Mortgages! No! Lets talk buying Car's!

We know it's hard to buy a car in today's market. And for our Labor Day Special, we're going to talk about how to go about buying a car in today's market. Advisors Mortgage Group is proud to present in these real estate gurus hosted by Rick Ripma, the hard working mortgage guy, please contact Rick for all of your mortgage needs at HardWorkingMortgageGuy.com That's HardWorkingMortgageGuy.com. Now, here's the hard working mortgage guy, Rick Ripma. Hi, this is Rick Ripma, your hard work and mortgage guy,

and I'm Ian Arnold with Advisors Mortgage Group. And again, if you want to catch our last episode, which was really good, go to Indys Real Estate Gurus, podcast, and you can find that on all major podcast and listen to any of our past episodes.

Or you can go to our website HardWorkingMortgageGuy.com . That's HardWorkingMortgageGuy.com . And can you contact us from there. But you can also listen to our podcasts right there. And the new new podcasts are generally up early the next week. So we'll get that up. You know, so next or Monday, Tuesday, it should be up and available if you want to listen again to today's

show. All right, Rick. So what articles are or what numbers caught your eye today?

Well, you know, there's a lot of numbers out there. And the basics I thought we should talk about is what's going on with mortgage rates. And maybe a little bit of why but not we talked about why a lot. But what is going on with mortgage rates. So today's this this week, has not been friendly to mortgage rates. No, it has been a tough week, mortgage backed security bonds have have gone down. And when they go down, it pushes mortgage rates up. The weird part of it is is that the economic news that we're getting hasn't been that good. It should have been helping mortgage rates and yet it has not helped mortgage rates. So you know, it's just one of those things, there's still the thing that you have to keep in mind is that mortgage rates are still phenomenal. And you know, I wanted to talk about something I saw this mostly it was it was an investor who was talking about it. But I thought this really does also fall in place for mortgage rates. So as humans are predisposed to straight line their future expectations. So we think when mortgage rates are going down, many borrowers and loan officers see their good fortune continuing unabated, they think rates are gonna go down for ever, and they're gonna stay down forever. Did you see that last couple of years?

Yeah, I mean, a lot of people were saying, Oh, we're gonna go lower or lower. Even our customers were at 2%. And people are like, Oh, you think it'll go lower me? And we're like, really? How much lower? Can it go? But still people still the anticipation? Can it go lower? Right?

And not I kind of go lower, some people would wait, you know, hey, I know that rates are at a record low, and I can get whatever, but are they gonna go down under to her, they're going to be at one and a half? Well, you know, that's what people that's human nature. Conversely, when mortgage rates are going up like they are in today's market, many borrowers and loan officers can't see rates ever going back down. It's the doom and gloom. It's just how people are and both assumptions are wrong. Correct. rates, rates, if they're going up, will eventually stop and go back down. And rates that are going down, will eventually stop and come back up. I have seen this over and over again for over 30 years. That's how it works. Just know that's how it works. So in that if you're looking if you have a house and you need, let's say you need to cash out for that consolidation, or you want to do some fix up on your house, and you you that's the best way to get the money, it still could be the best way to get the money, even if your current mortgage rate is in the twos or threes. or higher. It could make sense. So it's just one of those things you got to look at don't just get caught up and what the mortgage rate is right now. So I just thought that was very appropriate, because I've seen it so many times. And it's it happens in everything we think we tend to see whatever's happening today is happening forever.

Yeah. I mean, it's just like you said just another way, we're just so short minded. Basically, we only see to our hand. We don't see the wall. 50 feet ahead.

Yes, that's exactly right. And the other piece of that, I think is something else we can look at now. This could be the opposite. Right now. We've been seeing appreciation on our homes. going crazy, correct? And it's it's still going crazy. Year over year? Well, it was year over year, we were at 19.9% annually. Now we're only at 18% annually nationally. Oh, wow.

No, no, no. 18, 18

That's it. Um, as incredible. It is, that is an incredible number. But we knew it would slow down some it has to, it's too high. And I know that sounds stupid, but it cannot continue to at those levels that has to come down. And it came down from the previous month over month it went up 1.6%. And then I think this is June, it was only point 6%. Still, point 6% is almost 7%. Year over a year over year. That's just the month. So we had we had a lower month in June. I think we'll probably see that June and July, maybe even August, because the market really, really slowed down as far as houses on the market.

