WEBVTT 00:01.789 --> 00:05.289 This is a 1575 A Fn Sasao 00:05.739 --> 00:08.750 special feature . Get out your notepads , 00:08.760 --> 00:11.130 fire up your smart devices and get 00:11.140 --> 00:14.250 ready to dive into a wealth of 00:14.260 --> 00:17.209 financial knowledge . It's time 00:18.170 --> 00:22.159 for money Mondays , show 00:22.170 --> 00:24.114 me the money , show me the money , 00:26.180 --> 00:27.399 show me the money . 00:29.319 --> 00:32.889 Hello C A petty officer Riley 00:32.900 --> 00:36.029 mcdowell here A K A DJ Big Sky . And 00:36.040 --> 00:38.459 I'm sitting down for another amazing 00:38.470 --> 00:40.869 interview with Mr Norm O KA , the 00:40.880 --> 00:43.047 financial specialist over at the Fleet 00:43.047 --> 00:45.047 and Family Support Center . Is that 00:45.047 --> 00:46.936 your correct job title ? Well , a 00:46.936 --> 00:49.102 credit to Finance Council , but it's , 00:49.102 --> 00:51.324 it's ok if anything with finances works 00:51.324 --> 00:53.491 for me . I know I messed that up every 00:53.491 --> 00:55.658 time . All right . So uh we're sitting 00:55.658 --> 00:57.436 down for another money Monday's 00:57.436 --> 00:59.547 interview and today we are discussing 00:59.547 --> 01:01.855 buying a vehicle , there's a lot that 01:01.866 --> 01:04.255 needs to be considered . Um and to 01:04.265 --> 01:07.286 start things off budgeting , why is um 01:07.295 --> 01:09.351 considering your budget so important 01:09.351 --> 01:11.517 when thinking about buying a vehicle ? 01:11.517 --> 01:13.628 Great question because I think it's a 01:13.628 --> 01:15.684 starting point because basically the 01:15.684 --> 01:17.739 fact is you wanna make sure whatever 01:17.739 --> 01:19.906 you purchase fits inside your budget . 01:19.906 --> 01:21.962 What I see is usually the opposite , 01:21.962 --> 01:21.942 you know , um people try to fit their 01:21.952 --> 01:24.063 budget into the purchase and they end 01:24.063 --> 01:26.174 up getting in trouble , you know . So 01:26.174 --> 01:26.122 basically I used to joke about it said 01:26.132 --> 01:29.291 if you have a $25,000 car budget , you 01:29.302 --> 01:31.524 shouldn't be purchasing a $50,000 car . 01:31.524 --> 01:34.569 Right . Dang . It can't get that Tesla 01:34.849 --> 01:37.059 man . Not right now , at least unless 01:37.069 --> 01:38.958 you say for it . All right . Fair 01:38.958 --> 01:42.500 enough . So myself uh as of right now 01:42.510 --> 01:45.080 I'm pretty cheap . You know , I came 01:45.089 --> 01:47.309 out here to Sass and I bought myself a 01:47.319 --> 01:50.370 little K car that was about $1000 and I 01:50.379 --> 01:52.601 feel pretty good about that because I'm 01:52.601 --> 01:54.712 trying to save money , pay off debt , 01:54.712 --> 01:56.935 that sort of a thing . Um But are there 01:56.935 --> 01:58.879 any like um rules when it comes to 01:58.879 --> 02:00.879 budgeting and , and what you should 02:00.879 --> 02:00.873 spend one ? You shouldn't ? Yeah . So 02:00.883 --> 02:02.939 one of the things they talk about is 02:02.939 --> 02:05.161 that your transportation cost should be 02:05.161 --> 02:07.953 no more than 20 25% of gross income . 