Why You Should Never Finance A Car Again
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- เผยแพร่เมื่อ 10 ก.พ. 2025
- Lets not pretend like the average car payment didnt just reach $700 per month, and lets not pretend like a lot of people are not trap in the car payment loop. That's when people buy cars and finance them, over and over again every 5 years, and the dealers convince them to do it because the warranty is going to expire and they offer some crappy trade-in value. But I’m not here to blame dealer for being smart, i’m here to teach you to be smarter than they are, thats the game.
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1. Why You Should Never Finance
finance does 3 positive things that are actually super stupid
First: it lets you buy more car than you can afford to buy in cash
And that's not free, or because they like you
Its because the banks make money on interest and the dealer gets a profit immediately
And you are the one responsible for keeping our economy going ( Cha-ching )
Second: you trade a One-time payment with a Monthly Payment
its like a loan on your income if you think about it
People do not understand how long 5 years is, thats 60 months, means 60 times you will have to pay each month for this car
Just because you wanted it and at the end of the road in 5 years that car is not going to smell the same and have the buzz it had on you
Third: Miss out a great a deal to buy a Used car and at a discount
Instead of viewing a car in dollar signs, lets think in time value
A car can cost 50k brand new, after 5 years same car cost of 25k ( but its used )
But this isn't like buying a used toothbrush or underwear ( that should make you disgusted that's why i said it )
Its a vehicle that can you can watch and boom its brand new to you
But seriously, the life of the vehicle is 250k miles if you buy a good car ( more on that later )
Even if you drive 15k miles a year, that 16 years of vehicle life ( you buy at year 5 you still have 66% left )
And if you drive it for 11 years that same 25k, ends up costing you about 2.2k a year ( obviously you dont have to by a 25k vehicle but this is just an example )
2. How to buy your dream Car
My dream car use to be a lambo, Porsche and tesla model x, bit i realized i wouldn't be able to handle that much attention and i didn't thousands at repair job
So my current dream car, is the car i can afford to pay for in cash and i know based on statistics that it is reliable, plus saves me money on gas (i will reveal my pick at the end of the vid )
So take this actionable step
Write down on a piece of paper
How much cash do you have
I recommend you look at Toyota, Honda and Mazda
Those are the car that are most reliable according to consumer reports
3. What if Scenario
If you buy a $5,000 dollar car today, because that all you can afford
And you invested the $700 you were going to pay month at 10%
How much do you think you would have by the end of the life of that car
The Math says this:
If you have another 10 years left on that car
You will have about $147,261.80
Instead of having 2 cars that you ran through and lost a bunch of money on
Same time but different results
My dream car
I can grab 20% of my investment money, which is about 30k and buy me another used car and pay cash for it and do it all over again
But remember that 30k car use to be worth 60k potentially
And in another 10 years you’ll have roughly little less than half a million
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You know what’s another issue, the car brand itself… people wanna buy cars for clout or for looks and that’s the last thing that should be on your mind.. the first thing you should look at is reliability, does it have any recalls? How much do car parts costs? How to properly read a car fax, how many miles was the oil changed in between intervals… how to properly inspect a car.. not many people do this and they end up with a Chevy, Jeep or a Ford that’s burning oil, needs a new transmission or engine and they are confused on why does the car need all of this and it only has 90k miles… and finally the last part of this.. just because a car has low miles doesn’t mean the car is reliable.. probably the dumbest thing you can ever evaluate a car for..
This is the best comment, exactly. Well said. Also buying a car and paying cash.
Naw son! I need to impress people with my Range Rover! I got credit cars to pay too, 🤪
With my Carrera S that was leased for 1,500 and claimed it as a business expense at the end of the year. Got 85 percent back.
Every 2 years 150-200,000 new car practically for free. Don't necessarily need a business.
Only buy a TOYOTA OR LEXUS.
I need some advice buying a car cost $6000 st the dealership the owner told me he can approve me after the application they want me to put 1500$ down this go to the dealership and $3000 was approved then at the end 250$ payment plan month for 3 years they told me the down payment doesn't count so =$11000 & some change also asking me to pay for tags paperwork tax for the car $750 yea the full coverage insurance another 300$ smh 💀 🚗year 2009
I paid car notes for 14 years. When I realized how much money was spent, I wanted all of my money back, so I went 14 years without a car payment. Now, 14 years later, cars are no longer $15-$20k, and I absolutely refuse to pay $50k+ for an average vehicle. My 2008 Jeep cost $5000 cash. Been driving it for 4 years now! 🙌🏽
Cherokee? I’ve owned two used Jeeps consecutively going back to ‘97. The older Jeeps were the best! (Though this 2d Jeep is ab to give up the ghost.)
