@@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.
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!
@@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.
I own three cars. A 2014 Mazda 3, a 2008 Mazda Miata, and a 1990 Mazda Miata. All bought new and paid off for years. I drive all three regularly. They all have purpose. I enjoy driving them. At age 74, I am debt free and live on my Social Security. My only financial worry is keep in my energy use down. So I keep my 1100 sq. ft. rental house at 60 deg. F in the Winter, and 78 deg. f in the Summer. No hardships endured. I sleep easy at night. My secret; Happiness is an illusion. The secret to enjoying life is contentment. I live by the credo: The grass is “not” greener on the other side. Works for me.
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.
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.
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.
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.
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!
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.
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
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.
@@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 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.
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.
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.
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
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.
@@ki-ka Buying a new car and using it for a very long time can be cheaper than a different option. A car is a capital asset that depreciates, but different cars depreciate at different rates.
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!
Very well put ... thanks for the message. Opportunity costs is one of the $ principles that have stuck with me for more than 3 decades. It made me able to retire 20 years ago at 38. I feel so blessed to have learned it at a very early stage in life.
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)
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.
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!
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
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.
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.
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
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. ❤
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
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.
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❤
I started down this path of buying older reliable rust free Toyota vehicles for cheap about 25 years ago, and it has worked well for me. Even after I factor in repairs and maintenance I am still saving tens of thousands of dollars when compared with buying new or newer vehicles. My current work truck is a 2002 Tundra that I have driving since 2003, and my newest Tundra is a 2007 that I bought in '17, I drive it for fun and have it available as a back up work truck for when the '02 needs servicing. Sticking with the manufacturers maintenance schedule for 'severe service' is the only way to keep them going & going
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
Nice one, just pay attention to the cooling parts, pipes and flanges. Change oil above manufacturer's recommendation and you'll be golden. 2004 Audi here and still keep on the fast lane.
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.
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.
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.
I bought a 2020 Honda Fit. I made the last payment today. My intention is take care of it till it no longer functions. I still love it as much as the day I bought it. I know financing is not always the best way, but at the time it was my best option. The best used cars cost almost the same. Today I drive by dealerships and see prices on used cars that boggle my belief. It gets great mileage and I only work 3 miles from home. So, now My plan is to increase savings. I am going to up my 401k withholding which is pretty significant already.
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.
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.
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.
@@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.
Im 70 now. I've got enough, if anything I'm asset rich and cash poor. All my life I have tried to only buy things I can keep that includes education ( not always institutional often how something works so I can repair it) Most of the stuff in our house is second hand and a large amount of it we have had for longer than I can remember. We cook 99% of our meals, eating out is a treat not the norm. I enjoy life and I don't miss a new car, I've had 2 in my life, they cost heaps, depreciate quickly and modern ones are almost impossible to fix so why would I bother all I want is something that is reliable. You are right and I was told the same thing when I was younger, probably one of the few things I actually listened too :)
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.
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.
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 ❤
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.
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.
There can also be stress with constantly buying old cars worrying if they can get you from point A to point B. The constant stress of fixing them and getting towed can add up as well. Buying a reasonable vehicle and maintaining it is key because nothing is a free ride. I now have used and a slightly new car I try my best to maintain both because buying new is no longer an option with prices rising.
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.
Amen, brother, you said it well. My father, may he rest in peace, taught me this when I was a little boy and I've lived by it ever since, and can say that it served me and still serves me wellI. So much, that I've taught it to my wife and our offspring, But, I fear that most viewing this video will not listen or do as you allude to, which is a shame. Thanks for sharing. Cheers.
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.
I enjoy my 1999 E39 528iT. It has 268,000 miles. It gets daily compliments from strangers. I have had it for twenty years. It is kept in my garage. I also have an E39 530i 2003 which I bought five years ago for five thousand dollars. I have spent five thousand dollars on it yet I believe it is money well spent as neither of them is currently depreciating.