02:08.082 --> 02:10.193 You know , some people say net income 02:10.193 --> 02:12.193 because net incomes take home pay , 02:12.193 --> 02:14.249 right ? But basically you wanna make 02:14.249 --> 02:16.471 sure that your transportation costs and 02:16.471 --> 02:18.526 that includes not only car payment , 02:18.526 --> 02:18.453 the gas and all the other stuff is 02:18.462 --> 02:21.143 within a a reasonable um uh budget , 02:21.152 --> 02:23.208 right ? The problem with that now is 02:23.208 --> 02:25.430 cars are really expensive , not so much 02:25.430 --> 02:27.430 here in Saso , but in the state , I 02:27.430 --> 02:29.430 mean , we were talking off air used 02:29.430 --> 02:29.386 cars cost a little bit more than new 02:29.395 --> 02:31.636 cars . And so it's really , really hard 02:31.645 --> 02:33.701 to keep that number , but you should 02:33.701 --> 02:35.812 just make sure you get something that 02:35.812 --> 02:37.923 fits in within your budget because it 02:37.923 --> 02:40.034 will allow you to pay off debt , like 02:40.034 --> 02:42.201 you said , or even save and invest and 02:42.201 --> 02:44.256 put more on your TSP . Yeah . Well , 02:44.256 --> 02:46.478 when I was back in Norfolk before IP CS 02:46.478 --> 02:46.186 over here , uh , maybe a year and a 02:46.195 --> 02:48.306 half ago I was , uh , helping out one 02:48.306 --> 02:50.473 of my junior sailors , like , actually 02:50.473 --> 02:52.584 find a decent vehicle that run well , 02:52.584 --> 02:54.806 and , um , get a good deal on it and we 02:54.806 --> 02:57.028 pulled up to the used car dealership in 02:57.028 --> 02:59.195 Norfolk . I know that's a little scary 02:59.195 --> 03:01.362 for some of my Norfolk sailors . But , 03:01.362 --> 03:03.306 uh , they were basically trying to 03:03.306 --> 03:05.979 convince me to sell my 2003 Tahoe and 03:05.990 --> 03:08.046 it had all kinds of miles and wasn't 03:08.046 --> 03:10.157 even in the best shape . It just kind 03:10.157 --> 03:12.157 of reminded me that , like what the 03:12.157 --> 03:14.212 used car market was like back in the 03:14.212 --> 03:16.157 States . And , um , yeah , so I've 03:16.157 --> 03:18.323 never bought a brand new vehicle in my 03:18.323 --> 03:20.379 whole life , but I know a lot of , a 03:20.379 --> 03:22.434 lot of guys are doing that right now 03:22.434 --> 03:24.490 and like , so , like , we just had a 03:24.490 --> 03:26.601 staff member of P CS and she compared 03:26.601 --> 03:28.657 the cost and it was actually cheaper 03:28.657 --> 03:28.630 for her to buy a brand new vehicle than 03:28.639 --> 03:30.750 it buy a used vehicle . And I think , 03:30.750 --> 03:32.639 you know , it all depends on what 03:32.639 --> 03:32.639 you're looking for if you're like a 03:32.649 --> 03:34.850 mechanic guy like my son or , or you 03:34.860 --> 03:36.916 might a used vehicle may be good for 03:36.916 --> 03:39.027 you . But if you're not like , you're 03:39.027 --> 03:41.138 like me , who's not such , he's not a 03:41.138 --> 03:43.360 good mechanical kind of guy . You might 03:43.360 --> 03:45.582 want that , uh , that , um , oil change 03:45.582 --> 03:45.046 thing . They give you all those other 03:45.055 --> 03:47.277 things , the perks that come along with 03:47.277 --> 03:49.499 buying a new vehicle . Yeah . Well , we 03:49.499 --> 03:51.611 don't have to , uh , get too far into 03:51.611 --> 03:51.005 the weeds on this . But I did want to 03:51.016 --> 03:54.085 ask you . So when I end up PC sing , 03:54.095 --> 03:56.262 which is gonna probably be , um , here 03:56.262 --> 03:58.373 in about a year and some change , I'm 03:58.373 --> 04:00.595 probably not gonna take my vehicle with 04:00.595 --> 04:03.695 me . And once I hit the States , um , I 04:03.705 --> 04:05.872 was considering leasing a vehicle . Do 04:05.872 --> 04:08.205 you have any , like , really quick , um , 04:08.205 --> 04:10.316 thoughts on people leasing vehicles , 04:10.316 --> 04:12.483 especially , you know , junior sailors 04:12.483 --> 04:14.705 in the E five E six area ? Yeah . Funny 04:14.705 --> 04:16.872 that you asked , you know , leases has 04:16.872 --> 04:19.094 become very popular because of the fact 04:19.094 --> 04:21.149 that people are not keeping cars for 04:21.149 --> 04:23.316 more than five years in general . So I 04:23.316 --> 04:23.252 have like a , a guide here from , um , 04:23.261 --> 04:25.428 this call from , from a website called 04:25.428 --> 04:27.761 Personal Finance from Military life.org . 