It be maintenance that car owners have a problem with if a transmission or some kind of expensive engine work arises all of a sudden, my thing is insurance doesn't help with maintenance all the money you throwing away on insurance
@@debow9739 I must have got lucky. In the last 4 years, my repairs have been minimal. I’ve replace the radiator, upper control arms, rotors, front brakes, O2 sensors, and exhaust, and most were done within the first year. It’s a Hemi Commander, so my only gripe is the gas mileage. 😛
Good deal
@@debow9739Insurance is an absolute scam. I wish more people would talk about it
Bro. Finally, someone online that is against the stupidity of having a car loan. Good job fam
Few on my side 😅
@@TommyBrysonkeep up the good work.
Actually Bro, having a car loan is not stupidity. It is just an expense. Like any expense whether it is smart or stupid depends on many factors exclusive to the person.
The reality is people often finance a vehicle stupidly. For example they do not monitor and maintain a solid credit score, they do not negotiate the price, they do not ensure the dealer F&I manager uses the correct interest rate for their credit profile, they buy a vehicle (used or new) too costly for their financial status.
For many who understand how to use credit and debt wisely a car loan or any loan is often the wise move. For example, if a person can get a car loan at 3 percent the smart move might be to take the loan and leave the cash in a high interest savings account (currently paying up to 5 percent interest).
Of course this takes thought and knowledge and not just a belief.
@@jerrylundegaard2592not everyone can get a car note at that interest rate.
I’m a truck driver, I’m one of the few who drives an old beat up car in my company. An Infiniti G20 2000, I bought it in 2010 with 140,000 miles. It cost me with taxes $5,000. Now, that car has 390,000 miles and still running and passing smog checks every two years, due to a good maintenance. I commute to my work around 45 miles each way. However, I’m happy with my little Japanese car. My coworkers have big pick up trucks that might cost around $50,000 to $80,000 dollars. But, I’m 4 years away to pay off my home because Instead of giving a car payment, I give an extra principal payment for my house. I felt sad when a coworker and new trucker went to the dealership and got trapped with a Corvette.
Some people don’t even see their own economical reality.
Well said brother!!!
I would love to have a corvette, I have a camaro and a honda. I plan on getting a corvette however I'm checking the local listing. I dont have any car payments.
The value of the dollar goes down every year. If you're in debt, and the debt is used to buy an asset then you are winning. In my opinion you should have rented to live, and buy an investment property that makes money instead of giving the bank extra money sooner than necessary in the form of principal payments. Your house now is not making you money, sure you own it, and can sell it, but so is your friends vehicles. Your purchase may hold value better but, its not making you money now.
The only problem I have with your post is 'old beat up car'. I have never, and I mean never, seen an Infiniti G 20 that was not in decent shape considering how old they are getting. I have no explanation for it, but people tend to take good care of those.
I got rid of my car loan in 3 years instead of 7 years. I couldn't stand paying 445/month. I took advantage of the covid pay as a nurse and made bigger payments, the last year I payed $1000 /month. It hurt at first but I'm so glad I don't have any car payments on my 2017 toyota camry.
One element that you’ve missed regarding buying a used vehicle, that is the cost of maintenance. As cars get older they require more maintenance.
In the same breath , older cars maintenance is a lot cheaper
Are you serious?
get you a toyoa you won't have to worry about maintenance
@@SasukeUchiha-ft4qd
@@kdwilliams3664right a older chevy or honda like 7 to 10ys old wont be hard to fix or cost as much as the newer cars
@@SasukeUchiha-ft4qd ^ also if u grab one of those for around 3500 privately n spend 2500 to get completely fixed up ur still in it for a lot less than most other cars
My last financed car was in 2020 and finially finished paying it off...im keeping my 2 cars till the wheels fall off. Its feels soo damn good not having car notes and having more money in my pocket for other things like investing and vacations....what a relief.
Yesss, congrats!❤🎉
I've been driving since 1986 (37 years) and have spent less than $7,000 on buying cars. I used my money for other stuff I cared about.
That’s awesome, what car do you currently drive
@@TommyBryson Toyota Corolla 2005, it has 280000 miles, they do seem to last a long time.
But what if ones desire and passion is in cars, driving etc.
