How To Make Buying A Car Less Miserable

Summary

Episode Summary: How To Make Buying A Car Less Miserable

Podcast: Am I Doing It Wrong?
Hosts: Raj Panjabi Johnson & Noah Michaelson
Guest: Jessica Caldwell, Executive Director of Insights at Edmunds.com
Release Date: November 28, 2024

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Introduction

In this episode of Am I Doing It Wrong?, hosts Raj Panjabi Johnson and Noah Michaelson delve into the often daunting process of buying a new car. Recognizing the anxiety many face during this significant purchase, they invite Jessica Caldwell from Edmunds.com to share expert insights and practical strategies to make the experience more manageable and less stressful.

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Optimal Timing for Purchasing a Car

End of the Month Myth (04:08)
A common belief is that the end of the month is the best time to buy a new car due to dealerships' sales quotas. However, Jessica Caldwell debunks this myth:

"You should start the negotiation and the process earlier. You're not trying to do everything in 12 hours because you can't walk away." – Jessica Caldwell [04:08]

She emphasizes that waiting until the last moment can lead to frustration and missed incentives, advising buyers to approach negotiations with ample time.

End of the Year and Model Year Sell-Down (05:20)
Caldwell explains that the period when new models are introduced, typically starting in the summer, is another strategic time to purchase. This "model year sell-down" allows buyers to take advantage of deals on outgoing models. However, recent supply chain issues like the chip shortage have affected inventory levels, making timing crucial.

"They call it like model year sell down... it is starting to come back. And it's not necessarily across the board." – Jessica Caldwell [05:28]

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Understanding the Chip Shortage (06:16)

Raj seeks clarification on the term "chip shortage," leading Caldwell to explain its impact on the automotive industry:

"Each car has a ton of chips, and that caused a lot of the inventory shortage to happen." – Jessica Caldwell [06:24]

This shortage resulted from pandemic-related disruptions, prioritizing industries like computing over automotive manufacturing, thereby limiting car availability.

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Preparation Before Visiting a Dealership

Research and Budgeting (07:10)
Caldwell advises buyers to prioritize affordability over other factors like safety or size:

"Actually, you probably need a car that you can afford. That's sadly step one." – Jessica Caldwell [07:10]

She highlights the importance of understanding loan terms and what one can realistically afford to prevent financial strain.

Securing Financing Outside the Dealership (08:13)
The hosts discuss the benefits of obtaining financing from banks or credit unions before approaching dealerships. Caldwell emphasizes the substantial interest costs over the life of a loan and urges shoppers to shop around for the best rates.

"The average interest that people are paying over the life of their loan is just about $9,000." – Jessica Caldwell [08:20]

She warns against the pressure environments within dealership financing offices, where high-interest rates can lead to unaffordable monthly payments.

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Negotiation Strategies

Allowing Dealerships to Make the First Offer (20:30)
Caldwell recommends letting the salesperson present their initial offer to gain insight into their negotiation stance.

"Let them give you a... what's the best deal you're going to give me?" – Jessica Caldwell [20:51]

Using Credit as Leverage (21:05)
She advises buyers with good credit to have their credit run early in the negotiation, establishing themselves as ideal customers deserving of better deals.

"Run my credit. I love that you're serious." – Jessica Caldwell [22:20]

Walking Away as a Negotiation Tool (40:03)
Emphasizing the power of walking away, Caldwell explains that it signals to dealerships that buyers are willing to seek better offers elsewhere, often prompting improved deals.

"Walking away is the most powerful tool you have as a consumer." – Jessica Caldwell [40:03]

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Dealing with Dealership Dynamics

Managing Add-Ons and Additional Offers (09:56)
Caldwell highlights how dealerships often introduce add-ons like extended warranties and alarm systems, which can overwhelm buyers. She recommends being prepared to decline unnecessary extras to maintain focus on the primary purchase.

"They have so much technology on them... they're just trying to sell window tinting or alarm systems or everything else." – Jessica Caldwell [11:25]

Assessing Dealership Reputation (14:58)
To choose a reputable dealership, Caldwell suggests reading online reviews, seeking recommendations from friends and family, and evaluating the responsiveness and knowledge of dealership staff.

"Talk to family, friends... read the three-star reviews because oftentimes the five-star and the one star are going to be so emotionally triggered." – Jessica Caldwell [14:21]

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Special Considerations for Diverse Buyers

Experience for Women and Non-Macho Buyers (33:21)
A listener question addresses the challenges women and non-traditional buyers face in masculine dealership environments. Caldwell reassures that many dealerships prioritize customer satisfaction due to sales satisfaction surveys influencing their compensation. She encourages buyers to seek respectful interactions and walk away if they feel undervalued.

"If they treat you poorly, walk away like you don't need to give up your business." – Jessica Caldwell [34:33]

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Final Tips and Takeaways

Double-Checking Contracts (46:45)
Before signing, Caldwell advises buyers to meticulously review contracts for accurate purchase prices, interest rates, loan terms, and trade-in values to avoid hidden costs and unfavorable terms.

"Make sure you are signing up for a seven-year loan term because a lot of people don't even keep their cars for seven years." – Jessica Caldwell [46:45]

Bringing a Knowledgeable Companion (46:29)
Having a friend or family member accompany you can provide a second set of eyes, helping to navigate the complexities of the negotiation and ensuring no crucial details are overlooked.

"Take a buddy with me when I'm doing big life stuff like this." – Raj Panjabi Johnson [46:29]

Top Five Takeaways (48:59)

1. Research Thoroughly: Identify the exact car model, necessary add-ons, and establish a clear budget before visiting a dealership.
2. Secure Financing in Advance: Compare loan rates from banks, credit unions, and other sources to find the most favorable terms.
3. Let the Salesperson Speak First: Allow them to present their offer to understand their starting point in negotiations.
4. Use the Power of Walking Away: Don’t hesitate to leave if the deal doesn’t meet your expectations; often, dealerships will follow up with better offers.
5. Consider Online Purchases for Convenience: If in-person negotiations are too stressful, online platforms like Carvana offer a more streamlined but potentially pricier alternative.

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Conclusion

By implementing these strategies and maintaining a well-informed approach, buyers can significantly reduce the stress associated with purchasing a new car. Jessica Caldwell’s expertise provides a roadmap to navigate the complexities of automotive negotiations, ensuring a more satisfying and financially sound car-buying experience.

"Everything will be competitive, but if you do turn up in person and you have a trade-in... show that you're serious." – Jessica Caldwell [22:24]

Final Thoughts from Hosts
Raj and Noah reflect on their newfound confidence and readiness to assist others in navigating the car-buying process, emphasizing the importance of preparation and informed decision-making.

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Note: This summary excludes all advertisements, intros, outros, and non-content sections to focus solely on the valuable discussions and expert advice provided during the episode.

Transcript

[Fred]

Folks, were back in the bottom of the six. Lorenzo's on the mound. His slider's been. Wait, is that a cat on the field?

