The Top 3 Ways to Sell Your Car

 

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So what are the top 3 ways a smart person gets rid of their current car before obtaining a new one?

To find this answer, we will use a hypothetical 2010 Honda Accord LX with 85,000 miles with a TrueCar Market price of $11k.

Path #1: Sell through private party (direct)

The most money you’ll get is from doing the work yourself to list and sell via private party. This is where you can expect to get the $11k market value + or – 5%.

>Best sites to sell private party: Craigslist.org, Cars.com, Autotrader.com, 5 Miles app

But alas….most people are too lazy to sell private party and/or to research how to even do it correctly. Therefore that leads us to…

Path #2: Sell through private party (indirect)

There are new services coming online every year that are bridging the gap between your laziness and their know how. These sites are set up to do the heavy lifting of selling private party, for a fee of course.

> Best site hands down is http://www.shift.com.

For instance, on a Honda Accord with a market value of $11k, you will get a Shift guaranteed quote for $9,500. Though the guaranteed quote of $9,500 is what you will make from the car regardless of what it ends up being sold to someone for, Shift will attempt to sell it at that $11k market and split the difference with you for how much over the guaranteed price that they can sell it for.

You can check out reviews on how this generally works here: https://www.yelp.com/biz/shift-los-angeles-2

Note that Shift.com is currently available in Los Angeles, Orange County, Sacramento, San Diego, San Francisco & Washington, D.C.

Side-note: for buyers of cars through Shift.com, you have 5 days or 200 miles to return it with no questions asked too. (But never buy a car from the same place you sold yours to.)

Path #3: CarMax

> Know that your local CarMax should always be a last result. Where a trade in offer may give you $4,500, CarMax buys at wholesoale and will give you about $6,500 for your Honda Accord.

You should also know the two golden rules of CarMax: 1. there are locations with appraisers who are more generous than others. For instance, in California, the Burbank CarMax gives much higher purchase quotes than the LAX location. 2. You are never ever to buy a regular car from Car Max. They are overpriced AF. Which of course they are, they’re paying you more than a typical dealer, so they’re going to inflate the car price on the back end as well.

But what you never ever ever want to do is trade in your car at any dealership for a new one. Wrote a song about it, like to hear it hear it go: https://thisiswhyubroke.wordpress.com/2012/01/02/the-lost-decade/

**Bonus option**: don’t sell it at all and use it to generate income from Turo.com. For those who are interested in giving Turo a spin, use my code to receive $25 for a free car rental: https://turo.com/referral?code=833269rcY47f

Learn more about cars in general by reading the book:

http://www.BrassKnuckleFinance.com

Refund Advance Checks


This year’s TIWYB #1 Tax Tip:
Stay away from “RAC”s!
Marketing of “Refund Advance Checks” will be at an all time high. And equally at an all time high? The number of people who think these products are 0% loans without any fees or penalties.

The truth is buried in the fine print. You generally will be pushed into opening up a separate account where the tax refund anticipation check will be deposited into. The fee just for that deposit is $35.
If you elect to place that amount on a card that the issuer provides you, then you are dealing with a host of other fees such as $3 ATM use charges (one charge on the front end and another on the back end), fees simply to check balances and more.
These “advances” are provided in an amount of $500, $750 or $1,250 amounts to your account which triggers at minimum, the $35 fee for deposit. The account then deducts the advance from the tax refund that is forwarded to the account as well, generally within a month. 
If you take a $1,250 amount and apply a $35 fee payable for a month of using that money, you’re looking at an annualized amount of 40% interest.
But it gets worse. Maybe I shouldn’t tell you this but if you opted for the lower $500 amount, you’re still going to have to pay that $35 fee. Mathematically that equates to an 85% APR on that money.
Refund Anticipation LOANS have been made illegal. But they have been replaced by Refund Anticipation CHECKs. The latter is what we’ve been discussing here.
You’re still getting screwed, but now you you are forced to open an account that makes you a candidate for a list of ongoing fees when you inevitably slip up with use of that account.
And the reason they know they can screw you is because the IRS just notified everyone that those who claim the Earned income Tax Credit as well as the Additional Child Tax Credit will likely have their tax returns held unprocessed until February 15th. This means that many won’t be receiving their refunds until February 27th at the earliest this year.
But at the end of the day, just look at all the complaints about the H&R Block version of this here: https://www.consumeraffairs.com/finance/hr_block_ral.html
This has to stop.

http://www.ThisisWhyYoureBroke.com

The “Power & Purpose” Conference!

