← HerMoney with Jean Chatzky
HerMoney with Jean Chatzky
Ep 506: The Smart Woman’s Guide to Cars: Buying, Leasing, and Not Getting Ripped Off
00:37:40
Everything you need to know to buy (or lease) your next car with confidence.
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Transcript53 lines
- [00:00]
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- [01:12]
Ross/Marshalls Announcer
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- [01:30]
Kaia Milstein
There are so many vehicles and options and safety features and so many different details about purchasing a vehicle that this can just make you feel like you're at this endless buffet. Except everything's very expensive and you have to choose between one or the other, right? What I like to tell people is sit down and make a list for yourself. What do you need out of your car? What do you love about the car you currently drive? What do you hate about it? What do you want from your next vehicle? And what are you absolutely not willing to put up with?
- [02:03]
Jean Chatzky
Hey everyone, welcome to Her Money. I'm Jean Chatzky. Have you ever felt overwhelmed in a car dealership? Confused about maintenance? Maybe pressured into making a purchase you weren't quite sure about? Yeah, I am right there with you. Even though women make the majority of car buying decisions in the US and we do, many of us still feel left out of the conversation when it comes to owning those decisions. That's why today's episode is a must Listen. Because cars are more than just a way to get from point A to point B. They're one of the biggest financial decisions we make. My guest today is Kaia Milstein, an automotive educator, writer, and now author of the book Mechanic Shop Fashion Fem's Guide to Car Ownership. She has spent More than a decade in the industry, she's built a huge following online by breaking down car knowledge in a way that is smart, relatable, and totally not infuriating, which is a big deal. Kaia, welcome to her money. Glad to have you.
- [03:14]
Kaia Milstein
Thank you so much for having me.
- [03:16]
Jean Chatzky
Let me just start by asking you, how did you get so smart about cars?
- [03:21]
Kaia Milstein
You know, I started working in the automotive industry completely by mistake. I was 18, I was aging out of the foster care system. I was desperate for a job and someone found a GoFundMe that I had online and she reached out to me and she said, I want to help. I know money is helpful, but what do you really need? And I'm like, well, I really need a job. And she happened to know the HR manager at the local Sears department store. And she said, I can set you up with an interview. Like, no promises, but you get to get your interview. So I went in for my interview and fully expecting to leave as like a cashier folding clothes or whatever the retail jobs that were available at the time, she asked me what department I wanted to work in. During the interview. And as a true capricorn and an 18 year old that maybe did not better, I said, whichever department makes the most money. Luckily, she didn't kick me out of her office and she just kind of looked at me and she said, well, that would be appliances or automotive. And I started working in Sears Auto Center. I transferred to New York and I built up my career. And within a couple of years, I spent so much time seeing how just absolutely devastated people were dealing with the automotive industry. Right? They had been scammed, they had been taken advantage of, they had been confused. They spent thousands of dollars on things they didn't know if they need it or not. And often their questions were disregarded and sometimes they were even made fun of for just not understanding these basics. Basics that people have been intentionally date kept from, right? Like, these aren't things that we teach our daughters. So I saw people struggling and I realized that I had a skill. I had a knack for going and explaining things in a way that people can understand them. I took a lot of pride. And when you walked away from my desk, you understood what you were paying for and why, and you felt good about taking care of your car. And sometimes that meant not fixing something right. Sometimes that meant replacing your car instead of investing in more repairs. So I took all of that and I eventually started my blog, which was Mechanic Shop Femme. And that quickly grew into a business. It turned out that need that I had seen, that frustration that I had experienced and the devastation that people experienced. The automotive industry was something that I could really help with. And it brings me a lot of joy. Kind of like that English teacher, the light bulb moment.