[Raj Panjabi Johnson]

That tabby's really moving.

[Jessica Caldwell]

He's past second base.

[Fred]

And Coach Bakerfield's making a grab.

[Noah Michaelson]

And.

[Fred]

Oh, he missed.

[Raj Panjabi Johnson]

Incredible.

[Jessica Caldwell]

Someone give that cat a contract.

[Fred]

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[Raj Panjabi Johnson]

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[Raj Panjabi Johnson]

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[Jessica Caldwell]

Holy smokes, that's fast.

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[Raj Panjabi Johnson]

Hi, I'm Raj Panjabi Johnson, head of identity content at HuffPost.

[Noah Michaelson]

And I'm Noah Michaelson, head of HuffPost Personal.

[Raj Panjabi Johnson]

Welcome to Am I Doing It Wrong? The show that explores the all too human anxieties we have about trying to get our lives right.

[Noah Michaelson]

Okay, Raj, are you buying a car wrong? All these cars that you're buying, Are you doing it wrong?

[Raj Panjabi Johnson]

Listen, I live in New York right now, so I'm riding the subway. But I do have to tell you, a lot of people I love are buying cars, selling cars, and I would like to be helpful to them. So, yes, I'm doing it wrong. I need to know something, Anything. What about you?

[Noah Michaelson]

Yeah, I don't have a car. I don't plan on buying one anytime soon. But most people do have a car. Will have to buy one. And I've heard from so many people, especially when I said we were going to do this episode, they're petrified of it.

[Raj Panjabi Johnson]

Yeah.

[Noah Michaelson]

It just seems like it's like going to the dentist or doing this thing that you don't want to do, and you're spending so much money and you.

[Raj Panjabi Johnson]

Have to do it.

[Noah Michaelson]

Yeah. And you don't want to do it wrong.

[Raj Panjabi Johnson]

Exactly.

[Noah Michaelson]

So this is a great episode, I think, even if it doesn't maybe benefit you or me directly. So we have Jessica Caldwell. She's the executive director of insights for edmunds.com where she's analyzing millions of vehicle transactions and user behavior of shoppers to help them get great deals.

[Raj Panjabi Johnson]

Love that. Get us a deal. Jessica.

[Noah Michaelson]

Jessica, thank you so much for being here.

[Jessica Caldwell]

Thank you for having me.

[Noah Michaelson]

Guys, I just want to say, first of all, we're only going to talk about new cars, Buying a new car, because there's so much you could talk about with a used car or leasing. We'll save that for another episode. But today, new cars, right to begin. Is there a better time of the year to buy a car than other times? We got a question from Ryan. He said, I heard the best time of the year to buy a new car is at the end of the month because sales reps and dealerships are trying to make their quota and they're trying to haggle more. Is that true?

[Jessica Caldwell]

Yes. I mean, so there have been great deals that have been scored at the end of the month, but it's a lot of pressure, to be honest. Like, everything has to go right for you. So should you start the negotiation and the process at the end of the month? Absolutely not. Like, that is a bad piece of advice. You have to start it earlier. You're not trying to do everything in 12 hours because you can't walk away. The car may not be there. The dealership person that you like may not be there, and then you're into a next month and maybe the incentives have expired. So I would definitely not wait until the end of the month. But I think that is so ingrained into everyone's psyche just because I remember during the recession there was these stories that people would go into a Chrysler dealership and get $20,000 off a minivan. And I remember reading something like that in the Wall Street Journal. And it was just a perfect storm of having to meet dealership sales quotas, just needing to move the metal at the end of the day. And it actually just worked out for the dealership just to get rid of the car. So those stories are definitely out there. A lot of them are folklore. So I would say there could be deals to be had, but just don't start at the very last day of the month because I think that is not going to work out well for you and you'll probably be frustrated.

[Noah Michaelson]

What about the end of the year when they have the new models coming out? You know, the 2025s are coming soon. They're trying to get rid of 2024. Is that a good time to look?

[Jessica Caldwell]

Yeah. So they call it like model year sell down. And it starts way before the end of the year. It kind of starts in the summertime. We'll start to see the new models start to trickle in. And it hasn't really been a thing for the past few years because inventory has been short because of the chip shortage. But it is starting to come back. And it's not necessarily across the board. It probably will be stronger for brands like, you know, maybe like Nissan or Chrysler, Dodge, Jeep, those type of brands. Maybe not so much for like Honda and Toyota, because they've been selling quite well. And then that will kind of go towards the end of the year where, you know, a lot of deals can be had at that time. But it is very busy. It's very stressful to buy a car that week between Christmas and New Year's. But I say this as someone who bought their last vehicle on New Year's Eve, probably four years ago, and it wasn't something that I would definitely recommend.

[Raj Panjabi Johnson]

Okay, I'm sorry, for those who don't know, which is me, what's a chip shortage?

[Noah Michaelson]

I don't know either.

[Raj Panjabi Johnson]

It's like salt and vinegar, because that sounds dramatic.

[Jessica Caldwell]

Yes. So it was a few years ago. It was a symptom of the pandemic in which a lot of the auto factories that were Abroad that made microchips, which basically, like everything in a car is electronic. Those factories had to close down. And so. So they started to prioritize like other industries, because they're thinking, who's going to buy cars during the pandemic? One, no one's going anywhere. Two, no one's got the money because cars are a big purchase. And so they're prioritizing computers and personal gaming, things people were actually using, not cars. And so as a result, like cars, the auto industry didn't get a lot of chips. And you think about how much is electronic and technical in a car, each car has a ton of chips. And that caused a lot of the inventory shortage to. To happen. Really.

[Raj Panjabi Johnson]

All right, thank you for clearing that up. You briefly mentioned, like, you don't want to start the process at the end of the month. So let's talk about that research you need to do before you walk into a dealership. I know there's a lot of it. I don't even know where to start. Like, what should we. We kind of want to know what. Which car we want. Like, what kind of research do we need to start with?

[Jessica Caldwell]

Yeah, I mean, I think a lot of people start with, like, what will fit their needs in terms of size, in terms of budget. Of course, budget is the most important. It's always like, oh, I want a car that's safe. No, actually, you probably need a car that you can afford. That's. Sadly, that's step one. But looking to, like, what trim levels and specs and in terms of, like, loans, like, how much can you actually afford? What can you qualify for? I mean, that's all really important because car shopping is theoretical. Once you actually have to buy something, just kind of figure out, like, what is your car and sort of like, what is that trim level that you are interested in?

[Noah Michaelson]

That's a good point. I've heard different things and again, I know nothing about this, really, but securing financing before you go. So through your bank or through someone else, versus getting financing at the dealership. What are your thoughts on that?

[Raj Panjabi Johnson]

Such a good question.

[Noah Michaelson]

I've heard you definitely don't want to do it at the dealership.