@@billionaire.chicago.1973 you should not become a slave to your passions and desires
@@TommyBryson But if you have 100k+ liquid cash saved up and a rental property paying itself off, what is the problem with financing an 45k car you absolutely love driving everyday that makes you feel good and happy everyday
I dont have a problem with financing a car. Thats what i do because i dont keep a ton of cash, most of my money is tied up in retirement/home equity/investments. But i do have limits on how much im willing to pay for a car. I will finance $15-20k and pay it off in 4 years or less. I also won't look for the next one until i have a good reason like needing a different type of vehicle or costly repairs that are not worth it due to the car's age
I put half down on my Tesla and pay it off in one year.
Life is too short. By whatever the hell makes you happy. So long as you can afford it, and your emergency fund is solid.
Depends on what you care about. What gives you joy.
I bet you and Dave Ramsey have a lot in common I've been using his methods for a few years now I'm 55 now and I wish I would have known about him in my 20s I'm glad you're spreading your knowledge to the younger generation!!!!!!!!!!!
So did you take Davey's advice and use the Timeshare Exit Team?
Dropping gems as usual. I was in the middle of looking for a new car, because I just paid off my current car this week. I needed to see this vid.
What car you got ?
@@TommyBryson it’s a 2015 Mazda 3. Has 100k miles on it so it has some good life left in it
@@TheeVibeVaultbro keep that car if it run properly and save the money you would use for payment.
Don't put yourself back in the hole.
@@vibesaddickentertainment9777Facts
My strategy is. Buy a quality product. Do maintenance is required, and keep it .
This is really great advice and I also love Dave Ramsey. I’ve been debating over buying a new EV even though I keep hearing people like Dave in my ear saying not to do it lol but here’s my justification. The car I want to buy brand new is an electric vehicle. In my country this particular car is sold for a staggering $92K! I knew that price was BS so I did my own research and got connected with a broker who would help me get the car (top spec model with all the options) directly from the manufacturer for less than $43k. I can import the car for less than $50K total drive it for a few years and make a profit off the resale because of the local value based on what it sells for here. Plus gas is super expensive here…over $6 per gallon so the gas savings alone and the low maintenance cost just makes this make sense to me 🤷🏾♂️.
Dave Ramsey, LOL. Real financial experts realize old Davey is a fraud, a Christian entertainer masquerading as a financial expert. Just check out the guy's recommendation of Time Share Exit
I really appreciate the information that's being shared in this video. However, in today's market finding a car for $5,000 will be in the early 2000s or in the 1990s area . A used car and a new car in today's market are similarly priced. If you want a vehicle that will sustain you and ensure that you can make it to point A and Z without much cost you're going to have to pay more than $5,000. I suggest if you financed a car plan to knock it out within 2 years . Pay down the principal while paying the monthly payment simultaneously and you can reduce the amount of interest that you pay.
This has helped a lot. I have a 2010 civic that I bought cash for $2500 and it's still running great.
Word!
I’ve had my 1st financed car for a year & 5 months now. Only got it because I needed it. I’ve had 5 used cars before this & I’m already looking for my 6th lol. I’m tired of the car payment and full coverage insurance already.
I keep a Crown Victoria. These newer cars won’t last long enough
Inagree with 99% of this but don't live in fear....I don't get nice things because I may get robbed... broke people get robbed every day. Besides insurance is a great thing.
Went and applied for a used model Y and got denied for a 40,000 dollar loan even tho my credit is 730 and I make 80k a year. So for that reason I will never allow the creditors another chance to deny me. Cash only from now on and second hand.
What the heck! That’s so odd. Why did they say it was denied?
Was it your debt to income maybe?
So you got denied, big deal. Clearly your financial situation is such the lending company concluded you did not have available income sufficient to cover the loan payment. Actually the lending company did you a favor by stopping you from buying that used model Y.
I have a 1971 VW Super Beetle. I have a whole spare engine sitting in my garage. 35+ mpg. Bought it when I was 17 for $500 that I earned between my junior and senior year of highschool cutting lawns. I'm 52 now, that's 35 years without a car payment. I did spend probably $10,000 in those 35 years on repairs and upgrades (actually about the only original part on it is the body) That averages to about $285./year for maintenance. I started saving for a "new" car and just never bought one, so what did I do instead? I retired at 38. Funny thing is, the car is now worth more than the $10,500 I have invested in it!
2010 Toyota FJ 2013 4x4, Toyota Tundra 5.7L Crew Cab 4x4, paid cash. Still are like new. Never skip an oil change. Not drawing attention is smart!!!
Thank you I needed to hear this. I was just about to finance a 130,000 dollar car next year. I wont anymore.
