The New Car Smell

Avoid the hype!

That is my favorite car freshener. But I wish I were talking about that.

Take a look at a conversation I had with someone through my Instagram Direct Message :

We make 2 big mistakes with money and one of them is buying a car we cannot afford. A soon to graduate college student wants a newer car even though the car he has now was given to him by his parents. To make matters worse he wants to find out how much the car loan should be in order to be responsible. Well the responsible thing to do would be:

1. Buy a used car in cash

2. Continue to drive the car you have. Obviously it’s getting you around.

This young man I know personally and he is dangerously intelligent. I know that his desired career path will make him a lot of money and as a result very wealthy.

Or will it?

Its typical for a college grad to want a new car after they land their first job making $75-$90k (hopefully). It’s the normal course of action. Normal people are broke and broke sucks, says Dave Ramsey. Now of course if I use car loan and Dave Ramsey in the same blog, the hairs on his neck are probably sticking out. My advice to this young man was sound and coming from a place of experience.

I used to get cars I could not afford. Now, as a financial coach I see others do the same. I have been able to save people from committing this financial mistake. Most of the time though, because that “new car smell” is so appealing, my clients ignore my advice and buy the car anyway.

What are you paying me for?

I want to recall a brief story from someone I know personally. Let’s call him “Jordan” to protect his identity. He came to me once and over coffee we talked about his money. He wanted to buy a car he test drove. First mistake! He is already in love with it. Next he began to justify the purchase. Then I told him he could not afford it and showed him why. A car with a loan stuck to it is a bad money move.

Two months later he got that exact car he test drove and told me, “yo bro I can’t afford the payments. What can I do?”

Cars are emotional. They give us a sense of identity. But it’s false and fabricated. It’s a facade. I know because I once had 2 cars at the same time. A Mercedes with 20 inch wheels for joy riding and a Toyota Camry for long distance driving/everday driver.

Today I have a paid off 2015 Honda Accord and its my dream car. Bull crap, it’s not. But for now it is because it’s reliable, paid off and in great working condition.

Be Careful about the lure of the “new car smell.” It doesn’t last as long as you think and before you know it, you’ll have a 7 year car loan you can’t afford to pay.

Dan Roman is a Husband, Father, and writer that releases a daily blog. A quick read on money, marriage, parenting, self-improvement, development and his thoughts. Dan is also Founder/Creator of Roman Solutions, a Personal Finance Firm that currently provides coaching and education.

To connect with Dan visit: https://linktr.ee/bydanroman

Or by email : financialdifference@danromansolutions.com