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BKF University has teamed up with South Los Angeles Saves to bring you the 4th Annual South LA saves conference!

When: Saturday, March 4, 2017 | 11:00 AM – 3:00 PM PST
Where: DoubleTree by Hilton Torrance
21333 Hawthorne Boulevard
Torrance, CA 90503

We have assembled our “Power & Purpose” Panel with you in mind! Our panel is sure to inspire you, motivate you, and ENCOURAGE you as 2017 gets in Full Swing!

The Panel features seasoned professionals sharing Real ~ Honest ~ Stories of their Successes and Failures. Our panel will share some of their greatest lessons in BUSINESS, RELATIONSHIPS, and LIFE!

I will be joining as one of the Keynote Speakers for the day ready to help YOU get on track with your 2017 Financial Goals! You do not want to miss, this talk!

Tickets and more info are available here:

https://www.eventbrite.com/e/south-la-saves-power-purpose-c…

Please share with your folks!

See you there!

Would you rather have bought…

Some people won the location lottery and bought houses where the PRICE appreciation far outpaced the country average.

Others won the business lottery and placed money in companies they used on a daily basis.

Which would you choose?

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Lets see…carry the 1…divide the 2…add the 3….what is that: $4million dollars for the Netflix owner?

Here’s one thing you should know about this poll as well: It actually is far far worse.

The difference the Netflix owner would have paid for rent instead of buying averaged out to be $17,530/year since 2002.

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If he/she invested that $17,530/year in Netflix (just like the homeowner did into their house) NFLX owner would have gained an additional $8,892,053 over those 15 years.

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Yes. Additional.

Investing isnt a lump sum game. Its about cash flow.

Oh & the second thing i didn’t tell you?I padded the SF property’s cost.That residence is actually only worth $850k as SF real estate has softened a bit.

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FOMO in L.A.

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FOMO in Los Angeles

There are a lot of people in L.A. who basically tie their entire hopes and dreams in life to what mortgage they’ve either qualified or been denied for.

Though it is stupid simple to get a mortgage when you have the appropriate down and income – regardless of your credit – many are fearing they are missing out on a great property investment boom of some sort in Los Angeles.

This is called FOMO (or fear of missing out), is based on manipulated emotions and gets significantly worse when we refuse to do math.

FACTS:

The median home price in West Adams is $638,000

The median home price in Los Angeles is $603,900.

The median home price in Inglewood is $441,600

Lets take the median for L.A. for a second.

First – the 5 year holding costs on a $603,900 house with 4% down:

PMI – $476/month

Insurance – $67/month

Taxes – $554/month

Maintenance, repairs and upgrades – $1,509/month going into a MRU fund

Principal and Interest (mostly interest) – $2,918/month

Costs: $5,523/month

– mortgage tax deduction ($554)

= $4969 total holding costs each month.

$4969 x 60 months = $298,140 over 5 years.

$298,140 IS THE PRICE OF AN ENTIRE HOUSE IN OTHER AREAS.

AND ALL YOU DID WAS PAY INTO INTEREST OVER 5 YEARS WITH LITTLE PRINCIPAL.

What about initial out-of-pocket costs on a $603,900 house?

1) $21,137 downpayment

2) $18,117 closing costs

= $39,254 total ($18,117 of which you will never get back)

Opportunity cost on a $39,254 out of pocket sum:

$39,254 invested by itself with no other additions would have grown to $62,361 over 5 years.  In other words, applying the out-of-pocket costs to a house alone cost you over $20k over 5 years.

Credit card interest:

The average L.A. household with credit card debt owes $11,042.

If over the course of owning a home, half of your expenses from the Maintenance, repairs and upgrades portion of your real estate expenses are placed on a credit card instead, that balance can balloon to $20,096 per household.

Average credit card interest rate is 15.07%.

This means that a household would pay an additional $8,633 over 5 years in credit card interest payments.