[Jessica Caldwell]

I have. I mean, people. I think people do it all the time.

[Noah Michaelson]

Yeah.

[Jessica Caldwell]

So we all know interest rates are high. I mean, that is literally a big part of all of our lives, no matter what we're buying, not just cars. That has been a real thorn. And I think a lot of car buyers side. And I think at this point in time, you really need to shop for a loan. And I would say, like, treat that as important as the vehicle itself. Because if we look at loans out there, so just everybody that bought a new car last month, the average interest that people are paying over the life of their loan is just about $9,000. So nothing to do with the car itself, just in interest. So the. The pleasure of borrowing money to buy your new car is $9,000. So you really, really need to shop around to banks, to credit unions, even if you're not a member. A lot of times it's pretty easy to become a member of a credit union and then also what the dealership is offering. So, you know, it's one of those things that is paramount because you don't want to just waste all of that, you know, all of that money or be in a situation where you've fallen in love with the car and now you really can't get it because your credit score isn't great. And then they want to bump you up to, you know, 10% interest and that's. And then the monthly payments become untenable. I think that's unfortunate, a situation that people have gotten themselves into recently just because interest rates are so high right now.

[Noah Michaelson]

When people do say, though, you don't want to do it at the dealership, is that because they're thinking that the dealership interest rate is going to be higher?

[Jessica Caldwell]

Yeah.

[Noah Michaelson]

What is that?

[Jessica Caldwell]

So I think you bought a car, you go into the F and I office, it's called. And it's like a pressure cooker in there. You know, you're nervous. All the terms that you don't know what they mean. The guy just, you know, he's wearing a suit. Like no one wears suits anymore. So that's very intimidating.

[Raj Panjabi Johnson]

I love that you said a guy's wearing a suit that is already like vibes. Like, you get what this energy is in here.

[Jessica Caldwell]

Yeah, right. It's like you don't even. I mean, there's very few occupations that wear suits nowadays. So you see someone in a suit, you're like, oh, gosh, this is serious now. I can't. I shouldn't have come in here in my concert T shirt. I think it's just. That's a part of it. I mean, at the end of the day, they're trying to get you a good deal because they want you to get the loan from them because they're making money off that loan. So it would behoove them to try to sign you up for some ridiculous loan that you're not going to Take. So I, I don't necessarily see them as the enemy in the loan category. I just think it's just, it's very intimidating because it's not just about the loan. It's all the other add ons that you get so stressed out about just make it seem like, oh, I'm not going to get a good deal. But like, why would they not want to sell you a loan? They're going to make money on it, so they're going to try to find you the best one possible, really. So I, I have no issue with going to your dealership and being like, okay, what can I, you know, what loan are you offering me?

[Raj Panjabi Johnson]

Okay, what are these add ons that you speak of?

[Jessica Caldwell]

You're sat there, right? So you're, you're with the guy with the suit, right? So you're already nervous and he's talking about interest rates. And then you're like, okay, you know, I got the loan portion settled. And then he's like, well, do you want an extended warranty? Like, do you want, you know, like a litany of features? And, and I feel like that's where people get stressed out because they're caught off guard. Like, they're like, I came in, you know, I rocked up here, I was going to get a car, and now all of a sudden you're trying to sell me window tinting or alarm systems or everything else. And then I think human nature really is like, you can only say no so many times, right?

[Raj Panjabi Johnson]

Yeah.

[Jessica Caldwell]

And if there's like 20 options, like you say no like 10 times and you start to feel like maybe I should start saying yes, even though it's probably not a good idea or something that you want. So I think that really just adds to the stress and probably a place where people don't prepare enough. But I mean, to be fair, it's a bit hard to prepare for that, that scenario because sometimes, I mean, you know, I've been there myself, I'm just like, wait, what is that? Like, I don't even know. I don't even know what that is. Like, explain it to me. I, like sometimes some security systems are trying to sell you. You're just like, you know, no, I don't want a security system. In today's day and age, it's, it's not helpful to have a car alarm go off. Everyone just hates you. They don't really actually check to see if someone's stealing your car.

[Noah Michaelson]

Yeah, I think this is a really good point. In general though, whenever you're dealing I feel the same way when I go to get new glasses and they're like, well, do you want this tint? Do you want the blue, you know, whatever lenses? Yeah. The one thing I think that's going to protect you in every scenario, whether you're getting a car or glasses or anything else, is if you've done the.

[Raj Panjabi Johnson]

Research, anticipate what they're going to ask you.

[Noah Michaelson]

If you know what you want, then it's much easier to say, I don't want that or yes, I do want that. Yeah, I want to come back to the extended warranty and some of those things in a little bit. But let's say we found the car we want, we found, you know, what model we found all the add ons we want. We're getting ready to go to the dealership. How do we pick a dealership if we have multiple ones that we can choose from? Is there one way to know that one dealership is going to be better than another? Is there a red flag we should look out for?

[Jessica Caldwell]

Yeah, I mean it's really a tough one because there's so many dealership people that you're going to deal with. You're going to deal with the salesperson, you're going to deal with their manager that's going to be like, oh, let me check with my manager that he's going to go off to the room and they're going to come back. And then there's the F and I guy in the suit we talked about. There's so many people within the dealership that it's, you know, it's like one bad actor can just throw off everything, even if the dealership is great. So I mean, there are some things you can do. I mean, obviously there's like online, you can go see dealership reviews. Like sometimes people will be like, oh, I was at this dealership and you know, I met Tom. Tom was great. He really helped me out. I think that's helpful. Talk to family, friends, be like, you have somebody that you use, Is there somebody that makes this process easier? I mean the tricky thing is that dealerships are different. Like they will make money in different ways. And what I mean by that is like some dealerships, they will give you a lot of money for your trade in, but they're not going to give you much price flexibility on the new car or, you know, or vice versa. So it's really impossible to know kind of like what is the MO of the dealership if you know nothing about it. So I think trying to get Some information about the dealership, I think is, is. Is helpful. But like, you know, like I said, like, given the size of the staff, it's hard to like, kind of narrow it down. But I think, like, you know, like, talking to people, reading reviews, I think at least that's a good start. You're feeling like you're doing something, not just randomly cold walking. Walking into a dealership called, hoping to meet somebody nice.

[Noah Michaelson]

Completely. That makes sense. I loved reading a review.

[Raj Panjabi Johnson]

Yeah. You know, Yeah, I do.

[Noah Michaelson]

I find them so helpful.

[Raj Panjabi Johnson]

I read hundreds because I feel like some of them are fake. So I need to.

[Noah Michaelson]

And the tip that we got to remind people from our shopping episode was to read the three star reviews because oftentimes the five star and the one star are going to be so emotionally sort of triggered where they just either really love it or really hate it.

[Raj Panjabi Johnson]

Yeah.

[Noah Michaelson]

And the three star usually has some good info in there.

