I'm not at all embarrassed by my $2500 vehicle. It gets me there and back all day, every day. I'm the guy in the parking lot, pulling out his jumper cables to help people with much newer cars (along with older ones - everyone gets a dead battery eventually). Anyone who is embarrassed about the kind of car they drive is stuck in the high school mentality of caring more about what strangers think than about living their lives. I'll worry about what other people think of my car the day I ask them to pay for it. Until then, it has to serve my purposes and no one else's.
Just like no one should be shamed for driving a new car either. Get what you like/can afford, it doesn't really matter. You need something Italian and unreliable (I know, redundant) and red anyway if you want to impress people. Types of vehicles at my work runs the whole gamut and we all make relatively the same income. No one cares.
That sounds all good. Until you find out that 99% of females want a man who is “well off” and has high status. By owning a $1M home on the shore of California and drives and brand new Porsche…
The problem with people and finances is they always want a little bit more than they can afford. First it's a Honda Civic, then people make some more money and want to upgrade to the Accord. Then they make a little bit more and suddenly they need an Acura and on and on. No matter what people make, they want just a little more than they can afford. I've been living debt free for the past 3 years and it's amazing. I don't have the nicest car and I don't live in a nice big house, but I've never felt more rich than I feel now.
Brian Ross if american cars were reliable id buy them. im sure there are some. but gm is a sheisty ass company if you ask me. leaving michigan for china. scrapping the ev1 car.... my sisters pontiac grand am is the biggest pos i ever worked on. problem after problem. at 50k a head gasket went out.
Anyone else enjoy beaters for the sake of beating beaters? I've beaten beaters until they've been thoroughly beat, and then beat them some more. Great advice y'all. I'm going to graduate debt free from FSU this May!
TWDxKILL3R what’s the difference if you’re financing?? It’s the same as buying anything else in life. Could you afford that phone or did you finance it?
The difference is the loan agreements for a $50,000 car differ vastly from that of a $15,000 car. The word "finance" in itself isn't bad. Do you live in a house? Did you finance it? Did you talk shit to everyone you know who financed their homes? Get off your high horse and stfu. You aren't better than anyone else because you can go online and try to make it out that people are immediately challenged because they chose to "finance" something.
NEON I paid cash for my house and cash for all my cars and my food truck business. I took a 30k car loan once and paid it in 12 months to get credit and for tax reasons only because I had the cash in full. I will never pay a loan again the borrower is slave to the lender. If you ever want real money... have no zip zero debt at all. If you owe more than what you have cash you’re broke. Just because you have a few grand in your bank but owe 10 plus on anything, you’re broke. You can be wealthy but starting out owing money isn’t the way. Do you wanna start out ahead or spend 30 years trying to catch up?
This was a great video, it was well made and informative. I am 16 and bought my first vehicle earlier this year for $800. It is a mid size four cylinder pickup, so it is extremely fuel efficient with only $40 a month in gas and actually very reliable. I am planning on keeping this vehicle until after college and have a full time job, before buying a new vehicle. In the mean time I am saving my money.
Good advise but reliability is non negotiable in my book. I suggest to not buy a $2-3k car but to get a $8-15k loan with a credit union and keeping the quality reliable car for 5-10 years. Always buy 2-5 year used car to avoid paying the dealer premium. Also get a hybrid or a fuel efficient vehicle!!!
6/6/19....I bought a new 2009 Toyota Camry Hybrid in April 2008. They had sold all the 2008s & sold me an early 2009 that they hauled from NC to Atlanta. I paid $27,000. CASH b/c I didn't wantva car pmt. It depreciated 15% ---$4,050.--- the moment I drove it off the dealer's lot. I just hit 121,000. miles this past week & have bought 3 sets of tires & had regular 5,000. mi oil change/maintenance @ local Toyota dealers. No accidents...I am the only driver....inside leather seats & carpet need cleaning but it would look like new when I have it detailed. I plan to drive it as long as I can without having to make too many/expensive repairs. WHEN I need to get another vehicle, it will be ANOTHER Toyota Hybrid or maybe a Lexus Hybrid--- but a nice/clean low mileage USED one---b/c I will pay CASH + I am retired & don't drive much now that I am retired. 0% rate for NEW dealer financing is great---but automatic 15% minimum depreciation just driving it home is a BIG HIT even for a rich person. Plus so many GREAT condition used cars out there with cars being returned at end of lease + so many nearly new trade-ins for those who have NEW CAR FEVER! TOO MANY PPL with college debt + home mtgs + children to raise + credit card debt + health expenses ----THAT SEEMS TO BE THE NEW NORMAL IN THE USA NOW! Dave Ramsey needs to get out & TEACH/PREACH his CASH CASH CASH PHILOSOPHY TO ALL THESE POOR BROKE PPL!
They need to teach this lesson to Juniors and Seniors in High School, instead of telling them to go to college, get a $45K/year job and go get a car note!
None of you are getting what he means. He is not saying it is embarrassing to pay cash for a car. He is saying that if you're tight on cash and your choice is to choose between buying a $3000 beater (which you might find embarrassing to be seen in) or put $3000 on a down payment for a $15 000 car then you should just suck up the embarrassment in the meantime while you save cash for something you can buy later that you *won't* be embarrassed to drive.
I remember when I was looking for a car and I went into a used car place that almost only deals with cars 1 to 5 years old, and when they found out I was going to try to pay for a car in full, they brought in a financial specialist to try and talk me out of it. I got my GTO elsewhere, but I did pay cash and wasn't embarrassed at all.
Eight years ago, I walked into a car dealership and said, "If you can get me into a new Corvette for less than $700 a month, I'll take it." I'm so grateful that they couldn't make the terms work as I'd be stuck in debt today instead of living aboard full time and having $500,000 in savings today instead of being broke.
I bought my 96 F150 for $3300 with my own money that I worked over 2 summers as well as my Christmas money, birthday money, graduation money, and money for taking care of my neighbor's dog.
I'm a loan officer at a decent size credit union and I completely agree with you! Don't borrow money for things you don't need. People get "need" and "want" confused.
Dude you are so right.... I am currently driving a 1996 Toyota Corolla with no door handles on the inside... I have to put windows down to get out and the car has about 183,000 miles and needs a new timing belt... I am so tempted to get new or used car but I will keep using this car till it explodes lol I don't want to be paying a $260 payment every month the next 6 years. Good advixe
timing belt is normal maintenance. Those cars will go 300k with proper maintenance. Be sure to also have the water pump replaced, it is only like 30 5o 50 bucks.. and right there while they do the belt.
Dude. Keep driving it. Who gives a crap what other people think of you. You have no payments and you are saving! I drive a 10 years old crappy Subaru wagon. I save 75% of my take home pay, I have 2 rental condos, and a very healthy investment portfolio in mutual funds, stocks, etc.. I achieved all of these by saving and NOT HAVING A CAR PAYMENT! My 10 years old Subaru is so bad that it's good. The door handle on the inside broke on the driver side, so i broke the passenger side on purpose to make it look even. BAHHAHAHHAHHAHHAHH
GooberVlogs I feel you bro!😂😂 I've been driving a fucked up 2003 Hyundai Sonata for 1.5years now, and I got almost $10.000 saved! I'm getting a 2005 Infiniti fx35 in few months😊. Fuck car loans
Jackie is very blessed to have a wonderful brother steering her in the right direction. I currently drive a 2002 Chevy Cavalier with 162 km on it. My friends constantly tell me I'm crazy to think a 14 year old car could possibly last another two years. I just tune them out and keep driving my beautiful fully paid for 2002 car. Thanks for validating my way of thinking.
I have an 03 Cavalier with 215k. Still going strong. The last car I owned was a 93 skylark with 243k on it and I just got rid of it last year. So cars can last 20 to 25 years.
With Uber, Lyft, public transit, and my bicycle, car ownership is looking like less of an option for me. Cars are expensive, even if you buy them cash. There's still insurance, tire changes, maintenance, parking fees, etc.
If you want a cheap reliable car go on Craigslist and type in Toyota Camry. Pay $3k in cash for the best one you can find and you're all set for years to come.
my one caveat as a mechanic, i try to push people to look in the 3500-4000 dollar range. i live in the rust belt so that may be part of the reason but good reliable cars at $3000 are few and most things i see with a $2000 price tag are poo with lots of current and future expenses that will soon make it just as expensive as a $3500-$4000 car. does not mean deals are not out there, just that i feel the layman's safest bet is somewhere in the 3500-4000 range contingent a mechanics inspection.
It's human nature to want things we can't afford, now. Great advice on how to get your finances in order and not be a debt slave! I am driving a beater now, and have learned the importance of living below my means. It's a liberating feeling folks.
I have a good amount of money saved up but dont feel like spending it all right away. If I can put $0 down with an APR less than 2%, I would rather make payments and build my credit.
That is a good deal if you put your saved money somewhere that makes more that 2%. I avoided paying off my 3% mortgage because my money was doing better elsewhere, my credit was established already but that could be a good reason as well as long as your cash is making you money.
do you have no student loans? No debt? House all paid for? 1000 emergency fund? do you have 3-6 months living expenses? is your retirement account doing okay?
This guy speaks the truth! I only wish I'd known this as a young man. The last new vehicles I bought were in '97 and 2003. I'm still driving both of them and haven't had a payment for 10 years. The freedom to have that money that was invested will be a blessing when it comes time for me to retire. Living BELOW your means is the way to financial responsibility.
"A way to get around town" people are always relating cars to a driving appliance and not something that people have passion for. There are car enthusiasts that have car loans because that's what they are passionate about. You also mentioned a deteriorating interior of the car and how it's a junk car but now you're still paying the same amount as you did when it was new. How about you treat your car with pride and wash it, clean the interior and use some armor all on it to make it last, also, go in for regular maintenance if you can't do it yourself. SO many people buy cars and think they don't have to do anything to them. It's a machine, things need replacing after a certain amount of time and fluids need changing. Way to shame everyone who wants to have a nice car and that can budget their bank account to afford the car they want. If they can afford a $200 biweekly payment then who cares. You're not a financial advisor so you've got no idea what you're talking about. This video is so dumb and pointless. "Oh you can't afford that $300,000 house without Cash?! well then you better live on the street or at mommy and daddies house because you can't afford it!". That is exactly your logic.
littlesimpson2 PREACH! The way I see it, is why empty out your whole savings account on a nice pre owned 25k truck or car when you can spread out the payments, negotiate a good payment with low a rate and still have your savings intact? If you can easily afford the note why not get it? Or if possible pay more towards the principle and pay it off early? Credit is everything. And if used right, it can be a powerful tool to get what you want.
It comes down to what you value in life. For some, cars are a passion and the payment is worth it, because they get enjoyment from it. You work for the money and you enjoy it. If you want to save all this money and have no payments then that’s fine too, it’s all personal to that individual and no one else should be telling you how to spend your money. If you want to finance just ensure you have a backup of at least 6 months in the bank to float you should you lose your means of income.