- [05:47]
Jean Chatzky
Yep. Absolutely. I totally get it. Thank you for sharing. We're going to take a quick break. Stay with us. This time of year can feel like a wellness roller coaster, right? Travel, family events, late nights. Your whole routine gets thrown off. That's why I've been looking for little ways to stay grounded. And one of the best tips I've gotten lately is AG1. It's the daily health drink that combines your multivitamin, pre and probiotic, superfoods and antioxidants all in one scoop. It's quick, it's clean. It actually helps you stay consistent with your health even when life gets hectic. AG1 has their best offer ever. If you head to drinkag1.comhermoney you'll get the welcome kit, a morning person hat, a bottle of vitamin D3K2, an AG1 flavor sampler, and you'll get to try their new sleep supplement, AGZ for free, which has been a game changer for a lot of nightly routines. That's drinkag1.com hermoney for $126 in free gifts for new subscribers feeling stuck with a bloated wireless bill. Then it's time to look at Mint Mobile. And right now it is their best deal of the year. For a limited time, you can get three, six or even 12 months of Mint's unlimited premium wireless for just $15 a month. That's 50% off. And it's a really smart move if you're looking to cut back before the holidays. Don't. No contracts, no nonsense, just high speed data, unlimited talk and text, all on the nation's largest 5G network. Shop Mint Unlimited plans@mintmobile.com hermoney that's mintmobile.com hermoney Limited time offer upfront payment of $45 for three months, $90 for six months or $180 for for 12 months Plan required equivalent to $15 a month Taxes and fees Extra initial plan term only over 35 gigabytes may slow when network is busy. Capable device required availability, speed and coverage varies. See mintmobile.com we are back with Kaia Milstein. Let's start with one of the big questions a lot of our listeners are asking right now. Should I be thinking about going up electric? Even though the EV tax credit recently ended, there is still a ton of buzz about EVs.
- [08:30]
Kaia Milstein
It really depends on your own particular situations. Electric cars have actually been around since 1899, which I think most people don't know. They didn't really see commercial success until the Nissan Leaf. And recently that was of course surpassed by one of the electric specific vehicle manufacturers. Most people still see electric cars as outliers, but here's the big kicker. 97% of people who actually own an electric vehicle, according to one study, and there's a few different ones, will buy another one. So that says that a lot of the concerns people have before they go into purchasing an electric vehicle dissipate. The proof's in the pudding, right? They're like, okay, I've had an electric car, I'm willing to get another one. Not only am I willing to get another one, I will get another one. I don't want to go back. My wife is one of those people. She had a Nissan Leaf for about a little over a year till it was unfortunately totaled. And at the beginning of the time that she had it at towards the middle, she wasn't quite sure if she really actually liked to have an electric vehicle. But boy, since that car was totaled, it's non stop. Oh, I wish I had the car. I need to get another electric car. We decided to pare down to one vehicle for now and but it's definitely in our mind for the future.
- [09:48]
Jean Chatzky
You have said that rushing into an EV can backfire if it doesn't suit your lifestyle. This is something that I have thought about. I like the idea of an ev. I like the idea of charging rather than having to put gas in the car. But I live in a city. My building doesn't have a garage. I park in a hotel nearby. I'm worried about access to building being able to charge my car. And for those reasons, I'm kind of thinking, well, maybe a hybrid is a better way to go for the next one. What are some of the key things that we need to ask ourselves to know if it's the right fit?
- [10:33]
Kaia Milstein
It's a great question. The number one thing is, of course, where will we charge our car? And in your specific circumstances, if you park at a hotel, some of them do have chargers available for their guests that you might be able to use. So that might be something for you to consider. Where are you going to charge your car? What is the charging infrastructure in your area? What are the available public chargers? Are you able to install an electric charger without having to upgrade your electrical panel? Because that adds Even a higher expense. How often do you do road trips? I love to tell people to sort of set their trip meter once they start considering an electric car and see how much driving they're actually doing. It's always interesting to me that when people lease a car, they tend to severely underestimate how much driving they're doing. But when they're considering buying an electric car, they significantly overestimate how much driving they're going to do, which is always fun. So set your trip meter, see how much driving you're actually doing, look at the last records you have from your oil change and see how much driving you've done from then until now. And then there's also, of course, you know, the matter of cost. Electric vehicles are expensive just simply because most of them are larger vehicles or made by luxury manufacturers. But in my opinion, the most important thing to consider is where you plan to charge your car. Most people charge their car at home overnight, which frees them to have not have to make those pit stops when they're at the public chargers when their batteries are depleted. Charging at home regularly alleviates most of the range anxiety that can come up with people, since most people will never have to worry about charging their car outside of their home unless they're taking a road trip, right? Approximately 35% of Americans rent. And that doesn't even take into consideration the folks that have a condo or live in a place where they don't have the ability to install a charger. So installing a charger might be cost prohibitive or just simply impossible. Having to charge your public chargers is more expensive, it takes more time because you have to actually go and sit there while it happens. And it will probably make your electric vehicle experience a lot rougher in those cases and maybe in yours. A hybrid vehicle is certainly a good.