04:27.761 --> 04:29.817 And funny that you asked , they give 04:29.817 --> 04:29.720 the understanding a lease and , um , 04:29.730 --> 04:31.730 they have some of the advantages of 04:31.730 --> 04:33.897 leasing , uh , lower monthly payment , 04:33.897 --> 04:36.063 fewer repair costs . Um , so there are 04:36.063 --> 04:38.089 some perks to , to , to , um , to 04:38.100 --> 04:39.933 leasing however , there are some 04:39.933 --> 04:42.156 disadvantages you don't own the vehicle 04:42.156 --> 04:44.378 and it can be expensive in the long run 04:44.378 --> 04:46.544 and why , um , because basically miles 04:46.544 --> 04:48.767 cost , so you go over mileage , they're 04:48.767 --> 04:50.822 gonna ask you how you use the car if 04:50.822 --> 04:50.765 you go over those miles and then if 04:50.774 --> 04:53.107 something happens to the car , you know , 04:53.107 --> 04:54.830 in general , people talk about 04:54.830 --> 04:56.941 something called gap insurance . Uh , 04:56.941 --> 04:59.163 gap insurance is the difference between 04:59.163 --> 04:59.065 what you own the car or on the lease or 04:59.075 --> 05:01.297 whatever and what if the car gets total 05:01.297 --> 05:03.353 and it doesn't get paid off ? Yeah , 05:03.353 --> 05:06.950 well , I'm not a car person per se , 05:06.959 --> 05:09.529 so I either like to buy very cheap 05:09.540 --> 05:12.529 vehicles , um , or something , you know , 05:12.540 --> 05:14.651 that I lease where I can , you know , 05:14.651 --> 05:16.890 ensure that somebody is doing a little 05:16.899 --> 05:19.589 bit of the maintenance for me . Um , so 05:19.600 --> 05:21.933 I think there are some good things like , 05:21.933 --> 05:24.267 you know , um good things about leasing , 05:24.267 --> 05:23.820 like I said , if you're not going to 05:23.829 --> 05:26.051 keep the car for a long time and if you 05:26.051 --> 05:28.051 have a high turnover , but you just 05:28.051 --> 05:30.218 gotta make sure you do your homework . 05:30.218 --> 05:30.207 That's right . And you mentioned right 05:30.217 --> 05:33.786 there , uh PC Sing . I know that I hear 05:33.796 --> 05:36.036 a lot of guys and gals once again 05:36.046 --> 05:38.213 getting in a little bit of hot water , 05:38.213 --> 05:40.877 PC Sing , not saving up the appropriate 05:40.886 --> 05:43.437 amount of money and um spending their 05:43.446 --> 05:45.279 government travel card like they 05:45.279 --> 05:47.390 shouldn't . Do you have any like tips 05:47.390 --> 05:49.557 and tricks just off . The cuff there . 05:49.557 --> 05:51.613 Yeah , lots of tips and tricks . I'm 05:51.613 --> 05:53.724 talking about this in A OB IC R and a 05:53.724 --> 05:53.427 lot of other classes . First thing is 05:53.694 --> 05:55.861 you should be , you should have a P CS 05:55.861 --> 05:57.694 fund every month . You should be 05:57.694 --> 05:59.805 putting away money for P CS . Um , we 05:59.805 --> 06:01.916 recently , you know , put out that 15 06:01.916 --> 06:04.954 to 20% . 