hi, everyone, welcome to on the money. i'm becky quick. if you don't want to rent, lease, or buy, guess what? there's a new way to get a car the subscription service that says it can save you money mortgage rates are the highest they've been in years. you might know her from buffy, now sarah michelle gellar is cooking up something new for your kitchen how to find bargains, where to go and when to buy. it's not breaking news, but news about breaking. the business that's a smashing success. on the month starey starts righ.

>> announcer: this is on the money, your life, your fur you too. now becky quick. we begin with a new way to pay for a car. instead of buying with a five-year loan or leasing with a three-year commitment, there's a third option it's called auto subscription and you pay as your go >> melissa andre loves her posha boxer but she is an event planner while she's on the road. a monthly auto subscription through this start up called fare >> for me it kind of makes sense to able to move for a chunk of time and not worry about giving my car back or finding a home for it. >> reporter: auto subscriptions or a huge change for an industry where millions typically pay for

their car through auto loans or lease deals. that usually meeans a monthly maimt payme payment for several years. now automakers are seeing this they can generate more business by offering the ability to lease for a shorter period of time >> it's as easy as getting a new phone. >> fare offers month to month subscriptions for thousands of used cars and trucks. >> americans are already at a place where we understand that we pay for what we want to use, and that idea that the car say service and that it doesn't have to require this big burden of debt. >> reporter: that's one reason why melissa andre is happy to have her porsha but not the big loan that would pay for it over 5 or six years. >> it's as easy as get ailing cell phone except it's a car. >> it has 5 million subscribers

with many of them making their money driving their vehicles for a ride share company everyone has to put down a deposit but they can end their subscription when's they want. a new way to pay forgetting a new set of wheels. >> well, you probably pay by the month for a netflix but is it a smarter way to pay for a vehicle too? scott painter is the ceo of fair and thank you so much for being here. >> thanks for having me again. >> we just heard from phil that this is something that a lot of uber drivers are using who else are your use centers is it fair to say it's millennials who are doing this >> early adopters, folks who are just getting started in their life in getting a vehicle or maybe building a family, but it's really important for this ride-share economy and the gig economy where nearly half of those drivers wouldn't qualify for a traditional auto loan, so today they end up renting a car at nearly twice the price.

>> who are you taking market share from is it the car rental places? the dealers themselves who are trying to sell cars themselves or lease them to them? >> all the cars that are in the fair app are located on dealer lots we partner with the dealer and so this represents a sale for them we enter into an agreement with you as the driver to subscribe to that car. >> that's where the cars are coming from, from the deerp dealerships already. you're looking for cars without a lot of miles. >> we're looking for one to six year-old cars that have low miles and are in great conditions. >> how do you actually make money? >> we actually own these vehicles and when we buy the vehicle, we enterer into into n agreement to use that vehicle. you pay month to month the car comes with a warranty,

standard roadside and maintenance so you can get the car with confidence and peace of mind. >> the average monthly payment is $350, that includes the warranty, it includes insurance, it includes all the hassles and you can walk away whenever you want >> the after range fair user is spending about $360 a month. the average ride share driving is spending a little bit less. but it represents an all-in monthly payment and then the insurance, the collision and liability, what you would otherwise have to do to get a car on public roads, all of that is a little bit extra. >> it sounds like a deal that's too about goode to be true because we're not talking about payments that are out of whack and being stuck in a car for three years. is this a profitable business for you? >> it is and the reason we're able to make money at it because we understand today what a car is worth using data you've got a huge market in the used car space you've got 40 million used cars being sold in the united states alone in a year. and we have absolute clarity

what a car's worth based on the vin number we can see mileage, repair history and understand what it's worth. >> how scaleable is it >> what we're seeing is that we'red it in 25 major u.s. cities, about a dozen states by the end of the year we will be national so 25,000 are subscribers are on the platform and it's going mainstream it's becoming an alternative to going out and getting a car loan and going into debt to buy a e deappreciating assets. mortgage rates are getting pushed higher too. the 30-year fixed rate home loan crossing 5% for the first time in seven years diane is here with what that could mean if you're in the market to buy, sell, or stay where you are.

what does this mean if you're looking to buy a home right now? >> it means it's going to be a lot more expensive than it was maybe two months ago we all say that mortgage rates are at historically low levels, and they are but the difference between a 4% and 5% rate is sizeable. people don't buy the rate, they buy the monthly payment. say for example you take a $300,000 mortgage and you look at the difference. over that rate the one percentage point increase will cost you 1 eight dollars per more if your loan is bigger it will cost even more millennials are the big buyers in today's market, they're first time home buyers and that's going to knock a lot of them out of the market. >> it's bad news for buyers but probably but news for sellers too. if you're in the position for selling your home you're going to have to agree to pay less because more of that money is going to pay to finance the loan, right? >> absolutely. we're already seeing price cuts among sellers.