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!
I own an 11 years old Toyota pick-up truck i bought brand new in 2013. It still works and runs flawlessly, but I miss the added comfort, convenience and safety of the newer models. I could change it for a new pick up truck next year, but I hesitate thinking I could maybe give better use to the money needed as in vacations for instance. I will keep thinking on it.
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.
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.
I drive my W 202 C180 MB, bought new in 1999. I use it as my daily drive and now has 222000 kms. I had it painted after 23 years and looks fabulous (aspen green)...Most kms are made in city of Athens Greece heavy traffic. Of course it is regularly maintained and drives as new after 25 years.
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.
….When i Retired 2 yrs ago .. I Decided to purchase a Reliable -well built vehicle for Traveling . I bought a New 2022Lexus LS 500 . Oh by the way this one was built in JAPAN !! I kept my 2011 Honda pilot ( just turned 200,000 miles this week . The Honda is used primarily around town for transporting items from Home Depot,Lowe’s etc .. Oh yes Both Paid in Full !!!
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 had never buy a new car.i am happy with my Camry 2005 and the best thing about it is that rides like a Camry 2020 cause the mileages are less than 80ks...love it
I've never had a car payment in >30 years of driving. My current daily driver is 50 years old. I'm an extreme case maybe.. but add up all the extra money in principle, interest, insurance in a year on a new car- minus the cost of parts for repairs on an old car, & consider the number of hours spent working on the car, it works out as a pretty decent rate of pay if you enjoy the job.
I bought a new Honda Civic in 1999. 25 years later I'm still driving it; 123,000 mi. Drives like a dream - in a good way. Best car I've ever owned, karma, and the best investment. Nothing wrong with buying a new car - if you can afford it - just keep it for at least 10 years. I'm hoping for 30 or more years of almost trouble-free years with the Civic.
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.
I'm driving a 16 year-old Toyota minivan here in Manila and it has not given me problems for the longest time! Sure it ain't no Supra but it does get me from A to B and adventures here and there! I dread the day I may have to part ways with it due to things that are beyond my control. It's be like saying goodbye to family...
I have not made a car payment in over 20 years. Over the last 20 years I paid cash for 3 different cars, two of which I still own and drive. The third was a 2008 Mercury Sable that I bought in 2013 with 65k miles on it. It recently went to the boneyard with 315k miles on it. I’m lucky because I’m handy and can do a lot of the car repairs and maintenance myself…but on the other hand, today we have the internet and TH-cam so anyone can do it because the information and knowledge is available. Start small and get yourself some basic tools and learn about fixin’ on cars by watching TH-cam videos y’all.
I'm still driving my 2004 Dodge Ram that I purchased used about 15 years ago. I live in the Northeast so rust is an issue. I paid 5000 a few years back to have the rust fixed and it's still running strong. I've seen trucks only a few years old that are rotted out. To me it's not worth buying a new truck for 60,000 that's just going to rust out. Not having a truck payment makes me very happy!
I totally agree with everything said. Just last night I sat for dinner with a friend about this idea and topics. He is currently purchasing an expensive home and car. 🤷♂
While I do agree to a certain extent, keeping and maintaining an old car is definitely not without burden! My current daily driver is a 2012 and I recently sold my secondary vehicle which was a 2009. Living in Canada, the main issue is rust, which of course rapidly diminishes the resale value, but also means that at some point the vehicle may no longer be safe to drive. I’m definitely a proponent of keeping a vehicle as long as feasible but, like everything else in life, there’s a limit!
Almost 3 years ago i bought my first new vehicle. I was 48. I ordered a brand new, base model Ford F350 crew cab 4x4. I got a few options like cruise control and cloth seats. I put a decent down payment on it. It is absolutely one of the best purchases ive ever made. I need it for work, but not all time. In fact i don't drive it much. I mostly drive my minivan i bought used. Both vehicles have specialized uses and are my tools for work and fun. When my truck is paid for i will sell it and put that money down on the exact same truck. My house is just about paid for. I will always have truck payment and I'm 100% ok with that.