Other debt:

By having low liquidity, you’re much more likely to take out car loans, personal loans and even grad school loans.

This is an entire other level of principal and interest added to your load.

Your freedom:

“Now that I just bought this $600k house, I’m free to quit my job!” – said noone ever. Its actually quite the opposite.

Psychological effects of being tied to 13 hour days at the office to afford housing costs are incalculable. Add that to being tied to offices you may want to desperately break free from, and there isn’t an amount of money on earth worth years of your life you cant get back.

When the bubble bursts:

You know all the costs we mentioned above? Well outside of property taxes which can be adjusted on falling property values, these costs are yours and yours to bear alone regardless if your house drops in market price.

In other words – real estate costs can’t keep going up forever, its simple economics. The median individual income in L.A. is just $27,749.

You’re already paying significantly more than you’re earning from buying primary residences in L.a.

What happens when even the price appreciate stagnates…or gulp…decreases…

Now again, just like the latest edition of Brass Knuckle Finance says – none of this is about NOT buying a house. This, specifically for L.A. is about knowing WHY you’re buying said house. Buy whatever the hell you want when you can afford it and know why you’re doing so.

But chasing any price – regardless of what it is – is the quickest way to fool town.

Thinking a house $600k house is an investment when it costs over $300k over 5 years, aka HALF of the damn price of the house –  is a quick way to fool town.

Now what about buying rental property?

Well thats an entirely different set of circumstances and benefits and for another post.

This is about your primary residence.

www.BrassKnuckleFinance.com | 3rd Edition | “Home Loanership”

Ps: real estate agent fees to sell the house in 5 years or income taxes if house is sold in less time has been included in these numbers.

Stop leaving valuables in your car near Christmas!

**Attention: stop leaving valuables in your car! This is generally for all times of the year but ESPECIALLY for the entire month of December. Same deal every year.

If you don’t listen, you can consider those items gone.

Thiefs know the risk reward of finding something valuable after breaking into your car during the busiest shopping season is heavily tilted towards their favor.

Don’t give them an easy play. Malls are easy play. Shopping centers. Apt garages.

As a matter of fact, its smarter just to completely stay away from parking your car at the mall, regardless of whats in it, during the entire month of December.

If you want to be broke and go further into debt, use Amazon prime. “Choose your dumb”, as we say.

If you want to jumpstart your new life free of debt however, stop participating in the hyper consumerism madness they call “Christmas” in the first place.

No one who gives a sht about you will want you to go further into debt to buy them anything. Trust me.

http://www.ThisIsWhyYoureBroke.com

STOP USING YOUR PIN NUMBER FOR PURCHASES


And be VERY vigilant against it.
Got damn. I don’t know how many times I gotta say it.

If I get one more message from ya’ll about your entire balance being wiped out, especially during this scam happy time of the year, there’s gonna be furniture moving.

It doesn’t matter if you have a chip, a dip, or a damn flip card. They are capturing your PIN number every time you use it at stores, restaurants, gas stations, weed shops, greens, beans, potatoes, tomatoes …you name it.

Then they use that pin with a visual copy of the strip on the back of your card to go to your bank’s ATM and withdraw EVERYTHING. When your main account is tapped, they’re using the ATM to transfer from your other accounts at that bank.

Never use your PIN number in public unless its at your bank and be even careful with that. And during the holidays, don’t use your PIN number AT ALL.

-Always maintain TWO checking accounts – one for spending (risky purchases) that has a smaller amount strictly for spending and one for bills that has a higher balance.

-Never keep two checking accounts at the same bank. Ever.

-Never keep a checking account with overdraft pro-theftion on it.

-Don’t use your PIN number. If a store is acting like they require it, act like you refuse to shop there any longer. 

-Always swipe as a visa or MasterCard debit card purchase.

**Stay the FCUK away from credit cards.**

-Be vigilant about each of the above.

-Prosper.

Make sure to share this with everyone you know. Even the scammers.

The True Cost of Having “Good Credit”


The true cost of maintaining “good credit”.