- [12:50]
Jean Chatzky
Alternative when we're looking at estimating the true total cost of buying a a vehicle besides the installing of the home charger or the upgrading of the electric. And the upgrading of the electric alone can be a couple thousand dollars. We just renovated our house at the Jersey Shore and upgraded the electric in the garage in anticipation that one day we will probably have an electric car. So we just did it because we could do it and we were doing other work at that time and it was a $2,000 fix. But there are also higher insurance premiums to look at maybe replacing a battery down the road. How do you sort of get to the all in number and then compare it to the cost of buying a gas powered vehicle?
- [13:38]
Kaia Milstein
So like you Said there's the chargers. A lot of people don't need to upgrade their electrical panel. So going to get an electrician to come in and look at your house and look at your panel before you actually do that, you'll still need to run power from wherever your power is to the garage or to outside of your home. But that's certainly one expense. Like you mentioned, insurance premiums could be a bit higher. The best thing you can do really is to call your insurance agent or call an insurance agency and get an estimate for the electric vehicle that you're considering, since this cost is going to vary so dramatically from person to person. But there's also some things that will cost less. Electric vehicles require very minimal maintenance. You don't need any oil changes, you don't need fluids to be replaced. There's a lot less that you have to do in order to take care of them or which is one of the things that people love about owning an electric vehicle. I don't have a magic calculator, but I will say that the fear of having to replace your battery or to maintain the electrical system is a little bit overblown right now since electric vehicle warranties are incredibly extensive and last for a very significant period of time. If you buy a brand new electric vehicle, the likelihood of you having to do any kind of work on it in the next five to ten years in relation to electric vehicle system is virtually none. And most people only hold onto their vehicles for about five years.
- [15:02]
Jean Chatzky
That's kind of amazing actually. As somebody who is used to doing regular maintenance on a gas powered car. Let's switch gears and let's talk about car buying in general. The last time I bought a car, about a year and a half ago, it became clear that my 2015 Volvo wagon, which I loved dearly, was going to need a very, very expensive repair. So I went online and found a 2021 version of the exact same car called made a deal and picked it up. Like that's how I bought my car, because I knew exactly what I wanted. Is a used car generally a better decision than a new car these days or is it really on a case by case basis? And if it is case by case, how do you make that call?
- [15:54]
Kaia Milstein
A used car will certainly save you money on buying the purchase. You know, the average used car purchase right now is $30,000 and versus a new car purchase which is averaging just under 5, $50,000. So it is certainly less expensive to buy a used car. But whether it's the best decision for you and your specific needs is on a case by case basis. There are some vehicles, like Subarus, for instance, where purchasing a used car that's two or three years old doesn't provide as big of a savings as with some other vehicles like Volvos or luxury vehicles, where that initial depreciation is, is significantly more.
- [16:36]
Jean Chatzky
Why the discrepancy with like a Subaru versus a Volvo?
- [16:40]
Kaia Milstein
Well, luxury vehicles. People who buy luxury vehicles tend to have luxury vehicle money, meaning they often want to buy a new car. So that would be my best guess. You know, you want to buy a brand new car, you want to have all the luxury experience with your luxury vehicle, and the depreciation value is a lot less. The market for secondhand luxury vehicles is not as big as it is for secondhand vehicles and other categories. You have the, the depreciation factor when you're buying a luxury vehicle versus when you're buying just a traditional vehicle. But most vehicles you'll be able to save. Subaru is just one of those brands that holds its value really well, especially in the first couple of years after you purchase it. So it's going to depend. How much do you want to spend on the car? How long do you want to keep the car? Are you willing to deal with problems with the vehicle sooner rather than later? Some people just want to lease a car. They don't want to have to deal with anything. They don't have to worry about repairs. They don't want to have to worry about newer technology rolling out or newer safety features. They just want to have a car for a couple of years, send the car back and get another vehicle.
- [17:45]
Jean Chatzky
Right.
- [17:45]
Kaia Milstein
And other people drive their cars until the wheels fall off. So yes. Will you save money if you buy used? Yes. And will you still be able to get a great car if you have the funds to buy that car also? Absolutely. So for most people, it's certainly a better option to purchase used.