Depends what is your goal. If car for you is metal box to drive you from A to B then ok. By this logic we should never buy watch, or cheap watch is the same with expensive one - because they both tell the time, but there a people who enjoy in watches and have a collection of expensive watches. Same with the cars - from status symbol, different needs, racing, car shows, collections, up to car for daily needs. And yes it is good and exciting to drive old car - I own 68 Mustang Bullitt.
The rule of thumb for me is, unless you have truly disposable income, buy cars outright, and drive them until they don't drive anymore. There is no reason to have a car payment, ever.
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.
I think the best lesson is moderation. If you want a new car then save up to get it. Rather than buying a ten yr old one which will cost more on maintenance insurance and gas in the end. Get a moderate cost new car and keep it for ten years or more. Saving money every month is like giving it to old car for all the costs I mentioned above. Make a good down payment and a flexible paying monthly fee. (Coming from a person who had three preowned cars so far and no new car yet but saving for one …soon to happen)
1991 Honda Civic hatchback 5 speed. Daily drive it 100 miles a day. 40+ MPG, extremely low insurance, very low cost to maintain. Very reliable. Great car that makes me $
18 years ago I bought my first brand new car for credit. (I got used cars before) Paid the monthly car payments till the end with no issue but when the loan repayment period ended it was a great feeling that now I can use that money for other activities. 5 years ago the car had a major engine failure. I had to chose to buy a new car or I just buy a new engine. Although I could buy a new car, I chose to buy only the engine. I did have any accident with the car and don't have a scratch on the car till today. What you just told us was my exact bullet points when I made my decision to stay away from buying a new car. The repair was way cheaper with a full engine renovation than a new car would have cost. Now I still have healthy bank account with good savings, zero dept. My other reasons (besides emotions) that I stick to my old car, that I hate new cars with all the stupid safety electronics. Also my dad said, who is not that save the planet dude, that the most environment friendly car is, the car that already built! Agreed! I keep using my old 18 years old car without any issue, just changing oil and the wear parts!
This morning, I just put $577 into several proactive maintenance items and a tune-up on our 2014 Toyota RAV4 LE with 126,000 miles that was originally purchased with cash, and was glad to do it. 😊
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).
Got 3 (for now) 90s volvos. White 855 turbo wagon, black 2.5 na wagon 340000 kms and a 2000 c70 convertible. Low maintenance, uberquality ultrareliable cars that is super easy to fix yourself. Will keep driving those forever. Most expensive one was the convertible, 4500 dollars+180 dollar fix.
It depends on the availability of the car parts of the particular make and model readers AND it depends on what context the word "OLD" a person means . But, what I think the smart thing to do , is buy an older car certainly , but make sure that it is one that you can still get the car parts to it , which is your mass produced makes and models of its own era . And the auto shops are not going to have any difficulties ordering , or that the mechanic can source from the auto wreckers because they have one of the same , as they were numerous on the road . And to keep it on the road and running well, MAINTAIN IT . Water , oil , and air in tyre checks often . Keeping it clean . Nice clean windows so your visuals have less blind spots . Look after it . Don't do burn outs to save the tread on your wheels , and avoid grinding the gears , and drive safely . 🚙
My first car was 4 years older than me. I can be considered more or less fortunate with it, as during the 5 years of ownership there were 2 or 3 times when I needed to drive, and the car didn't move (for various reasons). But those cases were very critical for me. Since then, all my cars were and are brand new. Yes, those were car loans. But with the new car I am 100% confident that I will be able to use the car every time I (or my wife) need it. For example, I am not sure the older car wouldn't get out of order in February 2022, when I was evacuating my family from Bucha occupied by Russian army. And it could cost me my life, and the life of my family members. In other words, NPV and IRR are great indicators of financial decisions, but one shouldn't rely solely on numbers.