Idiot 🤣
I bought my first new car 7 years ago. A 2016 F150 XLT. I put $0 down and paid it off in 75 months @ 2.09%. It now has 97k miles and run great. I have no reason to buy a new truck.
It’s funny how rich people always say it’s stupid to buy a car on loan.
I work close to home, 3 min. away. I catch the bus,train etc. I make a list for the grocery store and catch the bus there. Ive saved 23k in 3yrs. I travel on weekends and eat better. A car has no place in my life. .
I completely agree with you . The only thing buying a used car is risky and its a gambling too . especially if you go blind . I see dealer roll back odometer . Selling car whith rust underneath . And sometimes they even sell you something who was like in car accident already . So i will advice everybody to do a lot of research before buying your used car . But after that used car is not a bad idea .
Yup. Speaking from experience. I put about $8-10k into an old beater car. Wasn't worth it. Much more preferable to not deal with that headache
Thank you for letting me know I’m looking at a used car , Honda accord 2016 sport with 83000 k
And they selling it for 16.500 and it’s been in 2 cars accident how can I negotiate that price.
Your spot on I’m currently overseas and two years ago I saw a seven series BMW. It was worth over 100 K at the time and now two years later they are now trying to sell those seven series BMWs for less than 40,000 even with the maintenance cost, I would buy it
depends what kind of vehicle and what you use it for , if you depend on it you are going to need a reliable truck in my case , with every used older truck ive owned i spent thousands fixing stuff up , got tired of it and financed a new one , turn key and go!!!
That’s not true, reallly. Think about it. If you buy a used truck for 50% off, it’s highly unlikely repairs will cost you a full 25-30k. You still come out winning
@@TommyBryson going to use a late model diesel f250 for example, some of the used trucks 2-5 years old are being sold for closed to the same as a brand new one , same trim levels, with close to 100k miles, a fuel system failure in one of these modern diesels is gonna cost you abut $15,000. met a guy that the cost was close to $20k for his titan cummins , then i got rid of mine cause i was having issues and was out of warranty
Thanks for dropping these good pointers for us to hear. I've only had 2 financed vehicles since I've been driving over the years. The majority of my vehicles have been cash bought and I applaud myself for that.
Not gone lie, this should be taught in grade school I’m talking about 3 and 4th graders, this is just basic simple economics 101, great video bro.
GREAT INFO! i'm older, but something i would tell my niece and nephew for future
Now I'm older and I don't buy new cars. I go to auction and buy 10 to 15 yr old luxury cars with low miles. No monthly payment and I own it for less than it's worth. I keep $3000 emergency money just in case and change the oil often. I don't wait for parts to fail, I replace when failing. Then sell yrs later and get my money back or more.
This sounds good in hindsight, but a lot of people don’t think long term as in being in good health in those later years to enjoy the fruits of your labor. If you’re able to afford a newer car based on your income/ disposable income, go for it. Tomorrow is not guaranteed and life is too short to not enjoy it.
With big life choices that matter, like getting married and having kids I would use that logic. Not for buying liabilities and things you don’t need
Thank you for this video brother. 👏🏾🙌🏾 I’m literally on the phone with my bank to finance another veh. I hung up. 😁
Thats awesome
Buy or invest in an asset that makes your car payment. That’s what I do.
Something I needed to hear thank you 🎉😊
😎😎
It all depends on the end goal and income. No matter how much money i have on hand, I'll finance a car. Also depends on the price of the vehicle
I just financed a brand new Tesla Model Y. Didn't need the Tesla or need to finance it, really. No down payment. I just wanted the car, and I'd rather keep as much cash in my pocket as possible so that I can grow that cash through investments. There's also a $7500 EV tax rebate coming my way in a few months that will give me even more cash to invest.
The average car price has gone up so much in recent years, it’s proactively impossible to not finance a car
That’s not true, just because car prices increase doesn’t mean you have to borrow to buy it. Still a lot of great used options, that you can buy for cash
No, that's just an excuse and easy cop out.
If you want a newer car, maybe. My truck is 20 years old and i bought it in cash for $2500 in 2021. Replacing the alternator and battery was so much cheaper than a car payment month after month. Fuel economy definitely wasn’t a priority when it was made but looking at what the average person pays every month for their financed vehicles makes me feel a lot better about it in comparison since I come out way on top.
@@TommyBrysonplease identify an example of a great usef car option that the average person can buy in cash. Just post a link to such a car.
Or better....do a video where you go and buy a car using the amount of cash most people have available.
