How to Make the Right Decision When Buying a New Car

🚗Consider your financial situation, including income, expenses, and current debt, before deciding on a new car purchase.

💰Set a budget for your car purchase and stick to it. Consider factors like the car's price, insurance costs, and future expenses.

📅Think about your long-term goals and how a car purchase will align with them. Consider factors like future financial plans, career changes, and family size.

💡Prioritize practicality over desires. Choose a car that meets your needs rather than one that fulfills your wants.

🔄Consider buying a slightly used car or leasing instead of buying new, as it can save you money in the long run.

What financial factors should I consider before buying a new car?

—Consider your income, expenses, and current debt to determine if you can afford a new car. Ensure that the car payments fit into your budget.

How do I set a budget for a new car purchase?

—Take into account the price of the car, insurance costs, and future expenses like maintenance and fuel. Set a budget that aligns with your financial goals.

Should I prioritize my desires or practicality when buying a new car?

—It's important to prioritize practicality over desires when buying a new car. Choose a car that meets your needs and aligns with your long-term goals.

Is it better to buy a new car or a slightly used car?

—Buying a slightly used car can save you money as it depreciates less quickly than a new car. However, weigh the pros and cons based on your specific needs and financial situation.

What are the benefits of leasing a car instead of buying one?

—Leasing a car can provide lower monthly payments and the option to upgrade to a new car every few years. However, you won't own the car at the end of the lease.

00:00[Music] Brought to you by the EveryDollar app.

00:02Introducing the segment 'Pick a Side' where we help people settle their debates.

00:18Jennifer wants to buy a new car, while her husband Joe thinks they should stick with their current car.

01:55Jennifer wants to buy a Toyota Grand Highlander, but Joe suggests getting a slightly used regular Highlander.

06:51Dave Ramsey advises Jennifer and Joe to consider their financial situation, set a budget, prioritize practicality, and consider buying slightly used or leasing.

08:10Dave encourages Joe to upgrade his car and suggests purchasing a boat as a 'live like no one else' item.

09:15Dave concludes by recommending the EveryDollar app for budgeting.