Accelerate Spend/Car Shopping (4/10/25)
It's official - this previously nameless weekly newsletter will now be known as "The L.A. Dimes" and may have a different look & feel moving forward. I welcome your feedback on the changes as they're rolled out and hope you all keep your eyes peeled for future editions in your inbox each week!
Immediately after sending last week's edition of this newsletter, I saw an article in the Wall Street Journal about people rushing to buy in anticipation of higher prices. This week we're going to talk about why you shouldn't do that. (but also my best car buying strategy below just in case.)
Accelerating spending is one of the most dangerous things you can do from a budget perspective. The concept of accelerating spending is when you buy more now than what you really need or plan to. Sometimes this happens because we're not careful, but in the spirit of looming tariffs, many consumers are doing it intentionally. To set the stage, there are many Americans concerned about the rising cost of goods ranging from groceries to clothes to cars. Some think that making large purchases now, before the full impact of proposed tariffs are felt, will result in a lower price tag and they'll come out on the other side feeling brilliant because they paid maybe a little less for a purchase than if they had waited to buy it. Here's why, in most cases, that doesn't make sense…
First, many people are buying items that they may not otherwise be purchasing in the name of savings. If it's not a foregone conclusion that this is a purchase you would definitely be making in the next few months, you're not actually saving any money. It's like walking into a store because they're having a sale and buying something you weren't otherwise going to buy, and then telling yourself you saved money.
Second, we don't fully appreciate exactly how these tariffs will impact the prices of the individual goods you're looking to purchase. Even if these tariffs are implemented (and based on the rapid and inconsistent decision making in Washington, who knows what even next week will bring) policy changes can happen at the drop of a hat. Keep in mind that you could be spending based on assumptions, not certainty.
Third, consider the likelihood of harder economic times ahead. Feeling compelled to go to Lululemon and stock up on leggings because of tariffs? Or fill your fridge with Guiness or Kerrygold butter? Before you do, pause and consider your priorities. if we find ourselves in the middle of a recession 6 months to a year from now, how are you going to feel about the money you spent on leggings and beer this month? If the purchase still seems prudent, go for it. But it is good practice to ask yourself before you walk to the register or click ‘buy now’ “How am I going to feel about this purchase in 30 days?”
Now all of that being said, some of you could still be in the position where a big ticket purchase was already in the cards, so what do you do? When it comes to cars specifically, I am a strong believer in buying vehicles and holding on to them as long as possible. I rarely recommend a lease, or frequently upgrading. But if you do happen to be in the market for a new car, here is my best advice for getting a great deal on that purchase:
Decide on exactly the make, model, color and features you want
If you’re a Costco or Sam’s Club member, get a price from their website. If you’re not, ask a friend or family member to let you use their login just to look at prices. Often these will be highly competitive, but compare to what you see on some local dealership sites, too.
Create a burner gmail address to avoid getting buried with spam messages.
Email every dealership within a 90-mile radius the car, color and options you want. Tell them the price to beat. Make sure they’re all copied on the email so they know it’s competitive.
Wait for an attractive offer to come in.
If you have a vehicle to trade in, get a quote from Carvana in advance of going to the dealership. Now that you already have the sales price of your new car in writing, use the Carvana quote to negotiate a better trade-in deal, saving money on both sides of the transaction!
Not bad for putting in an hour of work!
Wishing you good financial health.