[Raj Panjabi Johnson]

I feel like those are very helpful. Yeah, for sure. Are there any red flags that you want us to look out for when we're looking for or visiting dealerships? Because I don't know, I feel like I've seen the Benz dealerships in Manhattan and I'm like, that just looks like, like a more expensive place to buy a luxury vehicle because it's in Manhattan. But like, that's probably not real. Any red. Like, anything you want to tell us to be, like, don't, don't go to that dealership.

[Jessica Caldwell]

I mean, a lot of times you are corresponding with the dealership before you. You set foot into the dealership. So I would say, like, what is the vibe like you're getting from that person? Are they, like, responding quickly? Are they? Yeah, like, do they make sense when they're emailing you? Are they just, like, making you, like, come in and see me? Come in and see me. They're not trying to even engage in any situation. And then, you know, when you're there, like, a lot of times people, you know, naturally we have a lot of questions, like, are they. Are they able to answer your question or are they just, like, looking, like, staring blankly at you? You should have known this, especially as it relates to cars. Because, I mean, cars, you know, you're looking at it, you're there, you want to kick the tires. And they have so much technology on them. And so you're asking the questions like, how does this work? It parks itself. Like, how do you do that? And they're just like, you hit this button and that, you know, they're not.

[Raj Panjabi Johnson]

Very, like, yeah, articulate. About it.

[Jessica Caldwell]

I think that that's a bit of a red flag. Sure. Because obviously we all want to work with someone who's gonna help us and, you know, be get us through this.

[Raj Panjabi Johnson]

Process and not, I guess, stress and inform us. Yeah.

[Jessica Caldwell]

Teach us something about the car. Because I guarantee you there's a ton of things, even if you've done a lot of research on the car that you. That you don't know about, that the car feature has. And, you know, we're not all engine carriers and we can't figure everything out so easily. We need someone to, like, be like, this is what you need to know. And some salespeople, unfortunately, they, you know, they don't deliver that. There's a lot of turnover in this industry at sell, you know, a dealership. So people are like, new a lot. It's hard sometimes to work with those folks because they're just not well informed. They don't know what the incentives are. You know, are there incentives available? Have they expired? Like, you need to work with someone that can get you all of the available deals, especially if it's free money to them and automakers offering, you know, college, you know, college graduate credit or military credit, $2,000 cash back. Like, you want your person to, like, make sure that they've gotten all the free money for you as possible. And if you get someone that is inexperienced, New Orleans doesn't know what they're doing, chances are they're not going to do that for you.

[Raj Panjabi Johnson]

Let's take a quick break, and we'll be right back. This podcast is brought to you by eHarmony, the dating app to find someone you can be yourself with.

[Noah Michaelson]

Okay, let's be honest and talk about doing dating wrong. So, Raj, have you ever pretended to be into something that you're not actually into when you're on a date just so you keep the person's attention?

[Raj Panjabi Johnson]

Oh, absolutely. I once was on a date, and I am a Knicks fan, but I was pretending to be this, like, hardcore sports girly because that's what the dude was into. And I am not a sports girly.

[Noah Michaelson]

Right. So I bet even despite doing all of that, the date didn't go anywhere.

[Raj Panjabi Johnson]

It certainly did not.

[Noah Michaelson]

That's because I'd imagine the best dates we've had were the ones where we were totally and completely ourselves. Not trying to jam square pegs into round holes, but enjoying a natural flow and chemistry with our date.

[Raj Panjabi Johnson]

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[Raj Panjabi Johnson]

Welcome back to Am I Doing It Wrong? Are you ready to start talking about negotiation?

[Noah Michaelson]

I'm terrified. By.

[Raj Panjabi Johnson]

I'm terrified. Listen, I am a terrible haggler.

[Noah Michaelson]

Yeah.

[Raj Panjabi Johnson]

Like, this is. I just want to give people more money because I'm like, these are hard workers, but not car salesmen because they. I feel like it's not the same thing as buying something on the street. Can you just help us negotiate? Any tips? You know, should we be going for the jugular? Like, tell us how to safely and happily negotiate the price of a car.

[Jessica Caldwell]

So first of all, this is tough for everybody. It's tough for me. It's so awkward. First of all, like, you just don't, like, it's not comfortable to do this. Right. I think the best thing to do is let them go first. Like, let them give you a. You're interested in this vehicle because whoever goes first is generally in the weakest position, I think.

[Raj Panjabi Johnson]

See, this is why I'm so bad at this. Like, I feel like I would go in and be like, I will give you $17. Like, I just have no grasp of like, what should. Okay, good. That makes sense. It's like one of those like 48 laws of power stuff. Like, don't talk first. Okay.

[Jessica Caldwell]

Right. Because I mean, I know people that are like, I'm willing to pay $35,000 and like, they'll send out to like, everybody. And then it's like, that may be actually good. And people be like, yeah, okay, like, sounds good. And then you just left money on the table, but let them go first. I'm interested in this car. Like, what's the best deal you're going to give me? And then take it from there. See what, you know, what they say. Other trick I like as well is especially if you have good credit, just be like, well, run my credit. And then at that point, if you have good credit, they know that you can afford the car. They know that you're going to qualify for the top tier financing. So it's going to be easier to get you approved and it's probably going to be a quicker transaction because you are somebody who you know is serious and you can afford it and you're going to get approved. So it's like, you're the ideal customer for them. So they're like, let me give this person a good price. We can literally get this deal done in, you know, 30 minutes versus like, oh my God, I have to search for a loan to get this person qualified. Like, all that stuff. So sometimes they won't but, like, you know, it's a bit of a power move. Just be like, just run my credit. I love that you're serious.

[Raj Panjabi Johnson]

I think that should be a rule across the board. If you have sexy credit, like, on your first date, be like, run my credit.

[Noah Michaelson]

Lean into that.

[Raj Panjabi Johnson]

If you're like, in the eight hundreds. Yes.

[Noah Michaelson]

Capitalism.

[Jessica Caldwell]

Yeah. Too bad. Profiles. Like, what's your FICO score? Not the exact score, but maybe the range.

[Noah Michaelson]

Right?

[Raj Panjabi Johnson]

Yeah.

[Noah Michaelson]

Right.

[Raj Panjabi Johnson]

No, no, no. Exact. Let's go for it. Okay. That's smart. Okay.

[Jessica Caldwell]

Also, I think it's a good. Personally, I like to negotiate there because I feel like when you're on your phone or you're like, a lot of people are just like, oh, let me just do it before I get to the dealership. And I think that works for some people, but I think when you're there in person, it does show, like, a level of seriousness. Because, you know, today, in today's day and age, we'll text about just about anything, Right? So it's like, you're texting, you're trying to negotiate. It's like the dealership person is like, are they serious? Are they not serious? It's hard to tell. If you do turn up in person and you have a trade in, like, make sure your car's ready to go, because that also shows that it's a sign of seriousness. Your car is filled with a bunch of stuff. Like, you just came back from a camping trip and it's, like, filled to the gills and it's dirty. Like, they're looking at you like, you're not ready to do this today, so why are we rushing through this?

