How to Money – Friday Flight: Ridiculous Car Refinancing, Occupation Consternation, & Ads Everywhere (#1059)

Date: November 7, 2025
Hosts: Joel and Matt
Podcast: How to Money (iHeartPodcasts)

Episode Overview

In this Friday Flight, Joel and Matt tackle the most pressing personal finance headlines of the week, focusing on the rising trend of ultra-long car refinancing terms, the evolving dynamics (and stresses) of the job market (especially around AI), and the proliferation of ads in unexpected places—including your fridge and car! As always, the duo balance practical money advice with personal anecdotes, humor, and a little friendly banter.

Key Discussion Points & Insights

1. Timeshare Pitches & Rescission Periods

Segment Start: 02:42

• Listener update: Greg wrote in about the mandatory “cooling off” period after a timeshare purchase.
• Main Point: If you attend a timeshare presentation and sign up, you still typically have a rescission ("cooling off") period of 3–15 days (state-dependent) to cancel without penalty.
• Emotional Selling: Timeshare presentations rely on both household decision-makers being present, banking on emotional commitment and the "sunk cost" fallacy.
• Quote:
  "There's a sunk cost fallacy involved...You're only looking at that [time spent], as opposed to thinking about what this will cost you in the future." (Matt, 03:59)
• Advice: Check your state’s rules and use the rescission window if you regret a purchase.

2. The State of Car Buying & "Ridiculous" Car Refinancing

Segment Start: 05:13

• Affordability Woes: Affordable cars are scarce; the average new car price is over $50,000.

• Car Loans Getting Longer: Refinancing into 84-month (7-year) loans is now common (even for used cars), extending the total time people are in car debt.

• Quote:
  "The most popular choice these days when people refinance a car loan is an 84-month long loan ... I didn't realize you could refinance it to an 84-month long loan." (Joel, 07:35)

• Consequence: Some end up paying car loans for up to a decade, risking negative equity and higher default rates.

• Repo Men Busy: Repossessions are up as more people default, despite longer loans lowering monthly payments.

• Advice:
  "When you're refinancing, the goal should be to get rid of that loan as quickly as possible—not to pay the lowest amount over the longest time." (Joel, 10:47)

• Related Trend: While mortgage delinquencies have dropped ~50% over 15 years, auto loan delinquencies are up ~50%. People are more likely to default on cars than homes, possibly reflecting attitudes shaped by rideshares (cars seen as utility, not identity).

Car Tax Breaks: Misconceptions

Segment Start: 11:44

• $10k Tax Break Misleading: Dealers tout a $10,000 annual tax break for buying expensive cars (per the Build Back Better Act), but it mainly applies for $150k cars at high interest rates (and strict qualifications). Most people only get modest savings (~$500/year for a $40k car).
• Quote:
  "On a $40,000 new car purchase at the same interest rate, your tax savings would be a little over 500 bucks." (Joel, 12:06)
• Advice: Don’t buy a car just for a minor tax break; it's not financially wise.

3. Occupation Consternation: Job Market Shifts & AI Impact

Segment Start: 13:13

• Labor Market Cooling: Post-pandemic job boom is tapering; layoffs at big companies (e.g., UPS, Amazon, Target) are making headlines.
• AI Impact: Worries about AI disrupting jobs, especially entry-level and repetitive digital roles.
• Matt’s Take:
  "Those entry level jobs are typically the gateway into more permanent, higher paying jobs ... if you can't get the starter job, it's hard to get on that track." (Matt, 14:42)
• Optimism vs. Reality: While some sectors will be hit, Matt and Joel believe AI could boost productivity (like computers & the internet), but acknowledge “growing pains” and possible overzealous layoffs.
• Quote:
  "There are going to be growing pains ... But I just don't think these hiring freezes are going to last forever." (Joel, 15:15)
• Skill Diversification: More people are launching side gigs or pursuing additional streams of income for security.
• Personal Fit: Not everyone should be a “polymath”—some thrive as specialists. Know your strengths and plan accordingly.
• Quote:
  "It's a highly personal question ... It just takes knowing yourself, what kind of satisfaction you're getting out of your job." (Matt, 19:37)
• Actionable Tip:
  "Planning ahead for a layoff makes a lot of sense—financially getting your ducks in a row so a layoff doesn't hit as hard as it otherwise would." (Joel, 20:48)