- [18:03]
Jean Chatzky
You talk a lot about the importance of finding the right car, not just the best deal. What does that process look like? What kind of questions do you want to ask yourself as you try to figure out what the right car is for you? And how can someone be confident that they're asking the right questions and making the right choices?
- [18:25]
Kaia Milstein
Buying the right car for you can sometimes be really overwhelming. If you're sort of the kind of person that's like, okay, I need a new car, I'm just going to walk into a dealership and see what's available, or I'm going to go online and I'm going to put in my $30,000 budget and I'm going to see what kind of cars are out there. There are so many vehicles and options and safety features and so many different details about purchasing a vehicle that this can just make you feel like you're at this endless buffet, except everything's very expensive and you have to choose between one or the other. Right. What I like to tell people is sit down and make a list for yourself. What do you need out of your car? What do you love about the car you currently drive? What do you hate about it? What do you want from your next vehicle? And what are you absolutely not willing to put up with? For example, when I bought a car quite a bit of time ago at this point, one of the things that was very important to me is having all wheel drive. I live in Wisconsin. I was moving to Wisconsin at the time, and I needed to be able to drive around in the snow without any issues. Right. I also had a pretty low budget, and I knew that I wanted leather seats because I would eat lunch in my car, because the shops that I worked at never had any place for you to eat. So I would eat lunch in my car. And I wanted something that was easier to clean than cloth seats. Right. And I had some other considerations, but by making this list, I was able to narrow down the options that were out there to just one car at the time. In order to be able to afford it. I can only get a sedan. There was only one sedan that wasn't a luxury vehicle that met all my qualifications, and that was the Subaru Impreza. So making this list helps you really narrow down on what's available, what fits your needs. It also will give you sort of a check on whether your budget makes sense for what you want.
- [20:15]
Jean Chatzky
And.
- [20:15]
Kaia Milstein
And then you'll have to consider, hey, do I need to sort of scale down my list of wants and needs, or do I need to increase my budget? Or, you know, do I need to change it from there? So make your list and. And then after you make your list, it's time to do your research. You're going to often find that based on your needs, your wants, and your budget, you're only going to have a few choices that fit, and then it's about narrowing down from there.
- [20:40]
Jean Chatzky
It is such a good point because all of the things that you just mentioned, all wheel drive, I've. I've lived in states. Having all wheel drive actually matters to me. When I was carpooling and getting my kids to school and dealing with Snow, that was a big deal. Right now, not as much. I don't do as much sort of winter driving. But the thing that matters most to me, believe it or not, is I like tight steering. I like a car that feels heavy. I don't like the loosey goosey Japanese steering. It makes me crazy. My mother had a Lexus for many, many years, which she loved, and I would borrow it on occasion because we are a one car family these days and I just hated driving that car. Nothing against Lexus, as I know many, many people who love them, but the steering just didn't feel like I was in control of the car to me. Kaya, tell me about the negotiating game these days. I've been told that because so much can happen online, on the Internet, the process of negotiating for a car because there's so much more information out there about what each individual feature costs, is not as much of a game or a confidence drain as it used to be. Is that true?
- [22:05]
Kaia Milstein
I think a lot of going into a dealership and going into a space where people inherently don't have your best interests at heart and their goal is to get the most amount of money for you is often going to do a number on someone's confidence. And then of course, there's the people who go in like me. I love negotiating, right. I go in, I do my thing and then I come out and I feel more powerful, more secure afterwards. Right. So it kind of depends on your personality. But I'll always tell people, when you're walking into a dealership, you should have all your questions already answered. The folks that are there, some of them are great people. I know wonderful people that work in car sales. Right. But ultimately this is an industry that's designed to make money just like other ones. Right. And it's designed to make money in a different way than a service or a product where you just have a price that you pay for it. There's so much more that goes into it. When you go in, all of your questions should have already been answered. You should have done your research. You should figure out what car you wanted. You should have figured out how much that car is worth, how much it's available for in the market. You should consider the different fees that are out there, but there's just so much that goes into it. Going in and being prepared is your best sort of hidden weapon. And as you mentioned at the start of the show, women make 85% of all car buying decisions of the United States. So building yourself up and remembering that this is your money, this is your purchase. And you have the right and opportunity to walk out of there at any given time is super critical. And then going back to how to negotiate or where to negotiate, there's a lot of different methods to negotiate. You could negotiate ahead of time by email like you did when you were purchasing that used car. You can negotiate in person. You could also negotiate them and say, hey, I need to go sleep on this and I'm going to come back tomorrow with fresh eyes.
