Wednesday, 13 March 2013

Student Savings - Car Cash Conundrums Pt. 2

Routine Maintenance:

As with all good proposals, mine's run into some roadblocks but it's nothing that can't be worked around. One of the most important traits to a successful individual is perseverance in the face of adversity and I intend to show just that with this addition to the "Car Cash Conundrum" article.

I feel as though my initial article was well-written (of course I'm biased but you CAN disagree if you'd like) but I still faced some challenges when I actually brought my proposal to my mother. This started me thinking that if I was getting challenged on my proposal, it's likely that anyone else who tries to implement my system would get some push-back from their prospective partners as well. As such I've written this article to address the main concerns that I've had raised by both family and friends.

Dream Car Doubts:

The first obstacle that I encountered when I pitched this concept was my mother worrying over money, as everyone does in life. She argued that she wasn't going to have the amount of disposable income available after retirement that she has now, and that she couldn't afford to be purchasing a car now that she wasn't going to keep.

Cars mean money...
It's fairly likely that this is the leading argument that you'll run into as most people worry that after retiring, their financial situation will be in a never-ending state of serious jeopardy. The argument is rather simply beaten though if you take THIS approach:
  1. Remind your prospective 'business partner' that to purchase a NEW car, they'd likely require a lease to pay it off.
  2. Figure out the vehicle that they're in the market for, determine the lowest possible price for that make and model, and factor in their current vehicle's trade-in value* along with the down payment that they'd be making on a new car. It will help to link your proposal to this argument if you use the down payment you'd require from them to purchase a suitable used vehicle.
    * has a trade-in value tool. They're a reputable group so I'd recommend working your research through them as much as possible when it comes to vehicles.
  3. With as much relevant lease rate data on their preferred car gathered as you can find, work out the amount of money they could SAVE by totalling up the monthly lease payments by the number of months, and restructure your proposal to fit their available lease period.
  4. Factor in the amount of money you'll be paying them over time for the used car that you're proposing and you can tell them what their NEW down payment on their dream car would be after completing YOUR proposed payment plan.
Almost every parent understands the fact that a larger down payment means less money spent on financing a purchase. In my case, I was looking at comparing my proposal to financing a 2013 Cadillac CTS. Factoring in our vehicle's trade-in value along with my requested down payment on a used vehicle the lease payments would have been $311 over 36 months. This equates to $11196.00 spent financing the NEW vehicle where it COULD be added together over the same time period to become a $23000.00+ down payment towards a new vehicle. Compared to putting only about half of that down on a purchase? Yeah, you can bet that there's a huge difference and anyone looking at buying a new car will see it.


This might be your worst enemy through all of this. Money can be summed up and put into cold hard facts, but how someone reads or interprets your words. If they're not taken the right way it is very likely that your words might lead someone into getting their back against the wall or completely discounting your proposal simply because of an instance of inaccurate wording.

A little misinterpretation anyone?
My recommendation here is for you to write out your proposal, have it proofread by someone who has a business-oriented career or background, even someone taking business or law in school as they may have a better grasp on the issues and they have a better chance of getting you to a point where your proposal is beyond misinterpretation. 

Just work by the mantra that "anything than CAN be misunderstood WILL be misunderstood". Go with this in mind and you should fly pretty true.

Criss-Crossed Car Concepts:

I didn't run into this myself, but I thought that some of you, in an overzealous state, might overshoot your mark. 

What I mean here is if you KNOW your 'target' is looking for a 4-door family car, don't try to bargain them into getting a convertible or a sports coupe. Make sure you stay inside the type of vehicle that will fit THEIR needs, as they're going to have a larger list of 'must haves' and you simply need four wheels and a motor. I'm not saying you need to give up, roll over and play dead, but you DO need to be more mindful of your target's needs than your own. This is a time for patience folks, your time will come and with a lifetime of savings you might just get your hands on YOUR dream car but now is not the time.

These have been just a couple of pitfalls you might encounter. If you can think of any more challenges, please feel free to post in the comments section and I'll do whatever I can to help you work around them.

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