Yeah, I mean, we somewhat knew that was bound to come August, when you get closer to August, it does slow down quite a bit. And that's what we've talked about last few months is housing, you're gonna have an influx of houses on the market, because of the summertime the school time, but now as you get closer, and I know our data is usually about a month off, but you have to realize as it gets closer, I mean, this is basically it's September now. So it is time just flies. But so we're about to get August numbers we're getting at July numbers.

Those are June numbers. That's the latest of Aalto. Some of them are way behind. But you're right, most of our numbers will be either July numbers or or a lot of them will be August numbers, but we won't get the August numbers for a few weeks. Correct.

And so you're not going to see it. But this is just what we're telling you is it was going to start slowing down. And it's just the the nature of the ebb and flow of a year round calendar.

Correct? Yes. And you know, what we saw is an increase in homes on the coming on the market. But now that stopped. Okay, we always see it's what happens every year we see it come up through the spring. And then as when you get into the August timeframe, it comes back down. Usually it's August or September, it comes back down. It's lower. And so we are not seeing as many homes on the market. I talked to a real estate agent. I think it was a couple days ago. And they were telling me that they've they it's amazing how few homes they're seeing on the market. It's really tough.

Even our guru, Jeremy page, he mentioned the when we had him on a couple of weeks ago that it is starting to slow down a little bit. He goes but houses are still selling they're selling within a day to two days or three days. I mean, so keep that in mind. I mean, it's not like calluses are sitting for six months, like they were five, seven years ago. I mean, maybe a little longer that but I mean, that's what you have to look at is it houses are still selling that quick. You have to be ready.

Yes. And good houses are selling very quickly. Yeah, Jeremy said he had one, the one he was talking about sold immediately. You know, this, this timeframe is still under 30 days. It's ridiculously short. And the good houses are selling very quickly. If you have a house that's overpriced. If you have a house that needs some work, if you have some of those issues, then you can see them. They don't sell as quickly. But good houses are selling quickly. And it seems like in that lower price range. A good house really sells quickly. I mean, just more people can afford it. Yes, they can. So you know now that the last numbers were Case Shiller case, Shiller is like the gold standard of of the appreciation numbers, they really are, are the most accurate. Normally FHFA has also put their numbers out. Now these are a little different, because they're a conventional lender. And so this is conventional finance times. This is you know, that's the information that they get. And they they showed that the houses increased 16.2% instead of the 18. Again, that's, you know, it's not it's not counting as many houses and the all the different price ranges. And it only went up by point one nationally. But, you know, the whole area is still doing pretty well. And the whole the whole country, some of them are showing, you know, a little bit of less, they aren't going up as quickly but they're still going up. And that's what we thought would exactly what we thought would happen is prices would would moderate some they would they can't continue at that at that very high rate. The with that. Do you want to get on to

Oh, so you'd like learn how to buy a car To date, yeah, well,

you know, I'm a car guy, and I can't I mean, this is an exciting one for me. I like I like cars. I like everything about cars. Now I spent some years, you know, selling cars. And I was a general manager of a car store. Yes, old cars. Yep.

And I manage a car lot and too, but the the big thing is, and, and not to make a big point of this, but your age difference, compared to when you bought and when you bought your first car, compared to if somebody is looking at buying a car car today. It's like, sales night and day. I mean, they are, it's totally different. And some people who are loved to buy cars and my cars all the time, they, they see that people who do not if you bought a car seven years ago, and you're looking at buying a car today, it's a totally different market. It's a totally different way to look at things, you've got to do things differently. Things that had value, then are valued differently. Now. It is a weird thing. So I know we're coming up on the break. But when we get back from the break, how about this, we'll go through how to buy a new car, how to look at your trade. And then we'll also still get into even if you're looking at use car what do you do?

Advisors, mortgage brokers licensed by Indiana Department of Financial Institutions equal housing opportunity. NMLS 33041, Rick Ripma and MLS six explore.

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All right, so now it is time for

now it's time for

questions with the gurus. The question of the week is brought to you by our reducer mortgage, with the price of everything going up. Call us today to see what we can do to help you reduce your payment to help out your bank account. And this is a big thing with as much as we've talked about the inflation and everything's going up people need some people need a relief, whether it's interest rates, or whether it's with the with just having a little extra cash, call us we'll set up a thing and go through every your situation and find out what sounds best for you.

As the reducer mortgage is like an inflation fighter, correct, right? That's that could be we just have to look at it. And a lot of people will use it for a variety of things they can pay it, you know, like you said debt consolidation or, you know, maybe they want to do some work on their house, whatever it is that they want to do. It's a great way to do that.