At 35 I've never had a car loan. My wife and I drive cheap cars that to be honest we don't maintain that well. But you know what, when you don't have a car payment, you got money.
I have a story about this actually as well - about 4 years ago I bought a 2001 Honda S2000 for $14.6k. It was my first ever car purchase after getting my first real job. Mind you, I had literally $2k in my account. But it was my dream car and a personal goal, and a very good price for the mileage (only 47k). I put $1k down and got a loan for the rest - payments were like $300/month which I could pretty easily afford. Fast forward 2 years and one of my best friends was driving me home in it (I had been drinking that night), and he totaled it on the interstate. After fighting with the insurance company, I actually MADE just over $4k on the car after paying off the bank. That model year S2000 is a relatively rare car esp w/ the mileage it had, and I had originally purchased it during the off-season when the prices for convertibles dipped slightly. B/c I got such a great deal on it originally and bc it was a rare, unique car with few similar examples mileage-wise on dealer lots in my state (all of which were listed well over $16k b/c it was the summer) I was successfully able to make $$ on it. A case like mine where the car actually appreciates will only transpire with a very select group of cars, but the point is if you're smart about what/when you buy you can take out a car loan, keep your cash, and not stress about losing money. Also that left over $1k allowed me to start a photography side-business that today makes me the same amount every month. If I had invested that amount in the car, it would've sat there doing nothing for me for 2 whole years. Keeping your cash liquid is important!
Late to the conversation but if you are concerned about having to "fix" a used car, don't think of repairs is dollars but in "car payments." If you had to have $1,000 worth of repairs done to your used car that would be less than 2 average car payments + collision insurance premiums for 2 months + 2 months of State vehicle tax on a new car vs. your old one. Do a little homework and find out what used cars give the best service over time... Toyota Corolla would be a good start. But any car that can be shown to have given good service may be a deal if the vehicles as a group have a bad reputation. I would however avoid cars that have a reputation for transmission problems. Some would surprise you... Honda Acura's have transmissions that regularly bite the dust north of 180,000 miles. If you can find a manual transmission in a car..get that. Avoid CVT Continuously Variable Transmissions like the plague in a used car. With reasonable gas prices now, instead of paying a premium for a high fuel mileage car, you might do better with one that doesn't do as well but has a better up front price. Every week raise the hood and check the oil (change it ever 5,000 miles)and automatic transmission fluid (read the owners manual for a how-to, some cars vary in how it's done). Look at the brake fluid reservoir and power steering oil level. Look for cracks or looseness in the accessory belts.With the engine off and cold, try to wiggle any of the driven accessories you can reach. Check your tire pressure. Buy a mid grade set of tires from a dealer that include tire rotations every 5,000-7,500 miles. In all these things, you don't have to be a mechanic... you are looking for sudden changes in status that should be looked a by the competent mechanic that you've asked around for.. and ask for the best mechanic in town...they charge the same rate. And lastly.....PAY CASH!
What about a 2010 Chevy equinox over 220k miles& needs the engine replaced. Use it as a trade in or go ahead & pay to get the engine replaced & continue without having a note?
As a trade in you'll just be giving the dealer the car. Sell it yourself and keep the money. Dealers are desperate to sell cars and you can drive a hard bargain. If the car suits you other than a worn out engine then I'd talk with a competent mechanic about an engine out of a wreck. On Craigs list 2013 equinox w/140K they're asking $6500..would probably take $5800 cash. Looks like you could spend $2000 all up installed for a engine with less than 75000 on it and drive the car for another 5 years. That would be $400 a year for car that you know it's history and it's body style still looks current sounds ok. Start a savings account and put $150/month in it. In 5 years you'll have $9000 + $1000 from sale of the equinox. Then since you've had time to look for a deal, buy yourself a 3 year old nice used car and drive it for another 12 years. Cheers
man that is one of the core values of my channel... I still drive the same $2000 car I bought in 2009 and it has 181k miles and I have saved so much money... paid my school loan off, mortgage off, and padding the savings
I'd wager he didn't pay cash for his house! I bought a car at the age of 21 that cost $13,000 after taxes, title, financing, etc. Paid it off in under two years. I went through half a dozen cash cars between the age of 16 and 21, I quit two jobs because my transportation was not reliable. Having purchased a car with a warranty is one of the best decisions of my life, and no I couldn't "afford" it in cash, in fact I was unemployed when I got it (due to lack of transportation). Finance a damn car, people! But obviously, be responsible with your money.
Roger Williams if we want to look at it this way then we should have enough money in our pocket to buy food for whole life. What if we loose our job, you know!! Financing is a mean to an end for majority in American economy, it is a choice, its a matter of control, hence works differently for different people based upon their own control of their means and kind of choices they make based upon their means. I honestly agree that your notion is true for the people with less control on their life.
Naturally, everyone won't be able to use the advice in the video. I totally get that, and that's not what I'm suggesting. What I am suggesting is that most Americans go into debt to buy new or newish cars because we have been socialized to believe that that is what we're supposed to do. It has been weaved into the cultural fabric of this society. Of course we justify going into car loan debt in all sorts of ways, but it seems to me that it is more out of a psychological need to fit in than it is about necessity.
Life is short . People die all the time . I've been in the hospital for my appendix and after a car crash . Live life how you want . If you live with your parents and you can get a good down payment and can afford monthly payments and insurance . Buy it . If you have a family and can't afford it . Don't do it . If you don't care and want to just have something to ride around in go on craigslist or look for something used . Some used cars are worth , others aren't. I'm not that experienced in life . I'm 23 , mechanically inclined with schooling and I live with my parents , I don't have kids or a girlfriend . I've had plenty of cars , mainly used and the most reliable one is the one my dad bought almost brand new and gave to me after he put 200k miles on it . All my other cars have had problems fuel issues , engine issues , And they were all cheap 2k dollar cars . You can't trust people who are selling cars usually , because if the car is really so good why do they sell it . You can rant all you want but everyone's situation is different . Sure it's nice to save up for the future but tomorrow is never promised . I'm actually in the process of saving enough money to put a down payment on a brand new mustang gt350r . And the reason is because 1) it's brand new 2)I've been wanting that car since they came out in 2017 3)life is short and you might as well enjoy it Sure cars can be a bad investment , they depreciate , but you know what memories you make are always going to be there and there value usually doesn't go down . Peace , love , and burnt rubber ✊🏻
Many years ago my car took a major hit mechanical wise...it cost me $ 2,700 to get it back on the road. I took a closer look at my finances and I wasn't willing to let my old car go and let my hard earned my go as well. So thought it was better to pay the $ 2,700 than getting in debt for many times over to this day I still drive the same car every day and I do all regular maintenance and plan to keep it as long I can. Thanks for kicking some sense into people's head many folks just want to be seen driving something it doesn't 't belong to them.
You re absolutely right. I have bought and financed one new car in my life. That was 30+ years ago. When I realized how badly I got ripped off, I decided never to do it again. From then on, it has been reasonably priced used cars. I don't mean junkers either. Back in 2011 I bought an almost like new 2001 Chevy Malibu with 98,000 miles on it. $4500. paid cash. Liability only insurance. I drove it for 5 years and gave it to my oldest daughter. It had 248,000 miles on it at that point. I decided to go for something big and comfortable and RWD. I bought another near new 2006 Mercury Grand Marquis with 47,000 miles on it for $6500. Cash. Again minimum liability insurance only. I've probably saved $20,000 over the past couple of decades by avoiding full coverage, so even if the car gets stolen or totaled I'm money ahead. That car now has 130,000 miles on it, and I fully expect it to reach 300,000. I am a mechanic, and seriously over maintain my vehicles. My next vehicle, if I live long enough to need one, will probably be a used truck. I also only buy from private sellers. Lower price, no sales tax or dealer fees, plus I really don't want to be supporting crooked dealers.
Great video. Thank you. I have made stupid decisions buying cars with loans. I love the smell of my 2010 Nissan Versa Manual transmission and manual windows with 77K miles paid for in cash parked in the garage of my 270k home. While I’m paying my mortgage sooner others are struggling making car payments and mortgage payments. People wake up!!! It is insane spending aprox 1/2 of your annual income on a car. An item that looses value drastically.
I agree with this video all the way. A co-worker of mine fell in love with a brand new domestic shit car, purchased and financed it for the next 8 years. He intends to pay for this on a bi-weekly basis by driving for uber. Now his 1 year old car racked up a lot of kilometers....I bet the car won't last until the financing period ends......
I know plenty of fiscally responsible people who've taken out short term car loans. People who do put money in the bank. People who do have IRAs and 401(k)s. I'm one of them. I'm in my late 40s and have owned exactly 3 cars in my life. One was a 78 Impala that I drove through high school and college. The next was a Nissan that I bought new when I was 28. I financed it for 2 years and drove it for 18. That's right. I drove it for 18 years. I finally replaced it last year when I was 46. I got a new CRV. I put $6k down and financed the rest at a .09% APR. I'm currently paying more than the minimum in my car payment so I'll be done with this loan earlier. I'm loving the car and enjoying peace of mind. I'll keep it for at least 10 years if not longer. You can't dismiss everyone who finances a new car as an irresponsible idiot.
Americans are up to $15,000,000,000 in overdraft fees from banks. Interest on so many loans is just another way to feed these huge banks. I bought my car for $500 and it's going to last me all through college and probably further. 2006 Ford taurus SEL with 114k miles. And maintenance costs are very low, same with insurance and gas. People always ask if I have a nice car, then immediately get jealous that I have a massive college fund. A great strategey is to save up some money for a starter car, and then keep putting money away every month if you want to upgrade to something nicer. A car is just a transportation tool. You can either spend $50,000 on getting 100,000 miles. Or spend $2000 on getting 100,000 miles.
I don't disagree with you, but the number of people who can afford to pay cash for brand-new cars is so low that the car industry *relies* on people getting car loans. No car loans equals no more car industry. The same applies to pretty much every other consumer item. If people only bought what they could afford to pay for in cash in full, then the consumer electronics market (among others) would collapse along with the car industry. This is the nature of modern economies.
dchawk81 Europe, look at Europe, and also most of the world besides America, many ways to get around for cheap and be able to save money to later buy a vehicle.
dchawk81 The UK is 1/3 the size of Texas yet there is a population more than twice that of Texas, I do take into account what you mean, although the people of our society can take a slice of the cake from the end instead of digging spoons in the middle randomly, excluding the agriculture and oil industry workers, but comparing to how close retail stores are in NY, such could've been possible within other states, also looking at a city like Houston you will see way to many financed cars in close quarter areas, where if transportation was not done by a car, the government could implement a better method.
weeks before I stumbled into this logical mentality I went ahead and financed a new vehicle and the next morning I cried because I knew it was the biggest mistake I ever made in my life. stupidity has no age limit. Now I budget like no other and am currently selling a lot of the things I realized that I don't need in my life. This sort of thinking Is now leading me down the path of minimalism and I absolutely love it.
very smart advice, 30 years ago I was in my mid twenties, of course I bought cars on time, however now that I'm in my 50's, I buy older cars, keep them forever and pay cash for them, buy a car from an older person, they baby their cars, big cars especially, you can get a lot of car for your money because they're not in big demand, I paid $850.00 for my 92 Crown vic 4 years ago, bought from original owner, have no problems with it, still driving it, runs excellent, no payments, insurance is cheap, starts everytime and get's me around, I don't worry about a $500.00 truck payment and high insurance rates, my money goes in the bank every month. Yes I understand when your young, everyone wants a new car, however getting one on time is expensive, wait until you save for it, its much cheaper and you appreciate it more, and you own the car, it doesn't own you!
