I always find it amazing when married couples know nothing about their own household finances. This is a basic component of a marriage. Even Ramsey will tell you this!
I handle nearly 100% of the bill paying. We have a discussion every few weeks to gauge our progress. This builds two things: trust and wealth.
Good luck all you couples out there and have that meeting before the end of this week.
Excellent article. My then 19-year-old Dad was hitchhiking in 1939 and was picked up by a Navy recruiter. The recruiter must have been a great salesman. After a 4-mile ride, Dad signed up for the Navy. That single event set off a chain of events leading to meeting my mother in Boston.
Car dealerships are today's horse traders. And they are doing themselves no favors in this whole pricing fiasco. Maybe it's time to eliminate the new car sale from dealerships altogether. Vehicles could be purchased online and dropped at your door. Dealerships could serve simply as maintenance and repair points.
Great info! As a veteran of the car finance business, I have a few additional pieces of info.
Dealers love the lease alternative because they can add more profit to the front end of the deal. They also have more after-sale contact since lessees usually return the vehicle to the leasing dealership.
Manufacturers also add subvention to sweeten the deal. Manufacturers like to move metal and speed up the purchasing cycle.
Leasing companies make ~30% return on a lease because they can depreciate the vehicle since they are the owner.
Never put money down on a lease. This is the equivalent of putting money down on an apartment rental. Hang on to your money.
Leasing is renting, nothing more. You are responsible for care, maintenance, insurance, and wear and tear. That last one can be contentious . What is normal wear and tear? If your state has ad velorum taxes, you pay those. You also pay for yearly registration.
Purchase option? This may have a fee. It is also a sale, so there will be sales taxes.
There may be another lease-end fee for simply returning the car.
Good luck.
My biggest regret is not saying no when I should have said no. I married young and left too many spending decisions to my spoiled first wife. If I had invested instead of paying credit card interest, I likely could have retired at age 55.
Comments
I always find it amazing when married couples know nothing about their own household finances. This is a basic component of a marriage. Even Ramsey will tell you this! I handle nearly 100% of the bill paying. We have a discussion every few weeks to gauge our progress. This builds two things: trust and wealth. Good luck all you couples out there and have that meeting before the end of this week.
Post: Finding Hope
Link to comment from September 13, 2023
Excellent article. My then 19-year-old Dad was hitchhiking in 1939 and was picked up by a Navy recruiter. The recruiter must have been a great salesman. After a 4-mile ride, Dad signed up for the Navy. That single event set off a chain of events leading to meeting my mother in Boston.
Post: Learned in Uniform
Link to comment from August 23, 2023
Car dealerships are today's horse traders. And they are doing themselves no favors in this whole pricing fiasco. Maybe it's time to eliminate the new car sale from dealerships altogether. Vehicles could be purchased online and dropped at your door. Dealerships could serve simply as maintenance and repair points.
Post: Driving Me Crazy
Link to comment from March 15, 2023
Great info! As a veteran of the car finance business, I have a few additional pieces of info. Dealers love the lease alternative because they can add more profit to the front end of the deal. They also have more after-sale contact since lessees usually return the vehicle to the leasing dealership. Manufacturers also add subvention to sweeten the deal. Manufacturers like to move metal and speed up the purchasing cycle. Leasing companies make ~30% return on a lease because they can depreciate the vehicle since they are the owner. Never put money down on a lease. This is the equivalent of putting money down on an apartment rental. Hang on to your money. Leasing is renting, nothing more. You are responsible for care, maintenance, insurance, and wear and tear. That last one can be contentious . What is normal wear and tear? If your state has ad velorum taxes, you pay those. You also pay for yearly registration. Purchase option? This may have a fee. It is also a sale, so there will be sales taxes. There may be another lease-end fee for simply returning the car. Good luck.
Post: About That Fine Print
Link to comment from March 4, 2023
My biggest regret is not saying no when I should have said no. I married young and left too many spending decisions to my spoiled first wife. If I had invested instead of paying credit card interest, I likely could have retired at age 55.
Post: What’s your biggest financial regret?
Link to comment from January 9, 2022