It’s Better to Drive an Old Car than Be Burdened By New Debt
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- เผยแพร่เมื่อ 27 ส.ค. 2024
- Is a new car or old better? Should you upgrade your phone every year? I once asked an economics professor what financial lesson he would share with the whole world if he could. His answer surprised me.
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"Anything that cost you your peace is too expensive." 😲 Wow!
"Anything that costs you your peace is too expensive."
That same principle can be applied to relationships.
Frankly, a used car costs me more peace. I've had both. New car brings peace. Old car brings stress. He has it backwards.
@@nofurtherwest3474 You are kind of right. Currently my 20 year old Mercedes is sitting in the parking lot because I've been trying to figure out the engine problem for a couple weeks now.
Though it was a reliable commuter for 6 years and has never let me down until now.
Definitely some stress involved, even if I gave it to a workshop they probably wouldn't find the issue immediately, but charge me for parts that wouldn't have to be replaced. I'm doing it all myself, so I can atleast send new parts back that weren't causing the issue.
So my point being: if you drive an old car, make sure you own 2 old cars, so atleast one of them works haha.
@@JohnKowalskyDrive I think if you have the tools and are handy then sure it would make sense.
But I don't have the tools or the know-how. No one ever taught me how to work on cars. I guess I grew up sheltered. My dad was ok with cars but for whatever reason didn't teach me.
Now you can get on youtube and learn to do anything though.
But frankly... what is money for? with money you can solve problems. with money i can just lease a new car and never worry about maintenance. i can get a new car every 3 years.
I grew up with always used cars and probably I'm a little traumatized by that.
I don't like spending so much time in the shop and you never know if the mechanic is honest or is ripping you off. I would just prefer to not have to deal with it at all.
@@nofurtherwest3474 Truth is many workshops have no idea how to diagnose a vehicle properly.(Me included, but I'm still learning)
So they will start replacing parts that were probably ok and charge you for it anyway because "it had to be done".
So yeah you pay your lease or however you finance your new car to have no stress with the typical old car bullshit. I totally get it.
Why buy things we don't need, with money we don't have, to impress people we don't know!! Insane. My only regret is not grasping this concept sooner in life.
Exactly. Even if you did know them buying something on credit you cannot afford is not impressing smart people it's impressing stupid people.
Yes, all this keeping up with the Joneses is the American way. Our entire economy is built around consuming things...anything. I always say to people I wish everyone driving a luxury or 200 plus k sports car should also have their total debt in bright lights in their cars.
If anyone wonders then this quote is by Morgan Housel
That was a lesson we had in grade school.
Well spoken
And I‘d like to add: try to impress people who don’t care at all for you because they are so desperate trying to impress other people
I had the pleasure of working with a retired marine as a fellow teacher. He always had a nice new truck to park in the parking lot. I asked him how he always had a nice new car. He replied, I am a horrible mechanic so when I first got my bonus for foreign tour I bought my first truck with cash. After that I have always set aside a car payment in the savings. I have always had cash for my vehicles. I have saved thousands that others pay with loans and interest. He said in fact I don't have a credit card. If I don't have cash, I go without. He said my wife stays home to raise our children. I'm close to getting my second retirement here at school. We have everything we really need or want. My dad taught me to pay myself not a bank or credit company. I thought that was inspiring and have paid cash for my last two cars, paid off my credit cards and recently paid off my house. It is wonderful freedom!
Q
He could of bought more property instead
@@jayc4715 Cars and property cost vastly different amounts. If he had bought property he can't afford, he'd be in debt, and he'd still need cars. I'd much rather buy a car I could afford than property I can't afford.
@@TC1Z2L3 by properties in talking rental properties..and ive bought them for less than what a nice used loaded pick up truck costs
I would put that cash in stocks and have the monthly payment on the car or buy a used car
My husband drives a 2004 Toyota Highlander with 185,000 miles and I drive a 2008 Toyota Corolla with 207,000 miles on it. We love our old cars and I dread the day I have to replace them, but when I do it will be paid for in cash as we've been saving since we don't have any debt. We've never asked the bank how much how we could afford. We raised three boys in our cozy 682 sq ft house that cost us $52,000 in 2007.
682 sqft house?????????????
No way 682ft. That is less than 30ft by 30ft.
Options now gone
@@Dustin-tt4gx easily doable. Modern people have no idea 🙄
I built an accessory dwelling unit bigger than that! OH my that is a TINY HOUSE!
My car is 11 years old and I see no reason to change it for a new one. It works!
Learn how to do oil changes and see if you leave no trace.
me too and it is the most reliable car I have ever had.
Keep it and maintain it. I have a 20 year old pickup truck. No payments, low insurance rates and easy to work on.
Exactly. I'm driving a primordial Toyota. It may outlast me.
