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Life Hack:Buying a Used
Car
© Wise Rides 2015
Presented by
Drive. Smart! ™
© 2016 Wise Rides, LLC
First Let’s Understand Inflation
1985 $100,0002015 $220,000Profit ZERO!!!
1920 $ 0.122015 $ 1.42Diff ZERO!!!
House Price
Bread Price
© 2016 Wise Rides, LLC
Understanding Car Depreciation – A NEW CARNew Car- $ 33,650
1 Minute (.09) - $3,1631 Year (28%) - $7,7402 Year (20%) - $6,730 3 Year (16%) - $5,3844 Year (8%) - $2,6925 Year (6%) - $2,0196 Year (5%) - $1,682 Total 6 Year LOSS – $26,247
Car value loses80% in 6 Years
© 2016 Wise Rides, LLC
Understanding Your Total Driving Cost
Based on AAA 2014 Annual Survey
$0.46 per Mile$6,956 per Year
$0.61 per Mile$9,151 per Year
$0.75 per Mile$11,248 per Year
$0.77 per Mile$11,599 per Year
$0.65 per Mile$9,795 per Year
Life Hack:Walk before ride and ride before you buy!
© 2016 Wise Rides, LLC
What You Can Expect for Loan TermsGood credit 4% and risk up to 8.7%... But we hear war stories more
than 25%! As long as the dealer discloses the interest: IT IS LEGAL!
A longer term with smaller payments is ALWAYS going to
cost you MORE!
© 2016 Wise Rides, LLC
How Interest Rates Effect YOU!
Based on a 5 year loan
Loan Rate Payment Interest Paid Total Cost10,000$ 0% 166$ -$ 10,000$ 10,000$ 5% 188$ 1,599$ 11,599$ 10,000$ 10% 212$ 2,165$ 12,165$ 10,000$ 15% 237$ 2,748$ 12,748$ 10,000$ 20% 264$ 3,346$ 13,346$ 10,000$ 25% 293$ 3,960$ 13,960$ 10,000$ 30% 332$ 4,590$ 14,590$
© 2016 Wise Rides, LLC
Recommend Payments and Savings Accounts
* Rank based on realistic promotion timeline (E5 at 3 years, E6 at 4 years, E7 at 10 years). ** Car expense should be no more than 25% of net income (15% payment and 10% maintenance).
Rank PayRecommend Max Payment
Maintenance Budget
Total Auto Spend
E-1 $1,546 $231.90 $154.60 $386.50 E-2 $1,734 $260.10 $173.40 $433.50 E-3 $1,823 $273.45 $182.30 $455.75 E-4 $2,019 $302.85 $201.90 $504.75 E-5 $2,464 $369.60 $246.40 $616.00 E-6 $2,876 $431.40 $287.60 $719.00
E-7+ $3,747 $562.05 $374.70 $936.75 Life Hack: Don’t let car payments define your life!
© 2016 Wise Rides, LLC
Other Finances to Consider
• Food• Cell• Cable• Clothes/Haircuts• Entertainment• Savings
• Child Support • Toiletries• Smoker?• Drinks?• Credit Cards/Loans
• Gas• Insurance• Tax, title, and delivery fees
• Car Maintenance• Registration and emissions
© 2016 Wise Rides, LLC
Financial Support and Resources
Disclaimer: Logos are used to highlight programs. Wise Rides is not endorsed by any branch of the military.
Navy-Marine Corps Relief Society Air Force Aid Society
Army Emergency Relief Coast Guard Mutual Assistance
AVOID
Payday LoansTitle LoansPawn Shops
At ALL CostsTHE RIGHT WAY
© 2016 Wise Rides, LLC
The Hard Math…
Remember the guidelines? What is your needed down payment? (and that’s assuming you have an above average credit score!)
© 2016 Wise Rides, LLC
The Hard Math…As a E-3 you would need to put $16,750 or about 52% Down!
© 2016 Wise Rides, LLC
Thank you!
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