This is our class that explains how to navigate the car buying experience. The information contains how much you should spend buy using hourly income as a point of reference.

1. Life Hack:
Buying a Used Car
© Wise Rides 2015
Presented by
Drive. Smart! ™

2. © 2016 Wise Rides, LLC
First Let’s Understand Inflation
1985 $100,000
2015 $220,000
Profit ZERO!!!
1920 $ 0.12
2015 $ 1.42
Diff ZERO!!!
House Price
Bread Price

3. © 2016 Wise Rides, LLC
Understanding Car Depreciation – A NEW CAR
New Car- $ 33,650
1 Minute (.09) - $3,163
1 Year (28%) - $7,740
2 Year (20%) - $6,730
3 Year (16%) - $5,384
4 Year (8%) - $2,692
5 Year (6%) - $2,019
6 Year (5%) - $1,682 Total 6 Year LOSS – $26,247
Car value loses
80% in 6 Years

4. © 2016 Wise Rides, LLC
Understanding Your Total Driving Cost
Based on AAA 2014 Annual Survey
$0.46 per Mile
$6,956 per Year
$0.61 per Mile
$9,151 per Year
$0.75 per Mile
$11,248 per Year
$0.77 per Mile
$11,599 per Year
$0.65 per Mile
$9,795 per Year
Life Hack:
Walk before ride and
ride before you buy!

5. © 2016 Wise Rides, LLC
What You Can Expect for Loan Terms
Good credit 4% and risk up to 8.7%... But we hear war stories more
than 25%! As long as the dealer discloses the interest: IT IS LEGAL!
A longer term with smaller
payments is ALWAYS going to
cost you MORE!

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How Interest Rates Effect YOU!
Based on a 5 year loan
Loan Rate Payment Interest Paid Total Cost
10,000$ 0% 166$ -$ 10,000$
10,000$ 5% 188$ 1,599$ 11,599$
10,000$ 10% 212$ 2,165$ 12,165$
10,000$ 15% 237$ 2,748$ 12,748$
10,000$ 20% 264$ 3,346$ 13,346$
10,000$ 25% 293$ 3,960$ 13,960$
10,000$ 30% 332$ 4,590$ 14,590$

7. © 2016 Wise Rides, LLC
Recommend Payments and Savings Accounts
* Rank based on realistic promotion timeline (E5 at 3 years, E6 at 4 years, E7 at 10 years).
** Car expense should be no more than 25% of net income (15% payment and 10% maintenance).
Rank Pay
Recommend
Max Payment
Maintenance
Budget
Total Auto
Spend
E-1 $1,546 $231.90 $154.60 $386.50
E-2 $1,734 $260.10 $173.40 $433.50
E-3 $1,823 $273.45 $182.30 $455.75
E-4 $2,019 $302.85 $201.90 $504.75
E-5 $2,464 $369.60 $246.40 $616.00
E-6 $2,876 $431.40 $287.60 $719.00
E-7+ $3,747 $562.05 $374.70 $936.75
Life Hack: Don’t let car payments define your life!

8. © 2016 Wise Rides, LLC
Other Finances to Consider
• Food
• Cell
• Cable
• Clothes/Haircuts
• Entertainment
• Savings
• Child Support
• Toiletries
• Smoker?
• Drinks?
• Credit Cards/Loans
• Gas
• Insurance
• Tax, title, and delivery fees
• Car Maintenance
• Registration and emissions

9. © 2016 Wise Rides, LLC
Financial Support and Resources
Disclaimer: Logos are used to highlight programs.
Wise Rides is not endorsed by any branch of the military.
Navy-Marine Corps Relief Society Air Force Aid Society
Army Emergency Relief Coast Guard Mutual Assistance
AVOID
Payday Loans
Title Loans
Pawn Shops
At ALL Costs
THE RIGHT WAY

10. © 2016 Wise Rides, LLC
The Hard Math…
Remember the guidelines? What is your needed down payment?
(and that’s assuming you have an above average credit score!)

11. © 2016 Wise Rides, LLC
The Hard Math…
As a E-3 you would need to put $16,750 or about 52% Down!

12. © 2016 Wise Rides, LLC
Thank you!
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