@@poekiemanpoekieman9224 You can buy a Rolls Royce bodykit from China for $199, chicks can't tell the difference.
I have A 16 year old Honda. Paid cash for it. It drives nice, is low maintenance and I like not having car payments. I'm not rich, but I can buy anything I want. I just make sure its something I really need before buying it. Stuff does not buy happiness. Eating out does not buy happiness, keeping up with the Jones does not buy happiness. I am content to live simple. Walking my dog brings joy as I enjoy being outside.
Totally agree.
@@Carole616I own two Hondas. 21 and 19 years old
Me too! 2007 Honda Fit with 91,000 miles! Paid $6300 three years ago to tow it behind our old motorhome. Sold the RV but kept the Fit because I haul PINBALL MACHINES in it! Yeah the space in the back with the seats folded down is downright AMAZING. Anyway, it is probably worth more than I paid for it but I'll be giving it to my daughter once she starts to drive. Then I'll go back to my 2006 Tacoma truck I bought in 2007. I wish I learned about buying and holding onto reliable cars a lot sooner. Wife drives a 2010 Lexus RX350 with 115k two owner miles. Paid $12k. We will drive it 300k+ miles easy, that is what I got out of our 2003 RX300!
@@ttllW-lx5mi Honda gang rise up!
Yeah me too, Civic Type-R and Del Sol, both new condition.@@heyitsbroski
"If it costs you your peace, it is too expensive. "Thank you so much, Joshua!
I paid my car off two days ago!! No more debt, I'll never have a car payment again.
Wow, I bet it feels great.
I remember growing up in the 70s and 80s and the cars on the road were not always nice. There were a lot of beaters with a heater…now I’ve noticed all the cars are nice. Just makes me wonder how many people are in cars they can’t afford.
MANY, MANY!
Almost everyone. And the same is true with the homes people live in too.
@@totuudentorvi7781 I can remember in the 60's 70's 80's when people bought houses that needed some work, had 30 or 40 year old kitchens and bathrooms, and lived in them while they saved money to fix them and upgrade stuff. Now they go way deep in debt for fancy places built like crap
I drive a 20 year old SUV that has been paid off for a while, and I still can’t afford it.
At least a home has the possibility of keeping or increasing in value and often does. A car never does.
My daughter recently commented on our older van. I told her I love my paid off vehicle!!! She seemed to appreciate my excitement 😂
Good advice.... maintain your old car and drive it as long as you can
My old Crown Vic is fire engine red, 25 years old, 96,000 miles, paid off, and she runs like a new one
ohhhh...would love to see a picture of her!
I sure hope it runs like new with only 96,000 miles on it. You only drive it to buy groceries? I drive a 2007 Ford Escape with 196,000 miles. I bought it when it had 50,000 miles.
2000 towncar 122k runs like a dream
Those platforms are some of the most bulletproof vehicles out there. Too bad that American manufacturers have stopped making those types of solid, SIMPLE, “easy and inexpensive to maintain and repair” vehicles.
They were successfully used as taxis and police vehicles, many with absurdly high miles on them. Tells you all you need to know!
The newer ones with digital dashboards and instrument clusters are a totally different story! 🙄 I sometimes think they’re doing this on purpose (planned obsolescence!)
Ha, Ha, Ha, same here. I'm driving a 2003 Lincoln Town Car, very comfortable, reliable car. 5 years ago i bought it for $3500 cash, has cost me nothing but oil changes and gas. It's my 3rd. Town Car in 12 years ... $3500 was the most I paid for any of them. 12 years of Town Car ownership for about $10,000. Works for me.
"I'd rather live in peace with less than stress out with much" I love this quote from you❤
Cars are easily the single worst purchase made by most people. Not that it’s bad to buy a car - but because most people do it so badly. Fortunately doing it right can be done going forward. The single best way for most people to improve their personal finances is to just once pay cash for a good car and then drive the wheels off of it. This way on a small scale anyone can enjoy leveraging the savings to raise their standard of living. This is a powerful way to make a positive change. A lot of people think that living frugally means misery - what it does is to elevate your game.
In some countries there are laws against that, under the pretense of "caring for the environment" - after a certain car age (usually 3 years) you start paying costly road tax and will have to pass stringent inspections.
Like Germany and Japan, which also happen to have huge auto industry.
The total cost of a very small car for the owner and society is higher than the base salary in many European countries but governments, banks and corporations like the heavy taxes, high costs, and profit. The consequences on quality of living and city planning are massive and hard to quantify.
@@aristotle_4532 You do you. Owning a car is part of how I feel most people raise their standard of living for the access and opportunities of easy transportation. Its just that most people do it badly on the financial side and spend way more money than necessary. Get it right and avoid the drain of finance charges. Also learning how to do basic maintenance pays huge dividends, because the savings can be used for other purposes.