Alright, so last week's question was what rock group consists of four famous men, but none of them sing. Mount Rushmore.

Yeah, I'm gonna tell you I'd never got that. Come on. My mind doesn't think that way. You said rock group and I'm rocking like rock group as like I'm gonna be looking for all these people who don't sing, just play. You know, just Play the you play the music instruments there you go to play the instruments. All right, I'm getting old. I don't Yeah, my memory is not all that it used to be.

All right. So the new one is, I make a loud sound when I'm changing. When I do change, I get bigger and way less. What am I find out next week? What question of the week? Oh, that's

a good one, too. Okay, Rick.

So somebody's out there right now and they want to buy a new car. What is your first advice for him?

Well, you know, I can tell you what I do. And I think this is I think the first thing you got to do is as you're driving around, look at look at the cars that are going by, you know, look at the cars in the parking lot, look at look at you know, and what, and try to narrow down what it is you want at least narrow down do you want an SUV? Do you want a car? Do you want a truck? You know, what is it that you're that you're going to want? And and then and then also as you look at those, you might be able to narrow down? Which Which company, you know, vehicle you like the best? And you have to decide what's most important to you. You know, is it? Is it the quality of the car? I think most vehicles today are high quality vehicles. Yes, I would agree. They're okay. I think they're gonna last a long time. They're not going to have a ton of problems. You always get some some knock on wood when you buy. Yeah, but you know, I mean, they're not like when I was when I started out. It wasn't like that a car if you did, if you got a car that went 100,000 miles, you are doing great. Today. 100,000 Miles is nothing is nothing. It. The cars are so much higher quality. The other day I wrote a friend of mine came over and he has a 64 Corvette. And so we took that for ride. What a great car fun to ride in. But you know what he said? I can only drive it for about half an hour and I can't deal with it anymore. Yes, take it back and go get his other car.

Yeah. The suspension is different the rides ever. I mean, you get into some of these newer cards. They just ride like a dream. You barely fill the road bumps and road construction, potholes. You just keep going

minds that way. My car you and you hardly hear anything. Correct? It's I mean, it's they're quiet. The other thing I like to tell people, especially my kids, you know, it's because I love old cars. We go to a lot of car auctions old Meachum some of the one up north near Fort Wayne, we go to Auburn, that's Auburn and gone to Florida for auctions gone all over for auctions. And I really like old cars. But I'll tell you what, I don't like when you you know back in the day, you'd go out you turn the key, and the car wouldn't start. Yeah.

It drives you crazy day. But I'll do that. But it's hard. It's it happens less frequently.

Yeah, doesn't happen hardly at all. I mean, if you maintain your car today, I'm not that it can't happen. There's still cars on the side of the road, but nowhere near in the volume. That just doesn't happen anywhere near as much cars are better made. And some manufacturers at least have the reputation like I really think you know, there's certain cars like Toyota, I think Toyota makes a very good car. I don't drive a Toyota. I have had them. But I dunk today because I wanted something with more power and more sporty. And it works for you. It works for me.

So but so let's get into how you found the right car. So you're a new car dealership. Let's just and you're going in there and you want to buy that new car. What do you do? Well,

first, first thing I'm going to do after I look around at all the cars out there on the street and everything else, and I'm going to start then I'm going to go online. And I'm going to look a lot of things up online. And then I'm going to go into the dealership. First. First I'm going to know whether they have what what I want.

And how often is that right now for new cars.

It's not a ton. That's you know, that's the thing. I did it yesterday, just to just to kind of play around. So I looked at I was looking I have a BMW and I was looking at another BMW. And they've had they had one on the lats wouldn't be exactly what I would want. But I went looking to buy one I just tried to play around. So I look at it online. And I know what they've got. But you still don't know if it's gonna be there. Correct. It could sell or it may not a lot of times they're showing them there. So when you go to the lot, the car may not be there. It may be on its way in. It may be a few months before you can get it. Now that tells you something. You don't have a whole lot of negotiating power when they don't have any cars

supply and demand. Right. I mean, I mean that's I mean, I drive down 96th Street which if you're not from Indianapolis area, that's basically car alley. I mean they're from Allison Ville to Keystone Yep. I mean, there's umpteen car lots, barely any other businesses just car lots, but you You don't find you don't see new cars? No. So if I was driving through and I wanted to buy a new car, guess what, they're not going to move too much off. Because not only you want a new car, but a 10 people behind you want a new car to?

