The Stacking Benjamins Show: Your Path to a Cost-Effective Car (Episode SB1651)
Release Date: March 3, 2025

Introduction

In this episode of The Stacking Benjamins Show, hosts Joe Saul-Sehy and OG delve into the intricacies of purchasing a cost-effective vehicle. Building upon their previous discussions from episode 22 with Phil Reed of Edmunds, they explore whether past automotive advice remains relevant today. Additionally, the episode features insightful Q&A segments on retirement planning and time management tips for the self-employed.

Buying a Car with Phil Reed

Timestamp: [19:56]
The highlight of the episode is an in-depth interview with Phil Reed, Senior Consumer Editor at Edmunds.com. Phil shares expert advice on navigating the car-buying process, focusing on whether to opt for a new or used vehicle.

New vs. Used Cars
Timestamp: [21:16]
Phil challenges the traditional notion that used cars are always the better financial choice. He states:

“In fact, on our website we have a section called New, Cheaper Than Used. There are instances where you can almost get a new car once you factor in rebates and financing, cheaper than a used car.”
— Phil Reed

He recommends looking for used cars that are three to five years old, as these often offer a sweet spot where depreciation has stabilized, providing reliability without the steep initial loss in value.

Budgeting for Your First Car
Timestamp: [22:53]
Phil advises that car payments should not exceed 20% of your take-home pay. This conservative approach ensures financial flexibility in unforeseen circumstances. He emphasizes:

“Nothing tells you what's going to happen next in life. You need to ensure your car payment is manageable even if unexpected expenses arise.”
— Phil Reed

Negotiating with Dealers
Timestamp: [27:49]
Understanding the dealer experience is crucial. Phil recommends:

“Being prepared is the best way to deal with the fear of negotiating. Even just taking an hour of research can save you $1,000 to $2,000.”
— Phil Reed

He suggests setting a low opening offer to remain in the negotiation ballpark without alienating the dealer.

Leasing vs. Buying
Timestamp: [31:39]
Phil explains that leasing can be a viable option, especially with lease specials on economy cars. He recommends:

“Decide to lease for no longer than three years and limit your down payment to no more than $1,000.”
— Phil Reed

This strategy allows for predictable expenses and flexibility to upgrade vehicles periodically.

Final Tips
Timestamp: [35:08]
Phil’s overarching advice for first-time car buyers includes:

1. Know the True Market Value: Utilize Edmunds’ data to understand what others are paying for the same vehicle.
2. Research the Dealer: Check dealer ratings and reviews to ensure a smooth purchasing experience.

Listener Q&A: Retirement Planning

Timestamp: [09:14]
Listener Andy poses a question about navigating retirement calculators and replacing income post-retirement. OG and Joe provide detailed strategies:

Inflation and Investment Returns
OG suggests using a 3.5% inflation rate based on historical averages and recommends maintaining a diversified portfolio with a significant equity component to ensure growth over a longer retirement period.

Joe adds:

“Take the amount you plan to spend each year and use it as the basis for your retirement calculations, adjusting for inflation to see if your savings will meet your needs.”
— Joe Saul-Sehy

Guaranteed Income Streams
Dominique points out that Andy’s Navy pensions provide a stable income, reducing the need to rely solely on investments.

Time Management for the Self-Employed with Carrie Smith and Paula Pant

Timestamp: [39:54]
Carrie Smith from Careful Sense and Paula Pant from Afford Anything share valuable tips on maximizing productivity and managing time effectively as self-employed individuals.

Handling Distractions
Carrie emphasizes the importance of limiting social media usage:

“Social media is a big distraction. Implementing strategies like batching email responses and setting specific times for social media can significantly enhance productivity.”
— Carrie Smith

Email Management
Paula discusses effective email strategies:

“Batch processing your emails and maintaining an organized inbox prevents it from becoming a productivity sinkhole.”
— Paula Pant

Prioritizing Tasks
Both guests agree on the necessity of prioritizing tasks based on personal energy levels and sticking to a structured schedule to ensure that high-impact tasks are completed efficiently.

Listener Reviews and Community Feedback

Timestamp: [15:23]
Joe reads out appreciative reviews from listeners, highlighting the podcast’s balance of financial advice and entertainment. Notable feedback includes:

“A very good podcast based on finance and supported by comedy. It strikes a great balance of fun and functional.”
— Listener rwb20

Another review from Canada praises the show’s informative segments:

“Really enjoyed it. Very informative listening on the 401 in Ontario, Canada.”
— Listener Uncook

Conclusion and What's Next

As the episode wraps up, Joe and OG tease upcoming content, including a supplemental Friday show with interviews and interactive games for listeners. They encourage audience engagement through reviews and participation in new segments.

Notable Quotes Summary

1. Phil Reed on New vs. Used:

   “In fact, on our website we have a section called New, Cheaper Than Used. There are instances where you can almost get a new car once you factor in rebates and financing, cheaper than a used car.”

2. Phil Reed on Budgeting:

   “Nothing tells you what's going to happen next in life. You need to ensure your car payment is manageable even if unexpected expenses arise.”

3. Joe Saul-Sehy on Retirement:

   “Take the amount you plan to spend each year and use it as the basis for your retirement calculations, adjusting for inflation to see if your savings will meet your needs.”

4. Carrie Smith on Distractions:

   “Social media is a big distraction. Implementing strategies like batching email responses and setting specific times for social media can significantly enhance productivity.”

5. Paula Pant on Email Management:

   “Batch processing your emails and maintaining an organized inbox prevents it from becoming a productivity sinkhole.”

Resources Mentioned

• Edmunds.com: For car buying guides and calculators.
  stackingbenjamins.com (Tax Guide)
• CarefulSense.com and AffordAnything.com: For time management and financial tips.

This episode of The Stacking Benjamins Show offers a comprehensive guide for first-time car buyers, along with practical advice on retirement planning and productivity for the self-employed. Whether you're navigating the car market or seeking to optimize your daily routines, this episode provides valuable insights to help you make informed financial decisions.