Roundup #55 đ„±đ
Which EV is currently the best value, should I trade or replace my car that needs a repair, what are the top things to look for when buying used, should I buy a BMW X3?
Welcome to The Boring Gay newsletter where I cover topics including the gay experience, career, money, and cars. In this edition, I answer car questions from my IG community.
Question 1
Iâm on waitlists for multiple EVs - which EV do you suggest right now for the best value?
Lex: If youâre in the market for an EV, things are heading in a more consumer-friendly direction. Tesla recently dropped its prices on popular models (like the Model 3 sedan and Model Y SUV) after seeing sales slow down through the holiday season. This prompted Ford to drop prices on its popular Mustang Mach-E. There is another reason price drops are happening as these companies try to fit within the confines of the pricing required for consumers to be eligible for EV tax credits (which is in major flux right now and only applies to certain models assembled in the U.S. and for consumers with certain incomes). That said, the best EV values based on price and range right now are going to be the Chevy Bolt and the Hyundai Kona EV (both with electric ranges in the mid-200 miles and prices in the mid $20s to low $30s). Beyond that, you get a bunch of options that are very close in terms of range, features, and price, but you will be closer to the $40K mark and why should you pay that much when youâre not getting more range than the Bolt and Kona already offer?
Question 2
I have a 2018 Honda Civic with 45K miles and a solid crack across the front windshield - should I trade or replace?
Lex: You sound like me in my 20âs - âmy car needs an oil changeâŠbut really, shouldnât I just trade it in?â Haha - no shade. Replacing a windshield is definitely a bigger financial commitment than an oil change especially since the cost is often less than your insurance deductible and just expensive enough to be annoying. That said, the 2018 Civic is a very reliable and nice car that will easily serve you for 200K+ miles with very few maintenance issues. I would definitely replace the windshield and hang onto that car for a while. Depending on when you bought it and whether you financed or leased, your interest rate is probably much lower than what you can get in todayâs market for a new car. So youâd be spending more to get less. And honestly, youâre not going to get much more feature-wise in a 2023 model than a 2018âŠitâs not that old. You might not have Apple CarPlay, and thatâs easy enough to get if you upgrade your sound system at a Best Buy for a few hundred dollars. Redirect the money you wouldâve spent on a new car towards saving or investing so your money can grow.
Question 3
Can you give us the basics of what to look for when buying a used car?
Lex: This is a great question. The first thing Iâd consider for a used car is reliability. While you can often get a great deal on a luxury car, itâs because those cars are very expensive to maintain as they age and they can be a huge financial mistake. Stick to reliable brands like Honda, Toyota, Mazda, Hyundai, Kia, Subaru, Acura, Lexus, and others to ensure the most life out of the car for the least amount of maintenance cost. Sometimes a used Honda Civic might cost just as much as a used BMW 3-Series and it feels counter-intuitive to buy the HondaâŠbut the Honda holds its value because it will last much longer and cost you less to maintain.
The next thing Iâd look for is a model with a certified warranty. Used cars can be a mystery (even CarFax reports can miss accidents and issues if owners donât report them) and I recommend buying a car from a reputable dealer that offers either a manufacturer warranty (I.e. buying a certified Toyota from a Toyota dealer) or at least their own warranty (I.e. places like CarMax offer car warranties). Another trick to remember is that certain cars (usually less than four years old or under 50K miles might still have their new car warranty that transfers to any future buyer, so you might not need a certified warranty if the car youâre buying is pretty new).
Depending on how old the car is and how many miles, you want to consider big-ticket maintenance items like tires, brake pads, and brake rotors which are usually the biggest costs. If a dealer says they just changed the brakes or put on all-new tires, thatâs a huge plus. You also want to make sure youâre getting the best deal - look for brands that have offers on their certified used cars (I.e. Toyota might say weâre offering 2.9% interest on every certified model) - those are usually the best deals price wise and youâll also get that coveted certified warranty. You can also try to shop around for car loans with banks on your own instead of using dealer financing - just get a few quotes and go with the best offer. Your credit score only gets dinged for one inquiry if you do all of your credit applications in a short span of time.
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Question 4
Thoughts on the refreshed BMW X3 M40i?
Lex: This is a truly stunning car. The refresh in 2022 brought new headlights, taillights, grilles, and small trim and mechanical changes. The X3 M40i offers 382 horsepower and 365 pound-feet of torque via a turbo six-cylinder engine and starts at $61K. I love BMWs and have owned two before so my first thought is to definitely lease this car if youâre going to get it. Owning a BMW long-term is a financial commitment that most owners donât want to make. In five years or so after your BMW looks old and better models come along, they are just as expensive to maintain (if not more). Beyond that, I personally would hesitate to spend $60K on a performance-oriented gas SUV when several EVs can match or top its performance for the same price or substantially less. You can definitely get more torque in some EVs even $20K less in price. Personally, Iâd get a Kia EV6 GT with 576 horsepower and 545 pound-feet of torque - they look and feel futuristic, are similarly luxurious on the inside, have the latest tech, and offer plenty of space for the same price. And youâd also be saving the environment and plenty of gas moneyâŠjust saying.
Lexâs Plugs
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Investing:
With markets down, Iâve been leaning on my Betterment Cash Reserve account. This is a high-yield savings account that you can withdraw from at any time without penalty. Betterment is offering 4% interest on Cash Reserve accounts. Iâm also continuing to invest a fixed amount into the stock market every month via Betterment. Although I donât expect near-term returns, buying into the market when itâs down helps boost long-term gains. You can email me for a Betterment referral code for investing fee credits.
Iâm also continuing to invest into my Fundrise real estate account. While I donât expect near-term returns, my lifetime return on Fundrise has been 9.7% since I began investing in 2021. Fundrise is designed to be a long-term investment option. I have referral codes that will get you $50 just for creating an account. Email me for the referral link. Note: I am not a financial advisor - these are my opinions. Do your own research as all investments involve risk.
Comment of the Week
In response to my post on the constant assumptions made about queer people:
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