[Raj Panjabi Johnson]

Got it. Wow.

[Jessica Caldwell]

I would also say, too, when you go in in person, like, maybe don't look so eager.

[Raj Panjabi Johnson]

It's gonna ask, what should my face be doing? And I think you're gonna start talking about that. I have a terrible game face. Please tell us more about that.

[Jessica Caldwell]

They know that you want the car, obviously, because you're there. So that people that are like, let's play it cool and act like we don't really need it. Like, they know you need the car. Otherwise you're not shopping for cars for fun. No one does that. So turning up, like, first thing in the morning, it's like, you don't want to be, like, that eager. And also, don't turn up, I would say two hours before closing time. Because they're just like, this is going to be a hassle. We're going to have to, like, stay late. And they may not want to give you, like, as good of a deal because they're just like, kind of annoyed by you. And the other thing is just leave your kids at home because they know that you're there for a while. And then once the kids just start acting crazy, you'll do anything pretty much to just expedite the process. Like, okay, I'll sign up for everything you're selling because I just, like, my kids will not be quiet and I just need to get out of here.

[Raj Panjabi Johnson]

Yeah.

[Jessica Caldwell]

So although the kids may want to see the car, but not during the negotiation process, you gotta, you gotta leave them at home. Because I feel like that once it, once the whining starts, you're just. You're kind of just like, let's get this done as fast as possible. And that is not conducive to getting the best deal possible.

[Raj Panjabi Johnson]

Okay? Buying a car is psychological warfare. Like, I'm just hearing psychology stuff at.

[Noah Michaelson]

This point, but this is just all known and expected, Right? This is the weird thing to me that, like, there's just this world that exists out there where you're going to walk into the store and immediately you're sort of. Yeah, it's warfare.

[Raj Panjabi Johnson]

Yeah.

[Noah Michaelson]

And everyone knows that. And it's just. Okay, it's just so weird to me.

[Raj Panjabi Johnson]

Weird. It's weird. But we can arm ourselves this way.

[Jessica Caldwell]

You know, at the end of the day, these dealerships, it's like we are talking about the psychological warfare. But these guys just want to sell cars and they want to do it as fast as possible. And they know that, like, cars are not something that people buy. Tons of you come in, what, every six years? That's the average trade in age for a new vehicle. So they know they don't have very many opportunities to sell you. And if they deliver a good experience to you, like, maybe you'll tell a friend, maybe you'll come back in six years. And that's all. That's the best they can hope for because they know you're not coming back in two months. You know, it's just there's only so much business that you could possibly give them. So I do think, even though sometimes we see them as the enemy, it's not. It doesn't always have to be that way because there is something in it for them too. And it's is also important.

[Noah Michaelson]

But they do expect us to haggle, right? I mean, that is part of it. They're expecting to give a price and they're expecting us to say, how about this? Yeah.

[Jessica Caldwell]

Yes. I think that that's the expectation. I. I do think that maybe as younger people get older and, like, this process is a lot more uncomfortable, I would say, for younger people, like, just that social construct, that may change. Because, you know, I know a lot of automakers have experimented with, like, flat pricing or this is just. This is just the price. Not no haggle. Some dealerships do that as well. Big dealerships will just be like, this is the price of the car. Like, we're not gonna. Like, they're focused on volume. So we're trying to sell as many vehicles as possible. Like, we're not trying to haggle with you all day long. So you kind of have to see what. What the dealership you are working with, because those do exist, too.

[Raj Panjabi Johnson]

That's funny. It really is a generational thing, that comfort with haggling. Like, my parents are really good at it, and my dad's been like, come on. They like it. They expect it. They want to know you respect them. And I'm like, I'm not doing this. Like, this doesn. Respectful. But it's a generational respect thing. Like, it's.

[Noah Michaelson]

And it's also just like, a lot of younger people don't even want to order a pizza by dialing a phone.

[Jessica Caldwell]

Yeah.

[Raj Panjabi Johnson]

We don't have a conversation.

[Noah Michaelson]

We don't want to interact. We want to do everything over email or texting. And so just the thought of not only having to talk to someone in person, but also then haggle for their car.

[Raj Panjabi Johnson]

My parents and their friends are so comfortable with theirs. They would, like, move in with the car sales. Like, they're comfortable with it. We are not. Yeah.

[Noah Michaelson]

Well, that makes me wonder if my.

[Jessica Caldwell]

Dad looks forward to it. Like, I should be, like, a good time. He's like, yeah, let's do this.

[Raj Panjabi Johnson]

Yes.

[Jessica Caldwell]

Ready?

[Noah Michaelson]

I saw some advice online. I would love to hear what you guys think of this. This woman was saying that you should not even go to a dealership. She said, what you do is you find the exact car and model you want and you email several dealerships.

[Ancient Nutrition]

Okay.

[Jessica Caldwell]

Yeah.

[Noah Michaelson]

And you just go back and forth with them over email, and you get the first guy to give you a price, and then the second guy, and then you pit them against each other. And you say, okay, well, salesman A is giving me this. Salesman B, what can you do better? And they say, you keep going back and forth over, this is savage. Until you get the price you want, and you find one of them is actually really sincere and you want to work with them. And then you just go in and you sign the papers. What are your thoughts about haggling completely over email?

[Raj Panjabi Johnson]

Love that.

[Jessica Caldwell]

Yeah, a lot of people do this and it's, it's pretty common and I think dealerships also know that you're doing this as well. It's no secret to them. They're just like, and sometimes they know like what other dealerships are offering because like I said, sometimes these guys, they have, you know, the dealerships operate in a certain way like on volume or on trade ins or whatever it is. So they kind of know in terms of the pricing it's like, well, they'll give you a lower price but what are they going to give you for your trade in so, or you know, something like that. So it could be different. But that I would say is, is fine if you want to do that is time consuming and it is a bit soul crushing. I think when you're trying to manage all the emails and I think I have done it before and it's just like you start to get confused. You're just like who's saying what? And you have to be very organized and it's, you know, it's, it's generally tough but it's hard sometimes to find the exact vehicle that you want like in different places, you know, like the exact spec. So you got to make sure too that you're comparing apples to apple. So when you're emailing all these different dealerships, like is it exactly the same car with all the same features? Because some cars like, like Honda brand is pretty straightforward in terms of trim levels but there are some like you're buying like a pickup truck, there are thousands of options. Like it is very hard almost to get like the exact same truck at a different dealership and find the same way. So in that case it is a bit tougher to be like, well what is this price? Because you're not necessarily negotiating apples to apples all the time.

[Raj Panjabi Johnson]

Let's take a quick break and we'll be right back. This episode is sponsored by Herz.

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[Raj Panjabi Johnson]

Welcome back to Am I Doing It Wrong? My last negotiation question is that I heard we're supposed to just focus on the out the door price. Is that true? What is the out the door price?