In 2005 my husband was shopping for a new work vehicle (company owned).
I was bored and looking around the car lot. Found one I loved but wanted a specific color.
Sales guy called the next morning as my dream truck just rolled off the semi.
Before I knew it I had a new 2006 Explorer Limited.
Still driving it. Just rolled 76k miles (I obviously obviously don't drive far).
We are good friends. It had some dings, but I am 74 and have a few myself.
Point is...I am perfectly fine with my old truck. I could care less about newer and better. We are good. ❤
I just stick to work save by things in cash. House, car, clothes, groceries whatever. Working great so far. I don't do debt. I mean you got 4 walls to stare at and 4 tires to get you down the road. Doesn't make it any different whatsoever if the walls are plated with gold or the 4 wheels getting you down the road are shiny or not. It's all the same.
I have a 2012 Honda crv. 172 thousand miles. Still going strong. My car has been paid off for the past 4 or 5 years and there is no feeling like having a paid for vehicle !! Thank you for your content Joahuq
Please excuse auto correct. JOSHUA
Had same car 16 years and still drive it without payments for over 14 years.
My Lexus is 13 years old and runs like a swiss watch. Over 200,000km. Buy a good reliable brand right off and it will last. What is yours?
Me too, haha 🎉
@@therichbuddha3277 Peugeot 207 😊 210k km, got it on a Kaufland reward game 😂
@@therichbuddha3277 I payed cash for a 5 year old Escalade 10 years ago. It’s still fine but I bought a beater car for going to work. First beater was $500. Got hit by a drunk so I bought another $500 beater. The Escalade is a stupid vehicle. If I ever sell it I won’t buy another one.
Driving a 19 year old Toyota Yaris with roll up windows; I’d rather spend money on travelling 💖
You did Well
Smart. I drive a reliable POS. I have yet to hear a good argument for getting a nice car. In fact, I WANT people to judge me on the car I drive. The people of real substance won't care.
Roll up windows😀
It's ok to buy a new car. I bought one in 2005. Still driving that new car. 250k miles. Many vacations. Drove it to work. Daily use. It was worth the investment
You're missing the point of this video
It is not an investment, it is consumption.
What kind of car is it?
Nicely done.
I don't understand how people missed the point.
You've been driving the same car for 19 years.
Bought new, maintained properly (assumed) and will continue until it needs replacement.
That's how you get value for money.
I am 76 and I don't remember credit cards being used as I was growing up. We did without until we could afford to purchase something in cash. I eventually did acquire a credit card, which is paid off in full automatically every month, so that I could have a convenient record of my purchases. I've bought all my cars for cash and kept them until their cost of maintenance far exceeded their value. I consider myself lucky that owning possessions to bolster my ego has never been a strong motivator.
This is the best episode yet. I have a Nissan Pathfinder 2011 that just made the 204,000 mile mark with regular maintenance and taking care of it. I plan on keeping it a very long time.
A word of caution: Don’t assume that keeping an older vehicle is always more cost effective than getting a different car. The older a car gets, and the more miles you put on it, the more expensive it will become to maintain it. You can offset some of the cost if you or someone you are close to is mechanically inclined, but there will still be a cost. Parts wear out and need to be replaced, including big ones like the motor and transmission.
So be careful, weigh the costs, and when necessary, buy a replacement. It doesn’t have to be new. Used vehicles tend to cost less, and you can get some that are in pretty decent shape.
Also, fuel efficiency of newer models is generally a lot better for the same class of car.
I learned this the hard way, trying to take care of an old f150 drove me insane.
"The straight 6 is legendary the truck will last forever".
That's not how it works.... All vehicles age and have problems and it just gets insane. Especially on my truck I would buy parts that would fail after only a short time. Constantly having to fix it, trouble shoot.
Plus if you live in an apartment how are you going to do major repairs on an older vehicle?
I think people hate on newer cars too much. They seem to think older vehicles all lasted 1 million miles without any repairs and I have extreme doubts on that.
It doesn't matter what car it is, once you get to like 20 years old, 200,000+ miles you are taking gambles.
Truly I think cars are mostly disposable. Buy a used car drive it as much as you can with basic maintenance if it starts giving you major headaches ditch it and find something else.
@@hhjhj393Cars are usually almost problem free for the first 120k miles. Past that, it depends on a lot of factors as to how much cost and trouble it will be to keep it going. I’m at 150k having done many very major repairs (DIY) in the last 25k miles and I’m pretty tired of it. I think one more year a most before I replace my oldest car. At some point it’s not worth the hassle and cost.
I got tired of paying for gas and repairs. I bought a Tesla to commute to work. I have not looked back. My wife liked the Tesla so much that she bought one as well.
@@mocheen4837 I did the same. Bought a model y last year and planning to buy a model 3 soon to replace our 2nd car. Tired of maintenance and slow gutless economy cars.