15 to $20,000 is what people 06:04.963 --> 06:07.074 should have . Um , P CS costs texts a 06:07.074 --> 06:09.313 lot , especially in S A start up cost , 06:09.324 --> 06:11.634 right ? So 15 to $20,000 . So you 06:11.644 --> 06:13.811 should save that for every month . The 06:13.811 --> 06:16.033 other thing is folks , uh you should do 06:16.033 --> 06:18.255 a budget before your P CS . Some people 06:18.255 --> 06:20.422 make out better when they P CS because 06:20.422 --> 06:22.366 maybe they , they had beh or maybe 06:22.366 --> 06:24.477 their spouse works . But what usually 06:24.477 --> 06:26.644 happens is some spouse , some people , 06:26.644 --> 06:28.755 especially if you're going from SB to 06:28.755 --> 06:30.588 the States . Um It could be more 06:30.588 --> 06:32.588 expensive because basically if your 06:32.588 --> 06:32.080 spouse was working there and even if 06:32.091 --> 06:34.035 your spouse wasn't working , maybe 06:34.035 --> 06:36.147 you're going to short duty versus sea 06:36.147 --> 06:38.091 duty , you're losing your collar . 06:38.091 --> 06:40.258 Somebody just told me recently that in 06:40.258 --> 06:42.424 San Diego apartments are renting for 3 06:42.424 --> 06:44.591 to $5000 a month . No , I believe it . 06:44.591 --> 06:46.758 I've been looking at uh bah State side 06:46.758 --> 06:48.869 and I think San Diego was the highest 06:48.869 --> 06:50.869 number I saw . Maybe Honolulu beats 06:50.869 --> 06:52.869 that . But um San Francisco and New 06:52.869 --> 06:54.980 York I think are the highest . Well , 06:54.980 --> 06:57.035 really ? Yeah . But um usually , and 06:57.035 --> 06:59.202 some , they were telling me 3 to $5000 06:59.202 --> 07:01.258 for apartments , but the bh was only 07:01.258 --> 07:03.313 about four grand , 4500 or something 07:03.313 --> 07:05.480 like that for their family . So that's 07:05.480 --> 07:07.535 that . So they're gonna have to come 07:07.535 --> 07:07.049 out of pocket . So those things that 07:07.059 --> 07:09.115 you should be looking at right now , 07:09.410 --> 07:11.410 I'm , I'm actually , uh , inside my 07:11.410 --> 07:14.040 window right now and , uh , I picked 07:14.049 --> 07:16.105 three billets that I'm interested in 07:16.105 --> 07:20.070 for starters and San Diego and DC . And 07:20.079 --> 07:22.023 I'm already thinking about all the 07:22.023 --> 07:24.079 money that I'm gonna have to spend , 07:24.079 --> 07:26.412 you know , for two s money areas . Yeah , 07:26.412 --> 07:28.523 exactly . The cost of living is gonna 07:28.523 --> 07:28.220 go up a lot for me here in the near 07:28.230 --> 07:30.230 future . But , uh , bringing things 07:30.230 --> 07:32.519 back to buying a vehicle . I know we're 07:32.529 --> 07:34.696 a little bit all over the place . Um , 07:34.720 --> 07:36.829 what is something that people should 07:36.839 --> 07:39.399 consider when buying a vehicle and the 07:39.410 --> 07:41.577 total price of that vehicle ? I know a 07:41.577 --> 07:43.799 lot of guys , you know , especially the 07:43.799 --> 07:45.743 youngsters . Uh , they see the new 07:45.743 --> 07:47.966 Mustang , the new charger and they just 07:47.966 --> 07:50.243 want to pull the trigger . What do you , 07:50.243 --> 07:48.929 what do you have to say about that ? 07:48.940 --> 07:50.996 Number one , number one thing people 07:50.996 --> 07:52.996 buy after the deployments of cars , 07:52.996 --> 07:55.107 right ? So here's the thing , folks , 07:55.107 --> 07:57.329 um , don't , don't concentrate on the , 07:57.329 --> 07:59.440 on the , uh , monthly payment because 07:59.440 --> 07:59.320 what's gonna happen if you go to the 07:59.329 --> 08:01.329 car dealership and they say you say 08:01.329 --> 08:03.551 they're gonna ask you to say , hey , Mr 08:03.551 --> 08:05.551 O Carter . How much you wanna pay a 08:05.551 --> 08:05.549 month on this car ? Oh , I think I 08:05.559 --> 08:07.809 wanna pay about $400 they're gonna say 08:07.820 --> 08:10.269 really ? Ok , so really they're gonna 08:10.279 --> 08:12.501 stretch that 400 they're gonna make you 08:12.501 --> 08:14.723 get you in that $400 payment , but that 08:14.723 --> 08:16.946 $400 