[Jessica Caldwell]

No, I think, I don't think that you, you definitely should focus on all of the line items that you're paying for.

[Raj Panjabi Johnson]

Okay.

[Jessica Caldwell]

Because a lot of people who are not paying cash, they are getting a loan and they are just focused on not even the out the door price, the monthly payment. And they don't even know what goes into it. They're just thinking 500 I could. Okay, but you're not like looking into like everything. So to get truly the best deal, you really do need to examine all the line items. I mean you're gonna see a purchase contract. It's Going to be very long. It's not on a regular size sheet of paper. At least I don't think it is. Still, I'm not sure. It's been a few years. But all of those different things and then also be out the door price, I mean, that means that can mean something different pretty much everywhere. Like, is that including incentives? Is that including consumer incentives, dealership incentives, all of those, those type of things. So, so those people that just. That are looking for the optimal deal, it's, it's. You're looking at everything that you are actually paying for, not just like, what is that total price or what is that monthly payment? Because that is probably not the best financial decision. However, people do it all the time because it's. It is overwhelming when you think about all the different things that you are, you know, that you're paying for. It's hard to like, keep track of. Of it all.

[Noah Michaelson]

Okay, we got a question from Paige, who works with us. And she said car buying has always been horrible for me because at least where I live, the sellers are still more responsive to men. She said, I've gone in to get a car before and I've been totally ignored while my dad or my husband has gotten all of the questions and attention. So I'm wondering, can you talk to us a bit about buying a car as a woman or someone who isn't a man? I mean, even as a queer guy in those very macho environments, I also feel uncomfortable too. So what are your thoughts about that? And like, what women or people who aren't, you know, cis. Cis? Just macho guys going in.

[Raj Panjabi Johnson]

I love macho guys.

[Noah Michaelson]

What should they. What, what should we do?

[Raj Panjabi Johnson]

If you don't have a mustache.

[Noah Michaelson]

Yeah, what should you do?

[Jessica Caldwell]

Only macho guys can buy new cards.

[Raj Panjabi Johnson]

In the summation of everything page is not wrong though.

[Jessica Caldwell]

Yeah, a lot of the salespeople, like, they're judged on. It's called like an ssi. It's like a sales satisfaction survey that you're going to get as a customer. And they have a lot of financial rewards attached to it. So, you know, if you've ever been in a dealership and you're like, in the bathroom, they'll have like a piece of paper that says, like, if you can't rate us anything below a 10, like, please let us know. Like, the dealerships are in the automakers. They take that, those scores really seriously. And they're a lot of times tied to financial compensation. So they want to have a good score for service as well as Sales, because that can mean money for them. So I just, I just don't see them wanting to treat you poorly. But if they do, then walk like you don't need to give up your business. And sometimes it's not a bad score if you get there.

[Raj Panjabi Johnson]

Sometimes it's not like consciously poorly. It's just that they say, I bought one car in my life and it was 15 years ago. And the salesperson was like, look, the trunk has a lot of room for your shopping bags. He said this to me and I was like, listen, gramps, I shop online. I was equally as insulting, but I just feel like it can be subconscious. Like they think they're doing something cute.

[Jessica Caldwell]

Yeah, they're trying to help you. Yeah, I was showed that, like the center console had a big, a big opening for my purse. So I mean, I think you just have to maybe hope that, like, you need this car, you need to buy it, and that hopefully they're coming from a good place that they actually think you may be interested in. And they're not necessarily trying to offend you, they're just trying to sell you a car. Like they're trying to point out the features that they think are going to close you. Because the thing about cars is that they are, they're an emotional purchase. Like once you sit in a car and you imagine your life in that car, like they've got you, like, that's when the sales happens. It doesn't matter what it looks like when you're like, oh, that car looks good. It's when you sit in it and you're imagining your life. That's, that's the point of sale. And you know, I've seen this happen so many times in focus groups that I've done. And like, that connection you have with it is, is really the final, you know, the kind of final send off. So they're trying to find the buttons for you to connect with that car. So they're like, oh, maybe she looks like she likes to shop.

[Noah Michaelson]

So, like going back to that extended warranty, do we want that? I've heard that it's usually a bad idea to get, or at least you don't want to get it right away. You could always call up actually three years in and then get it. What are your thoughts on the extended warranty?

[Jessica Caldwell]

So right now, because interest rates are high. So if you're paying the average interest rate for a new vehicle, 7%. So if you buy it on the onslaught, you're paying all of that plus 7% interest because you rolled it into your car loan. So I would say it's probably not the best because you're not going to need it in the first three years.

[Noah Michaelson]

Right.

[Jessica Caldwell]

So given where we are today, I probably would wait on that because now you're paying how much more you're paying. You know, you're paying a significant amount of more just for that extended warranty that you won't need for quite a while. But the thing is that you can negotiate. They're going to say, say 3, $500 and you could say $1500 and see what happens. It is negotiable. And there's, you know, certainly like some vehicles, you know, if you're buying a very, you know, expensive luxury vehicle, you know that this is going to be costly when it goes back to the dealership. Like, it may be worth it to buy the extended warranty because every service may be like a thousand dollars, for instance. So it kind of depends, like what you are, you know, what you are buying and how much you can negotiate it for. But I'd say right now, if your interest rate is high, it's probably best, best to wait. But in the glory days of like 0% interest and, you know, or like 1% interest, then, you know, maybe it just wasn't, it wasn't as vital to think so much about it. But now, unfortunately, that makes sense.

[Raj Panjabi Johnson]

Yeah. The trade in that you speak of, if we have one, what should we tell the dealership about it? I guess that would make it like, worth more or sexier.

[Noah Michaelson]

Yeah. And when do we want to let them know that we have a trade in?

[Jessica Caldwell]

So a trade in should be the first thing you do. Like, if you know that you're going to trade in your vehicle. That is step one. Like, you need to figure out how much you're going to get for it. And the way you're going to do it is you're going to either, you know, ask the local dealership that you may buy a vehicle from, you know, online people that are buying cars, CarMax, all of those people, like, you need to get prices from all of them because that is where you're going to set your budget. Like there was just a few years ago in the chip shortage that we spoke about, where trading values went through the roof because there was no vehicle, so they were paying top, top dollar for used vehicles. You literally are sitting looking at your driveway being like, there's a gold mine right here. I should just cash this in because I'm not driving anywhere any, you know, little, like post pandemic but I'm not really going anywhere. So I need to figure out what that vehicle is worth. So that is definitely, I would say, the first step in this process. And it's one that people overlook. It's like they think it's an afterthought. It's like, well, the car is so much more fun to focus on the new one. It's like, oh, it's gonna have all these features. It's gonna be great. But, you know, the trade in is, is really kind of, for most people is like where you're establishing your budget. Because what if it's worth less? What if it's worth more? You know, what if a dealership is willing to give you a lot for your trade in and, you know, and maybe, you know, they're charging too much for your, your new vehicle. So all those things you need to sort out before you go to buy. So get the price of it and then help that, let that establish your budget, I would say, for, for your new vehicle, because maybe you can, maybe you can upgrade yourself, get like some more amenities. That would be nice because your trade in was, you know, you shopped around and got a better deal than you thought.