I have a 2003 Toyota Highlander, only one owner previously short time. Bought it at 50k mi. I'm retired RN now. Been only driver, kept maintenance up. Decided to do some expensive maintenance done, but, it goes and goes. 240k
Thank you for this video. I have felt the yearning to buy another car. My current car is 15 years old. However, I only have approximately 50,000 miles on it. And, of course, it is paid off...after watching this video and hearing your wise words....I ask myself why I would want another car payment? Nope....I am sticking to what I am driving...it takes me where I need to go and I don't have a car loan. Thank You again! This video came at the nick of time!
That's great! Every day you keep it is money in your wallet. That's what I'd tell myself to resist the pressure to "just get a new car." It's hard but it will become easier when you see how much money you save over time!
@@mariah3654 Thank You!
My 19 year old Honda civic has needed numerous repairs however it still costs me way less than a new car. It’s been paid off for a long time. Plus I don’t like or need all the bells & whistles on new cars.
That's what I have to weigh on too. Even if I am paying 300 a month in repairs, I'm still not paying 500-700 for a new car that I absolutely have to make the payment on. I don't see the point of financing a used car as the warranty is usually a hassle and the risk of breakdown increases even more. And newer cars are so expensive to repair when something does break.
That's how I think about my money, in terms of opportunity cost. So whenever I think about buying something, I think to myself, what if I invested it instead. And that usually stops me from buying luxury items, as 99% of them depreciate in value.
Opportunity cost is everything.
The only time I bought a new car was when I got a rebate of over 20K for it (2019 plug in hybrid). I still took a full price auto loan at 2.5% at 60 months, invested that rebate amount, and after 5 years, it paid for itself, and then some. Best deal of my life.
Just sold 22 year old car. New car is 3 years old. Hope this car lasts me 20 years.
If it's a Toyota it will . anything else..it won't
@@jayc4715 Tell that to 2022+ Toyota Tundra buyers. Toyota's churning out some junk lately..
@@Wyde_Boi still probably better than anything the big 3 makes
I had a 2001 for 7 years then I upgraded to a 2007 this year. I paid cash, now I'm not worried about debt with high payments. I'm debt free, it took me years, but it was worth it.
cars and bikes are passion for many people. In reality, anything works for commuting or road trips, from the oldest beaten up slow car to the latest exotic supercar. I prefer the cheap, uncomplicated, dented old cars because i can not bother about losing my time and mental energy being affraid to scratch it or being stolen. Your choices dictate your life and buying a car is sometimes a life changing decision (for worst most of times)
Perfect timing Josh! I was actually contemplating looking at a new car today. A dealership is running a special on a car I’m very interested in. I am debt free and have been setting aside money every month to purchase a car with cash. I don’t have the total amount yet and almost went off the rails and against my original plan, because the deal seemed too good to pass up, that is…until I saw your video. 😅 Thank you my friend!
Depende on the deal if you can get de discount now and pay off the car early can be a good deal
I have a 12 yr old Swift, still runs like a new one since I maintain it meticulously. Happy to sit and drive on it everytime, recently given a new paint job and feels more exciting.
Everyone can buy a new Car
Only Legends can run and maintain an Old Car
Thank you for the reminder that Less means peace & more leads to more stress. Appreciate your videos.
Best to teach our children these principles....
I have a 2015 Lexus RX350 I purchased new. With the pandemic, and retiring two years ago, it’s got under 80k mi. It was paid off four years ago. I will die with this car. It’s still in mint shape, has been dealer maintained all its life when due, and runs like a Rolex. Outside of regular maintenance, I’ve never spent a dime on it. I will die with this car, before I give another nickel in interest to another finance company. Being debt free and retired is the definition of freedom.
Good choice going with a Toyota. These things are reliable af!
My favorite is short and sweet: Just because you can justify something doesn’t mean you can afford it.
AND just because I can afford it, doesn't mean that I need (or even want) it.
I remember hearing if you can't afford two of something, then you shouldn't buy one of it. Helps keeps spending under control.
What timing. I recently purchased a used truck. It's an 8 year old truck but I can make it last at least another 8. Plus nobody really cares what you drive. The best cars are the ones that are paid off. I try to drive them as long as they will go. Also I get some new car smell spray and spray it in there and to me I get the new car experience!
So many people with lengthy car loans struggle to pay the monthly payment, then by the time the car is paid off, it's starting to need some of the higher maintenance items. They are led to believe by the dealership that it's better to just buy a new car. The cycle continues. It's really sad. When I travel somewhere and rent a car, the new features are really nice, but I have a hard time justifying getting rid of my old car if I can't pay cash for it.