the sky is no longer the limit like it was about a year ago we were seeing bidding wars, prices sky rocketing now sellers are saying our buyers cannot afford as much we're seeing the demand in buyers falloff a lot over the summer seeing sales slow down and homes sit on the market longer if you're a seller and want to sell it quickly, you're going to have to underprice a little bit, cut down from those high prices that we were seeing again just six months ago. >> what are the higher rates right now? does it mean that people want to get on the move and move quickly before things go up even more? >> well, for those first-time buyers who are coming out of a rental, yes, they want to get in now because they're afraid rates will go higher if you're talk about the moveup market, that's a conundrum because if you're thinking about moving to a bigger house or somewhere fancier, you're giving to be giving up what's a 3.5% mortgage trading to over 5% mortgage rate. that has a lot of potential

buyers who own a home staying put and deciding to renovate we're seeing a big growth in the renovation market because people don't want to move out of that very low interest rate they have locked in. >> thank you very much >> sure. up next, we're on the money. buffy takes on betty crocker how sara michelle gellar plans to disrupt the baking aisle. and how to avoid holiday haas until your tlafravel, we he the tips and the deal. right now how the stock market ended the week

you may know her as buffy the vampire slayer, but these

days sarah michelle gellar is slaying a different kind of beast. it's the baking aisle. she turned on foodsters, that's a company that mixes sustainable and organic ingredients for kids thank you for being here. >> thank you for having me sbr for those that don't know foodsters, what is it and why did you come up with it? it seems like a different line of work for you. >> it's the most sustainably farmed baking ingredients on the planet i can say that comfortably it's a big statement it came from a bunch of different places initially it was inspired by all of ow children, my cofounders, we all have children, not together, although i think these days we probably raise them as if they were all siblings. but you see this transformation in the supermarket right now you're watching the perimeter of the store, organic, nongmo, better ingredients, farm fresh, direct source. but when you go in the center of the supermarket, you realize

that it's quite antiquated and the ingredients that are in these things are whether you live 20 minutes from whole foods or 200 miles, you know we're not supposed to be eat so far us it was about providing a comfort food that you could feel good about eating because of the i ingredients and the price point. >> you yourself, you were doing things with your kids and want god out and start baking s >> not initially i'm a born and raised new yorker so i was used to making reservations but it's about connections and we live in a society with news 24/7 and our devices what are those moments where we put everything down and you make eye contact? they say that the young generations don't know how to hold eye contact anymore because they're not used to it you realize it's about food, it's the great equalizer. >> you looked at these >> we were going to have a play

date and the kids wanted to bake they were inspired by all of the shows on television. i looked on pinterest and felt completely overwhelmed and thought that's way past ny skill set. when i went into the grocery store i was seeing 80% of these legacy brands that had been around when i was a child. why is there red dye in a yellow cake i've always been a big believer in moderation. i'm never going to be that person that doesn't want a treat. >> how do you go from having an idea and wanting something when you're already in a busy career and think i'll just make it myself. >> i think what the world has shown us now with a great ytd a -- idea and determination, you can do it yourself >> this is a business that you're engaged in and engaged in every day. what's the toughest part about it that you didn't anticipate? >> in the entertainment industry there's so many different people

around to take the fall, to have ideas, to help fix this. and with the start-up it is just you. when we started it was just the three of us and we had to do these e-mails. i legit probably couldn't have sent an e-mail when we started but i had to learn it. i had to learn how to html code. don't worry, we've since been successful and we vorth people th -- have other people that can do that now. but when you're the ceo you're the person that cleans the toilets and everything. >> thank you so much for your time. >> thank you. >> we appreciate it again. sarah michelle gellar and the brand called foodsters up next we're on the money need a vacation but don't want to break the bank? we have the best deals for your dollar this hol say season. and you may feel more relaxed after working area frustrations out here. check it out ♪

♪ i'm in love with you ohhh ohhh ♪ some things are meant to be together. get the new iphone on xfinity mobile ask how you get xfinity mobile included with xfinity internet so all you pay for is data. and now get $200 back when you buy a new iphone. click, call, or visit a store today. welcome back, everybody. had low we halloween is around the corner and while goblins and ghouls may be scary, airfare may frighten you even more. we're going to talk about the prices with the traffic director of traffic and leisure thanks for being here today. >> thanks for having me. >> it's the middle of october, i don't know how we wound up here.