There's an awesome book called the millionaire next door which states that most millionaires that they've researched start with this simple idea as well. They buy good cars around the 5 year old mark (because that's when the most depreciation has occurred) and they usually pay cash. Makes sense to me.
" The hearse doesn't drive by the bank " Enjoy your money, don't slam people who responsibly finance things, especially cars. If you get a low interest rate, you really aren't wasting much money. A 0.9% rate on 20k is 1800 in interest. Let's say that's over 5 years. That's $360 a year or $30 a month, which isn't a huge amount to anyone. During that time you have a car that is reliable, good on gas and under warranty (assuming you bought a fuel efficient new car). I don't see how that is a negative thing.
the whole idea behind paying for a used car in full, is having extra money. and what would a responsible person do with the extra cash? SAVE IT. The money you would use to finance a car, has now become an emergency fund.
ULTRA RARE SABRA I had a 1997 Ford Escort beater that I paid $250 for. I am a HUGE DIYer so I paid very little shop labor for anything...just tires and alignment. That car cost me more per month, averaged out, just in parts, than the 2014 Ford Focus I financed with sport package, leather, moonroof, ambient light package, the whole works. The 1997 Escort was a rough, unreliable, ugly, uncomfortable car that barely got 28mpg. The 2014 Focus was...the exact opposite and easily got 35mpg. I saved on gas and repair headaches but had to pay extra insurance. The Focus was a net win. Way more comfortable, quieter, reliable, easier on fuel, better handling, ice cold AC and hot heat, clean fresh cabin air, not embarrassing to have passengers in, quiet blower fan. Honestly, old cars suck and are not the savings people make them out to be. ESPECIALLY if they don't have the ability to make major repairs themselves. Oh and I didn't mention rust. The Escort...yep. Deteriorating. The Focus? Not.
i can buy my car cash but i still took out a loan...would rather have that money siting in my savings for a rainy day while building my credit..but if i didnt have that money to buy it cash i would not have taken the loan
exactly what Ive been telling all my friends, they kept laughing at my 01 Infiniti i30, but I paid cash for it 5 years ago, it was 90 thousand miles for around $4000. I got rear ended twice and I got over what I paid for it from insurance, also, I fix it all the time by my self if any minor thing comes up, like oil change, air filter change, oxygen sensor change, exhaust muffler change, mass air flow sensor change ext...the bottom line is, the car still drives smooth and I will only replace it if I can't fix it any more, and by that time hopefully I'll have enough saved up for a better car.
I bought an '01 Chevy Malibu in 2006, paid it off in 2011, and still have it...and I've sunk maintenance money into it that would've gone toward payments. It's still running strong, and it feels _wonderful_ to NOT have a car payment! The cheapest car to have is the one you already own, so I intend to hang on to this free-and-clear car with no major problems until I can't anymore, but I don't when that'll be since I put money into maintaining it.
It's exactly just like how you are paying for your phone bills, electricity, cloths, shoes. Paying for a car I don't find a huge problem with that. It's a personal choice. You deserve it if you work hard paying for it.
Sage advice. In regards to the $400 you suggest someone set aside each month, that money would be well spent on sorting the car out mechanically, for the first 6 months or so. Getting ahead on the mechanicals can quickly make your $2000 car feel like a $10000 car.
Yes! A small CC scooter is the way to go. People think that buying a motorcycle is fuel efficient and cheap (brand new for a 300 is like 6K OTD). But they don't realize maintenance is a bitch. A scooter though is much cheaper, reliable, and easy to maintain.
One point you forgot to mention is if you don't pay for the car in full, you might be required to pay more in insurance, you might be limited by how many miles you can put on, and/or you might be limited by what you can do to it (in terms of mods, repairs, and so on). Accidents also get a lot more complicated when you don't fully own the car.
Payments are not a problem, people and their lack of common sense is. I can afford £300 payment, so that means i focus on £300 offers. Some people will be able to afford £300 but will get £500 car finance. And then after couple of months they are surprised that they cannot keep up with payments. thats a reality. i rather pay £300 and drive brand new golf r than save up and have 10 years old nissan.
In the UK two in five of the working population have less than £100 in savings. Yet you look around you and a lot of people on minimum wage are driving brand new cars. Anyway they will find out the hard way.
Hi Mike, I don't have a car yet, but there's lot of buzz around using a rental car. Use only when you want to go around with family. Rest of the time use public transport. Any suggestions?
just bought a Hyundai genesis coupe (4 months ago), payments are 377$/m, doing fine.. not worried about payments... considering double payments. the only reason not to get a car payment is if you have bad credit, i got a 2.7% interest rate. To me it's worth it. I can easily "afford" it, so I don't see why not. Thinking about financing another car for my wife.
I agree Larry. Also taking into account that if you were to finance a newer used vehicle, and can get a lower interest rate on that portion, you're basically given free money. Also, the ability to add gap insurance to the loan for a small fee. Just in case it gets totaled, you're covered in the event insurance does not pay what the car is worth, and gap insurance will kick in and take care of the rest. There are definitely still arguments for going with low interest loans as long as you do have the money to pay it off if ever needed.
vono360 I guess that's okay but interest is still interest. Bought my g35 cash for 13k and it's probably worth around 9k now. so for $111.11 a month I'm happy with that.
What's the difference between your suggestion of saving $400-$500 a month to pay cash for a car or paying that same money or LESS on 0% financing and using the banks money for free. Not too many opportunities to use the banks money for free in life.
You can actually get the vehicle sometime for cheaper with a loan. The loan companies sometimes offer incentives like 500 dollars off a new car if you buy it with a loan. So what you do is you have enough cash for the whole vehicle, get the loan, and then pay it off immediately and keep the 500 dollars.
I'm working the system. I got a 0% interest car loan even though I had the money to pay for the car, instead I set aside that money and am investing that money and making interest on it and paying down the 0% interest loan slowly. At the end of the five years, I would've made money from the investment. And, if I decide I don't like the hassle of having the extra payment every month, I can just pay it off in full whenever I feel like it.
This is a solid point. The other thing you can do is buy the first one on credit and keep it for 20 years. My parents have had 2 cars that averaged more than 20 years. One of which is still owned by them and a third car that's only 15 years old that they still own. It's better to buy without credit, but if you keep the car for a few more years, that helps a great deal as well.
Car loans are fine, here is the trick: buy new, intend to drive it for years to come (10 years), if financing is 0% than no brainer, if financing is 0.99% it's ok because by 72 or 84 months inflation has made it negligible. The worst thing you can do is get an expensive car you don't intend on keeping around at 4.99% financing... Also if you can afford to buy a new car for $30,000 and you are getting 0- 0.99% financing think of it as a loan with no interest, can you go to the bank and make them lend you 30G for nothing, of course not. So again with inflation you are a winner. Use your cash to pay off other shit at much higher interest rates like credit card/student loans/mortgage
You are paying more for the new car than you should have if the financing is subsidised (i.e. getting ripped off). Pay cash for a car or anything less than a house.
@2:37 The best advice to her would be bangernomics. You buy a banger that is easy to fix and has lots of live in it. Low price means low risk and mobility.
I normally don't finance anything. I normally just pay cash for my cars. The only reason I got my current car financed was because I couldn't find the car I wanted in decent enough condition from private owners. This also gives me the opportunity to establish credit.Most private owners in general do not take care of their cars so the car could need money put into right away when you buy it. It could have something major wrong with or it might have little to nothing wrong with it. Buying used car cheap is usually not a good idea because these cars usually break down or don't last very long do to neglect.At least with the dealer you have the option to get a warranty. If a person chooses to remain in debt by constantly trading their car that's their choice. You don't have to do that. You could just keep the car pay it off and not get another car.
It's all dependent upon your scenario. You act like people don't have kids, or don't need to build credit, or like you won't run into maintenance you're going to already need when buying a beater. This shit is so one dimensional that I can smell privilege. Now, I could very well be wrong about the last statement, but it's definitely okay to be making car payments that you can afford and for some people that may not live in the area with the most jobs or best public transpo, it can be very much required. The only thing I truly recommend when financing a car is: if you truly don't have enough money in the bank to buy the car outright like this Jabroni pretends everybody can, then get the gap insurance when applicable. I just finished paying off my 5-year loan at the beginning of this year and my cars running strong and in great condition. But not everybody has the same number of car-savvy friends that I've been fortunate to have so it might not be for everyone. The only thing was I really wish I got the gap insurance for my car cuz I will admit, there were a few hurdles along the road (namely the 3rd and 4th year) where it was a real struggle, but alas, it was definitely worth it, and I don't see myself getting a new car too soon unless something unexpected happens (accident, stolen, I die, your mom, etc.) So don't think this dude is the right answer to your car problems, this way too bias.
Not only do you have to come up with the brand new car payment but you'll have to get full coverage insurance which is even more money! Driving a beater with liability insurance is the least expensive way to go. Even if full coverage is important to you, it will be much cheaper to insure the beater than the brand new car.
My first (used) car literally died on my way to my first job interview. Needless to say I did not get the job. I've financed ever since. If you buy a car new you can make it last a lot longer because you'll know it hasn't been abused. My current car is a 1999 Ford Explorer that i bought new, and yes I paid $18000 for it and yes I made payments for 3 years, but, I still have it, it's been a great car for 17 years because it WASN'T used up by some asshole before I got it. So, I already did the experiment and proved you wrong. Buy new, insure it, change the oil, keep the receipts, fix it if something breaks and it'll always be good as new.
As long as you keep it then yes, you are ahead of the game. If you change out every few years, you are better off going the used route just because of depreciation.
David Battle You really should have done better research before you purchased the used car. Most of the time there are red flags and mechanic people with experience you can pay to inspect it before driving off. All used cars are not bad, used cars are smarter buy than new in most cases.
What you said is true but you're not the type of person he's talking about in this video. He's talking about the people who drop their vehicle at the end of a lease/warranty and grab another one and keep making payments, not the ones who keep them.