My Jeep Wrangler lasted 20! I only retired it because I live in the snow belt and the rust got it…. It was working perfectly fine but could not pass inspection due to frame issues. A guy into building cars bought it and replaced the frame - a project with his son so he could learn about working on cars. 210K miles. Yes I bought another Jeep Wrangler
I like my older car. It has the hand crank windows which means in an emergency, I can roll down the windows to get out of the car. Remember the newer models are more computerized and more subject to computer and computer chip failure. The cost for a new computer chip is usually A LOT more than it would be to buy a different car.
The older cars are much easier to fix because they don't have a computer in them.
⭐️Remember⭐️ : Preventative maintenance goes a long way.
I love my old car - 32 years old with 286,600 miles. Paid cash for it. I knew I'd eventually need to replace it so I put away 100/month for years. I didn't need to replace it until it was 23 years old but it ended up just being the starter so I got that fixed and kept the car. My other car is another reliable Toyota, now 11 years old. I got it with a zero interest loan. And bc I already owned a Toyota,they gave me $1000 toward the down-payment 🙂
One good thing about living in a third-world country is that we are always going through an economic crisis so we think very much about where our money goes (electricity bill? food? etc.). But that doesn't mean we don't spend money without consideration. So the concept you bring in this video is necessary no matter where you live.
I was two payments away from owning my car when some young people decided it would be fun to steal it & go for a joy ride. It was recovered but had total damage so we were forced to buy another car. We bought a pre owned but have payments all over again & it wasn't our fault. Our stolen car was going to need some repair but was still in warranty & some non warranted items like tires were going to have to be paid for but would have been easily covered by having no car payment. Sometimes plans just don't work out.
Sorry to hear that
As I’m loading 10 boxes of stuff into my Jeep to take to Goodwill.🤦♀️🤑
Take the complete COST, not just the price, of that car (or anything for that matter) and divide it by the hours/weeks/months/years you’ll be working to pay for it. Then make your decision.
When I convert the money into time and effort I can more clearly see how much LIFE a I’ll spend for that item. Hope that helps you with your purchasing decisions. God bless.
You reminded me of my awesome dad. He owned a bread and pastry delivery business ( 1 truck ). 1 of 7 children raised off of my dad's hard labor. He put most of us through college as well, my mom sewed part time at home. I laugh when I think about his answer to us when we asked for something frivilous : " Do you know how many loaves of bread I have to sell to pay for that?" ( you can see by my spelling, I'm the only one who didn't attend college ). But, guess who's been debt free for decades. ( All of us ).
Take the complete cost, including the original sticker price, the cost of maintenance (which increases over time) and the cost of insurance. The overall cost of ownership for the life of the vehicle. Consider the advantages of enhanced safety and improved efficiency with a new car. If you do not know much about cars, you need a first-class dealership mechanic to look carefully at your old car to make sure it is safe. That can be expensive. The overall numbers may mean you should buy a new car. It is complicated.
2006 Ford Freestyle; 218,000 miles on it and still runs like a champ. Never bought a new car and never will. Bought this car for $4,700 like 13 years ago. Been out of debt since I was 36, I'm now 60. Paid cash for all my used cars. Run them until the wheels fall off of them. I already saved up $8,000 for my next purchase. Just don't know when that will be.
Because I can replace the ignition points, condenser, coil, spark plugs, their cables, the distributor cap and rotor, the fuel pump, the water pump, the radiator, and the oil filter, and adjust the timing and the carburetor all by myself, in my driveway, without needing a laptop, any special tools, or OBD... things. I take the to the shop for more serious jobs, such as replacing the clutch, servicing the hang-on air conditioner, or changing out the front strut dampers (which I could do myself if I got around to buying me a pair of spring compressors!) More than a dozen service stations in my neighborhood got me covered for oil changes and new tires.
You got that right. Stress sucks , peace of mind is bliss.
Love my 1978 Chevrolet Silverado truck. Drive it everyday.
I drive a '78 too. Paid for Pontiac Bonneville.
I can fully agree, with a hearty "Amen!"
In my younger self, 'want' never realized the years of finance charges & added charges...my dad taught me daily maintenance blooms years of dedicated service from an older vehicle, or our house too! Enjoyed your talk, I'm learning, still, at 68, hello from KY❤
My Nissan Sentra is from 2004 and has 200,000 miles. I love her.
I owned a 1987 Sentra that was literally one of the best cars I ever owned.
"Peace with Less" . 100% True.
Or just pay cash for a new car and drive it for 20 years - and counting. Last year we bought a second new car for cash - it will be what we use for travel/trips etc. The original car is now for every day running around. The key is never take out debt and buy something ONLY if you can pay cash. If you owe nothing, you can afford to build your savings/investments.