payment could be stretched out for 08:16.946 --> 08:18.835 as long as seven years . Um , and 08:18.835 --> 08:21.001 basically right now interest rates are 08:21.001 --> 08:23.057 very high in vehicles . So over time 08:23.057 --> 08:22.880 frame , you're gonna pay more than you 08:22.890 --> 08:25.001 want to concentrate on what the total 08:25.001 --> 08:27.223 cost of the vehicle , how much the um , 08:27.223 --> 08:29.057 man manufacturers . So , um , so 08:29.057 --> 08:31.112 suggested retail price and any deals 08:31.112 --> 08:33.334 that they get , the dealership actually 08:33.334 --> 08:35.390 gets deals um , from Ford or whoever 08:35.390 --> 08:37.446 that that is and you can apply those 08:37.446 --> 08:39.557 things . The other thing is you might 08:39.557 --> 08:41.668 wanna go get financing before you get 08:41.668 --> 08:43.334 to the dealership because the 08:43.334 --> 08:45.279 dealership makes a lot of money on 08:45.279 --> 08:47.557 their financing . So you wanna compare . 08:47.557 --> 08:49.668 So whether it be whoever your bank is 08:49.668 --> 08:49.239 Navy Federal , whoever it is you might 08:49.250 --> 08:51.472 wanna , they may give you a better deal 08:51.472 --> 08:53.694 on the financing than the vehicle , the 08:53.694 --> 08:55.972 car dealer . That makes a lot of sense . 08:55.972 --> 08:57.917 Yeah , I , I still remember , uh , 08:57.917 --> 09:00.659 going through some kind of math course 09:00.669 --> 09:03.030 as 1/8 grader and going home to my 09:03.039 --> 09:05.419 father and asking him how long is your 09:05.429 --> 09:07.651 mortgage pops ? And he told me he had a 09:07.651 --> 09:09.873 30 year mortgage and I basically called 09:09.880 --> 09:11.991 him a and told him he needs to change 09:11.991 --> 09:13.936 his mortgage to a 15 year mortgage 09:13.936 --> 09:16.102 because he's spending so much money on 09:16.102 --> 09:18.158 interest . But uh it kind of kind of 09:18.158 --> 09:20.047 relates to buying a vehicle , the 09:20.047 --> 09:22.269 longer you got that loan out for , even 09:22.269 --> 09:21.809 if it is with the dealership or the 09:21.820 --> 09:23.926 bank or whoever that is X amount of 09:23.935 --> 09:26.102 dollars you're gonna spend on interest 09:26.102 --> 09:28.102 over the top 3 to 5 years . Kind of 09:28.102 --> 09:30.213 recommend some people recommend three 09:30.213 --> 09:30.125 years , I think five years the most . 09:30.135 --> 09:32.302 And when I first came in the Navy back 09:32.302 --> 09:34.524 in the day , it was back then the , the 09:34.524 --> 09:36.746 average mortgage , I mean , the average 09:36.746 --> 09:38.968 um , car , car um , interest rate , low 09:38.968 --> 09:41.024 time frame was about 60 months . But 09:41.024 --> 09:43.024 right now we're stretching it to 94 09:43.024 --> 09:45.246 months , right ? 70 years or maybe even 09:45.246 --> 09:47.413 longer for some people . Ok . Now , um 09:47.552 --> 09:49.608 secondly , I wanted to talk a little 09:49.608 --> 09:52.281 bit about credit reports and um one 09:52.291 --> 09:54.291 major question I have in regards to 09:54.291 --> 09:56.513 credit reports whenever you're making a 09:56.513 --> 09:58.569 big purchase like this is who do you 09:58.569 --> 10:00.513 trust and who can you go to for an 10:00.513 --> 10:03.192 accurate credit report ? Ok , good . So 10:03.202 --> 10:06.331 number one car buying then check your 10:06.341 --> 10:08.452 credit report first , right ? Because 10:08.452 --> 10:10.730 that's gonna affect your interest rate . 