In fact, dm me, we can talk about me funding the experiment.
Because this is not practical advice for most people. By most, I mean jist about everyone.
And for the people who can actually afford to pay cash for a car, this might be bad advice.
@@stupidrules1000they also aren’t bringing up the fact that the average savings is the lowest it’s been in like 20 years due to inflation and the ridiculous cost of living. Most Americans have to finance, that’s just the reality.
Well i like your advice,the main reason why financing a car is a total ruin,the money you spend to finance ,the interest ,the dealers fees ,and after 5 years the cars lose completely their value and mechanical issue add on it.this is why many cars dealers are losing businesses and bankcrupt.i mean there is not a good way to buy a car,when you buy a old car from someone,be ready to deal with a lot mechanical inconvenience.
I agree from New Zealand, never do this, i have paid cash for my last ten cars. I keep them a year or so and flip them. Worked my way up to a Mercedes-Benz E350 a few years ago. It costs me around 1500 annually. Including servicing and maintenance. I owe nothing on it, and every time i drive it i go Yes. Im driving a Mercedes-Benz. Not a bloody Kia. But change the oil every 6,000 miiles. Without fail
It sounds nice but who’s to say I have decades to build this wealth instead of enjoying you’re present to each they’re own
The enjoyment from wealth is the freedom not the things you can buy. Think about that.
I have 12 payments left on my current vehicle, and I am most definitely going to drive it until the wheels fall off and focus that money on eliminating debt and starting to build some wealth.
What car do you drive ?
But what if it’s to build credit?
You don't need to borrow money to build credit. Here is the thing. Credit is just a way to track how responsible you are with debt, the only way to maintain a credit score is by consistently being in debt. It's like staying in school forever to maintain a gpa.
So what do you do when you want to buy a house or a car? Easy.
For a car just pay cash.
For a house, present this
- tax returns
- bill payments
- make sure to have a stable job
They will use that info to do manual underwriting and get ypy approved if you qualify. Without credit. Point is, you don't need credit.
@@TommyBrysonMann I appreciate you expounding on this point Tommy thank you.
Thanks for this video, I bought my first car when I moved to America for 5K, car got totaled, got 6K from INS. Invested that 6K lost my money. Now I’m taking the train to work saving tons and making smarter investments.
Just got rid of my 2002 BMW M Roadster which I kept as my daily since 2009. I replaced it with a 2015 Jetta TDI in March of this year at a price of under 12K. With a 6 figure income and an 800 plus credit score, I could have easily bought a much more expensive vehicle. But I understand the primiciples on how money and debt works. I will never allow the bank to take from my future self.
You make a lot of sense, but there's a problem with buying a 5 year old car. It won't be protected by warranty. You might be able to get away with that if it's a Toyota or Honda, but most other brands are going to pose a big risk.
Forget about the warranty and check the car track record. Buying a Toyota usually nets you 200-250k miles, which for most of the car life won’t be covered by warranty. But that’s why you have savings to pay for car fixes
I bought 3 cars which o Turo and I am almost done paying for them in a year’s time…. I plan to do it again
$50000 in a high yield ETF provides $20000 net of taxes depending on your tax status. That’s more than enough to finance a $50000 car at 5.5%. The car is paid off in 3 years, you’ll still have your cash producing $20k per year. And you still have the car.
Thank you i found your video man even you said is facts 💯 before i bought from the dealership i used to have good little money saved since i purchased the new car i couldn't save no more money again i been spending every month this the first and last time i will never finance a car again 😢😢😢🤦🤦
Never cared what I drove before I had a family. Still pay cash but I pay more for safety features. Love air bags and blinds spot monitoring.
Definitely hard to find something cheap safe and reliable. Older cars lack many safety features and in general don't do as well in crash tests. Even new cars get poor ratings. Drive safe!
it is 700 because of the car you chose. Finance a cheaper used car and you can get it off the lot for 400 a month. Otherwise buy the hell what you want.
No matter how you repair an old car, it will always be old, it will never drive like new. And every time new problems will appear that you will need to repair. An old car is like an old person. No matter how much you take care of yourself , you will always feel and look old.
The repair aspect is almost never covered in these buy an old car videos, or assuming everyone can spot a good used car. Some people want peace of mind and simply just buy a new car they can afford and call it a day. Tired of these myths about 5000 dollar cars that drive for 10 to 20 years with no repairs at all. Wish we told people the whole truth.
My new leased truck Ram 1500 v6, was garbage , cam phaser, check engine, limp mode. I had to turn it in at lease end. My 2005 GMC Sierra , purchased used is best truck I've driven.