Netherlands/ Dutch here. I drive a Subaru Legacy from 2006. I paid it via a bank transfer. I bought the car in 2014. I bought that car because it is a good quality branch. We have yearly car checks here so your car is always in a good and save condition. It will cost but as much as on a cheaper (less well built) car. It has 315000 km on the counter. It has a chain so no belt driven engine. The chain has never to be replaced. And as my parents once said: don't buy nonsense items and keep your money in your pocket. And close the tap while. Rushing your teeth and shut of the light behind you. Use a bicycle instead of your car. Saves money and is good for your health.
I have completely gameified this concept. I'm a few months away from my CR-V's 250,000 mile anniversary with me - There were 70k miles on it when I bought it, and 320,000 on the odometer is right around the corner ❤
I have absolutely been pondering a new car. But I realized it was just the feeling or coolness, not the need. I will continue to stay car payment free until it’s an actual need and my car conks out on me. I would rather save and work towards debt freedom.
Wise words.
I purchased a brand-new Honda Civic Del Sol off the lot in 1993 and still drive it daily. Cut down on the wants and concentrate on the needs. Sounds boring but keeps you out of financial trouble.
In our neighborhood, in front of a house is parked (not in the garage) a Tesla passenger vehicle, a Tesla truck and a new Ford Bronco. Combined, these vehicles could've bought the house they're parked in front of about 3 years ago. Wowsa!
I Love my 2003 honda accord 4 cylinder I basically can fix the entire car but what I Love is the parts are in demand when you go to a dismantle place I have a huge list to choose from or online there is a long list to choose from and the parts are cheap, 87 octane 👍🏼 fits everywhere
I drive a 2002 Toyota Camry XLE with 236,000 original miles on it. Runs perfect. Body good. Bought it 6 years ago private sale. 22 years old and no car payment.
Most cars these days can last 300,000 miles and more with regular maintenance and occasional repairs on things that wear out like brakes and tires. And they can be extremely reliable. Having a new car is no guarantee that you won't have a breakdown. The cost of frequently trading vehicles is second only to trading homes. Do yourself a favor. Keep your vehicle as long as possible and enjoy tens of thousands of dollars in savings. And drop full coverage insurance if you are a safe driver and save even more. My current daily driver is 14 years old, has 270,000 miles and is a pleasure to own.
Yup, modest house, modest car. Mine is 10 years old, impeccably maintained and looks the part. Everything paid. My wife's car needed replacement last year, but she opted for a modest car and we won't lose sleep over the costs of that.
I stopped trying to impress people long time ago.
I sold my gas guzzling Acura MDX 6 years ago because I was spending $260 per month on gas. This was when gas cost half of what it is today. I ended up buying a Tesla Model 3 Performance. I liked the car so much that I purchased the stock. I ended up making $200,000 from the stock purchase. I essentially ended up getting the car for free.
I drive a 1995 Toyota Corolla XE. 1.3 engine. Low maintenance, and cost friendly. I also have a 2020 Honda Beat 110cc. Both help me with good income. Never been better.
My 2006 Ford Focus has 230,000km on the clock, runs well, parts are cheap and i can service it myself. Insurance is almost nothing. It's so nice having no car debt ever again.
This is spot on. This should be part of high school and college curriculum every single year, and there should be a test on it, and you shouldn’t be able to move on, until they get an “A+” on the test.
Wise words. Older cars are simpler to repair and most small jobs can be done by the owner eg changing a fuse. On a lot of new cars you have to take off the plastic cover on the wheel arch to access the fuse box
I upgraded to a dumb phone. TCL flip phone and see the latest iPhone selling for $1700 at Costco. I paid $89 dollars for mine.
We always pay cash on vehicles - no matter what - for this very reason.
Doesn't cost nothing to walk up to a rose and smell it
So many people seem to be proud that they paid “cash” for their car. If you paid cash, that means you haven’t invested that money. Depending on the rate of interest on your car loan, you could get a better rate by investing the money. It’s an easy decision to just pay cash and it’s the less risky option, but done right, you could be better off financially by not doing that.
2009 Ford Crown Victoria here, 154k miles, running excellent…
I have an 89 Jeep, a 98 Jeep, an 06 Tundra, and a 14 motorcycle. 60 yrs. old and have never had a car payment. Own our house, are debt free, and are the millionaires next door.
Still driving my 2005 Mini Cooper and I love it!
Peace of mind doesn't necessarily come with not spending money on something. I purchased a new car in 2017 because I like to travel by driving, and I travel alone. I didn't want to purchase a used car because the chance of breaking down on the highway is far greater. So far in the 7 years I have had the peace of mind when I get into the car and take off that I won't end up stranded on the highway. I will continue to drive this car as long as it is a reliable mode of transportation.
Same! Mine is a 2017 Dodge Journey (base model) that now has 110k miles and I’ve had zero issues with it this whole time. What are you driving?