10:10.730 --> 10:13.063 So annual credit report.com . Right mom , 10:13.063 --> 10:12.809 that's the one that's recommends 10:12.820 --> 10:14.598 government , right ? Um Equifax 10:14.598 --> 10:16.820 Experience Transunion . And now because 10:16.820 --> 10:18.876 of the pandemic , you can check your 10:18.876 --> 10:20.987 credit report every week , every week 10:20.987 --> 10:23.209 that should be the first one . I know a 10:23.209 --> 10:23.030 lot of people using credit Karma . 10:23.039 --> 10:25.095 That's cool . And everything you can 10:25.095 --> 10:27.317 use that . But annual credit report.com 10:27.317 --> 10:29.372 is the one to go to . Right . And so 10:29.372 --> 10:31.317 you should be checking that . Um , 10:31.317 --> 10:33.539 right now the credit scores go from 300 10:33.539 --> 10:35.650 to 850 . If you're about 6 5700 , you 10:35.650 --> 10:37.595 about average , you know , um , if 10:37.595 --> 10:39.817 you're 750 above , you're great . Those 10:39.817 --> 10:41.817 are important numbers . I'm writing 10:41.817 --> 10:43.817 those down right now . Definitely . 10:43.817 --> 10:45.928 Definitely . And then the other thing 10:45.928 --> 10:47.872 with that is you talk about credit 10:47.872 --> 10:49.872 reports now and you can check me on 10:49.872 --> 10:52.095 this . Um , it's called rate shopping . 10:52.095 --> 10:54.095 If you pull , depending how whoever 10:54.095 --> 10:56.317 pulls your credit report . If they pull 10:56.317 --> 10:58.428 it within a two , if they pull , um , 10:58.428 --> 11:00.595 under the old system , anything within 11:00.595 --> 11:02.817 a two week period is considered one hit 11:02.817 --> 11:04.928 on your credit report , one hard hard 11:04.928 --> 11:06.983 hit . If they pull it in , under the 11:06.983 --> 11:09.039 new system , anything within 45 days 11:09.039 --> 11:11.261 for the same thing , like whether it be 11:11.261 --> 11:13.317 a vehicle purchase or house purchase 11:13.317 --> 11:15.317 counts as one hit because they call 11:15.317 --> 11:14.280 because they know you're shopping 11:14.289 --> 11:17.989 around . Ok . That's , uh , important 11:18.000 --> 11:20.056 to remember . I , I never remembered 11:20.056 --> 11:22.278 all these little tiny rules around your 11:22.278 --> 11:24.444 credit report . It's a little weird to 11:24.444 --> 11:26.611 me . Exactly . All right . So now if I 11:26.611 --> 11:28.556 am planning on heading back to the 11:28.556 --> 11:31.090 States and I'm thinking about pulling 11:31.099 --> 11:33.266 the trigger on buying a vehicle , what 11:33.266 --> 11:35.599 should I think about for a down payment . 11:35.599 --> 11:37.877 Do I need a down payment at all ? Yeah , 11:37.877 --> 11:37.650 it depend . I , you know , the rule of 11:37.659 --> 11:39.826 thumb , some people say 20 just like a 11:39.826 --> 11:41.937 house , right ? 20% down . You should 11:41.937 --> 11:44.159 put something down . You know , because 11:44.159 --> 11:46.326 basically the fact is by putting money 11:46.326 --> 11:48.492 down , it makes your payments a little 11:48.492 --> 11:47.950 bit lower and manageable . Right . So 11:47.960 --> 11:50.238 you should put something down and then , 11:50.238 --> 11:52.349 you know , usually if you have a , if 11:52.349 --> 11:54.682 you have , uh , get bonuses or whatever , 11:54.682 --> 11:54.450 you can add that you can pay more on , 11:54.460 --> 11:56.571 on the car and things like that . But 11:56.571 --> 11:58.682 you should put a down payment in , in 11:58.682 --> 12:00.849 general , in most cases , 20% seems to 12:00.849 --> 12:03.609 be the , the number right now . 