4. Lunch Spending = Millions Lost?

Segment Start: 25:12

• Ludicrous Headline: MarketWatch claims “we’re spending over $100 a week on lunch.”
• Hosts’ Reaction: Shocked by the normalization of eating out daily as an “expectation” rather than a luxury.
• Quote:
  "Eating out for lunch every day of the week has always been a luxury." (Joel, 26:35)
• Simple Hacks: They advocate for leftovers (“medium deli container size plus two fried eggs is the definition of decadent eating”) and point out how fast food is no longer cheap.
• Crunching the Numbers: If you invested $100/week over 40 years (at 7.5% interest), you’d accumulate over $1 million (29:16).
• Quote:
  "If that's not a motivator, I don't know what is." (Joel, 29:19)
• Frugality: Some people take frugality to the extreme (watering down detergent, cutting open toothpaste tubes). Matt shares his wife’s homemade laundry detergent hack to further cut basics costs.

5. Would You Pay $20k for a Chore Robot?

Segment Start: 33:05

• New Tech Review: A $20,000 home robot (“Neo”) is on the market, or lease at $600/mo—but fails basic tasks, according to recent tech reviews.
• Skepticism: Both hosts see this as a terrible value. Early adopters usually get clunky (and expensive) products; it’s smarter to wait for later generations.
• Quote:
  "They need to pay me to test drive this thing ... They are now actually in the game of acquiring and gathering data." (Matt, 34:29)
• Exceptions: Robot lawn mowers might be handy, but in-home multi-task robots aren’t worth it (yet).

6. Ads. Are. EVERYWHERE.

Segment Start: 35:40

• Ads on Everything: Not only are there more podcast ads, but now you’ll find ads on Jeep dashboards and even Samsung smart fridges (that cost $3,500+). Even TVs with subsidized pricing are subsidized through forced ads.
• Frustration Theme:
  "The rub is when you pay full price for something and it still comes with ads." (Joel, 37:02)
• Streaming as Model: Joel prefers streaming models where you can choose to pay for fewer ads; paying full price for hardware and still seeing ads feels like a raw deal.
• Social Media Saturation:
  "Estimates show that 4 in 10 posts are now ads." (Joel, 38:00)
• Instagram Secret Tip:
  Workaround discovered: On Instagram, tap the logo at the top and switch to “Following” for an ad-free, follower-only feed (39:24–40:30).
• Quote:
  "It's amazing ... that's a workaround because you have to do a couple additional steps, but I'm guessing most people aren't taking those additional steps to avoid it." (Joel, 41:16)

Notable Quotes & Memorable Moments

• On Vehicle Depreciation:
  "It's basically hit that fully depreciated mark. I don't know if it's going to go down in value very much. So, there are some cheap cars. You just can't buy mine." (Joel, 05:33)

• On Ultra-Frugality:
  "In the areas where [spending] is not, to be able to cut back ruthlessly, man ... I'm all for folks assessing their spending, figuring out what moves the needle." (Matt, 30:07)

Timestamps for Important Segments

• Timeshare Rescission Periods: 02:42–05:13
• State of Car Buying & Refinancing: 05:13–13:13
• Job Market Shifts & AI: 13:13–22:00
• Lunch Spending & Frugal Habits: 25:12–32:58
• Household Chore Robots: 33:05–35:40
• Ads Everywhere: 35:40–41:26
• Instagram Ad-Free Tip: 39:24–41:13

Overall Tone & Style

Lively, witty, and down-to-earth. Joel and Matt intermix practical financial advice with skepticism (especially of industry “deals” and current trends), honest reflections about their own habits (sometimes to a comical extreme), and a sincere desire to help listeners thrive by making intentional money choices.

Useful Links (as promised by the hosts)

Find episode show notes, referenced articles, and other resources at: howtomoney.com

End of summary.
Best friends out!