I used to have an old Subaru car. It served me well for almost 20 years. Sadly, it was not in keeping with the staff in the school where I worked! You have to buy a new one seemed the lament! You could see how Australia fell into the present predicament.
I have a 1988 Mercedes 200 diesel. Every year some maintainance extra. Never more then 300 euros per year. I drive it as a daily. I don' t drive to much. Around 9.000 kilometers a year. Love what you told us. Common sense is all you need.
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.
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.
I had my share of unreliable used cars in my 20s when I had no money. I'm 50 now, I buy new and keep them 8-10 years and do all the maintenance myself. They're still running decent have under 100k and still worth something at trade in time. Someone else can deal with the expensive major maintenance items I can't do myself at home. Life is too short not to enjoy a few luxuries.
"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.
"If it costs you your peace, it is too expensive. "Thank you so much, Joshua!
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
I own three cars. A 2014 Mazda 3, a 2008 Mazda Miata, and a 1990 Mazda Miata. All bought new and paid off for years. I drive all three regularly. They all have purpose. I enjoy driving them. At age 74, I am debt free and live on my Social Security. My only financial worry is keep in my energy use down. So
I keep my 1100 sq. ft. rental house at 60 deg. F in the Winter, and 78 deg. f in the Summer. No hardships endured. I sleep easy at night.
My secret; Happiness is an illusion. The secret to enjoying life is contentment. I live by the credo: The grass is “not” greener on the other side.
Works for me.
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
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!
Good advice.... maintain your old car and drive it as long as you can
My daughter recently commented on our older van. I told her I love my paid off vehicle!!! She seemed to appreciate my excitement 😂
"I'd rather live in peace with less than stress out with much" I love this quote from you❤
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
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.
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.
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
It took you 8 years to pay off a car? Yeesh
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.
Yea! I celebrate with you.
Congratulations! Just a recommendation though, do keep some spare money for maintenance/repair, once is out of warranty 👍🏻
Congrats! But don’t say never any more car payments. That car won’t last forever! Start saving your Pennie’s.
@@TripReviews thanks! you're right but I'll probably have a used car if I need one
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.
Excellent advice. I sent this vid to my Son. I still drive a 2005 v6 Camry 259000 on the clock. Bought her 2 years ago for 3K
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.
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.
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.
@@ki-ka Buying a new car and using it for a very long time can be cheaper than a different option. A car is a capital asset that depreciates, but different cars depreciate at different rates.
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
Very well put ... thanks for the message. Opportunity costs is one of the $ principles that have stuck with me for more than 3 decades. It made me able to retire 20 years ago at 38. I feel so blessed to have learned it at a very early stage in life.
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)
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.
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!
You got that right. Stress sucks , peace of mind is bliss.
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
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.
Thank you for the reminder that Less means peace & more leads to more stress. Appreciate your videos.
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.
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
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. ❤
God bless you 🤝
Love my 1978 Chevrolet Silverado truck. Drive it everyday.
I drive a '78 too. Paid for Pontiac Bonneville.
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
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.
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❤
I started down this path of buying older reliable rust free Toyota vehicles for cheap about 25 years ago, and it has worked well for me. Even after I factor in repairs and maintenance I am still saving tens of thousands of dollars when compared with buying new or newer vehicles. My current work truck is a 2002 Tundra that I have driving since 2003, and my newest Tundra is a 2007 that I bought in '17, I drive it for fun and have it available as a back up work truck for when the '02 needs servicing. Sticking with the manufacturers maintenance schedule for 'severe service' is the only way to keep them going & going
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
Driving a 2010 Audi A4 1.8t with added CarPlay and cruise control, and lowered wider tires. I love it. Gonna drive it as long as possible.
Nice one, just pay attention to the cooling parts, pipes and flanges. Change oil above manufacturer's recommendation and you'll be golden. 2004 Audi here and still keep on the fast lane.