[Raj Panjabi Johnson]

That makes sense.

[Jessica Caldwell]

But it's, it's where people definitely fall down on. Because they're, they don't even do any research in terms of like, what it's worth. And the dealership's like 5,000. And they're like, oh, great, that sounds like a lot of money. But you could have been leaving like thousands on the table. Yeah.

[Noah Michaelson]

Jessica, when do we want to walk away from a deal? I think that, again, this is such an emotional thing that we're doing. Number one, it's embarrassing to have spent all this time and then walk away. Number two, you've just spent all this time and you do need a car. But I also think that if it's not right, you shouldn't just go through with it. So what, what are your thoughts about walking away and when we should, we should consider it.

[Jessica Caldwell]

Yeah, I mean, walking away is the most powerful tool you have because, like, you know, like I said, they're not, you know, they're not Amazon. They're not selling, like millions of cars every day. You know, this is a lot of dealerships. They're selling, you know, 30 or something a month. So walking away is definitely the most powerful tool that you have as a consumer because you're saying, no, don't like it. I'm gonna go, you know, I'm literally gonna buy the exact Same thing from your competitor that you could have sold to me. But I think we again, going back to that social constraint, like, it makes it deeply uncomfortable. Like, I know even talking about this, thinking about walking away after I've spent like an hour there makes me uncomfortable. But I think considering the fact that, that you know, you are spending, you know, this is not a small purchase for most people. This will be the biggest purchase they make. Because, you know, homes are so expensive nowadays. Like, you have to, you have to just realize that, do you know, do I want the best deal? I don't like, I don't like it here. I'm not comfortable. I don't think I'm getting a good deal. And be emotionally prepared to do that because a lot of times they will chase you and they will follow up, they will text you, they will call you a lot of times with a better deal than when you were sat there. So although it's not a great thing to do, hopefully it doesn't go that way. I think you also need to be emotionally prepared to do it, which is definitely tough.

[Raj Panjabi Johnson]

Okay, so that's what I was gonna ask you. Like, should you ever fake walk away? Like walk away with the plan to still buy it, but. Okay, I didn't think about that. They can call you. I just imagined myself walking in slow motion hoping someone changes. They grab you by my hair. Yeah.

[Noah Michaelson]

I think you're right though. I think that if you, if you haven't just been totally ridiculous. It's like when I would always, I would do this every year with my cable company, the same thing. They would raise my rate and then I would say, okay, well I'm just gonna cut the cord.

[Raj Panjabi Johnson]

Yeah.

[Noah Michaelson]

And they would call me back immediately and say, oh, you know, we found a better deal somehow.

[Raj Panjabi Johnson]

Yeah.

[Noah Michaelson]

And then they would give me 50 off. Exactly. So I feel like if you actually are there genuinely looking for a car and you don't feel like it's a good deal. Yeah, walk away. They'll probably call you.

[Raj Panjabi Johnson]

Yeah, right.

[Jessica Caldwell]

Because for new cars, it's not unique generally, you know, I mean, you're going to be able to find something similar at some point. And with the magic of the Internet, you don't have to shop in a 10 mile radius. You can shop literally across the country. You can have a car be delivered to you. You know, I'd say that sometimes the walk away for used cars is a bit tougher just because used cars are a bit more unique. But for new cars, I would say that it's definitely easier to walk away because, you know, you probably will be able to find. You're going to be able to find something very similar.

[Raj Panjabi Johnson]

Okay, what are your thoughts on doing? We touched on this a little, but I want to know about like doing everything online, like Carvana, which I don't know, I've seen those cool Carvana towers where you apparently do everything online and just get it like a vending machine. What's the deal with that? Should anyone do that? It seems fun.

[Jessica Caldwell]

I mean, yeah, I mean, there's some consumers that it's worth it to them to pay more and just make this whole process easy because as we have just been discussing this whole time that a lot of it is uncomfortable and maybe not in our comfort zones to do all of this. So, yeah, I mean, I would say that if that is you. And that is definitely a group of people. Like, I know I internally call them like busy status seekers because they're like, they want a good car, but they don't want to spend the time doing any work really. But I would say, you know, when you're doing that type of transaction, make sure you look at like everything that you are paying for. Like, like everything will be wrapped in together, the loan, the car costs, like, make sure like all of those are all very competitive. But I do think that, you know, for people that it's just like this whole process is too much. I think that's when they start to turn to those type of services. And I think, you know, traditional dealerships are trying to get better because, you know, they realize this. I mean, they're, they're business people. They're not dumb. They want to like, be like, okay, we know this makes people uncomfortable. Like, how do we make this less uncomfortable for people? So it, you know, it's something that within the industry is, you know, is definitely changing. But I think pricing for some of those, like one stop shop, let's make it that easy. I mean, easy comes with the cost, right?

[Raj Panjabi Johnson]

Absolutely. Convenience comes with the premium.

[Jessica Caldwell]

Least expensive.

[Raj Panjabi Johnson]

Yeah. So I think for like much of the country who has anxiety like myself, like, you might want to pay a little more and be like, ugh, not gonna it, like if you got it.

[Jessica Caldwell]

Oh. Another tip is to become friends with the mechanic because the mechanic is very helpful. And I know my mechanic's name is Matt. We talk and I ask him, like, what's coming in? What's got some bad issues if I'm looking to buy a car? Because I'll be like that BMW X7. How is it? Like, are they are the repairs expensive? How's the electrical system? Like all those questions they know or their friends know and they talk amongst themselves. So they'll be like, yeah, you don't want this for like another year. Let them work out the issues. You wanted to buy a year, two of when they're making it, you know, the production kinks will be out if you're buying a new car. Because sometimes the new generation of cars, it's great to have the latest and greatest. However, sometimes, you know, some of the mechanics just need to be finessed for a little while.

[Raj Panjabi Johnson]

I think that's a brilliant tip.

[Noah Michaelson]

Such a good tip.

[Raj Panjabi Johnson]

Yeah. Because think about it. Even if you get a good deal on a car, if you need a part replaced or something and that thing needs to come from Germany or whatever, like find out, find out about that stuff.

[Noah Michaelson]

Absolutely. I never really thought of that. But if, yeah, if you have a mechanic that you love, ask him. Ask her.

[Raj Panjabi Johnson]

Yeah, okay. So, Jessica, no matter where or how we're buying, what should we double check before we sign that contract?

