Master Your Next Car Purchase with Vector’s Mike Nesheim
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If you’re considering buying a new car within the next few years, this podcast is for you. For many clients, a new car purchase is a significant financial decision. Senior wealth advisor Mike Nesheim, CFP®, talks through several aspects of car buying, from leases and loans to selling taxable investments to fund the purchase. As a financial planner, Mike emphasizes the importance of thinking ahead and strategically approaching car purchases.
Mike says that knowing a vehicle’s cash price upfront is crucial. It allows for a more explicit comparison of financing and leasing options without falling into the trap of attractive monthly payment schemes that might carry high interest rates.
The podcast discussion gets into the implications of different payment methods. With interest rates currently higher than in previous years, Mike says a cash offer might be the way to go, depending on your financial situation. He also points out that the tax implications of withdrawing large sums from retirement accounts could push you into a higher tax bracket.
Additional costs such as insurance, registration fees, and potential add-ons like gap insurance and extended warranties should be part of the financial considerations. While dealership terms and pricing appear more up-front, Mike still recommends being prepared to walk away if the deal is not working for you.
In our view, integrating car purchases into long-term financial planning is a best practice. Mike advocates for earmarking assets ahead of time to avoid liquidating investments during market downturns or suffering potentially avoidable tax consequences. By maintaining a proactive approach, you can make informed, economically sound decisions that align with your overall financial goals.
Contact Mike and the Vector Wealth team for personalized advice tailored to your financial situation.
Listen to this episode
Time & Chapters:
00:03 … Introducing Mike Nesheim CFP®
00:36 … Planning Your Car Purchase
01:57 … Buying vs Leasing
03:57 … Financial Considerations
07:17 … Additional Costs and Negotiations
11:52 … Comprehensive Financial Planning
15:00 … Regulatory
These discussions aim to spark dialogue about enhancing retirement readiness and making more informed financial decisions. At Vector, we delve into the nuances of scenario planning, offer insights and guidance tailored to each client's unique circumstances. If you or someone you know is pondering their financial future or seeking clarity on their retirement plan, we're here to help.
This discussion is with Vector’s Mike Nesheim and Ezra Firkins.
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