I bought a 12,000 dollar loaded prius with leather and map. Cash. Four years later it is like new with 200k miles and no payment still. Even a 300 dollar loan would be paid off and the car would still be worth 7,000 dollars. Small fuel bills and no full coverage insurance payments. I recommend buying a beater Prius for 3,000 dollars, but it will do the same with small fuel bills.
Our economy is dependant on people paying more than they can afford. Don't fall for it. Nothing wrong with a loan as long as it's been thought out and not impulsive.
My boyfriends neighbor was deported and gave me his minivan. It's not new (2002) but my prior vehicle was about to kick the bucket. I get teased constantly for driving ugly cars but I drive what I can financially pay for. It is functional and I love it
I bought my car cash, and I thought the dealership was going to have a fit, first I didn't tell them I was paying cash, and set a limits to what I would pay, they gave me a big value for my trade in thinking they would get me in financing , but at the last second I handed them a cashiers check and the had to give me change, they were piss. This is a tale I win in the end..
First off if you do regular maintenance on the car you can get it WAY past 5 years. And yes, cash only for car purchases. And I've been looking - I can get a mid 2000's Nissan Maxima for $2K. And in a few months I'll have the cash to buy a new one.
Just like I took the Red Pill, and never got married. Seen too many men in my 34 yrs on this Earth pretty much sentenced to a life of poverty due to a bad divorce and insane child support. Stupid games, stupid prizes. I drive a 10yr old Civic cause I want to, they do cause they have to. Big world of a difference. I can easily pay 20k cash tomorrow for 2017 Civic LX. But why? That Civic will last me 10 more yrs. I do most of the maintaince myself and I bought it new, so no abuse.
I have a car note and I just pay 207 a month on 2014 Malibu LT the thing about paying a loan for a car is that you'll build credit while also owning a car I pay double notes my score jumped from 640 to 708
Jay Weber YES...because what they will pay in maintenance ect on a...BUM!!! MOBILE...You..might as well buy! A good reliable!!! Car!... You will SAVE !!!! On the END with a A Newer Car 👍👍
Knock yourself out on buying a piece of shit that'll waste $15,000-20,000 in depreciation in only 3-5 years. $15,000-$20,000 that you could have saved in future repairs of an older car which is just as nice and is only missing stupid, irrelevant features like a backup camera. or $15,000-$20,000 you could have saved on gas. A 2017 Honda Civic will only save me on average $100 a year in gas, in comparison to my 97 Civic; a car that's 20 YEARS OLDER than it!!
It really depends on the interest rate. There's also the cost of opportunity for your money. If you can earn 7% on your money and borrow at 5%, it makes sense to keep your money invested and borrow for the car. But that is dependent on what you can earn vs what you have to pay in interest and most car loans aren't competitive. Can you get a 0% or 1-2% loan on some special financing deal? Go for it. A $15k loan for 5 years at 2.9% means you pay $1131.86 in interest over the life of the loan.
Tie your cash up into a depreciating asset rather than using the bank's money at minimal rates all for the sake of being able to say "I don't have a car payment." Sounds like the sort of financial advice I'd expect to hear from someone that drives a scooter and produces arrogant "I don't have a car payment" videos for TH-cam.
Well said! Taking out a .9 to 1.9 interest loan is a no brainer. Not saying people should be buying $50k cars unless they can afford it. But, no reason folks can't have something reasonably nice and reliable, especially if they commute like I do. I spend at least 12 hours a week in my $15k car and it makes that portion of my day bearable. In the end I only lose what's lost on depreciation, which is about $1000 last year, not bad considering I put on 30,000 miles. The interest is there but minimal at 1.9%.
If you have the cash to buy it then sure ...finance it. The issue is when you can only afford a $10k car, but you finance a $50k car just because the dealer says you can afford it. If you have $10k cash, just finance a $10k car at low interest and do something else with your $10k (investment wise, not buying another car...)...
Well said Danny. for someone that has an excellent credit score that can land a car loan with low interest rates(under 3%) and little money down, its a no brainer to take the rest of the capital you would pay in full with cash and invest in something that will return +5% and compound it rather than watch your asset depreciate.
Ok, a few things come to my mind here: 1. The reason you are financing a car is because you don't have the resources or discipline to put cash into a sinking fund for a car. So if you think you have the discipline to put the difference into an investment, you are delusional. That money is going to go toward other depreciating "assets": vacations, clothes, TVs, smartphones, etc. 2. You can rationalize this all you want to, but you cannot rationalize your way to wealth. 3. By all means, you are a grown up, do what you want. All I ask is this: when I'm in the 1% because I made smart decisions with my money, and you're stuck in the doldrums of the middle class because you keep rationalizing stupid financial decisions, don't elect some goober like Bernie who's going to demand me to pay my "fair share". You have a chance to get rich. You're driving it.
My job requires I travel everyday, all over my state and occasionally to neighboring states. Often in rural areas without cell service. I put 3000-4000 miles a month on my car. I get mileage reimbursement. I have to be on time to my clients appointments. I want to get rid of my car payment, but am afraid of buying a older, cheap car -afraid I will deal with constant car issues, getting stranded in shady areas, etc etc. I am trying to decide if I should get a cheap car and risk it, or pay off my car at a fast pace with a second job. Advice?
Even if you have no vehicle and no job. You could start with a company like Uber right now. If interested you can get an extra bonus by going to this link. get.uber.com/p/eats-courier/?invite_code=u2df5b4wue
The risk is always there to be layed off for whatever reasons and still having to pay for a 15 grand liability. The burden is always there. It is not a smart decision. Period. You might argue that you live of your savings during that time but if you have enough money to endure unemployment, there was no point in financing the car in the first place.
I got a mazda miata 1990 for only $1200 and it only had a crankseal leak which was a 8$ fix and now she runs like how a Miata should. It makes you respect everything about a car
I bought a 2016 Chevy Cruze with only 3000 miles on it from the Insurance Auction a couple of months ago for $2,000. It was in a fender bender. Airbags did not deploy. I bought the bumper for $320 bucks and had macco paint it for $350. So I'm basically driving around in a brand new $17,000 car for less than $3000. The same amount of money you have to put down to get it.
I actually took this guys advice and around a year ago bought a 2002 Toyota Corolla for $2000 cash. The paint is rusty, but the interior is extremely clean, and for about the first 6 months it was a great little car. I was able to save up enough during that time to completely pay off my student loans and credit cards. I am now sitting here debt free with money in the bank, but know it is about time I get a better car. The risk, as others mention, is that with these old beater cars you never know what to expect. My car guzzles oil like water, I have to fill it up with a quart or two almost three times a month and when I'm on the highway I get the sense that I may need to pull over at any moment. Besides that, it's just plain embarrassing to drive such a beat up car. I'm proud that I was responsible enough to get it to begin with to be able to pay off my debts and save up money, but I believe also it damages my image as a professional to be driving around in a green rusty dented tuna can.
I'm not at all embarrassed by my $2500 vehicle. It gets me there and back all day, every day. I'm the guy in the parking lot, pulling out his jumper cables to help people with much newer cars (along with older ones - everyone gets a dead battery eventually). Anyone who is embarrassed about the kind of car they drive is stuck in the high school mentality of caring more about what strangers think than about living their lives. I'll worry about what other people think of my car the day I ask them to pay for it. Until then, it has to serve my purposes and no one else's.
Charles Eye good point
Just like no one should be shamed for driving a new car either.
Get what you like/can afford, it doesn't really matter. You need something Italian and unreliable (I know, redundant) and red anyway if you want to impress people.
Types of vehicles at my work runs the whole gamut and we all make relatively the same income. No one cares.
Your quote should be in a book of "Buying Cars" biography. Very out there in the mix.
I drive a 500 dollar Nissan :)
That sounds all good. Until you find out that 99% of females want a man who is “well off” and has high status. By owning a $1M home on the shore of California and drives and brand new Porsche…
The problem with people and finances is they always want a little bit more than they can afford. First it's a Honda Civic, then people make some more money and want to upgrade to the Accord. Then they make a little bit more and suddenly they need an Acura and on and on. No matter what people make, they want just a little more than they can afford.
I've been living debt free for the past 3 years and it's amazing. I don't have the nicest car and I don't live in a nice big house, but I've never felt more rich than I feel now.
I hear you man! All i want is a nice 2009-2010 Escalade Esv and pay cash then ill be set Then ill be able to feel what you feeling!
Mike Rogers richer*
Brian Ross hahahaha. asian cars are the best. its a fact.
Brian Ross nope not my opinion. jd power and consumer reports consistently rate toyotas hyundais and others as highest
Brian Ross if american cars were reliable id buy them. im sure there are some. but gm is a sheisty ass company if you ask me. leaving michigan for china. scrapping the ev1 car.... my sisters pontiac grand am is the biggest pos i ever worked on. problem after problem. at 50k a head gasket went out.
The best part is where people say "I've been working hard all my life, I DESERVE a nice new car" and by that point, it's too late for them
Someone once said...
"If you can't pay for it twice, you can't afford it."
Yeah, we all want to live beyond our means. But smart people don't.
with a car note you'll ended up broke with a old car at the end of the day.
Anyone else enjoy beaters for the sake of beating beaters? I've beaten beaters until they've been thoroughly beat, and then beat them some more.
Great advice y'all. I'm going to graduate debt free from FSU this May!
😂🤣😂 yesss bro 100%%%
I’m trying to graduate debt free too and find a job to pay for my master. Fingers crossed 🤞
I literally got an ad for car loans before this video...
lol just a bit ironic :)
not the only one.
you are watching to many car loans videos or search for car loans :D google knows it! and makes the most of it
Same here
Same here just now lol
I grew up in a family where I thought financing a car was normal. I was fortunate enough to meet a friend who taught me differently...
You said $50,000 and then you said $15,000.... I'm confused
TWDxKILL3R what’s the difference if you’re financing?? It’s the same as buying anything else in life. Could you afford that phone or did you finance it?
The difference is the loan agreements for a $50,000 car differ vastly from that of a $15,000 car. The word "finance" in itself isn't bad. Do you live in a house? Did you finance it? Did you talk shit to everyone you know who financed their homes? Get off your high horse and stfu. You aren't better than anyone else because you can go online and try to make it out that people are immediately challenged because they chose to "finance" something.
@@SpendinThatCash a house appreciates in value...
@@juanreyes8564 not always does a house appreciate.
NEON I paid cash for my house and cash for all my cars and my food truck business. I took a 30k car loan once and paid it in 12 months to get credit and for tax reasons only because I had the cash in full. I will never pay a loan again the borrower is slave to the lender. If you ever want real money... have no zip zero debt at all. If you owe more than what you have cash you’re broke. Just because you have a few grand in your bank but owe 10 plus on anything, you’re broke. You can be wealthy but starting out owing money isn’t the way. Do you wanna start out ahead or spend 30 years trying to catch up?