Financing is like a longterm rental ! Trading In every 5 years ... is like a Rental Renewal & No One Typically out of nearly 250 Million Or so American Car Owners (So Called) Most Never Have Seen Their Car Title BFore ... They Trade In Prior to PayOff & Hundreds of Millions of Americans Dont Know What a Car Title Look Like!!! THankU 4 The Video !!! GOT CA$H get an Auto Wholesaler to go to Dealers Auction & Buy Your Dream Car4Less in CA$H! ... I use to Sell Wholesale Vehicles on All Levels of Vehicle Types! It's a Bigg $avings4U!
#CarFacTs
Financing is not a long term rental. Financing is just a way to purchase the vehicle. On a purchase, financed or not, you have ownership and/or equity in the vehicle (possession of the title is not required). On a rental you do not. You also register the vehicle on a rental you do not. You also insure the vehicle on a rental you do not. You can sell or trade a purchased vehicle which you cannot do with a rental.
A vehicle at an auto wholesale auction is not everyone's dream car. A dream car is aspirational.
Lovely work Tommy it makes perfect 👌 sense. You have a new subscriber love from London.
I'm in my early 50s and I've never financed a car. I used to sell cars even and i have always been adverse to borrowing for a car, always felt like an anti investment to me. I can buy pretty much whatever nowadays but i live in the mountains and need something I don't care if it gets banged up a little bit so i have my 2005 jeep and it is good in the snow. Also have a chevy caprice which i drive when its nicer out😂 i have 2 paid off cheaper cars so if one craps out or something happens to one i can drive the other so its not a big emergency. When one dies for good ill replace it and continue the 2 cheap car method. I like cars but not like enough to spend a lot of money on one, maybe i would get an american classic and just have it as a collectors item someday.
American Classics Are Good Investments ... capri's, gto, Monte Carlos, (SS) super sports, old Dart, Dodge, Chevelle, etc ....
After watching this video, if only LIFE worked like that..
I do agree I by used, i dont buy new, I bought used car, financed it tho, and it last 11yrs before engine went out and about to do it all over again nothing newer than 2018-19 tho.. as for the info about S&P, I agree.. invest 500 a month into the S&P (6000/yr, max allowed in an IRA) for 30yrs and you have 1million dollars in 30yrs.. if you start at 35 yrs old, by time you retire you'll do so a millionaire
Yup
In my 60 yrs on this planet, i have only financed one car in my lifetime. When you break it down, you are not buying a car, you are buying a loan. Stop throwing your money away! By what you can afford and let someone else take on the depreciation.
In nowadays, most of the families are not the real owner of the cash if they have mortgages. Before the loan is paid off, whatever been bought, if the stuff does not make money by itself, it is in a finance way.
If you buy a reliable new car and keep it for 20 years then your getting your moneys worth. If you buy a new car and keep it for 3 or 5 years then your not. Cars are too expensive to only use for 3-5 years. I always imagined that when I get a car I would be looking to keep it for 20 years minimum 15 years. Because as long as it works why upgrade.
Great video makes a lot of sense thanks l am on it
Glad this helped. And let me know the numbers you ran and let’s see if I can help
I got it wrong at my end the mrs explained it 😂 it does make you think how much money we waste on cars then we are scratching our heads. To sit and wait for half a million over 10 years is definitely worth the wait for me life changing amount of money thanks for the advice 👏🏽🥂🤜🏽
lol glad that clicked 😎
I'm starting to get pissed off reading these comments. These people act like buying a used car is a walk in the park. This dude on the youtube video talking trash about people buying new vehicles. What he says makes sense but its easier said than done dude! Too many scammers, including dealerships selling you hot garbage for a premium price and if its not premium price, then youll likely need to spend thousands in repairs! The chance someone gets a car in good condition with very little money in present and near future of owning the car is not likely! If you want a new car then buy it, or buy something near new with low mileage and that was not abuse or had any major damage like a salvaged title, water damage, bad accident and so on... and you wont have to worry about it breaking down on you in the near future. Just make sure you can afford the payments. If you want it for a long time, then buy honda, toyota and maybe subaru. Don't buy Kia or Hyundai. American and German cars have a bad reputation. DO YOUR RESEARCH AND BE PATIENT.
Why the long rant?
I get a lot of attention when I drive my 1991 s-10 pick people look and say, I can’t believe that man’s drive that piece of -- every day! But I laugh as I bank.
With 500,000 mile vehicle!