@@shawnadams1693 Honda CRV. It has only 65,000 but they are 95% highway miles. I love the fact that it practically drives itself and at 79 driving for 8-10 hr. stretches can be tiring. I set the lane assist and cruise control to keep me two car lengths behind and all I have to do is keep my hand on the wheel and watch the traffic. As long as the lines on the road are visible it drives itself. I also love the apple play to use my phone for navigation. Never again will I drive a car without backup cameras, blind spot indicators, and a warning when backing out if something is coming.
It’s totally true.. Not being anxious whether you’re gonna break down somewhere is the best feeling.. Although ironically my 25 year old beater car doesn’t give me this anxiety and my newer Mercedes gives me because it’s too complicated
@@georgebushisntcool I purchased a Honda CRV and couldn't be happier with it. I got a full 8 year warranty ( 1 yr. to go) and never needed to use it. They also gave me a 20 year 200,000 mile warranty on the drive train. In 7 years there is only 63,000 on the car. By the time I get to 20 years I will be in my 90s, God willing.
I totally agree!! Our 2010 van, which we bought in 2013, is still going strong!
Agree...hardly anyone understands opportunity cost. Yep, opportunity costs are more than financial. I continue to argue with tax accountants, who live for tax avoidance or no tax, the ROTH promoters. They let opportunity cost miss that by hundreds of thousands, the compounded tax deduction value over 30 years or the ravaging of a no tax benefit value due to inflation over time or dying prematurely, only the USA government were happy you paid your tax early. I can't get through to these people.
to anyone reading, ive been car payment free for about 7 years, recently got an nice used acura rdx. paid cash after trade in. it is soooooo nice to be able to pay cash and not have a monthyl payment. trust me, start low, save money, be smart with money, and realize that being debt free, besides mortagage/rent, is liberating and lets you thrive financially!!!
I have 2 trucks, one is year 2000 , another 2005. Very cheap to maintain, the simplest electronics and the most important, are totally paid.
I drive a 2008 Honda CR-V with 330,000 miles on it. Works great (although I am a mechanic, so that might help). It looks fine, is extremely reliable, and transports my family and my expensive bicycles that are worth more than it. People always tell me that my family needs a newer and “safer” car, but can never explain to me why that is.
It’s one of the most wasteful things I can imagine spending money on. It makes me cringe whenever someone tells me “well I can’t afford $2000 per year to maintain my old car, I’ll just buy a new one” That’s never going to be cheaper than maintaining your old car. Unless you have something truly horrible like a Geo Metro or a Jaguar/Land Rover or something.
I have never owned a new car. Have a 2012 Chevy sonic. Used, paid under 7,000. 5 speed. 5 years owned so far. Hate computerized cars that are out there. Hope to make it last longer than my ptcruiser ( ten years).
I drive a 1999 $2500USD Daihatsu that gets 42mpg. Its affordability makes me
happy every time I start it up.
100% agree with this. I make good money but haven’t had a car payment in 15 years. Sure, my ride isn’t fancy but it’s reliable. I event do most of the repairs myself. Every month without a car payment to make is a gift of peace of mind to myself.
Driving a 18 year old Focus.
During a move I damaged the car cosmetically, which I didn't mind at all. However, I realized that if I had a better car the damage would have resulted in costs and annoyance for the week.
I don't drive, so I've never owned a car. With the money i saved not owning a car, i was able to buy a house and pay it off. Whenever i mention this, someone inevitably points out that a house costs so much more than a car. My response is "are you sure about that?" Add up everything that you spend on your car including gas, oil, taxes, insurance, traffic tickets, parking, maintenance, repairs, etc. Take what you spend on your little gas guzzler in a year and divide it by twelve. This is what your car is costing you every month. Could this be a house payment on a modest home? Could it be a significant portion of a house payment? If you're still renting, be sure to also add your rent to the total. Honestly, even if i was able to drive, i wouldn't want a car. They just seem like a lot of trouble and expense and I've managed to get through life without one.
That economic article your friend chose to write should be mandatory in every school; our society would be so much better, financially.
There's nothing wrong with buying a new or nearly new car! It's a great feeling, no matter how much you earn, as long as you buy a car that's well within budget.
I see so many video's about how a car is a burden on your finances it infuriates me. If i didn't have my car, i wouldn't be able to see half of my family, take my boys out to place's nor have as high an earning job.
A car brings independence. It's essential for living in the modern world.
What isn't essential is buying a $100000 Mercedes. A new or nearly new $20000-$30000 Toyota, Honda or something similar will be your companion for a very long time as long as you look after it properly (that goes for anything).
The key is not to keep swapping cars every few years. Buy something that's dependable, safe, economical and hopefully something you find fun or joy driving around in and then keep it going for as long as you can.