This was a great video, it was well made and informative. I am 16 and bought my first vehicle earlier this year for $800. It is a mid size four cylinder pickup, so it is extremely fuel efficient with only $40 a month in gas and actually very reliable. I am planning on keeping this vehicle until after college and have a full time job, before buying a new vehicle. In the mean time I am saving my money.
Good advise but reliability is non negotiable in my book. I suggest to not buy a $2-3k car but to get a $8-15k loan with a credit union and keeping the quality reliable car for 5-10 years. Always buy 2-5 year used car to avoid paying the dealer premium. Also get a hybrid or a fuel efficient vehicle!!!
John Smith paid 1k for my car a year ago and is running like a champ still after 12k miles later
6/6/19....I bought a new 2009 Toyota Camry Hybrid in April 2008.
They had sold all the 2008s & sold me an early 2009 that they hauled from NC to Atlanta.
I paid $27,000. CASH b/c I didn't wantva car pmt. It depreciated 15% ---$4,050.--- the moment I drove it off the dealer's lot.
I just hit 121,000. miles this past week & have bought 3 sets of tires & had regular 5,000. mi oil change/maintenance @ local Toyota dealers. No accidents...I am the only driver....inside leather seats & carpet need cleaning but it would look like new when I have it detailed. I plan to drive it as long as I can without having to make too many/expensive repairs.
WHEN I need to get another vehicle, it will be ANOTHER Toyota
Hybrid or maybe a Lexus Hybrid---
but a nice/clean low mileage USED one---b/c I will pay CASH + I
am retired & don't drive much now
that I am retired.
0% rate for NEW dealer financing is great---but automatic 15% minimum depreciation just driving it home is a BIG HIT even for a rich person. Plus so many GREAT condition used cars out there with cars being returned at end of lease + so many nearly new trade-ins for those who have NEW CAR FEVER!
TOO MANY PPL with college debt + home mtgs + children to raise + credit card debt + health expenses
----THAT SEEMS TO BE THE NEW NORMAL IN THE USA NOW!
Dave Ramsey needs to get out & TEACH/PREACH his CASH CASH CASH PHILOSOPHY TO ALL THESE POOR BROKE PPL!
I use my car to commute to work. When buying a car my only requirement is a working radio and heater 😂
Still drive my 2000 blazer that I bought used in 2002. I hate payments......
Keep up with the maintenance and your car will last .
Justin W Amen brother.
They need to teach this lesson to Juniors and Seniors in High School, instead of telling them to go to college, get a $45K/year job and go get a car note!
You really think the system want you to learn this? School is nothing but a factory to work for someone else for the rest of your life
@@Sight2Behold I agree!!
America is awash with nice used affordable cars and so it baffles me that poor people will go for car loans.
It's not embarrassing to pay cash for a car. What planet are you from?
I do not understand that, cash is king where I live.
I can easily get 15% discount on everything when I pay cash
None of you are getting what he means. He is not saying it is embarrassing to pay cash for a car. He is saying that if you're tight on cash and your choice is to choose between buying a $3000 beater (which you might find embarrassing to be seen in) or put $3000 on a down payment for a $15 000 car then you should just suck up the embarrassment in the meantime while you save cash for something you can buy later that you *won't* be embarrassed to drive.
I drive a thousand dollar POS, and I'm proud to be driving it!
Yep! I have two $1000 POS's lol
3000$ car is embarrassing ? I drove a 900$ car ..that’s embarrassing xD
THIS MAN IS 100% RIGHT!!!! Life of no carpayment, no student loan, no credit card!!!!
I remember when I was looking for a car and I went into a used car place that almost only deals with cars 1 to 5 years old, and when they found out I was going to try to pay for a car in full, they brought in a financial specialist to try and talk me out of it. I got my GTO elsewhere, but I did pay cash and wasn't embarrassed at all.
lol I love the I can't afford to save 400 a month but then signs a contract to do so anyway. it's so true for so many people
Eight years ago, I walked into a car dealership and said, "If you can get me into a new Corvette for less than $700 a month, I'll take it." I'm so grateful that they couldn't make the terms work as I'd be stuck in debt today instead of living aboard full time and having $500,000 in savings today instead of being broke.
I bought my 96 F150 for $3300 with my own money that I worked over 2 summers as well as my Christmas money, birthday money, graduation money, and money for taking care of my neighbor's dog.
Since I bought the truck with my own money I don't have to worry about car payments at all.
+CJ Colvin Awesome. Props. Keep it that way and stay out of debt
+Kevin Johnstone Sounds like a plan man and besides I love my truck more than any new car you see on the road today.
+CJ Colvin Yeah I felt the same way about my 01 accord fully loaded until I hit a deer lol. It's the "my first car" mindset
Prices are that high for a 96 car? I woulda thought it would be in the 2000s.
I'm a loan officer at a decent size credit union and I completely agree with you! Don't borrow money for things you don't need. People get "need" and "want" confused.
Dude you are so right.... I am currently driving a 1996 Toyota Corolla with no door handles on the inside... I have to put windows down to get out and the car has about 183,000 miles and needs a new timing belt... I am so tempted to get new or used car but I will keep using this car till it explodes lol I don't want to be paying a $260 payment every month the next 6 years. Good advixe
timing belt is normal maintenance. Those cars will go 300k with proper maintenance. Be sure to also have the water pump replaced, it is only like 30 5o 50 bucks.. and right there while they do the belt.
djkenny Thanks for the advice.. I will try to replace both..
Dude. Keep driving it. Who gives a crap what other people think of you. You have no payments and you are saving! I drive a 10 years old crappy Subaru wagon. I save 75% of my take home pay, I have 2 rental condos, and a very healthy investment portfolio in mutual funds, stocks, etc.. I achieved all of these by saving and NOT HAVING A CAR PAYMENT! My 10 years old Subaru is so bad that it's good. The door handle on the inside broke on the driver side, so i broke the passenger side on purpose to make it look even. BAHHAHAHHAHHAHHAHH
@kinny78 , mutual funds have never been good to me. How are they to you? I decided to dump my mutual funds.
GooberVlogs I feel you bro!😂😂 I've been driving a fucked up 2003 Hyundai Sonata for 1.5years now, and I got almost $10.000 saved! I'm getting a 2005 Infiniti fx35 in few months😊. Fuck car loans
Jackie is very blessed to have a wonderful brother steering her in the right direction. I currently drive a 2002 Chevy Cavalier with 162 km on it. My friends constantly tell me I'm crazy to think a 14 year old car could possibly last another two years. I just tune them out and keep driving my beautiful fully paid for 2002 car. Thanks for validating my way of thinking.
I have an 03 Cavalier with 215k. Still going strong. The last car I owned was a 93 skylark with 243k on it and I just got rid of it last year. So cars can last 20 to 25 years.
With Uber, Lyft, public transit, and my bicycle, car ownership is looking like less of an option for me.
Cars are expensive, even if you buy them cash. There's still insurance, tire changes, maintenance, parking fees, etc.
I am proud of my $1000 1997 toyota camry that I put 88 miles daily with a check engine light for over a year running strong like a beast
Couldn't agree more, car payments is putting alot of people in debt.
If you want a cheap reliable car go on Craigslist and type in Toyota Camry. Pay $3k in cash for the best one you can find and you're all set for years to come.
my one caveat as a mechanic, i try to push people to look in the 3500-4000 dollar range.
i live in the rust belt so that may be part of the reason but good reliable cars at $3000 are few and most things i see with a $2000 price tag are poo with lots of current and future expenses that will soon make it just as expensive as a $3500-$4000 car.
does not mean deals are not out there, just that i feel the layman's safest bet is somewhere in the 3500-4000 range contingent a mechanics inspection.
It's human nature to want things we can't afford, now. Great advice on how to get your finances in order and not be a debt slave! I am driving a beater now, and have learned the importance of living below my means. It's a liberating feeling folks.
I have a good amount of money saved up but dont feel like spending it all right away. If I can put $0 down with an APR less than 2%, I would rather make payments and build my credit.
That's what people don't understand. I would to the same as you.
That is a good deal if you put your saved money somewhere that makes more that 2%. I avoided paying off my 3% mortgage because my money was doing better elsewhere, my credit was established already but that could be a good reason as well as long as your cash is making you money.
do you have no student loans? No debt? House all paid for? 1000 emergency fund? do you have 3-6 months living expenses? is your retirement account doing okay?
*+Pin The Tail Productions* yes, yes, yes, no, yes, no, yes, yes, yes, no, no, no, yes, no, yes, no, no, no, yes, yes, yes & no.
Pin The Tail Productions someone has been watching dave.
This guy speaks the truth! I only wish I'd known this as a young man. The last new vehicles I bought were in '97 and 2003. I'm still driving both of them and haven't had a payment for 10 years. The freedom to have that money that was invested will be a blessing when it comes time for me to retire. Living BELOW your means is the way to financial responsibility.
"A way to get around town" people are always relating cars to a driving appliance and not something that people have passion for. There are car enthusiasts that have car loans because that's what they are passionate about. You also mentioned a deteriorating interior of the car and how it's a junk car but now you're still paying the same amount as you did when it was new. How about you treat your car with pride and wash it, clean the interior and use some armor all on it to make it last, also, go in for regular maintenance if you can't do it yourself. SO many people buy cars and think they don't have to do anything to them. It's a machine, things need replacing after a certain amount of time and fluids need changing. Way to shame everyone who wants to have a nice car and that can budget their bank account to afford the car they want. If they can afford a $200 biweekly payment then who cares. You're not a financial advisor so you've got no idea what you're talking about. This video is so dumb and pointless. "Oh you can't afford that $300,000 house without Cash?! well then you better live on the street or at mommy and daddies house because you can't afford it!". That is exactly your logic.
littlesimpson2 - THANK YOU!!! YOU GET IT!! And it sounds like you're a fellow driving enthusiast. Glad to meet you!
Couldn't have said it better myself, well done littlesimpson2.
Lots of car enthusiasts buy used, most that I know do. Many car enthusiasts swear by older cars instead of new okes
littlesimpson2 lol very true but you also should buy with in your means, I've, people pay up 500 a month and only get like 1300 a month of income.
littlesimpson2 PREACH!
The way I see it, is why empty out your whole savings account on a nice pre owned 25k truck or car when you can spread out the payments, negotiate a good payment with low a rate and still have your savings intact?
If you can easily afford the note why not get it? Or if possible pay more towards the principle and pay it off early?
Credit is everything. And if used right, it can be a powerful tool to get what you want.
It comes down to what you value in life. For some, cars are a passion and the payment is worth it, because they get enjoyment from it. You work for the money and you enjoy it. If you want to save all this money and have no payments then that’s fine too, it’s all personal to that individual and no one else should be telling you how to spend your money. If you want to finance just ensure you have a backup of at least 6 months in the bank to float you should you lose your means of income.