One of the most expensive vehicles to maintain. Surprised a '10 is still on the road.
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.
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😀
12 year old Yaris here checking in 🙋♂️
I have a 2013 Hyundai but recently bought a 96 Civic and I Love the roll up windows.
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
No insurance then?
I bought a 2020 Honda Fit. I made the last payment today. My intention is take care of it till it no longer functions. I still love it as much as the day I bought it. I know financing is not always the best way, but at the time it was my best option. The best used cars cost almost the same. Today I drive by dealerships and see prices on used cars that boggle my belief. It gets great mileage and I only work 3 miles from home. So, now My plan is to increase savings. I am going to up my 401k withholding which is pretty significant already.
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.
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.
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.
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.
Im 70 now. I've got enough, if anything I'm asset rich and cash poor. All my life I have tried to only buy things I can keep that includes education ( not always institutional often how something works so I can repair it) Most of the stuff in our house is second hand and a large amount of it we have had for longer than I can remember. We cook 99% of our meals, eating out is a treat not the norm. I enjoy life and I don't miss a new car, I've had 2 in my life, they cost heaps, depreciate quickly and modern ones are almost impossible to fix so why would I bother all I want is something that is reliable. You are right and I was told the same thing when I was younger, probably one of the few things I actually listened too :)
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.
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.
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 ❤
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.
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!
There can also be stress with constantly buying old cars worrying if they can get you from point A to point B. The constant stress of fixing them and getting towed can add up as well. Buying a reasonable vehicle and maintaining it is key because nothing is a free ride. I now have used and a slightly new car I try my best to maintain both because buying new is no longer an option with prices rising.
But you could get sparingly used cars ❤
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.
Amen, brother, you said it well. My father, may he rest in peace, taught me this when I was a little boy and I've lived by it ever since, and can say that it served me and still serves me wellI. So much, that I've taught it to my wife and our offspring, But, I fear that most viewing this video will not listen or do as you allude to, which is a shame. Thanks for sharing. Cheers.
Best to teach our children these principles....
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.
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.
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.
I enjoy my 1999 E39 528iT. It has 268,000 miles. It gets daily compliments from strangers. I have had it for twenty years. It is kept in my garage. I also have an E39 530i 2003 which I bought five years ago for five thousand dollars. I have spent five thousand dollars on it yet I believe it is money well spent as neither of them is currently depreciating.
I hear you. Happy owner of a 1997 540i (E39). 370000km and going just fine.
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!
I own an 11 years old Toyota pick-up truck i bought brand new in 2013. It still works and runs flawlessly, but I miss the added comfort, convenience and safety of the newer models. I could change it for a new pick up truck next year, but I hesitate thinking I could maybe give better use to the money needed as in vacations for instance. I will keep thinking on it.
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.
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.
I drive my W 202 C180 MB, bought new in 1999. I use it as my daily drive and now has 222000 kms. I had it painted after 23 years and looks fabulous (aspen green)...Most kms are made in city of Athens Greece heavy traffic. Of course it is regularly maintained and drives as new after 25 years.
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.
….When i Retired 2 yrs ago .. I Decided to purchase a Reliable -well built vehicle for Traveling . I bought a New 2022Lexus LS 500 . Oh by the way this one was built in JAPAN !! I kept my 2011 Honda pilot ( just turned 200,000 miles this week . The Honda is used primarily around town for transporting items from Home Depot,Lowe’s etc .. Oh yes Both Paid in Full !!!
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
@@jayc4715
That’s an oversimplification. Companies change over time. Reliability depends on the specific model.
@@Wyde_Boi ok .pre 2022 ..is that better
"Peace with Less" . 100% True.
