelman College eating pizza at 1:00 am while pulling all-nighters.   As time passed, income changed, and lifestyle needs matured, I found myself “needing” more.  I had to get another car after mine was totaled in an accident but I couldn’t bear the idea of not driving a luxury German car (thanks Dad for that addiction).  I spent money on home decor so I could have a  “magazine ready” home.  I upgraded my wardrobe.  I was making a little money and working with people whose hourly rate was a luxury car note.  I wanted to show my family and friends that I had it all together….that I belonged in my new life.  That all changed when I left a promising career in one field to follow other dreams for another field.  It was in the transition that I started to place a serious effort in saving money and making smarter financial moves.  I had to.  It was my new reality, we were in a recession, and I was no longer constantly surrounded by the Joneses.  I took the time to invest in my own financial literacy so I could better understand how to stretch my money.  This was also around the time she makes cents was born.

BALLIN’ & BROKE

As you vibrate higher so will your expectations of people, experiences,  and things around you. The good thing is there are ways around lifestyle inflation where you can enhance your life without feeling broke. Lifestyle inflation keeps you in a constant state of financial paralysis because your need for “things” is keeping pace with your increasing lifestyle.  That’s how a millennial couple with no kids can feel financially stretched in a $100,000+ income household. Stay tuned as we dive deeper into the topics of lifestyle inflating from a millennial perspective and explore opportunities to elevate your life without the elevated price tag.shemakescents-com-1

52 Week BINGO Money Challenge | Week 9 Update

 

Welcome to weekend #SMCmoneytribe!  This week I crossed off $20.00 on the She Makes Cents BINGO Money Challenge.  At the end of next month, I will take the money saved between January and April to make a lump sum payment on my Navient student loan principal.    My goal is to deplete my money challenge savings every four months to get my snowball moving a little faster.     Interested in joining our money challenge, click here for your FREE money card printable.shemakescents-com-2jump-start your way savings or lifestyle goals, click here to get your FREE money card download. 

Major Milestone | She Makes Cents 6th Year Anniversary!

blogiversarySix years ago shemakescents started as a way for me to share my financial journey with the world… and by that I mean my dad and my cousin Dot because they were the only two people reading my stuff in the early days.  I kept writing because I wanted to share my story and connect with others.  I knew my financial journey felt different from my other twenty-something friends because they would come to me with their questions about buying a house and how to get ahead of student loan debt during a recession. Soon, other people joined my dad and cousin in subscribing to the blog and that was the first time I really felt like I wasn’t talking to myself.  In the past 6 years, I have been so surprised by the people who take a moment out of their busy day to tell me how much they enjoy reading shemakescents.  You have been with me when I paid off my credit card, bought a car off Craigslist and got married.  To the 1.3 MILLION visitors to she makes cents…. thank you for joining me for the past 6 years.  Stay tuned, 2017 has the potential to be our best year yet!

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Money Challenge 2017 | February Savings Recap

Hello  #SMCmoneytribe!  Can you believe that we just finished the second month of the she makes cents 52 Week BINGO Money Challenge?  I sure can’t.  As we approach a new month I can’t  help by wonder, how many of you are still going strong on the challenge?  According to  Business Insider, 80% of people fail their New Year Resolutions by February.  It is easy to have a laser focus on your money, career, and lifestyle goals when a clear transition is before you.  Think about all of the people who vow to do better in the new year, who will start clean eating on Monday (aka the start of the new week), and who pledge to start saving more once they earn their next paycheck.  Anybody recognize themselves in the statements above?… as I raise my own hand.  The thing about all of those examples is that is pushes off you goals to another day; therefore, delaying your ultimate reward- a goal accomplished.  Last Friday marked the end of month 2 for the she makes cents  52 Week BINGO Money Challenge and the best thing about our money challenge is that you can easily catch up if you have fallen behind or you start over. The greatest thing about this challenge is that as long as you don’t stop, you will win at your financial goals.

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 February Recap

Below is the financial breakdown for the month of February.  As you can see, I crossed off lower numbers than the previous month.    I saved an extra $41.00 this month putting me at a YTD of  $149.00.  I  am really looking forward to March.  Hopefully, I will cross off my first bonus box of the year.

How Are You Doing on the Money Challenge? I’d love to hear from you!


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Steals & Deals | White Pineapple Lamp

I have been obsessed with pineapples before they became a trend. A friend of mine once shared the funniest story about pineapples and since then, every time I saw something pineapple related I thought of him. Being from the south, they are also a welcoming sign of hospitality so it’s no wonder why I incorporating pineapple decor for the shemakescents office was a must.  I was on the hunt to replace my desk lamp since the layout of the new shemakescents office is totally different that where I blogged since 2011.  Then it came down to two options.