10% 10% 12:03.619 --> 12:05.730 being the minimum . It seems a little 12:05.730 --> 12:07.619 bit challenging is , I think down 12:07.619 --> 12:09.619 payment and I think of me trying to 12:09.619 --> 12:11.786 scrounge together some money to put up 12:11.786 --> 12:14.008 down payment on a house , but I'm gonna 12:14.008 --> 12:13.804 tell you , ok , so I talk about this in 12:13.815 --> 12:15.871 a ob how to get a down payment for a 12:15.871 --> 12:17.974 car . People used to buy , buy cars 12:17.984 --> 12:20.206 cash when they left SAS back in the day 12:20.206 --> 12:22.428 and how they did it and how these young 12:22.428 --> 12:24.540 folks can do it is basically you find 12:24.540 --> 12:26.540 out what kind of car you want , you 12:26.540 --> 12:28.706 find out what the car payment is , you 12:28.706 --> 12:28.364 go to your bank , whatever , whether it 12:28.375 --> 12:30.486 be Navy Federal , there be behavioral 12:30.486 --> 12:32.734 finances . So you can put your na names 12:32.744 --> 12:35.390 on your account . So you could say my 12:35.400 --> 12:37.622 car buying account , my Tesla account , 12:37.622 --> 12:39.678 whatever , right ? So you figure out 12:39.678 --> 12:41.844 what the payment is for that Tesla and 12:41.844 --> 12:43.844 basically you save it every month , 12:43.844 --> 12:45.956 right ? It makes it a lot easier than 12:45.956 --> 12:45.469 trying to get that money for the Tesla 12:45.479 --> 12:47.701 when you get back or whatever you wanna 12:47.701 --> 12:49.923 buy . So you pretend like you're buying 12:49.923 --> 12:52.090 the car but you buy it on paper . Ok , 12:52.090 --> 12:54.489 fair enough . And lastly , uh what do 12:54.500 --> 12:56.650 people need to consider when um 12:56.659 --> 13:00.020 shopping around for car insurance ? So 13:00.030 --> 13:02.363 you wanna , if you have a good car , um , 13:02.363 --> 13:04.419 insurance person , you know a lot of 13:04.419 --> 13:06.641 people , I'm not , I'm not um um saying 13:06.641 --> 13:08.808 that you go out there but usa a lot of 13:08.808 --> 13:11.030 people I know a lot of military folks , 13:11.030 --> 13:13.141 U USA you can bundle your insurance , 13:13.141 --> 13:15.308 right ? So basically if you have other 13:15.308 --> 13:15.263 types of insurance with them , you can 13:15.273 --> 13:17.440 put your car insurance is like you got 13:17.440 --> 13:19.606 homeowners insurance , you wanna get , 13:19.606 --> 13:19.473 make sure you put that um , all 13:19.482 --> 13:21.862 together . So look for deals and then 13:21.872 --> 13:23.928 also based on the safety features of 13:23.928 --> 13:25.872 the car , you um buy a lot of um , 13:25.872 --> 13:28.094 insurance companies will get you better 13:28.094 --> 13:30.150 deals , consider deductible . Do you 13:30.150 --> 13:32.316 want a $500 deductible ? Do you want a 13:32.316 --> 13:34.539 higher deductible ? And what that means 13:34.539 --> 13:36.816 is that if you put a higher deductible , 13:36.816 --> 13:38.983 um , then you're gonna um , pay less , 13:38.983 --> 13:41.150 right ? Because basically you come out 13:41.150 --> 13:43.039 of pocket more . Another thing to 13:43.039 --> 13:45.261 consider is your once again your credit 13:45.261 --> 13:45.236 score , a lot of people don't know this 13:45.245 --> 13:47.515 but your car insurance is based on your 13:47.526 --> 13:49.415 credit score . It's a credibility 13:49.415 --> 13:51.526 character check . So you wanna keep , 13:51.526 --> 13:53.526 that's another reason why you wanna 13:53.526 --> 13:55.526 keep a , a good credit score , good 13:55.526 --> 13:57.637 things to think about there . Now , I 13:57.637 --> 14:01.340 have a question for me if you 14:01.349 --> 14:03.516 had the ability and I'm not saying you 14:03.516 --> 14:07.159 don't to buy one super car 14:07.400 --> 14:09.567 and you didn't have to worry about the 14:09.567 --> 14:11.789 upkeep or anything . What , what are we 14:11.789 --> 14:11.200 going with ? Well , I just , you know , 14:11.210 --> 14:13.154 it's funny that you asked , I just 14:13.154 --> 14:15.154 bought a car . I'm getting into the 14:15.154 --> 14:14.809 29th of this month . I bought a , a 14:14.820 --> 14:18.760 Mazda MX 30 mxmx 30 and , 14:18.770 --> 14:20.992 you know , it's , uh , my , my wife and 14:20.992 --> 14:23.214 I , we suffered from the beginning . We 14:23.214 --> 14:25.548 had an $800 hoop knee working , uh , uh , 14:25.548 --> 14:27.548 spring oil and all that stuff . And 14:27.548 --> 14:27.349 then we moved up , we had kids and we 14:27.359 --> 14:29.520 moved up to the vans , we had an M PV 14:29.530 --> 14:31.808 and a premise . And so we just figured , 14:31.808 --> 14:33.808 you know what our kids are in their 14:33.808 --> 14:36.030 twenties now , um , now it's our time . 14:36.030 --> 14:38.030 So right now we're driving a little 14:38.030 --> 14:40.141 hustler , but we decided to get an MX 14:40.141 --> 14:39.880 30 because the luxury luxury in the 14:39.890 --> 14:42.001 front , it's really , really nice car 14:42.001 --> 14:44.112 to drive . I test drove it and that's 14:44.112 --> 14:46.112 probably our , our last car that we 14:46.112 --> 14:48.279 purchased and this will be our , let's 14:48.279 --> 14:50.334 go on some trips . Car . That's what 14:50.334 --> 14:52.501 I'm purchasing . Does it have some get 14:52.501 --> 14:54.779 up and go ? Uh , not really , you know , 14:54.779 --> 14:57.001 it's not really a strong car but I love 14:57.001 --> 14:59.168 the interior , the interior and how it 14:59.168 --> 15:01.168 drives and how it rides . Um , what 15:01.168 --> 15:03.279 sold me , I test drove it a couple of 15:03.279 --> 15:02.380 weeks ago . My son was actually 15:02.390 --> 15:04.446 thinking about buying one and I went 15:04.446 --> 15:06.501 with him on a test drive and after I 15:06.501 --> 15:08.779 sat in the back seat , I was like , oh , 15:08.779 --> 15:07.760 this sounds , this feels pretty good . 15:07.770 --> 15:09.992 Let me go ahead and test drive . And so 15:09.992 --> 15:12.326 um we test drove it and then , you know , 15:12.326 --> 15:14.492 I looked at uh our budget and how much 15:14.492 --> 15:16.603 it costs and then I'm putting more on 15:16.603 --> 15:18.603 it . Um then um it's , and then the 15:18.603 --> 15:20.770 interest rate is only 2.99 it's pretty 15:20.770 --> 15:22.881 low . So I looked at the cost and how 15:22.881 --> 15:24.992 much I'm gonna finds for how long and 15:24.992 --> 15:27.048 it worked within my budget because I 15:27.048 --> 15:29.270 wanna still save and invest . Yeah , of 15:29.270 --> 15:31.103 course . Well , my uh my wife is 15:31.103 --> 15:33.270 absolutely obsessed with the hustler . 15:33.270 --> 15:35.437 She thinks it's the coolest car ever . 15:35.437 --> 15:37.659 But one thing I did wanna mention uh is 15:37.659 --> 15:40.325 I am going to miss my car insurance 15:40.335 --> 15:42.484 prices when I head back to the States 15:42.494 --> 15:45.869 because I just re upped my um policy 15:45.880 --> 15:48.400 and for my little Japanese K car for 15:48.409 --> 15:50.650 the year uh because my good driver 15:50.659 --> 15:52.715 record , I paid 100 and 50 bucks for 15:52.715 --> 15:54.881 liability insurance on the year . Oh , 15:54.881 --> 15:57.159 my God , it's pretty hard to beat that . 15:57.159 --> 15:58.992 Exactly . But anyways , I really 15:58.992 --> 16:01.215 appreciate your time . I appreciate you 16:01.215 --> 16:03.381 joining us here in studio , Mr Okada . 16:03.381 --> 16:05.760 And , uh , yeah , please tune in next 16:05.770 --> 16:07.881 Monday for another segment of money . 16:07.881 --> 16:11.010 Mondays with Mr Norm Okada . Give it up .