(Phase 1) I don’t have credit yet so my parents will have to co-sign on these student loans for this school I should have never gone to. *+$35k in additional school loans

(Phase 2) Now I’m turning 18 and need to open up a credit card so I can build credit myself. *+$80/year in annual fees

(Phase 3) Oops, after they’ve emailed and mailed me a billion times to participate in reward bonus after reward bonus, I fell for the trap and charged up about $6,500 worth of things I can’t pay back.*+ $270/month in minimums

(Phase 4) I need a car but can’t save for a car and pay all of these credit card payments. I’m going to have to take out a first time buyers program for a loan on a car at 14% interest for 60 months. *+$450/month car note

(Phase 5) Damn, I’ve been paying on a used car for 3 years and haven’t paid off a quarter of the principal. Looks like I need to fix it soon. Luckily I have great credit now so I can just open up another credit card to pay for repairs while I scrounge for the car note at the same time. *+$150/month in payments for the new card + $50annual fee

(Phase 6) F*… I have at least $700 in debt payments making shit money. And thats before my student loans payments kick in later this year. I’m looking at $88k in debt …and thats if I paid it off all at once. Either way I need to keep afloat so I can keep my credit in tact for this mortgage everyone told me I need.

(Phase 7) They told me I couldn’t qualify for this mortgage before I got my debt (payments) to income lower so I refinanced everything outside of my student loans into a personal loan. What sucks is now the interest portion of that loan starts from scratch so I’ll be paying less APR but no principal whatsoever.

(Phase 8) Whew…$38k in debt payments and 8 years later I juggled my credit well enough to get this house! Woohoo! Since my credit is so great I didn’t put anything down but my closing costs.

(Phase 9) Cot damn these real estate expenses are tough to do with all this consumer debt and student loan payments. Didnt put anything down so my mortgage is thick AF. I’m two months late on the mortgage and a few payments late on everything else. But I have to keep up juggling these payments to avoid default. *+ thousands in fines, late payments and penalties each year on various debts

(Phase 10) Stressed out, pimped out and ready to quit. But I’mma make this post on Facebook about my 850 credit score and clown the #NoDebtMovement before Jarim deletes my comment.

Heres the truth of the matter:

You can find these so called “cost of having bad credit” images all over the place. But what people rarely ever talk about is the other side of this.

Truth is the person who filed BK early in these steps and switched to cash and investing (the BKF Philosophy) is infinitely more well off than the person depicted above.

Plus anytime someone charges you for something you know isn’t right (like a medical payment etc), you’re 5 times more likely to try to work out a payment of that item instead of the person who lives cash only that simply says…”report me b*tch”. lol

Renting a car like you’ve got some sense

“But I can’t rent a car without a credit card!”
Really? Reaaaally?
What is this 1978?

These credit card commercials really have folks jacked up in the head huh?

All BKF students do is travel and rent cars with debit cards.

In 2018 you have so many options its not even funny.

Option 1: stop renting like you’re a baby boomer. There is no good reason to rent from traditional car rental companies.

Use the Turo app (including my discount of $25 off your first rental. Visit www.bkfuniversity.com/referrals ). They’ll actually bring the car to you.

Use the ‘Getaround’ app if Turo isn’t in your city.

Use zipcar or cars2go for by the hour car rentals.

Use fair.com for a subscription service.

Use any of the other billion and one competitors that do the same.

But whatever you do, stop going to these wack traditional rental car companies while all these disruptors to old ways of doing things are cheaper, better and more accessible.

Option 2: Use uber/lyft and others and skip the car in the first place, save a ton of time not knowing how to get around a new city, paying for parking and not being able to drink.

This is what I do. Some of the worst surprises are having a great vacation and then getting parking ticket fees in the mail back at home from not knowing the ins and outs of the city you were trying to drive around in.

Option 3: But if you feel you must use traditional car rental companies like you’re a baby boomer, 4 out of 6 of those traditionally expensive car rental companies do not require credit cards.
Net-net:

You’ve got to live life saying “I refuse” in order to win at the constant sucker sh* that is thrown your way.
This is in every aspect of your life.
I mean if you simply allow folks to run all over you, just wait till you find yourself in a car dealership and the salesman is like “oh I’m sorry, the ad you saw on TV doesn’t apply to the cars we have here”
Like hell it doesn’t.

Ya’ll want to get sued for false advertisement in this piece?

http://www.ThisIsWhyYoureBroke.com