At 35 I've never had a car loan. My wife and I drive cheap cars that to be honest we don't maintain that well. But you know what, when you don't have a car payment, you got money.
+Jeff Marner Well said.
Jeff Marner Money and a pit to throw it in.
Jeff Marner Same here. Very smart.
Jeff Marner Amen brother don't listen to any modern car lovers on here.
I have a story about this actually as well - about 4 years ago I bought a 2001 Honda S2000 for $14.6k. It was my first ever car purchase after getting my first real job. Mind you, I had literally $2k in my account. But it was my dream car and a personal goal, and a very good price for the mileage (only 47k). I put $1k down and got a loan for the rest - payments were like $300/month which I could pretty easily afford. Fast forward 2 years and one of my best friends was driving me home in it (I had been drinking that night), and he totaled it on the interstate. After fighting with the insurance company, I actually MADE just over $4k on the car after paying off the bank. That model year S2000 is a relatively rare car esp w/ the mileage it had, and I had originally purchased it during the off-season when the prices for convertibles dipped slightly. B/c I got such a great deal on it originally and bc it was a rare, unique car with few similar examples mileage-wise on dealer lots in my state (all of which were listed well over $16k b/c it was the summer) I was successfully able to make $$ on it. A case like mine where the car actually appreciates will only transpire with a very select group of cars, but the point is if you're smart about what/when you buy you can take out a car loan, keep your cash, and not stress about losing money. Also that left over $1k allowed me to start a photography side-business that today makes me the same amount every month. If I had invested that amount in the car, it would've sat there doing nothing for me for 2 whole years. Keeping your cash liquid is important!
Late to the conversation but if you are concerned about having to "fix" a used car, don't think of repairs is dollars but in "car payments." If you had to have $1,000 worth of repairs done to your used car that would be less than 2 average car payments + collision insurance premiums for 2 months + 2 months of State vehicle tax on a new car vs. your old one.
Do a little homework and find out what used cars give the best service over time... Toyota Corolla would be a good start. But any car that can be shown to have given good service may be a deal if the vehicles as a group have a bad reputation. I would however avoid cars that have a reputation for transmission problems. Some would surprise you... Honda Acura's have transmissions that regularly bite the dust north of 180,000 miles. If you can find a manual transmission in a car..get that. Avoid CVT Continuously Variable Transmissions like the plague in a used car. With reasonable gas prices now, instead of paying a premium for a high fuel mileage car, you might do better with one that doesn't do as well but has a better up front price.
Every week raise the hood and check the oil (change it ever 5,000 miles)and automatic transmission fluid (read the owners manual for a how-to, some cars vary in how it's done). Look at the brake fluid reservoir and power steering oil level. Look for cracks or looseness in the accessory belts.With the engine off and cold, try to wiggle any of the driven accessories you can reach. Check your tire pressure. Buy a mid grade set of tires from a dealer that include tire rotations every 5,000-7,500 miles. In all these things, you don't have to be a mechanic... you are looking for sudden changes in status that should be looked a by the competent mechanic that you've asked around for.. and ask for the best mechanic in town...they charge the same rate.
And lastly.....PAY CASH!
What about a 2010 Chevy equinox over 220k miles& needs the engine replaced. Use it as a trade in or go ahead & pay to get the engine replaced & continue without having a note?
As a trade in you'll just be giving the dealer the car. Sell it yourself and keep the money. Dealers are desperate to sell cars and you can drive a hard bargain.
If the car suits you other than a worn out engine then I'd talk with a competent mechanic about an engine out of a wreck. On Craigs list 2013 equinox w/140K they're asking $6500..would probably take $5800 cash. Looks like you could spend $2000 all up installed for a engine with less than 75000 on it and drive the car for another 5 years. That would be $400 a year for car that you know it's history and it's body style still looks current sounds ok. Start a savings account and put $150/month in it. In 5 years you'll have $9000 + $1000 from sale of the equinox. Then since you've had time to look for a deal, buy yourself a 3 year old nice used car and drive it for another 12 years.
Cheers
@@aceroadholder2185 Thank you
man that is one of the core values of my channel... I still drive the same $2000 car I bought in 2009 and it has 181k miles and I have saved so much money... paid my school loan off, mortgage off, and padding the savings
I'd wager he didn't pay cash for his house! I bought a car at the age of 21 that cost $13,000 after taxes, title, financing, etc. Paid it off in under two years. I went through half a dozen cash cars between the age of 16 and 21, I quit two jobs because my transportation was not reliable. Having purchased a car with a warranty is one of the best decisions of my life, and no I couldn't "afford" it in cash, in fact I was unemployed when I got it (due to lack of transportation). Finance a damn car, people! But obviously, be responsible with your money.
Your wrong, your just giving your money away to debt. 20 years no notes and i have nice cars. You have to know how to buy a used car thats all.
this video is a bar of gold. I wish more people could think this way.
after I pay off my Camry I am so done with car payments period
Interest on my last car loan was a drop in the bucket. 2% for a 7000 dollar car. A grand total of 300 dollars interest. Big deal!
I totally agree with this guy. If you can't pay in full, YOU CANT AFFORD IT.
+Abandoned TN so you mean that all the people who are financing their cars, actually do not afford them?!!
+Navsangeet Brar Not all, but most.
+Navsangeet Brar Not really. If you lose your job tomorrow and you start missing payments come next month, no you couldn't afford that car.
Roger Williams if we want to look at it this way then we should have enough money in our pocket to buy food for whole life. What if we loose our job, you know!! Financing is a mean to an end for majority in American economy, it is a choice, its a matter of control, hence works differently for different people based upon their own control of their means and kind of choices they make based upon their means. I honestly agree that your notion is true for the people with less control on their life.
Naturally, everyone won't be able to use the advice in the video. I totally get that, and that's not what I'm suggesting.
What I am suggesting is that most Americans go into debt to buy new or newish cars because we have been socialized to believe that that is what we're supposed to do. It has been weaved into the cultural fabric of this society.
Of course we justify going into car loan debt in all sorts of ways, but it seems to me that it is more out of a psychological need to fit in than it is about necessity.
Life is short . People die all the time . I've been in the hospital for my appendix and after a car crash . Live life how you want . If you live with your parents and you can get a good down payment and can afford monthly payments and insurance . Buy it . If you have a family and can't afford it . Don't do it . If you don't care and want to just have something to ride around in go on craigslist or look for something used . Some used cars are worth , others aren't. I'm not that experienced in life . I'm 23 , mechanically inclined with schooling and I live with my parents , I don't have kids or a girlfriend . I've had plenty of cars , mainly used and the most reliable one is the one my dad bought almost brand new and gave to me after he put 200k miles on it . All my other cars have had problems fuel issues , engine issues , And they were all cheap 2k dollar cars . You can't trust people who are selling cars usually , because if the car is really so good why do they sell it . You can rant all you want but everyone's situation is different . Sure it's nice to save up for the future but tomorrow is never promised . I'm actually in the process of saving enough money to put a down payment on a brand new mustang gt350r . And the reason is because
1) it's brand new
2)I've been wanting that car since they came out in 2017
3)life is short and you might as well enjoy it
Sure cars can be a bad investment , they depreciate , but you know what memories you make are always going to be there and there value usually doesn't go down . Peace , love , and burnt rubber ✊🏻
Many years ago my car took a major hit mechanical wise...it cost me $ 2,700 to get it back on the road. I took a closer look at my finances and I wasn't willing to let my old car go and let my hard earned my go as well. So thought it was better to pay the $ 2,700 than getting in debt for many times over to this day I still drive the same car every day and I do all regular maintenance and plan to keep it as long I can. Thanks for kicking some sense into people's head many folks just want to be seen driving something it doesn't 't belong to them.
3500 for a 02 crown vic had 80,000 miles now has 500,000 and one 500 transmission ,,,,not bad at all
MrOrlandobob2 dude not fucking bad at all my friend. godamn gotta love ford.
You re absolutely right. I have bought and financed one new car in my life. That was 30+ years ago. When I realized how badly I got ripped off, I decided never to do it again. From then on, it has been reasonably priced used cars. I don't mean junkers either. Back in 2011 I bought an almost like new 2001 Chevy Malibu with 98,000 miles on it. $4500. paid cash. Liability only insurance. I drove it for 5 years and gave it to my oldest daughter. It had 248,000 miles on it at that point. I decided to go for something big and comfortable and RWD. I bought another near new 2006 Mercury Grand Marquis with 47,000 miles on it for $6500. Cash. Again minimum liability insurance only. I've probably saved $20,000 over the past couple of decades by avoiding full coverage, so even if the car gets stolen or totaled I'm money ahead. That car now has 130,000 miles on it, and I fully expect it to reach 300,000. I am a mechanic, and seriously over maintain my vehicles. My next vehicle, if I live long enough to need one, will probably be a used truck. I also only buy from private sellers. Lower price, no sales tax or dealer fees, plus I really don't want to be supporting crooked dealers.
Great video. Thank you. I have made stupid decisions buying cars with loans. I love the smell of my 2010 Nissan Versa Manual transmission and manual windows with 77K miles paid for in cash parked in the garage of my 270k home. While I’m paying my mortgage sooner others are struggling making car payments and mortgage payments. People wake up!!! It is insane spending aprox 1/2 of your annual income on a car. An item that looses value drastically.
"Loses" not looses.
I agree with this video all the way. A co-worker of mine fell in love with a brand new domestic shit car, purchased and financed it for the next 8 years. He intends to pay for this on a bi-weekly basis by driving for uber. Now his 1 year old car racked up a lot of kilometers....I bet the car won't last until the financing period ends......
I know plenty of fiscally responsible people who've taken out short term car loans. People who do put money in the bank. People who do have IRAs and 401(k)s. I'm one of them. I'm in my late 40s and have owned exactly 3 cars in my life. One was a 78 Impala that I drove through high school and college. The next was a Nissan that I bought new when I was 28. I financed it for 2 years and drove it for 18. That's right. I drove it for 18 years. I finally replaced it last year when I was 46. I got a new CRV. I put $6k down and financed the rest at a .09% APR. I'm currently paying more than the minimum in my car payment so I'll be done with this loan earlier. I'm loving the car and enjoying peace of mind. I'll keep it for at least 10 years if not longer. You can't dismiss everyone who finances a new car as an irresponsible idiot.
Americans are up to $15,000,000,000 in overdraft fees from banks. Interest on so many loans is just another way to feed these huge banks. I bought my car for $500 and it's going to last me all through college and probably further. 2006 Ford taurus SEL with 114k miles. And maintenance costs are very low, same with insurance and gas. People always ask if I have a nice car, then immediately get jealous that I have a massive college fund. A great strategey is to save up some money for a starter car, and then keep putting money away every month if you want to upgrade to something nicer. A car is just a transportation tool. You can either spend $50,000 on getting 100,000 miles. Or spend $2000 on getting 100,000 miles.