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 had never buy a new car.i am happy with my Camry 2005 and the best thing about it is that rides like a Camry 2020 cause the mileages are less than 80ks...love it
I've never had a car payment in >30 years of driving. My current daily driver is 50 years old. I'm an extreme case maybe.. but add up all the extra money in principle, interest, insurance in a year on a new car- minus the cost of parts for repairs on an old car, & consider the number of hours spent working on the car, it works out as a pretty decent rate of pay if you enjoy the job.
I bought a new Honda Civic in 1999. 25 years later I'm still driving it; 123,000 mi. Drives like a dream - in a good way. Best car I've ever owned, karma, and the best investment. Nothing wrong with buying a new car - if you can afford it - just keep it for at least 10 years. I'm hoping for 30 or more years of almost trouble-free years with the Civic.
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.
I totally agree!! Our 2010 van, which we bought in 2013, is still going strong!
I'm driving a 16 year-old Toyota minivan here in Manila and it has not given me problems for the longest time! Sure it ain't no Supra but it does get me from A to B and adventures here and there! I dread the day I may have to part ways with it due to things that are beyond my control. It's be like saying goodbye to family...
I have not made a car payment in over 20 years. Over the last 20 years I paid cash for 3 different cars, two of which I still own and drive. The third was a 2008 Mercury Sable that I bought in 2013 with 65k miles on it. It recently went to the boneyard with 315k miles on it. I’m lucky because I’m handy and can do a lot of the car repairs and maintenance myself…but on the other hand, today we have the internet and TH-cam so anyone can do it because the information and knowledge is available. Start small and get yourself some basic tools and learn about fixin’ on cars by watching TH-cam videos y’all.
I'm still driving my 2004 Dodge Ram that I purchased used about 15 years ago. I live in the Northeast so rust is an issue. I paid 5000 a few years back to have the rust fixed and it's still running strong. I've seen trucks only a few years old that are rotted out. To me it's not worth buying a new truck for 60,000 that's just going to rust out. Not having a truck payment makes me very happy!
I totally agree with everything said. Just last night I sat for dinner with a friend about this idea and topics. He is currently purchasing an expensive home and car. 🤷♂
While I do agree to a certain extent, keeping and maintaining an old car is definitely not without burden! My current daily driver is a 2012 and I recently sold my secondary vehicle which was a 2009. Living in Canada, the main issue is rust, which of course rapidly diminishes the resale value, but also means that at some point the vehicle may no longer be safe to drive. I’m definitely a proponent of keeping a vehicle as long as feasible but, like everything else in life, there’s a limit!
Almost 3 years ago i bought my first new vehicle. I was 48. I ordered a brand new, base model Ford F350 crew cab 4x4. I got a few options like cruise control and cloth seats. I put a decent down payment on it. It is absolutely one of the best purchases ive ever made. I need it for work, but not all time. In fact i don't drive it much. I mostly drive my minivan i bought used. Both vehicles have specialized uses and are my tools for work and fun. When my truck is paid for i will sell it and put that money down on the exact same truck. My house is just about paid for. I will always have truck payment and I'm 100% ok with that.
Depends what is your goal. If car for you is metal box to drive you from A to B then ok. By this logic we should never buy watch, or cheap watch is the same with expensive one - because they both tell the time, but there a people who enjoy in watches and have a collection of expensive watches. Same with the cars - from status symbol, different needs, racing, car shows, collections, up to car for daily needs. And yes it is good and exciting to drive old car - I own 68 Mustang Bullitt.
Both my vehicles are older. They cost me in maintenance for sure, but nothing beats getting into my older M3 and getting out for a rip! 😛
The rule of thumb for me is, unless you have truly disposable income, buy cars outright, and drive them until they don't drive anymore. There is no reason to have a car payment, ever.
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.
