MoneyWise Live | November 26, 2018

Cash for Cars

Show Notes

It’s one of the smartest moves you can make to gain financial peace of mind— to get to the point where you’re controlling money— not the other way around.  Why then do so many people fail to do it?   We’re talking about paying cash for cars. And more importantly avoiding a big fat car payment every month that blows a hole in your budget. Financial planner and teacher Rob West has the skinny on that.

  • Paying cash for a car is a very novel idea to a lot of people. They might think a car payment is just another necessary category in the family budget.
  • What’s the difference between a mortgage payment and car payment? You have to have a place to sleep and a way to get to work so why are they different?
  • The fact that cars depreciate right off the lot means you’re “upside down” on the car right from the very beginning.
  • How do we break the cycle of owing more than the car is worth?
  • Should you consider buying less car than you’re used to?

Next, Rob and Steve answer these questions at 800-525-7000 or via email at

  • It it a good idea to use an HSA for investing if you have an applicable health insurance policy?
  • How does the jar system work?
  • If your father-in-law can't drive any long but has a car under lease, should you continue making the lease payments and perhaps drive the car or turn the car in and suffer the penalties?

Rob takes a break from the questions and goes over a few tips for saving money and staying safe (not getting hacked) during this holiday season:

  • Use a credit card instead of a debit card.
  • Be on high alert for phishing attacks that impersonate someone or some company you might know.
  • Be ware of clone websites.
  • Check for an "s" in a URL (website address) just after the "http" for sites you visit  indicating they use SSL for secure communications. (
  • Don't use public networks like coffee shops for purchases or secure transactions.
  • Check your bank/credit card accounts often during the holiday season.

Rob returns to the caller's questions:

  • If you're retired and have a 401(k) but are concerned about the state of the market, should you consider pulling the funds out?
  • If you've had a car with a costly loan and would like to eliminate the responsibility of the loan, what is the best way to get rid of the car?
  • If you're still working empty-nesters that just had a term life insurance policy that expired, how do you calculate if you should renew the policy?

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