I don't disagree with you, but the number of people who can afford to pay cash for brand-new cars is so low that the car industry *relies* on people getting car loans. No car loans equals no more car industry.
The same applies to pretty much every other consumer item. If people only bought what they could afford to pay for in cash in full, then the consumer electronics market (among others) would collapse along with the car industry.
This is the nature of modern economies.
And why should you or I be a sucker for the car industry's gain?
Blake McClary Because cars don't start out preowned.
If no one ever bought new, it would be like Cuba everywhere.
dchawk81 Europe, look at Europe, and also most of the world besides America, many ways to get around for cheap and be able to save money to later buy a vehicle.
MOBEEN© USA doesn't have public transit infrastructure like most of Europe. We have states bigger than most countries.
Having said that, it's available in some metros like NYC and works fairly well there.
dchawk81 The UK is 1/3 the size of Texas yet there is a population more than twice that of Texas, I do take into account what you mean, although the people of our society can take a slice of the cake from the end instead of digging spoons in the middle randomly, excluding the agriculture and oil industry workers, but comparing to how close retail stores are in NY, such could've been possible within other states, also looking at a city like Houston you will see way to many financed cars in close quarter areas, where if transportation was not done by a car, the government could implement a better method.
weeks before I stumbled into this logical mentality I went ahead and financed a new vehicle and the next morning I cried because I knew it was the biggest mistake I ever made in my life. stupidity has no age limit. Now I budget like no other and am currently selling a lot of the things I realized that I don't need in my life. This sort of thinking Is now leading me down the path of minimalism and I absolutely love it.
That's a great realization to have :) good luck on your new path!
very smart advice, 30 years ago I was in my mid twenties, of course I bought cars on time, however now that I'm in my 50's, I buy older cars, keep them forever and pay cash for them, buy a car from an older person, they baby their cars, big cars especially, you can get a lot of car for your money because they're not in big demand, I paid $850.00 for my 92 Crown vic 4 years ago, bought from original owner, have no problems with it, still driving it, runs excellent, no payments, insurance is cheap, starts everytime and get's me around, I don't worry about a $500.00 truck payment and high insurance rates, my money goes in the bank every month. Yes I understand when your young, everyone wants a new car, however getting one on time is expensive, wait until you save for it, its much cheaper and you appreciate it more, and you own the car, it doesn't own you!
There's an awesome book called the millionaire next door which states that most millionaires that they've researched start with this simple idea as well. They buy good cars around the 5 year old mark (because that's when the most depreciation has occurred) and they usually pay cash. Makes sense to me.
" The hearse doesn't drive by the bank "
Enjoy your money, don't slam people who responsibly finance things, especially cars.
If you get a low interest rate, you really aren't wasting much money. A 0.9% rate on 20k is 1800 in interest. Let's say that's over 5 years. That's $360 a year or $30 a month, which isn't a huge amount to anyone. During that time you have a car that is reliable, good on gas and under warranty (assuming you bought a fuel efficient new car). I don't see how that is a negative thing.
And if you lose your job?
If you lose your job, how are you going to pay the insurance on a car anyway? You'd have to sell the car to eat.
the whole idea behind paying for a used car in full, is having extra money. and what would a responsible person do with the extra cash? SAVE IT. The money you would use to finance a car, has now become an emergency fund.
Your going to need that emergency fund when the radiator goes.
ULTRA RARE SABRA I had a 1997 Ford Escort beater that I paid $250 for. I am a HUGE DIYer so I paid very little shop labor for anything...just tires and alignment.
That car cost me more per month, averaged out, just in parts, than the 2014 Ford Focus I financed with sport package, leather, moonroof, ambient light package, the whole works.
The 1997 Escort was a rough, unreliable, ugly, uncomfortable car that barely got 28mpg.
The 2014 Focus was...the exact opposite and easily got 35mpg.
I saved on gas and repair headaches but had to pay extra insurance.
The Focus was a net win. Way more comfortable, quieter, reliable, easier on fuel, better handling, ice cold AC and hot heat, clean fresh cabin air, not embarrassing to have passengers in, quiet blower fan.
Honestly, old cars suck and are not the savings people make them out to be. ESPECIALLY if they don't have the ability to make major repairs themselves.
Oh and I didn't mention rust. The Escort...yep. Deteriorating. The Focus? Not.
I totally agree with you.That's why I retired at age 44.To me,security is money in the bank.The advice your giving is spot on
i can buy my car cash but i still took out a loan...would rather have that money siting in my savings for a rainy day while building my credit..but if i didnt have that money to buy it cash i would not have taken the loan
+Alumnikiid thats what I thought too
exactly what Ive been telling all my friends, they kept laughing at my 01 Infiniti i30, but I paid cash for it 5 years ago, it was 90 thousand miles for around $4000. I got rear ended twice and I got over what I paid for it from insurance, also, I fix it all the time by my self if any minor thing comes up, like oil change, air filter change, oxygen sensor change, exhaust muffler change, mass air flow sensor change ext...the bottom line is, the car still drives smooth and I will only replace it if I can't fix it any more, and by that time hopefully I'll have enough saved up for a better car.
I never consider stuff mine until I have paid them off idk why but I guess it’s kind of a good thing
I bought an '01 Chevy Malibu in 2006, paid it off in 2011, and still have it...and I've sunk maintenance money into it that would've gone toward payments. It's still running strong, and it feels _wonderful_ to NOT have a car payment! The cheapest car to have is the one you already own, so I intend to hang on to this free-and-clear car with no major problems until I can't anymore, but I don't when that'll be since I put money into maintaining it.
It's exactly just like how you are paying for your phone bills, electricity, cloths, shoes. Paying for a car I don't find a huge problem with that. It's a personal choice. You deserve it if you work hard paying for it.
Exactly!
You finance your clothes and shoes...?
@@minor7b5natural9 There's an option for that nowadays. Encountered that on a few sites that sell suits and shoes.
Sage advice. In regards to the $400 you suggest someone set aside each month, that money would be well spent on sorting the car out mechanically, for the first 6 months or so. Getting ahead on the mechanicals can quickly make your $2000 car feel like a $10000 car.
Buy a 49cc scooter for your commute. Rent cars for longer distance trips.
18$ a day is a good rental
Yes! A small CC scooter is the way to go. People think that buying a motorcycle is fuel efficient and cheap (brand new for a 300 is like 6K OTD). But they don't realize maintenance is a bitch. A scooter though is much cheaper, reliable, and easy to maintain.
A scooter like a motorcycle is dangerous.
One point you forgot to mention is if you don't pay for the car in full, you might be required to pay more in insurance, you might be limited by how many miles you can put on, and/or you might be limited by what you can do to it (in terms of mods, repairs, and so on). Accidents also get a lot more complicated when you don't fully own the car.
Payments are not a problem, people and their lack of common sense is. I can afford £300 payment, so that means i focus on £300 offers. Some people will be able to afford £300 but will get £500 car finance. And then after couple of months they are surprised that they cannot keep up with payments. thats a reality. i rather pay £300 and drive brand new golf r than save up and have 10 years old nissan.
In the UK two in five of the working population have less than £100 in savings. Yet you look around you and a lot of people on minimum wage are driving brand new cars. Anyway they will find out the hard way.
Hi Mike, I don't have a car yet, but there's lot of buzz around using a rental car. Use only when you want to go around with family. Rest of the time use public transport. Any suggestions?
Great video, it is a real shame that most find it acceptable, kids, parents, everyone sees it acceptable to go into debt for a car. Subscribed bro
just bought a Hyundai genesis coupe (4 months ago), payments are 377$/m, doing fine.. not worried about payments... considering double payments. the only reason not to get a car payment is if you have bad credit, i got a 2.7% interest rate.
To me it's worth it. I can easily "afford" it, so I don't see why not. Thinking about financing another car for my wife.
Car loans....simply throwing away money on interest charges
Larry Wright sure "only" 3% but also the depreciation of buying a new car is stupidly high during the first 50,000 miles
I agree Larry. Also taking into account that if you were to finance a newer used vehicle, and can get a lower interest rate on that portion, you're basically given free money. Also, the ability to add gap insurance to the loan for a small fee. Just in case it gets totaled, you're covered in the event insurance does not pay what the car is worth, and gap insurance will kick in and take care of the rest. There are definitely still arguments for going with low interest loans as long as you do have the money to pay it off if ever needed.
vono360 I guess that's okay but interest is still interest. Bought my g35 cash for 13k and it's probably worth around 9k now. so for $111.11 a month I'm happy with that.
Ben Powe Interest rates are very low. The depreciation is what's killing you.
B Davis depreciation can kill me?☺️that's not good, as am to young to die////////
What's the difference between your suggestion of saving $400-$500 a month to pay cash for a car or paying that same money or LESS on 0% financing and using the banks money for free. Not too many opportunities to use the banks money for free in life.
Amazing! My boyfriend is about to get a financed truck. So expensive! I will show him this video. :D Thanks for sharing.
You can actually get the vehicle sometime for cheaper with a loan. The loan companies sometimes offer incentives like 500 dollars off a new car if you buy it with a loan. So what you do is you have enough cash for the whole vehicle, get the loan, and then pay it off immediately and keep the 500 dollars.
I'm working the system. I got a 0% interest car loan even though I had the money to pay for the car, instead I set aside that money and am investing that money and making interest on it and paying down the 0% interest loan slowly. At the end of the five years, I would've made money from the investment. And, if I decide I don't like the hassle of having the extra payment every month, I can just pay it off in full whenever I feel like it.
This is a solid point. The other thing you can do is buy the first one on credit and keep it for 20 years. My parents have had 2 cars that averaged more than 20 years. One of which is still owned by them and a third car that's only 15 years old that they still own.
It's better to buy without credit, but if you keep the car for a few more years, that helps a great deal as well.
Car loans are fine, here is the trick: buy new, intend to drive it for years to come (10 years), if financing is 0% than no brainer, if financing is 0.99% it's ok because by 72 or 84 months inflation has made it negligible. The worst thing you can do is get an expensive car you don't intend on keeping around at 4.99% financing...
Also if you can afford to buy a new car for $30,000 and you are getting 0- 0.99% financing think of it as a loan with no interest, can you go to the bank and make them lend you 30G for nothing, of course not. So again with inflation you are a winner. Use your cash to pay off other shit at much higher interest rates like credit card/student loans/mortgage
Barcha91 This is exactly why you use the banks money for almost free if you have good credit.
You are paying more for the new car than you should have if the financing is subsidised (i.e. getting ripped off). Pay cash for a car or anything less than a house.
@2:37 The best advice to her would be bangernomics. You buy a banger that is easy to fix and has lots of live in it. Low price means low risk and mobility.
I love this.