- [23:56]
Jean Chatzky
And I think often that last approach is the best approach. Right. As soon as you're willing to walk away, they are willing to give you more things to keep you there.
- [24:07]
Kaia Milstein
In my experience, yes, walking away is definitely very powerful. And there's been some difficulty with that over the last couple of years as there's been vehicle shortages. And especially you're looking for a popular car where you might in fact come back and that not be available. But remember, there's a lot of fish in the sea. Even if that specific one at that specific dealership is no longer available, you've already done the work and figured out what you wanted. Now you could go to a different dealership.
- [24:36]
Jean Chatzky
What are your favorite sources for answering all of those questions before you walk into the dealership?
- [24:43]
Kaia Milstein
So Consumer Reports is probably my most utilized resource that I have. It has a ton of really good information about all these different types of vehicles, what safety features they have, the road test reviews. You could even compare the size of a car, something people often ask me about. I live in New York City, I live in Boston or in Chicago, and there's not a lot of parking on by street. I want a car that's short. And you could compare the length of the vehicle. You can compare fuel efficiency not just by the miles to the gallon, which just feels like this very generic thing that maybe you can't quite put into actual life, but you can actually compare, based on your average driving, how much it will cost per year to fuel one car versus the other. So if you're considering like a Honda CRV versus a RAV4 or any cars that are relatively similar, you can compare those minute granular things and maybe save a couple hundred dollars here or there per year just by getting that information. Edmunds is also a good resource, and I tend to sort of use Consumer Reports as a jumping off point and then build up from there through other resources that are available.
- [25:53]
Jean Chatzky
How important is the test drive? I mean, Hertz just launched a fully online car buying marketplace and there are many others where you can just buy A car online, you don't have to go in, you don't have to test drive, but I've always found I want my hands on that wheel before I drive that car out of the lot.
- [26:15]
Kaia Milstein
So I think there's two separate elements to your question. One about Hertz and what about buying a car outline. I don't recommend you buy a car from a car rental service, regardless of whether they're selling the car online or they're selling a car in person. People are incredibly rough on their rental cars. And from my experience working for seven and a half years of repair collision shops, I worked on those fleet accounts where rental companies, not particularly Hertz, but rental companies in general would bring their vehicles in for maintenance and they do the absolute bare minimum, often using the incorrect type of oil to fill the engine and things like that. So I'm not a fan of buying from rental companies as a general rule. The second element is your online purchase. The main reason why I think you should purchase a vehicle used vehicle online is because you cannot take the vehicle to a mechanic to get a pre purchase inspection. You can go and test drive a similar vehicle at a different dealership in order to get the experience of how the car drives and how the car feels and so forth. But you can't be sure that the car is in the condition that's being relayed to you without taking a car in for a pre purchase inspection. A pre purchase inspection is absolutely the best tool in your toolkit when it comes to purchasing a used car. In most states, when you buy a used car, you're buying it as is. There are no lemon law protections or other ways of preventing issues that are going on with the vehicle from being yours. Once you sign on that dotted line, the problems, you own them. And if you do not ensure that the car is in the condition that they tell you it is, then you know.
- [27:52]
Jean Chatzky
Yeah, that is a really good point. I mean, I do purchase used cars, but I always purchase certified used cars. So I know I'm getting the manufacturer's warranty for the next few years, I.
- [28:02]
Kaia Milstein
Would still get the car inspected. It could help with things like worn tires and other components that may not be covered under the manufacturer's warranty. It's just a simple small step that could save you a lot of money. I've seen a lot of people go in and they find a car they love and they go take it for pre purchase inspection. They find an issue. This doesn't mean you're not going to buy the car, but dealerships are incentivized to do the work so that you buy the car. So let's say the car needs trucks or tires. It costs a lot less for the dealership to do that than to give you a discount on the vehicle. And now you end up with a better car.