Yes. And that's and that's the thing that they know they can sell the car, there's very few cars that are when not sold when they get to the lot. And sometimes they have it only because somebody said they were going to buy it, and then they didn't, you just have to get lucky. I've had friends who've done that. So you just have to know you're not going to get a whole bunch of money off the car, sometimes you might get lucky and get a little bit off. I mean, some of them they want over list. Yep.

So in my my words of wisdom there, if you've done your research, and that's a car for you, then don't don't lose the car. Over a little bit of money. I mean, if you're at a 10 grand difference, alright, that's a different ballgame. But if you're at $1,000 difference, really, I mean, payment wise is roughly 20 bucks a month. But so don't lose, don't lose your car. Because you're stubborn that you must have a discount. Because there is a way to get make more money. And that especially is when you have a trade. When you have a trade, a new drive down into these car locks. What are they all saying we buy cars is because they can't buy cars. So guess what, you can take your car to three or four places. And I highly recommend this and see what offer they will give you. Because guess what, then if you then get a high offer, let's say somebody offered you 10 grand for your car that was the highest one but the dealership that you want to buy the car at, they're only offering you eight, well guess what? Hey, this place right here, here's here's it in writing, they want 10, I can go over there and sell it to them. Guess what, they're more likely going to come up on theirs. I've got

some who don't ya, some won't somewhat. But the other thing you have to remember is when you trade it in, you don't pay the seller sales tax. So it's an offer an offer from the dealer, you're trading and then could be lower and actually better for you. So just know that that's the case.

Yeah, in the state of Indiana. And I say that because we do have the podcast state of Indiana, when you trade a car and you get sales tax. So if you're buying a $20,000 car, your trade is 10,000, you only pay taxes on 10 $10,000. You don't pay it on the difference

between your trade and you're in the new car. The other the other piece that you have to look at is you know, so you find the car, and you you know you're going to you can't really negotiate on the on the price of the car that you're buying right now you can a little bit possibly, and use cars kind of the same way you can negotiate some use car, I think a new car, and I can't believe I'm saying this, I think a new car is a better deal right now right now than it exists a used car. So I would shop new first doesn't mean you're going to find what you want in a used car. And that's not going to be your best option. But a lot of times, I would definitely look at the new cars. But you also it's the financing, I would go in with financing already shopped car, so I know what I can get on financing. Yep, if I'm going to finance the car, so the dealer is going to want the financing. But they may they may give you I've had them do this, they give you a better deal, because you already have it in place. And they have they want to beat the deal that you already have.

And especially when it comes to new cars, a lot of the new cars have the incentives like through Toyota or Honda, where they'll do 2% interest or even 0% interest for some for some amount of time. So sometimes they do offer that great, but it's always nice to have in your back pocket. Well, my local bank gave me 3%. Again, I'm just making up percents here. But it's nice to have that in your back pocket.

They gave me x can you you know, can you beat? Can you beat that? Or I'm just gonna go with them. And so that is that is a great way to do it. I think I think you gotta be prepared. But also know, when you go, you know, the fact that they have incentives, I'm changing topics here or I'm changing back. The fact that that they have incentives is a way you can get something off because the manufacturers I don't know why but they still haven't done it.

Yes. Well out of them. It's the whole thing though, is they still want you to buy their car over Toyota

they don't have a car once they have no cars. So want you to buy their car over a Honda they want so they might incentivize a little bit better than their competitor just to get you in the door. Let's just say you took out all the incentive till you took all the incentives out. But Honda kept there's some of those people that are Ify and are not let's say brand loyal might go to Honda. Oh, they're getting $500 off. I'll go there just because of that, yeah, but then that's what supply and demand. I think it's I think it's habit. I think that that's what they've always done to me, I'm just guessing but anyway, it's it is one of those things so you want to shop not only the car, and you know, right Right now you really can't negotiate, you might be able to negotiate a little bit. I, my brother in law bought a bought a Toyota. And he got $500 off. I was shocked. I didn't think they would give anything off because it was actually a car that we had been ordered and people backed out on it. And he just happened to be right there and bought the car. But hadn't he hadn't even arrived yet. They backed out as it was shipping, probably found something else and bought it. And he went ahead and did it. They gave him some money off, which I was surprised. But you know, I guess it's like anything, it's hard not to if you just want to sell the car and you got the person there. So you can try to negotiate a little bit, negotiate on your financing, bring your financing with you.