but you say if you're planning on going for the holidays and haven't booked your travel, it's not too late. >> you can still get a good deal on your airfare for christmas but you shouldn't wait any longer come november 1st that's when prices increase dramatically. >> are there specific days when it's the best time to travel >> there are you may not want to hear this, but the best day to traditionally fly is on the holiday itself flying on thanksgiving morning, christmas morning, that's when people don't want to fly thursday november 22nd for thanksgiving is the most returnable and then a return on the following wednesday. >> you've got to stay that whole week >> if you want that best airfare. and then christmas, leave on the 18th and then return on january 4th. >> you have kids in school. >> and some other tips and tricks, we like to say the early

bird gets the worm book the earliest flight in the morning, it's that 5:00 a.m. flight, 6:00 a.m. flight, nobody wants to get that up early but those are the most affordable out there. >> how about book the hotel? >> i like to call the hotel myself it's the holidays, people want to hear your story, call that up hotel, maybe somebody will say hey, we have a suite, we can upgrade you. they might alert you to a special deal that the hotel is running. >> sound pitiful, maybe that will help. if you want to get away for the holidays, are there places you can go for deals >> a place like charleston, south carolina, this is one that's won world's best awards in art and lieeisure travel, th is heading into their slow season and it's a wonderful place to go. i've been many times it's got great food and markets.

there are beaches nearby, many historic sites this is a good time of year because, again, it's their slow season and they have more hotel inventory. and then i also like nashville, tennessee. there's so much to do in the music city from the restaurants and shops and you can see the country music hall of fame, the grand ole open pray. >> thank you so much it's great to see you. up next, a look at the news ahead and if you need to work out some frustration, guess what we may have just the place for you. >> it's the business of breaking things when we come back

here are the stories coming up that may impact your money this week. tuesday is the anniversary of the original ipod. it was introduced to the world in 2001 with the slogan, 1,000 songs in your pocket on wednesday, we'll get new home sales numbers for september. on thursday, the durable goods numbers are released those are items intended to last at least three years and the federal reserve's beige book is out. that's a report on the economic conditions around the country. on friday we'll get the first reading of the third quarter gdp. and friday is national pumpkin day. have you ever wanted to

smash something out of fl frustration or just for fun? now you can. here's the activity that's all the rage. >> reporter: there's a new business in town, the premise, breaking stuff people are spending money to come to places like the wrecking club in new york city to let out their rage and have a good time. >> man. >> reporter: you get dishes, laptops, monitors, tv, furniture and we set up a room for you and you can go nuts. >> you ready to break stuff? >> i'm ready. >> reporter: tom daily, the founder of the wrecking club is a former accountant. he quit his day job, sold his car and invested all his life savings to start this business. >> couple house rolules and the you can go nuts. >> reporter: he says he's never been happier. >> i do end up doing more

aitting can work now, but the numbers mean more, you know. i mean, the work means more. >> reporter: and business is flourishing. >> we have a package that starts at 25 bucks and then we have pack ables that start at around $250 and the differences are how many people are in the room, how long the session is for, what stuff comes in the room. >> reporter: from family get-togethers and corporate outings to bachelor parties and first dates, the concept has caught on quickly. >> we set up the room for them what they do with that room is up to them it's their time. >> one of the biggest challenges of running a business like this, the junk it's surprisingly difficult to source mass quantities of electronics and furniture that don't contain toxic chemicals. >> supply is hard. supply is difficult to get especially in quantity and at a price that works you know, supply is a difficult task. >> reporter: daley buys his junk

from a network of third-party vendors. i decided to check it out first hand i admit i was a little nervous i'm okay i don't need break anymore stuff. the wrecking room is one of several of these companies doing smash rooms and the concept seems to have started originally in japan in the 1970s. >> a lot of this makes sense to me, but first dates? are you kidding me >> it's a create tiff wive way u with somebody. as opposed to a dinner, drink, movie, whatever. >> clearly that would be a red flag to you. >> yes, run away was it cathartic? did you love it? >> you're trained not to break

things so i'm like to do i really want to do this i stopped early and let the camera people and producers and say it's time for you to break some stuff i'm good, i did it for a few minutes, i get the point. >> you passed the test. >> yeah. >> were you exhausted. >> i was wearing all the suits because i was thinking i don't want any glass getting into my real coat so i'm going to completely cover up and i was pretty sweaty after a couple minutes. >> thank you, wrecking ball. >> thank you. that is the show for today i'm becky quick. next week it's open enrollment time how to make the smart choices for next year's healthcare costs. each week keep it right here, we are "on the money. we'll see you then bye-bye. .

i'm here on this expiration friday and while they're doing that, here's what's coming up in the show >> investors are anxiously awaiting to see if tech earnings could save the rally but dan nathan says, watch out another wreck could be coming. he'll tell you how to protect yourself plus. >> food fight. >> mcdonald's has been eating the competition's lunch for the last few months. and the chart master carter wolf says the