A money-saving idea for the crowd that can’t afford an electric vehicle

Buying an electric vehicle is the obvious solution to the problem of high gas prices. But what about the problem of high EV prices?

You can learn all about electric vehicles as an answer to the high cost of gas in the latest episode of our Millennials and Millennials Stress Test Personal Finance Podcast. We’re not afraid that electric vehicles can cost significantly more than vehicles with an internal combustion engine. But one of our guests is a 24-year-old who owns an electric vehicle and is saving money.

Government subsidies for electric vehicle buyers can help reduce the cost of buying these cars and SUVs, and high gas prices help the economy of owning them. But what if an electric vehicle is still out of reach, even if you’re crushed by high gas prices?

Here are some great tips from one of the guests on this podcast episode, Robert Karwel, an automotive industry expert at JD Power: Buy a fuel-efficient car instead of an SUV.

JD Power says the average price for a new vehicle was around $44,000 last month. Fuel-efficient cars can be had for $25,000 to $27,000 or thereabouts, plus taxes and miscellaneous dealer fees. Electric vehicles are in high demand right now, making it difficult for buyers to get a deal on price or financing rates. Cars may offer more leeway to negotiate the price down, and you may also find more reasonable finance rates.

The auto industry’s answer to affordability is to allow customers to finance loans for seven years and more. For a tutorial on the financial risks of long-term auto loans, check out a recent article by my colleague Erica Alini that had the following title: She had a $29,000 loan for a $16,000 car. How auto financing gets Canadians into debt.


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Rob’s Personal Finance Reading List

Down with the boot houses

A critical look at the idea of ​​buying a first home and then moving on to something bigger. The author is Benjamin Le Fort, author of a book called The Financial Freedom Equation. Worth reading as the real estate market is slowing down.

The best metal cards

A new trend in premium rewards – credit cards are made of metal instead of plastic. Lots of power to earn points, but annual fees of up to $700 per year.

buffet on bitcoin

Revered billionaire investor Warren Buffett says he would pass if offered all the bitcoin in the world for $25. Now for a balanced look at what is being described as Mr. Buffet’s crypto blind spot.

“When you have children, your house becomes a big toilet”

Tips on how to clean stains left by your kids on expensive items like rugs and sofas.


Questions and answers

Q: I read tips for selling bonds and transferring that money into GICs to take advantage of rising interest rates and deal with the bad bond market. As someone who hasn’t retired in 20 years and keeps 25% of his RRSP portfolio in bond ETFs, is the advice still valid?

A: What you are doing makes sense. Continue like that. The GIC alternative to bonds offers a big advantage right now: guaranteed investment certificates don’t lose value when interest rates rise, unlike bonds and bond ETFs. When interest rates come back down after peaking, bonds and bond ETFs will rise. Plus: If you add money bond ETFs now, you’ll be able to lock in today’s higher returns

Do you have a question for me? Send me. Sorry I can’t answer each one personally. Questions and answers are edited for length and clarity.


Today’s financial tool

The best free retirement calculators, as compiled by the My Own Advisor blog.


The cashless zone

I just stumbled upon this nugget: Ride your ponyby 60s soul singer Betty Harris.


look at this

The Canada Deposit Insurance Corporation explains how it now offers separate coverage for up to $100,000 of deposits in Registered Education Savings Plans and Registered Disability Savings Plans.


Tweet of the week

The headline of a recent Globe and Mail editorial on raising the age to start receiving Old Age Security: Sorry, Grandma, we’re cutting your benefits. Retired financial planner and commercial banker answers: “Yes (said grandfather).”


In case you missed these Globe and Mail articles on personal finance
  • Canadians are going into credit card debt again
  • Some new owners lose money. With rising rates, tenants could see rent hikes
  • Politicians Are Selling Us A Housing Myth: More Supply Will Be Our Salvation

More Rob Carrick and Financial Hedging

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