- [28:37]
Jean Chatzky
I will absolutely do that next time. I just learned something important. We're going to take a quick break. When we come back, Kai and I will be diving into a few rapid fire listener questions. Stay with us. The holidays are pretty wonderful, but they can also bring financial chaos. Between travel, gifts, hosting and everything in between, it's way too easy to overspend without even realizing it. That's why my producer Hayley has been loving Monarch. She's using it to track every gift, every dinner out, every flight. And seeing it all laid out in real time helped her pump the brakes before the credit card bill hit. If you want to keep your finances under control this holiday season, you need to be using Monarch, rated Wall Street Journal's Best Budgeting App of 2025. Monarch is the all in one personal finance tool that brings your entire financial life together in one clean interface on your laptop or your phone. And right now, just for our listeners, Monarch is offering 50% off your first year. Don't let financial opportunity slip through the cracks. Use code hermoney@monarch.com in your browser for half off your first year. That's 50% off your first year. @monarch.com with code hermoney.
- [29:58]
Ross/Marshalls Announcer
Marshall's buyers are hustling hard to get amazing new gifts into stores right up to the last minute. Like a designer perfume for that friend who never RSVP'd wishlist topping toys for her kids who came too. Belgian chocolates for the neighbor, a cozy scarf for your boss and a wool jacket for your husband that you definitely did not. Almost forget Marshalls. We get the deals. You give the good stuff even at the last minute.
- [30:24]
Jean Chatzky
Phew.
- [30:25]
Ross/Marshalls Announcer
Find a Marshall's near you.
- [30:28]
Jean Chatzky
We are back with Kaija Milstein. We've got some great questions from our community to go through. Let me just hit you with them. Should I buy gap insurance when buying a car? What is gap insurance?
- [30:40]
Kaia Milstein
Yes, most of the time, if you're buying a car, you should buy gap insurance. But let me back up. Gap insurance is insurance that covers the difference between the value of your car and how much your loan is for in the event that your car is totaled. So let me take you back to my first car. It was a 2004 Buick century. It was a boat, a big Blue boat. And I hadn't had it only for a short while before it was totaled by a drunk driver. Then I got that call, your car is totaled. We're going to pay out X dollar amount. And I'm like, but wait, I owe a different dollar amount. Somewhere around $1,000 more than how much they were willing to pay out. And I had just bought the car. It was not that long before since I had bought the vehicle. It turns out that if I had gap insurance, that would have covered the difference between what I owed and what the car was worth. Gap insurance isn't a necessity for everyone, right? If you are financially secure, you got plenty of money in your savings account, you're not worried about any kind of issues, then you probably don't need gap insurance. But for the rest of us, if you're buying a car, you're not putting a lot of money down on that vehicle, especially given how expensive vehicles are. Making sure that you are protected in the event that something happens and that you're not on the hook for, for sometimes thousands of dollars after the vehicle is totaled is an important consideration. You can get gap insurance through the dealership, but that tends to be the most expensive place. Credit unions offer gap insurance and there are other alternatives to purchasing.
- [32:19]
Jean Chatzky
How much should I put as a down payment when I lease a car?
- [32:23]
Kaia Milstein
$00. Do not put any money down when you lease a car. And I know this feels wrong, right? If you, you're buying or have bought several vehicles before, you've probably been told, oh, you got to put a down payment down. A down payment will help lower your rate. A down payment will help with this gap issue where the car is worth less than the loan is for. But when it comes to leasing, it's different. When you lease a car, if you drive off the lot and you total the car, whatever money you put down no longer belongs to you. You're in the clear because leases typically include gap insurance. But you've lost any money that you've put into the lease. What I suggest is if you have money that you want to put towards the lease, put it into a savings account and use that towards your monthly payment instead of putting it down on the lease to begin with.
- [33:12]
Jean Chatzky
That makes sense. Financing a car. Should you finance at the dealer? Is it going to be better if you get manufacturers financing and they're offering some sort of a deal? Or, or are you better off going with a credit union or a bank?
- [33:28]
Kaia Milstein
It really depends. Sometimes you can get a great deal on financing from a dealership. If they're having an incentive, usually for new vehicle purchases. Right. You're buying a new car and they have 0% interest for x amount of years or 2% interest for x amount of years, although the 0% has been really hard to find lately. Right. So, yes, sometimes it makes sense to finance through the dealer, but. But typically you're going to have a lot more flexibility if you finance through a credit union. You're also going to have a lot more like the human element if life just falls apart and everything goes wrong. When you go into your credit union and you talk to the loan officer, there's a human element there where they might be able to help you better than your mega establishment. The dealership financing. Some dealerships technically have their own bank, but many of them work through Chase or other major banking establishments. Compare what makes sense. If the dealership financing is significantly better, then that's often an option that people will go with. Sometimes you can also get other incentives through financing through the dealership, like a free remote start that happened to me or some other service where it makes most sense.