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The more expensive lamp gave me the chic and slightly playful design and I wanted to blend into the design.  What it was lacking was respect to my budget.  I kept looking and while shopping at Hobby Lobby one day with my best friend, I found the exact lamp I was looking for; aesthetically and financially.  In fact, I loved it more for the gold accents that match other gold accents in the office.  Retailing at $59.99 + the 40% off coupon that I use EVERY TIME I shop at Hobby Lobby, I ended up paying $36.00 (not including taxes).  This has been my favorite decor steal, thus far, for the shemakescents office!steals-deals-1

Jumpstart Your Week With Action!

I know Monday’s can come with a bit of eek to them.  It represents the end of the leisurely weekend where brunch rules supreme and making time for the things you want to do becomes a priority (#WeekendGoals).  Now it is back to reality and time to prioritize all the things that need to happen to help you be successful throughout the week.  I want you to think about this quote. “You are always one decision away from a totally different life”.  The decisions you make, good or bad, big or small, can have a major impact on the direction your life takes.  I once made the small decision to go see my little sister dance in a recital and I met my husband.  I have a friend who was unhappy with her job but loved her career.  She made the decision to apply to three jobs in three weeks and she now has a signed offer at another company with better benefits and a better salary.  Since following through on a decision requires action you need to think about what actions you make today that will align with your money, career, or lifestyle goals for tomorrow.header-logo-2017

The Biggest Mistake Women Make During Career Introductions

As an avid reader of the Cosmo, I have been a fan of Joanna Coles, former Editor-In-Chief, since her early days of at the magazine.  She expanded the content to career advice, finances, and other less traditional “Cosmo” topics making it my all around go to along with Forbes and Inc.  That’s right, I am a Cosmo girl.  My fan girl experience, with regards to Joanna, went to a level 10 when she liked and retweeted something I wrote back in 2014  about rock star women in business.  I felt like that was a small example of how supportive she is of women and their careers.  She is one of my celebrity mentors (in my mind) that I actually have never met but learn so much from.2

Career Advice from Joanna Coles

While watching episode 1 of So Cosmo, Joanna imparted her wisdom on a group of unsuspecting millennials visiting the Cosmo office.  During an introduction exchange between Joanna and the group, one woman introduced herself  by her first name only.  Joanna explains, “First rule of Joanne Coles, women in particular should always say both names [when introducing their selves].  Women always go, hi, I’m Julie.  You have to go hi, I’m Julie Thompson.  Men never ever worry about doing that.”  She further goes on to explain her rationale behind the “first rule of Joanna Coles” to relationship expert, Matthew Hussey, who overheard the exchange between Coles and the millennials.  “It is very important.  It’s my signature thing. Cause you think of yourself as Matthew Hussey, but if you were a girl you would just think of yourself as Matthew.”


Hello, I am….

In that moment, I replayed several instances when I introduced myself to clients as simply Danielle when my male counterpart would introduce himself first name last name.  While doing a little research about introductions, I found that when people properly introduce themselves by first name last name, the other people is more likely to rememer you and your name.  Remember my whole, Hi nice to meet you, I forgot your name already phase??  Perhaps this would have helped everyone back then.  What I like about the “first rule of Joanna Coles”,  is the expression of assertiveness  and dominance in the first introduction.   It’s like “leaning in” before anyone has even had time to make any judgements, good, bad, or indifferent, and letting them know you are  a boss chick in the room.  If this is the first rule of Joanna Coles, I can’t wait to see what else I learn from my celebrity mentor.She Makes Cents Logo

Block Anything That Gets In The Way of Your Goals | Money Challenge Week 5

Hello Lovelies and welcome to Super Bowl weekend.  This folks, is a big deal for everyone from my hometown of Atlanta!  Since it is Super Bowl weekend, I will break down today’s money inspiration for you in sports terms. I want to inspire you to check your financial plan.  Is it current?  Does it reflect your current financial status and goals (gosh, the last time I posted mine was in 2013)?  If you’ve never created a financial plan that’s okay too because today is a great time to do so.  Your financial plan is like your game playbook.  Your money is the football and it is your job to block anything that gets in your way of getting to you getting to your goal.  To do so, you have to reference your financial playbook from time to time.  There will be setbacks (see How to Comeback from a Setback), people who will attempt to block your progress, and times you may have to go out of bounds.   Trust me, you can win at this debt game! Let’s turn your Xs and Os to dollar signs.  shemakescents-com-1The weekly habit of saving money with the She Makes Cents 52 Week BINGO Money Challenge will always be a part of my financial plan.  I saved $108.00 dollars for the month of January and today I have crossed off $21.00 putting me at a YTD of $129.00.  I can’t wait to see how many thousands of dollars I save again this year.   So many of you shared with me that your savings will be going toward vacations and paying down debt.  Let’s make sure that you have also included this money challenge into your financial plan so we can see your savings increase and your money challenge rewards materialize.  Everyone have a fantastic weekend and Atlanta Rise Up!shemakescents-com-2