2009 Ford Crown Victoria here, 154k miles, running excellent…
Bulletproof
I think the best lesson is moderation. If you want a new car then save up to get it. Rather than buying a ten yr old one which will cost more on maintenance insurance and gas in the end. Get a moderate cost new car and keep it for ten years or more. Saving money every month is like giving it to old car for all the costs I mentioned above. Make a good down payment and a flexible paying monthly fee. (Coming from a person who had three preowned cars so far and no new car yet but saving for one …soon to happen)
1991 Honda Civic hatchback 5 speed. Daily drive it 100 miles a day. 40+ MPG, extremely low insurance, very low cost to maintain. Very reliable. Great car that makes me $
Me too except in Ireland insurance is predatory on old cars.
18 years ago I bought my first brand new car for credit. (I got used cars before) Paid the monthly car payments till the end with no issue but when the loan repayment period ended it was a great feeling that now I can use that money for other activities. 5 years ago the car had a major engine failure. I had to chose to buy a new car or I just buy a new engine. Although I could buy a new car, I chose to buy only the engine. I did have any accident with the car and don't have a scratch on the car till today.
What you just told us was my exact bullet points when I made my decision to stay away from buying a new car. The repair was way cheaper with a full engine renovation than a new car would have cost. Now I still have healthy bank account with good savings, zero dept. My other reasons (besides emotions) that I stick to my old car, that I hate new cars with all the stupid safety electronics. Also my dad said, who is not that save the planet dude, that the most environment friendly car is, the car that already built! Agreed!
I keep using my old 18 years old car without any issue, just changing oil and the wear parts!
This morning, I just put $577 into several proactive maintenance items and a tune-up on our 2014 Toyota RAV4 LE with 126,000 miles that was originally purchased with cash, and was glad to do it. 😊
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).
Got 3 (for now) 90s volvos. White 855 turbo wagon, black 2.5 na wagon 340000 kms and a 2000 c70 convertible. Low maintenance, uberquality ultrareliable cars that is super easy to fix yourself. Will keep driving those forever. Most expensive one was the convertible, 4500 dollars+180 dollar fix.
It depends on the availability of the car parts of the particular make and model readers AND it depends on what context the word "OLD" a person means .
But, what I think the smart thing to do , is buy an older car certainly , but make sure that it is one that you can still get the car parts to it , which is your mass produced makes and models of its own era . And the auto shops are not going to have any difficulties ordering , or that the mechanic can source from the auto wreckers because they have one of the same , as they were numerous on the road .
And to keep it on the road and running well, MAINTAIN IT .
Water , oil , and air in tyre checks often .
Keeping it clean .
Nice clean windows so your visuals have less blind spots .
Look after it .
Don't do burn outs to save the tread on your wheels , and avoid grinding the gears , and drive safely . 🚙
My first car was 4 years older than me. I can be considered more or less fortunate with it, as during the 5 years of ownership there were 2 or 3 times when I needed to drive, and the car didn't move (for various reasons). But those cases were very critical for me. Since then, all my cars were and are brand new. Yes, those were car loans. But with the new car I am 100% confident that I will be able to use the car every time I (or my wife) need it. For example, I am not sure the older car wouldn't get out of order in February 2022, when I was evacuating my family from Bucha occupied by Russian army. And it could cost me my life, and the life of my family members. In other words, NPV and IRR are great indicators of financial decisions, but one shouldn't rely solely on numbers.
I used to have an old Subaru car. It served me well for almost 20 years. Sadly, it was not in keeping with the staff in the school where I worked! You have to buy a new one seemed the lament! You could see how Australia fell into the present predicament.
Still driving my 2005 Mini Cooper and I love it!
I have a 1988 Mercedes 200 diesel. Every year some maintainance extra. Never more then 300 euros per year. I drive it as a daily. I don' t drive to much. Around 9.000 kilometers a year. Love what you told us. Common sense is all you need.
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.
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.
I had my share of unreliable used cars in my 20s when I had no money. I'm 50 now, I buy new and keep them 8-10 years and do all the maintenance myself. They're still running decent have under 100k and still worth something at trade in time. Someone else can deal with the expensive major maintenance items I can't do myself at home. Life is too short not to enjoy a few luxuries.