- [34:39]
Jean Chatzky
How much of a consideration is mileage on a used car?
- [34:42]
Kaia Milstein
It depends on how much driving you're going to do. If you're somebody who does a lot of driving, then having high mileage on the used car is going to be an issue for you. Right? But if on the flip side, you're somebody who works from home, you sort of only take your car to the grocery store to do things on the weekends and things like that, then buying a newer car with newer safety features and newer everything that has a bit higher mileage might make more sense for you.
- [35:08]
Jean Chatzky
We talked about electric cars before. If I'm going electric, should I buy or lease?
- [35:13]
Kaia Milstein
Oi. This is a tough question to answer because again, it depends on your specific circumstances. But this is one of those times where leasing is often more advantageous than purchasing a vehicle. Electric vehicle technology is rapidly evolving, although we might see some decrease at that now that the tax credits are gone. Right. But electric vehicle technology is rapidly evolving. Three years from now, the options that will be available for electric vehicles might be significantly better or more attractive to you than what's available right now. Also, there's a big depreciation factor in electric vehicles. We talked earlier about how luxury vehicles have a big drop in depreciation. Electric vehicles also have a major drop in depreciation. So when you purchase it, if you're going to buy it and then you're going to get rid of it in three to four years, to get the next option, you often will take a bigger hit from the depreciation than you will on the leasing. And remember, when you lease the car, you still have the option to buy it out at the end of the lease if it ends up that it's perfect for you, or the technology doesn't evolve as fast as you want it to, or just car prices are absurd like they are right now.
- [36:22]
Jean Chatzky
Kaya, you are full of amazing information. Before I let you go, give me one practical tip that you give my listeners who are car shopping right now, whether they are buying used or new or thinking, thinking about leasing.
- [36:36]
Kaia Milstein
My favorite tip is that you need to trust your gut. So often we walk into the automotive space, it's a mechanic shop or dealership or anything to do with cars, right? And suddenly we're not grown adults who have made financial decisions for our entire lives. We're, we're children, right? We don't know anything about cars. We don't understand anything about cars. And we have these people there to guide us through the process, right? And oftentimes we'll disregard what our gut is telling us about the deal or the person or the car or the problem. Because I don't know any better. Like this isn't my area of expertise. Trust yourself. You've dealt with people for your entire life. Your coworkers, your friends, your family, neighbors, strangers. And you get a gut sense when somebody is telling you the truth and when they aren't. When there's something wrong and when things are fine, right? Even if that just means stepping back and sleeping on it or if that means let me get a second opinion or let me say, you know what, this isn't for me. I'm going to start over. Trust yourself. That is the biggest tool that you have.
- [37:39]
Jean Chatzky
Kaia Milstein. The book is Mechanic Shop Femmes Guide to Car Ownership. Thank you for all of this. Was really, really interesting and educational. I love cars, so I eat this stuff up. But I think our audience will as well. Happy holidays.
- [37:56]
Kaia Milstein
Thank you.
- [37:57]
Jean Chatzky
And before I let you go, one quick heads up. Tomorrow we're dropping something special over on our HerMoney Patreon. My 10 money moves to make before the end of 2025. It's exclusive, just for subscribers. It's a practical no fluff checklist you can use to tighten things up, protect what you've built and set yourself up for a stronger 2026. You can join us anytime at patreon.com CW HerMoneyPodcast. Your first week is free. I hope to See you there tomorrow. If you love today's episode, please take a moment to leave us a five star review on Apple Podcast. Your feedback means the world to me. If listening to this episode has you thinking, all right, I am ready to get serious about growing my money, but I still don't feel 100% confident about investing. I want to personally invite you to check out our Investing Fix program. It's a live weekly investing club designed for women by women, where we break down what's happening in the markets, explain how different investment works, and give you all the tools that you need to build your own confident long term strategy. And now is a great time to start while the markets are still showing strength and interest rates are shifting. So if you want to make 2026 the year you finally feel in control of your investments, go to investingfix.com that's Fix with 2 x's and use code ANNUAL25 to get 25% off your yearly membership. I'd love to see you there. Her money is produced by Hayley Pascalides and our music is provided by Video Helper. Thanks so much for listening and we'll talk soon.
- [39:48]
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