How Jews Buy Cars
I’m a Jew who knows how to shop for cars. I’m pretty sure 91.3% of Jews are born with this skill. As a financial advisor I bear witness to my non-Jewish clients fumbling through car ownership. They’re doing all the wrong things and paying way too much for their cars. It breaks my heart.
Here’s what you need to know before purchasing your next vehicle.
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Buy a car that is at least 3 years old and has over 50,000 miles on it. New cars are grossly overpriced. Buy a car that is newish or older.
2. Do not lease a new car. I won’t bore you with the math. Just know that it’s even more expensive than buying a new car.
3. Do not buy European cars. They’re very expensive to repair & their replacement parts are a fortune. If the car is made by: Mercedes, BMW, Volkswagen, Audi, Saab, Fiat, Mini or Volvo do not buy it.
4. Luxury cars are designed for people with low self-esteem. If you have low self-esteem, that’s OK. Unfortunately, the luxury car will not increase your self-esteem. You’ll get a better return on investment if you buy a Toyota and spend the savings on therapy.
5. After you’ve determined the model you’d like to buy, use the Kelley Blue Book to determine a fair price for the car.
6. Try to politely bargain down the seller by pointing out everything that is imperfect with the car e.g. radio doesn’t work, scratch on the hood, cracked side mirror etc.
7. Test drive the car and take it to a mechanic that you trust for an inspection. If you don’t know any mechanics, find one on Yelp.
8. If the car is used, fairly priced, not European, drives ok and the mechanic gives it a thumbs up, then buy that car.
9. I’d prefer if you paid for the car with all cash but it’s fine if you need to get an auto-loan. Only take an auto-loan if the interest rate is less than 3%. If you buy from a dealer, do not tell them you plan on paying with all cash. After you’ve locked in a price, then tell them you’ll be paying with cash. Here’s a long boring video that explains why you should do this.
If you follow these 9 simple tips, you can save thousands of dollars over the course of your next car’s life.