Im from England. There was nothing stopping me spending £60k+ on a car, but i didn't. I got a £18800 Suzuki with low monthly payments over 4 years, low running/maintenance costs and 7 years warranty. Its also very nice to drive and ticks all the boxes i need in a car. I plan on keeping it a minimum of 10 years and then I'll reassess.
There is nothing wrong with buying a new car, just make sure you do it the right way!
I pay cash for new cars and drive them for 10years or more. I haven’t had a car loan since the 80s. Commitment to zero debt is the best thing I’ve done for myself.
Completely agree!
You buy new? Sell than after ten years? And then use the trade-in for a new car? Why’d you pick ten years?
At least 10 years. My current car is 12 years old. We put a lot of miles on them. We can well afford it. We live beneath our means and save a lot. We don’t need to live like paupers though. When we decide we want a new car we trade in the old and pay cash for the balance. Don’t really have to justify it do I??
Oh I’m sorry. I wasn’t asking you to justify. I was asking for clarification - just to make sure I read your comment correctly. Sounds like “drive for ten years” isn’t some math that you did on the best time to trade-in. It’s just more like “when we feel like it.” Correct?
@@JoshuaBecker Yes. I understand the question now. No offense taken
Thank you so much for this video. The lessons learnt here are so important and seem to be almost drowned out by the numerous videos offering excuses as to why a person can’t afford the basics of modern life.
Priorities of what’s important. My son saved his money and paid Cash for his second hand car. It’s been a really good one. My car that was given to me and I love -Debt free. Praise God.😀🙏🏻
Being debt free means a good night's sleep!
Amen!
Biggest problem with driving old cars is safety, new cars always have better safety, improved crash test ratings. Your life is worth something. And driving an old car has a bigger chance of breaking down on the road, trips to the mechanic.
This comes in handy. My wife said she wanted to get me a nice watch for my 40-th birthday and it threw me into mental torture chamber.
Of course I would fancy a nice watch, but I have enough watches already to last me a lifetime and I am not sure if I could look at me in the mirror knowing I have a lavish watch. It's not that we cannot afford it, but I keep thinking the money could be better used and that it could produce a nice return if rather invested in the stock market.
But the worst of all, the thought of how much peace of mind it would cost me (maintaining, protecting, worries) makes me sick.
Thank you for such important lessons for us to learn and follow. My car is 16 years old. It's time to replace it. I'm torn between buying a brand new car or a newer used car! I enjoyed not having car payments for years. I have saved up money to be able to have a decent amount for downpayment but the car prices have gone up so much the past couple of years. 😮
I bought a 5 year old Toyota in 2018 and it’s lasted me till now but about time to replace it. Wishing now I would have bought new so I’d have 5 more solid years to drive it. Used means replacement sooner. From now on, I’m buying new so I can delay the replacement longer next time.
Well, regarding the car, I think it depends on who you are.
Driving an old car can be stressful and expensive too. You never know what will break next time and how much that will cost, and yiu never know when it will break down and spoil your plans.
Here in Denmark, the authorized mechanics charge ~100 $ per hour, and the parts are pricey too. The Danish car owners association made a calculation some years ago. The conclusion was that the cheapest way to own a car for the average owner was to buy a new car and keep it for 6 years... and that is despite that cars in Denmark are heavily taxed (buy one, pay for 2)... and then you'll have a reliable car with very few repairs for 6 years
If you can do some of the maintenance yourself and know the signs of something that needs to be fixed soon, the old car is a good idea, but otherwise, probably not.
But what I found to be MUCH cheaper is to simply not have a car. I have a good e-bike, and then I use a shared car whenever I really need a car ☺️
This message/video is so fu**ing dope, bro! I've listened to it like 10-12 times in a row, taken notes, and shared the link with my friends. It's not that the information is brand new. It's more about the: organization, presentation, and timeliness of it for me. THANK YOU
Our Miata is 32 years old and run s well. Our 2011 Jeep is doing well. Both were bought used.
Wow!
I love my 2004 Honda. Replaced the brakes last week, on my driveway, with two sockets, a jack and a Phillips screwdriver. Cost me £80. It’s looking like it’ll hit at least 250000 miles. I can’t imagine how stupid you’d have to be to take out a loan on a depreciating asset.
I drive 2007 Toyota Prius 45mpg. Great ducking car. Got it for 1,700$. Fixed some stuff for 700$
I was just telling someone that the only thing that feels better than a brand new home is one that’s paid for. Same goes for my car.🔥👏🏼👍🏼
I drive a 24-year-old Toyota Corolla. It's a reliable and comfortable car that helps me save money and enjoy a comfortable lifestyle.
Our bank approved us for $230,000 mortgage. My real estate agent was bummed out we only bought a $197,000 home. Agent insisted we could get more home! But we were set we only needed what Agent called “starter home” 😆
Yep, banks hate when a customer puts more money down than they need. = less interest for them.