Thanks!
I normally don't finance anything. I normally just pay cash for my cars. The only reason I got my current car financed was because I couldn't find the car I wanted in decent enough condition from private owners. This also gives me the opportunity to establish credit.Most private owners in general do not take care of their cars so the car could need money put into right away when you buy it. It could have something major wrong with or it might have little to nothing wrong with it. Buying used car cheap is usually not a good idea because these cars usually break down or don't last very long do to neglect.At least with the dealer you have the option to get a warranty. If a person chooses to remain in debt by constantly trading their car that's their choice. You don't have to do that. You could just keep the car pay it off and not get another car.
It's all dependent upon your scenario. You act like people don't have kids, or don't need to build credit, or like you won't run into maintenance you're going to already need when buying a beater. This shit is so one dimensional that I can smell privilege. Now, I could very well be wrong about the last statement, but it's definitely okay to be making car payments that you can afford and for some people that may not live in the area with the most jobs or best public transpo, it can be very much required. The only thing I truly recommend when financing a car is: if you truly don't have enough money in the bank to buy the car outright like this Jabroni pretends everybody can, then get the gap insurance when applicable. I just finished paying off my 5-year loan at the beginning of this year and my cars running strong and in great condition. But not everybody has the same number of car-savvy friends that I've been fortunate to have so it might not be for everyone. The only thing was I really wish I got the gap insurance for my car cuz I will admit, there were a few hurdles along the road (namely the 3rd and 4th year) where it was a real struggle, but alas, it was definitely worth it, and I don't see myself getting a new car too soon unless something unexpected happens (accident, stolen, I die, your mom, etc.)
So don't think this dude is the right answer to your car problems, this way too bias.
Not only do you have to come up with the brand new car payment but you'll have to get full coverage insurance which is even more money! Driving a beater with liability insurance is the least expensive way to go. Even if full coverage is important to you, it will be much cheaper to insure the beater than the brand new car.
My first (used) car literally died on my way to my first job interview. Needless to say I did not get the job. I've financed ever since. If you buy a car new you can make it last a lot longer because you'll know it hasn't been abused. My current car is a 1999 Ford Explorer that i bought new, and yes I paid $18000 for it and yes I made payments for 3 years, but, I still have it, it's been a great car for 17 years because it WASN'T used up by some asshole before I got it. So, I already did the experiment and proved you wrong.
Buy new, insure it, change the oil, keep the receipts, fix it if something breaks and it'll always be good as new.
As long as you keep it then yes, you are ahead of the game. If you change out every few years, you are better off going the used route just because of depreciation.
I guarantee, you did virtually no critical inspection of the vehicle before you bought it.
David Battle You really should have done better research before you purchased the used car. Most of the time there are red flags and mechanic people with experience you can pay to inspect it before driving off. All used cars are not bad, used cars are smarter buy than new in most cases.
your issue was not because of buying a used cars. your issue was caused by lack of a proper pre-purchase inspection.
What you said is true but you're not the type of person he's talking about in this video. He's talking about the people who drop their vehicle at the end of a lease/warranty and grab another one and keep making payments, not the ones who keep them.
I bought a 12,000 dollar loaded prius with leather and map. Cash. Four years later it is like new with 200k miles and no payment still. Even a 300 dollar loan would be paid off and the car would still be worth 7,000 dollars. Small fuel bills and no full coverage insurance payments. I recommend buying a beater Prius for 3,000 dollars, but it will do the same with small fuel bills.
Our economy is dependant on people paying more than they can afford.
Don't fall for it.
Nothing wrong with a loan as long as it's been thought out and not impulsive.
My boyfriends neighbor was deported and gave me his minivan. It's not new (2002) but my prior vehicle was about to kick the bucket. I get teased constantly for driving ugly cars but I drive what I can financially pay for. It is functional and I love it
:D I agree 100% .. I am saving for 2 years so I can buy my car cash.
Grace Faith Awesome!
Grace Faith did you actually buy it cash??
I bought my car cash, and I thought the dealership was going to have a fit, first I didn't tell them I was paying cash, and set a limits to what I would pay, they gave me a big value for my trade in thinking they would get me in financing , but at the last second I handed them a cashiers check and the had to give me change, they were piss. This is a tale I win in the end..
what if its a 2016 Mustang gt??
Breton Luna bro I'm so close to buying a 2013 Subaru wrx and it's 22k I'm scared
ken Kaneki how much you putting for downpayment? you have good credit?
Breton Luna first time buyer but I'm willing to put 8k
ken Kaneki bro, thats a really tough decision. but if its your dream car go for it
Breton Luna Shit man thanks
First off if you do regular maintenance on the car you can get it WAY past 5 years. And yes, cash only for car purchases. And I've been looking - I can get a mid 2000's Nissan Maxima for $2K. And in a few months I'll have the cash to buy a new one.
Just like I took the Red Pill, and never got married. Seen too many men in my 34 yrs on this Earth pretty much sentenced to a life of poverty due to a bad divorce and insane child support. Stupid games, stupid prizes. I drive a 10yr old Civic cause I want to, they do cause they have to. Big world of a difference. I can easily pay 20k cash tomorrow for 2017 Civic LX. But why? That Civic will last me 10 more yrs. I do most of the maintaince myself and I bought it new, so no abuse.
I have a car note and I just pay 207 a month on 2014 Malibu LT the thing about paying a loan for a car is that you'll build credit while also owning a car I pay double notes my score jumped from 640 to 708
Time value of money, you fool... Not everyone wants to drive a craigslist car...
Jay Weber YES...because what they will pay in maintenance ect on a...BUM!!! MOBILE...You..might as well buy! A good reliable!!! Car!... You will SAVE !!!! On the END with a A Newer Car 👍👍
Knock yourself out on buying a piece of shit that'll waste $15,000-20,000 in depreciation in only 3-5 years. $15,000-$20,000 that you could have saved in future repairs of an older car which is just as nice and is only missing stupid, irrelevant features like a backup camera. or $15,000-$20,000 you could have saved on gas.
A 2017 Honda Civic will only save me on average $100 a year in gas, in comparison to my 97 Civic; a car that's 20 YEARS OLDER than it!!
It really depends on the interest rate. There's also the cost of opportunity for your money. If you can earn 7% on your money and borrow at 5%, it makes sense to keep your money invested and borrow for the car. But that is dependent on what you can earn vs what you have to pay in interest and most car loans aren't competitive. Can you get a 0% or 1-2% loan on some special financing deal? Go for it. A $15k loan for 5 years at 2.9% means you pay $1131.86 in interest over the life of the loan.
Tie your cash up into a depreciating asset rather than using the bank's money at minimal rates all for the sake of being able to say "I don't have a car payment." Sounds like the sort of financial advice I'd expect to hear from someone that drives a scooter and produces arrogant "I don't have a car payment" videos for TH-cam.
Well said! Taking out a .9 to 1.9 interest loan is a no brainer. Not saying people should be buying $50k cars unless they can afford it. But, no reason folks can't have something reasonably nice and reliable, especially if they commute like I do. I spend at least 12 hours a week in my $15k car and it makes that portion of my day bearable. In the end I only lose what's lost on depreciation, which is about $1000 last year, not bad considering I put on 30,000 miles. The interest is there but minimal at 1.9%.
If you have the cash to buy it then sure ...finance it. The issue is when you can only afford a $10k car, but you finance a $50k car just because the dealer says you can afford it. If you have $10k cash, just finance a $10k car at low interest and do something else with your $10k (investment wise, not buying another car...)...
Well said Danny. for someone that has an excellent credit score that can land a car loan with low interest rates(under 3%) and little money down, its a no brainer to take the rest of the capital you would pay in full with cash and invest in something that will return +5% and compound it rather than watch your asset depreciate.
Ok, a few things come to my mind here:
1. The reason you are financing a car is because you don't have the resources or discipline to put cash into a sinking fund for a car. So if you think you have the discipline to put the difference into an investment, you are delusional. That money is going to go toward other depreciating "assets": vacations, clothes, TVs, smartphones, etc.
2. You can rationalize this all you want to, but you cannot rationalize your way to wealth.
3. By all means, you are a grown up, do what you want. All I ask is this: when I'm in the 1% because I made smart decisions with my money, and you're stuck in the doldrums of the middle class because you keep rationalizing stupid financial decisions, don't elect some goober like Bernie who's going to demand me to pay my "fair share". You have a chance to get rich. You're driving it.
Danny Unger i drive a scooter, i've no car loan :P
fite me
My job requires I travel everyday, all over my state and occasionally to neighboring states. Often in rural areas without cell service. I put 3000-4000 miles a month on my car. I get mileage reimbursement. I have to be on time to my clients appointments. I want to get rid of my car payment, but am afraid of buying a older, cheap car -afraid I will deal with constant car issues, getting stranded in shady areas, etc etc. I am trying to decide if I should get a cheap car and risk it, or pay off my car at a fast pace with a second job. Advice?
A two year old car will still be very dependable with the former owner paying for a big share of the deprecation.
This is only a problem if you don't know how to create income and assets. Stop being poor.
savage
preach
Savage is right
if you live in the US you can change classes anytime you want to stop making excuses
Even if you have no vehicle and no job. You could start with a company like Uber right now. If interested you can get an extra bonus by going to this link.
get.uber.com/p/eats-courier/?invite_code=u2df5b4wue
The risk is always there to be layed off for whatever reasons and still having to pay for a 15 grand liability. The burden is always there. It is not a smart decision. Period.
You might argue that you live of your savings during that time but if you have enough money to endure unemployment, there was no point in financing the car in the first place.
I got a mazda miata 1990 for only $1200 and it only had a crankseal leak which was a 8$ fix and now she runs like how a Miata should. It makes you respect everything about a car
It’s not arrogant if you’re right.
I bought a 2016 Chevy Cruze with only 3000 miles on it from the Insurance Auction a couple of months ago for $2,000. It was in a fender bender. Airbags did not deploy. I bought the bumper for $320 bucks and had macco paint it for $350. So I'm basically driving around in a brand new $17,000 car for less than $3000. The same amount of money you have to put down to get it.
I actually took this guys advice and around a year ago bought a 2002 Toyota Corolla for $2000 cash. The paint is rusty, but the interior is extremely clean, and for about the first 6 months it was a great little car. I was able to save up enough during that time to completely pay off my student loans and credit cards. I am now sitting here debt free with money in the bank, but know it is about time I get a better car. The risk, as others mention, is that with these old beater cars you never know what to expect. My car guzzles oil like water, I have to fill it up with a quart or two almost three times a month and when I'm on the highway I get the sense that I may need to pull over at any moment. Besides that, it's just plain embarrassing to drive such a beat up car. I'm proud that I was responsible enough to get it to begin with to be able to pay off my debts and save up money, but I believe also it damages my image as a professional to be driving around in a green rusty dented tuna can.