Correct. And then we talked briefly about used cars, we'll get a little bit more into it. So about 15 years ago, when Carmex started, they started this no haggle thing. Well, guess what? A lot of the dealerships have turned into that. So if you do hear that, guess what? It's not uncommon for used car dealerships to not and to say, hey, look, we just don't haggle period. And this is why I was saying it's a little different from back in your day, when it was a lot more haggling.

It's hard for me to buy a car.

You even when I was in the industry, you don't realize I talked to people that were in their 60s and 70s. And they were like, I just don't buy I don't buy cars at sticker. Well, how about this? I'll give you $1 On my pocket. And there you go. Because we don't haggle. I mean, you can't do that some dealerships just so you know. But when I ran it, I mean, it was a little different. But there are some dealerships they might do other stuff for you. They might add a backup camera, they might be able to try do something, but there's not a lot of wiggle room, like there was in the back day where people would just spend all day Saturday, hey, let's go down and hit all these lots and get my best deal and spin all day. And they made it a whole circus. Nowadays, people don't want that. People either buy their cars online, or they go in they know exactly what car because they've reached it researched it online. They called it Hey, is that car available? Then they come in and they test drive. If they like it, they buy it. It still takes too long. Yeah, everything takes too long. It's not McDonald's. Yeah.

I mean, the big dealerships take too long. Not all of them. But

I will tell you big dealerships because I was looking for my specific car, and it took longer. And I'm like, I know this process. I work at a car dealership. And it was funny and how long it took me there. And I'm like, You guys aren't even busy. How was it taking so long? And it's just I think they want to make it big game?

Yeah, I don't know. You know, it's it's a tough, it's a tough thing to understand. Because I don't understand why they would make it that way. But it certainly can end up that way.

Now. I hate to do this. I mean, we could go on like this for hours. Maybe we should have done like, three, three series special or something. But we are coming closer up to the break right now the break. I mean, I guess a break for a week but

break for a week. Breaking for a week.

Yep. So I know you got one of your really good gurus coming in next week

is an insurance guru Simon Saphan. He's the agency owner of goose head insurance. And I tell you what, he's he's extremely knowledgeable in insurance. And we're going to talk about flood insurance do you need it even if you aren't in a flood zone? It's and there are reasons that you might so it is definitely something worth listening to. We're gonna talk about a lot of insurance but that's that's the focus I wanted to to focus on. Again, we thank you so much for joining us today.

I'm Rick Ripma, your hard work and mortgage guy and I'm Ian Arnold with advisors Mortgage Group.

I wanted to leave you with this teach your kids self confidence and how to be happy with themselves. Everything else follows those two skills. Have a great week. Branch NMLS number 33041 Recruitment NMLS number 664589. Ian Arnold's NMLS number is 1995469 equal housing opportunity, some restrictions apply?

Well, first off, thank you for joining us, Danielle. I appreciate it. And I just was curious, how did you come to find out about Rick Ripma and advisors mortgage? Well, I was looking for a mortgage for myself for a brand new home that I was building. And I wasn't sure the direction to go. I didn't have anybody in mind. So I kind of just spoke to whoever I could speak to. I got their number and everything seemed to be exactly what I was looking for. So I went with them. The thing I liked the most about Rick and his advisors mortgage is that I could go and upload things online. And I didn't have to always be on the phone with them or sending them documents or trying to look for certain things that I needed to get the process going. Which is really great for me. I had a processor named Mark Coleman who really helped me out in making sure I had everything I needed because I I didn't know the first thing about having a mortgage so it was awesome to have so much help. I think probably what I've benefited from the most is really just the understanding that sometimes I would get this And maybe I forgot to upload a document or I forgot to do a certain part of the process in a timely manner and they would get right back with me. And it wasn't like a, hey, we really need this right now. It was always, Hey, just wanted to make sure you still remember that we need this. Well, you don't get that too much in this day and age, it seems like most people are either, you know, very demanding of something they need from you, and they need it right now. And, and I agree, I've seen that in Rick's attitude with us over over the last 10 years that he's very patient, but also helpful to get the right things he needs. So exactly. In conclusion is Rick Ripma and advisors mortgage, somebody that you would use in the future and or tell your friends and family about? Absolutely. And I just want to thank them for all the effort they put in to help me find my dream home.

Ranch NMLS number 33041 Recruitment NMLS number 664589 equal housing opportunity, some restrictions apply. I'm Rick Ripma You can go to hard work your mortgage guys.com