[Jessica Caldwell]

The contract is going to be intimidating. It's going to have so many numbers. I mean, the big ones I think you're going to want to focus on the most is the purchase price. The, is the price. Is that the price you just agreed on or is it not? Was there some sort of typo? If you do a trade in, make sure, you're looking to make sure the trade in value is accurate. Your interest rate. Is the interest rate accurate? Your loan term, is your loan term accurate? Because a way that people buy a more expensive part they can't afford is they push out the loan term. It's not unusual for people to have a loan term of like 84 months. And you know, if that's the case, you need to, you know, double check it on the contract. Like, wait a second, you know, because like I said, so many people are focused on the monthly payment that they're not cognizant of how they got to that monthly payment. So you need to make sure, like, am I signing up for, you know, a seven year loan term? Because a lot of people don't even keep their cars for seven years. And that's how you get your situ. In a situation of negative equity, your, your loan is, is, is worth, is higher than how much your car is worth. And then that is a bad road to go down. So I think all of those, like, big items, I would definitely check. I mean, obviously it's good to check everything, but just at least go for the ones that are quite large and substantial.

[Raj Panjabi Johnson]

You know, I like to take a buddy with me when I'm doing big life stuff like this. Whether it's like a doctor's appointment where I need to make a decision or whatever. I just like to take a buddy because, like, a second set of eyes when you're either nervous, excited, anxious, anything is just so helpful.

[Noah Michaelson]

And even better if they know something about what you're doing.

[Raj Panjabi Johnson]

Yeah.

[Noah Michaelson]

You know, if you have a Jessica who's your friend, and she can come with you, or Matt, your mechanic, or, you know, I think that that's great.

[Raj Panjabi Johnson]

Holla at us, Matt. Like, what's good?

[Noah Michaelson]

We all have different interests and things that we know better than others. So you and I should not go together.

[Raj Panjabi Johnson]

No, we should not. We should go with separate buddies, Tweedledee.

[Noah Michaelson]

And Tweedledum, trying to buy a car.

[Raj Panjabi Johnson]

I love that about us.

[Noah Michaelson]

Yeah. Any other tips that you have that you think we haven't covered that people should know before they plunk down so much money?

[Raj Panjabi Johnson]

Yeah. Or something that you just see people do a lot that you're like, oh, God, don't do that.

[Jessica Caldwell]

In the shopping process, people like to ask for feedback a lot. Like, they actually don't really want feedback. They just want validation. Like, this is. This is great. So if you're in that process and you already kind of have made up your mind, just focus on that and just go down that road. Because I feel like a lot of times people are like, like, I'm gonna buy this. And then they ask, like, 15 friends, and then they, you know, then people are like, you know, it's almost like baby names where people are like, no, it's not really great. And then they get, like, all turned around. And then your psychology is completely messed up because you're like, I was gonna buy this, but then now 10 of my friends think it's a bad idea. So if you are married to an idea, just. Just go with it. Just. It's your car. You're gonna live with it. Make sure you test drive and make sure you like it. But maybe don't, like, do, like, the. You know, the group chat where you're trying to solicit opinion means the IG poll.

[Noah Michaelson]

Yeah, I love that. Unless it's a cyber truck, don't buy a cybertruck. Yeah, that's just me. That's just me.

[Raj Panjabi Johnson]

No, no, it's all of us. Yeah, that's. That's great advice. Yeah.

[Noah Michaelson]

I feel more informed. What are you?

[Raj Panjabi Johnson]

I do. I. I want to find enough Money to buy a new car.

[Noah Michaelson]

Yeah.

[Jessica Caldwell]

Good luck with that.

[Raj Panjabi Johnson]

No, this is really helpful because it is a really big purchase.

[Noah Michaelson]

Yeah. Thankfully I live in Brooklyn. I'm not going to have a car for a while.

[Jessica Caldwell]

Yeah.

[Noah Michaelson]

But for everyone else else, good luck to you. Good luck. Jessica, thank you so much.

[Raj Panjabi Johnson]

We appreciate it.

[Jessica Caldwell]

It was my pleasure. Hopefully somebody is going to be happy about their car purchase because at the end of the day, that's what we want. We don't want people on the roads.

[Raj Panjabi Johnson]

Angry, thinking that they've got angry and broke.

[Noah Michaelson]

Yeah, good point.

[Jessica Caldwell]

Broke, angry, mad at the world. We have enough of that already.

[Noah Michaelson]

Yeah. It's time for better in five. These are your top five takeaways from this episode.

[Raj Panjabi Johnson]

Number one, do your research and figure out exactly what kind of car you want, the add ons you need and your budget before you even walk into the dealership.

[Noah Michaelson]

Number two, figure out your financing and who's going to give you the best rate, whether that's the bank, a credit union or the car dealership.

[Raj Panjabi Johnson]

Number three, when it comes to negotiating, let the salesperson shoot their shot first.

[Noah Michaelson]

Number four, the most powerful tool you have is walking away. Know when you need to do it.

[Raj Panjabi Johnson]

That's a universal one. And number five, if buying a car in person is just too much anxiety for you, it might be worth it to do it all online, even if it costs a bit more. Okay. Noah, were you as clueless about buying cars as you thought you were?

[Noah Michaelson]

Absolutely. And my blood is still running cold at the thought of having to walk through a dealership and talk to the macho car man. It's like going to barbershops too. And I just turn into like a simpering little boy. I mean, same, but I feel much more equipped now if I had to do it or if I had to go with someone.

[Raj Panjabi Johnson]

Yes.

[Noah Michaelson]

And it always comes back to, I think so many times when we're talking about different topics, just being prepared, researching, knowing your. And then if you do, you're going to be so much more ready for whatever they throw at you.

[Raj Panjabi Johnson]

I can't wait for you to saunter into a car dealership and be like, what's your extended warranty?

[Noah Michaelson]

Yes, that is going to be me.

[Raj Panjabi Johnson]

Yeah.

[Noah Michaelson]

Never. What about you? Do you feel better about it?

[Raj Panjabi Johnson]

I mean, I learned a lot of things today, especially about like logistics and loans and stuff. But I do have to say a lot of this stuff was intuitive for me. Like the psychological warfare. Like, I think I'm kind of excited. I want to help someone buy a car.

[Noah Michaelson]

Oh, you're ready to just throw down?

[Raj Panjabi Johnson]

Yes.

[Noah Michaelson]

I can see you being like, I don't take that deal.

[Raj Panjabi Johnson]

Yes.

[Noah Michaelson]

And walking away slowly, dramatically. Yeah. Well, until that happens and until next time, as long as there are things to get wrong, we're going to be right here to help you doing better.

[Raj Panjabi Johnson]

Love y'all.

[Noah Michaelson]

Do you have something you think you're doing wrong? Email [e-mail] and let us know.

[Jessica Caldwell]

My dad works in B2B marketing. He came by my school for career Day and said he was a big roas man. Then he told everyone how much he.

[Raj Panjabi Johnson]

Loved calculating his return on ad spend.

[Jessica Caldwell]

My friends still laugh at me to this day.

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