Cash Car Convert

The largest purchase most people make is their house. The second is their cars.

Dealers know that, but they won’t share it with you. However, they will show you how they can “get you into this car for the low monthly payment of fill-in-the-blank.”

Monthly payments are the biggest distractions salesmen use against us - and we eat it up!

The future wealth of middle and lower income America is sapped by the “you gotta have a car payment” mentality, but it’s not too late to change.

It’s time to get out of the car payment business.

First: Identify how much car is too much

Use this formula to decide if you have too much car: Compare how much you spend on gas to your monthly car payment.

If you are spending more on your monthly car payment than on gasoline, you have too much car.

Stop reading this and go look at your car right now. Where is it? It is likely to be parked in a garage, driveway, parking lot or on the street.

You are paying a premium for parking and should seriously consider selling the car or paying off the debt. Period.

Keep the car using the “2x Rule”

If you are so completely enthralled with your car that you can’t bear to part with it then swear to abide by the “2x Rule”:

• Raise your right hand in the air
• Place your left hand on a stack of Bibles
• Swear to keep the car for twice as long as it takes to pay off the loan

Yep. If you signed up for a 5 year ride with Ford Financial then you need to keep that car/SUV/truck for 10 years - no excuses!

Think about that for a minute. Do you love this car enough to commit to driving it for a decade?

Maybe this will give you some motivation to pay off the loan early. It should also prevent you from rolling any negative equity into your next purchase.

Kill the debt in under 2 years

Look at your monthly budget to see how much money you can throw at the debt:

• Multiply the extra money by 24
• Multiply your normal monthly car payment by 24
• Add the two totals together and compare it to your payoff balance.

Keep the car if you can realistically pay it off in less than 2 years. If you can’t then it’s time to sell.

This goes for both new and used cars. Don’t let payments on a depreciating asset keep you in the middle class forever.

If you can’t pay cash

James Kinson encourages you to pay cash for your cars. It’s an economically sound solution for the biggest financial drain your budget. It’s also very hard to do when you are just getting started.

What can you do if money is really tight and you can’t pay cash? Use the same 2x Rule for every car you buy on payments:

• Buy a used car and pay off the loan as quickly as possible
• Once the debt is gone, save for your next downpayment
• Repeat the process until you can pay for a cash car

Purchasing quality used vehicles will keep you from paying a premium for parking. Getting rid of the debt will help you to save up for your next car. Continuing to purchase wisely while saving downpayment will get you to your destination - you’ll become a Cash Car Convert!

On today’s podcast I interview a Jim Munchbach, who is a real renaissance man. He has worked as a master mechanic, now has his own State Farm Agency, he is a Certified Financial Planner, he is college professor at the Bauer College of Business at the University of Houston, he hosts multiple podcasts, he is a speaker, he is the author of multiple books, and he is just an all around nice guy. He is going to discuss with us today how he came to do so much with his life and how we can find a good mechanic.

If you have been listening to my podcast, you understand the quality used car buying process. Now, I am going to take you through the steps I use when selling my own car. I have sold many cars over the years and I have had a great deal of success. The last three cars I sold were gone in less than two days and two of them sold the first day. Many of the selling tips are just taking the buying tips and thinking about them for the car you are selling. The goal is to make your car one someone like you would want to buy. A key point to remember when selling is you never get a second chance to make a first impression. So, make it count.

How much does mindset matter? This week we will explore how much mindset has impacted my life. I hope by me sharing my journey, a journey I have only shared with just a handful of people. Some of this journey may resonate with what you are going through or have gone through. I want to give you hope that no matter your circumstances you can make decisions to change your life at any point along the way. It is never too early or too late to start changing your life! My life has turned out so much better than I ever dreamed and so can yours. I hope you enjoy this very open and raw episode of the Cash Car Convert.

This is my favorite time in the used car purchasing process. Finally getting to purchase a “new” car after all the work and getting to drive a quality used car home. If you have followed my previous episodes in your used car search, you have done your research and found a car that makes sense for you. You have eliminated cars that were too expensive to maintain or too unreliable to depend on. You have eliminated cars that just didn’t feel right or that the seller hadn’t maintained properly. You have qualified the car’s value and know what it is worth. You have screened both the seller and car by phone. You reviewed the owner’s personal records on the car. The car has passed your personal onsite inspection and a thorough inspection by your mechanic. You are finally ready to negotiate with the seller and purchase the car.

The Millionaire Next Doorprobably paid cash for her car. You already knew that but did you know she bought it used? Learn how to buy your next car – listen now and again when you head out the door to test drive your next potential used car.

As we are now nearly 2 months into 2014 many of us reflect to take stock of how we are faring in our New Year’s Resolutions. Are we still on course? Are we better or worse off than we were in December?Many of us tend to lose focus quickly in the new year. The gym start to get back to their normal levels of activity. The resolution to get up early falls by the wayside and we spend more time with our pillow. Likewise the desire to be financially fit may slip away as well. I want to help you stay the course with by giving you 4 reasons not to be an average American.

When I leave my home to look at a car after all the research and screening, I feel pretty confident I will be looking at a quality used car. Even so, I still have to do an inspection and so will you.The goal of my inspection is to minimize the risk of buying a car that might become more of a problem than a blessing to me and my family.When I arrive to look at a car there are a number of things I do to either eliminate the car from consideration or determine it is worth pursuing further.

I interview a person who is the Social Media Manager at Indiana Wesleyan University a Podcaster at Beyond the To Do List and Social Media Correspondent for Podcast Answer Man. He is also the co-author of Beyond the To Do List: Goals. He is also the master of all things bacon. He is Mr. Erik J. Fisher.

In this episode of the Cash Car Convert Podcast I will cover 10 questions you should ask before going to see a used car. Do spend your time or gas needlessly. Prequalify each car before you drive to inspect.