How Jews Buy Cars​
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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8. If the car is used, fairly priced, not European, drives ok and the mechanic gives it a thumbs up, then buy that car.
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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.
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If you follow these 9 simple tips, you can save thousands of dollars over the course of your next car’s life.
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