That’s amazing!!! 500k miles 😎🙌
Where did you get 147k from a 10% return on $700 over 10 years?🤔 Not sure what kind of math that is lol
At the beginning, he said that people on average spend 700+/month for a car. So he did the math for that but even then he did the math wrong. It's instead 135,689.99.
Never owned a car and avoided the insanity of car payments. Cheers!
My current car cost me $1,000 and I could buy a lambo cash. But I choose to live frugal and with zero debt. Why give the bank your hard earned money just to make the neighbour's and others think your succesful. My idea of success is not impressing others.
I don't agree with the extreme case of never financing a car. If you can get a good interest rate, it's cheaper to finance it than it is to pay it with cash.
I'd rather pay twice as much for a reliable car than half as much for a car that's going to leave me stranded, without a vehicle and with a high variable repair cost.
I think the best advice is to buy a vehicle you can afford to pay off, and keep it for as long as possible.
Makes sense but sometimes older vehicles also cost alot in repairs so your 5k car for 11 years example might need alot more money thrown at it to keep it running, being mechanically inclined helps
That’s not true
My altima is 16yrs old and OP is absolutely right. The amount I spend every year on repairs is similar to a car payment stretched out. I just paid 3k late last year and already have another 3k repair bill. That right there is on par with people payed 700-1000 on car notes that's ridiculous and stupid to keep. Keep in mind the repairs have absolutely nothing to do with transmission its just legit wear and tear
What about opportunity cost if you pay cash for a car. If I can get a loan gor 5% and take the money and invest it at 8-10% then I makr money
Just make sure you always have more coming in than going out, that’s the mindset.
I have always purchased my cars with cash but for the first time in 2022 I financed and dont like that monthly bill hanging over my head every month. I prefer to buy my car with cash OR lease
I’m currently looking for a used car now a suv to be exact..either a Tahoe….Suburban….or Denali….looking to pay cash..
But there's nothing like that new car smell. 😮
New dream car. 87 Monte Carlo SS. $20k budget lol. Day to day vehicle doesn’t matter to me. My car just sits more than I’m driving it. Waste of money.
That’s reasonable
@herbwash3139 That’s one of my exact dream cars!! Year and all! 😃 But with a T-Top
here is something. if you BOUGHT a tesla in 2018 at 50K... it would be worth about haf today or 25 K plus the interest. if instead you bought the tesla STOCK in 2018 with that 50K today it would be worth 548,000 and you would no longer need to work !:) get it??? cars are a con job
Damn that’s pretty eye opening
Its either monthly payments or monthly savings. Doesn't really make difference
After financing 2 cars, I'm now $46k in debt without neither one. I plan on paying the $46k starting January 2024 and never financing again. Once my credit is back up, the only thing I'll be paying for every month is on my mortgage after getting my first home hopefully.
Or sell the cars and be done with it, buy a decent vehicle in cash and never look back
So let me get this straight you are in 46000 in debt and you don't even have the cars ask yourself what sense does that make ask yourself why in the world would you pay the $46,000 and not have the car I get it you signed a loan but ask yourself what was the loan for in logically the loan is for a vehicle and let me guess they repoed the vehicle so it was because you could not afford to make the payments been there done that I was happy to get my car repoed but there's no way I paid the remaining balance over the loan and neither should you but I guess you're under a different stipulations but from experience I did it and my credit is really really good now I did not pay off the loan and my credit is almost 750 still.
Why would you allow them to stick you with 46,000 and you don't even own the merchandise?
If it's on your credit report fine let it stay there just open up other lines of credit to at least bring your credit up
@@klevdavful Thank you for the advice! I totaled the first car and the 2nd one was taken by the repo man. The main reason I wanna pay off the debt is to put myself in a position to get a loan for my first house. I have low credit and my rent is $2,500 a month. I'd rather put that towards a mortgage to eventually own than rent the rest of my life.
Nissan Gtr r34. But will settle for r32 or base model r34. BMW M2 the second one
I just use public transit or ubers to get around when i have to such as with work. I live in a downtown area so i mostly can get away with just walking. Until I have enough to save on a decent car to pay in cash and in full, I also have the option to rent with companies such as Turo in the case I have to go out of town alone.
I just paid off my car. Great relief but i’m never doing this again 😂
That's awesome!!
You are helping USA may God bless you
Will never buy another car again. Will continue to drive my 2908 baby Benz until it can no longer be repaired. Will use Uber when I need to somewhere. Besides, I have everything delivered; groceries, household products, appliances, etc.
If it does break down eventually, consider a Toyota, hunda or Mazda or whatever brand has the best reliability rating at the time
The cars you can afford in cash can not be guaranteed to be reliable. Many of them are 2nd hand cars that the owner dumped off for various repair issues or maintenance. It would be great if people could pool money together and offer a low cost rental model among the coalition in a certain area or some other cost bearing model to bring the individual cost down with some concessions made by each person that is fair and equitable. Used cars or cheaper new cars just do not live up to the requirement for reliable transportation.
There are a ton of ways to find reliable cars. People have been buying reliable used cars forever. You can look at consumer reports before you get one. Most folks are getting used luxury cars and it’s not a reliability issue, but not being able to afford major maintenance. Toyota, Honda, Hyundai, and Mazda have cars lasting well over 200,000 miles. You’re making excuses for your bad decision making.
@@TheSonyExperience I agree lol. I had relatives say that I was always getting a repair on my car when I spent $900 total (within 10 years). I much rather spend $900 on repairs then to pay $700 for 72-84 months! One thing I've always done was look at the consumer reports and let my mechanic look at the car or truck before I purchased it. If he says to not buy I don't. If he says the car needs a new alternator soon but everything else is perfect I make a offer with the alternator replacement in mind.
@@TheSonyExperienceyall need to stop with this 200k miles car bull. Some...some...very few hondas get up to 200k miles without major overhauls along the way.
People who say stuff like this demonstrate that they do NOT spend time around cars.
@@Tone__WesCap. You spent 900 bucks on maintenance in 10 years. You are LYING!!!
I have had more cars than most people have had in a lifetime in 5 years. I know a lot about cars. With proper maintenance, the overwhelming majority of cars will last. Some cars have poor designs from the factory prone to particular issues, but there is enough consumer data for people to decide on a used car. However, most people are to stupid and lazy to do the research so they go into the dealership to just see what they can get approved for @@stupidrules1000
The nx is an awesome car, but when I had it, later down the years, I needed more space, with that said, I would recommend the Lexus RX or the Toyota Highlander. You’re the man Tommy!
My dreamcar is a Taycan. Second hand they are becoming affordable but Im still in doubt
A LOAN AGAINST YOUR INCOME😂😂😂😂😂😂, DAMN THAT HURT. SO TRUE BROTHER.
Big time bro for the long term
Great advice young man
You sir are so spot on.
I’m just trying to figure out honestly , where are people supposedly getting Hondas and Mazdas and Toyotas for 5000$?
Literally I’ve been looking for only Toyotas and Hondas and have not found anything under 150,000 miles with a clean title that cost less than 8500. And that’s before license registration taxes etc.
Family needs a 7-8 seater SUV, but at 65K+ for a large SUV is out of the question! I have 45k saved up and rather just wait till later! I have 3 cars already paid off.
I would get a mini van, easily can find one for half the price no problem and keep cash in your pocket
Best advice ever.
Thanks
I drive a 97 Silverado with 270k miles. Thought about a new truck but can’t stand car payments
Just get a used one if do you end up buying one
Buying a car cash, is the worst investment you can make.
Generally, people are just outright financially STUPID!!
It’s really pretty simple in most cases, buy a new car and maintain that car and once it’s paid for, keep putting that payment to the side.
You will then have the maintenance money to continue to keep the car maintained which really should be minimal in most cases wear and tear etc.
Keep putting that payment to the side and after 5 years you have a car that’s 10 years old and if it’s still not costing much more then routine maintenance, keep it going.
Now you will have the money to do what this guy in this video is describing! If you maintain your vehicles they will last a long while, again in most cases. I’ve finally learned this after years on the hamster wheel of a new car every time I paid one off, very stupid but even more wiser now😁
Hb the best thing to do is put 70% down payment and pay the rest slow to build your credit America is built In credit
With inflation this high and car payment for simple car $700+ insurance is increasing by 7.6% in October. Only idiot would buy new car at this time. I currently no car my own. I use company car to get around lol which I don’t pay a dime.
U 🚙 a company vehicle, but ppl who buy new cars are idiots even though their job doesn't give the the luxury of using work 🚙... 😂
I want a 2024 Kia Carnival, SX trim. *BUT* car dealers are still in a gouging mode hangover from the short-supply sickness & still keep their cars jacked by $10k+ over MSRP. F-em! Ima find a repo’d newish car & pay less than 1/2!
Young sir you just earned a subscriber.
He is 💯 correct. Get a used car. Pay it off. Or no car use public transportation. Car payments , insurance and gas have become crazy.
Big time