This isn't a hot take. It's a backwards take. Why would you pay cash for a depreciating asset? Borrowing money isn't free. Why would you COMPOUND your cost on a depreciating asset? Your argument is based upon a premiss FOR cash. You even say in your argument "why not invest so it can pay dividends". Let me flip it.... Take out a loan on this item so you can pay the interest to someone else while the car both depreciates AND cost you money in interest. Look at this channel pretty favoribly but come on..... This is the equivalent of your realtor just telling you to buy the house with some issues that may or may not cost you tons of $$$ down the line.
Matt.. to pay cash for a car would mean that you have the cash available now to sink it into a depreciating asset. Let's say you turn $50,000 into a car today. What will that cost you in 5, 10, 15, 20, 30 years vs financing / leasing it and paying interest on future earnings?
@@BenzsandBowTies what you’re missing is that because people take loans instead of using cash. They are often purchasing more car than they really should and putting themselves in a bad situation.
I see what both you guys are saying bottom line people have to buy cars they can afford cause if you have good credit low interest rate why not match the depreciation of the car monthly ? Problem is people don’t buy cars they can afford 😭
100% dealer financing with no prepayment penalties is the smart way to purchase a car especially if they don’t have the title. This protects the buyer. You can always pay off the loan or refi later.
Only makes sense if the loan interest is a lower percentage compared to what you make on investing. Doesn't matter if it's a credit card, mortgage, or auto note.
If you’re in a position where you need to build or improve your credit, buying a high priced luxury car is not what you should be doing. If you are buying a Mercedes to improve your credit, it’s more likely a sign as to why your credit needs to be built or improved in the first place. If you can afford to pay cash, it’s a sign you likely don’t need any help with building your credit score.
That is my concern as well. I am not in here suggesting “investing” in cars. On the contrary. Build credit so you can borrow if you need to, but more importantly, invest and watch it grow!
I completely understand what you are saying. If I can finance something with a super low interest rate or even 0% interest. Which there are a lot of deals out there for it. If I pay you 40k 5 years from now versus 40k now you are losing on the deal because 40k isn’t worth what it was 5 years ago. Take that 40k put in the S&P 500 and it’s probably frowned upon to 70k by then.
Not only do dealers make money by arranging the financing, most mark up the rate as well. One thing Doug failed to mention was that cash buyers historically don’t buy anywhere near the level of the grossly overpriced “products” in the Finance office. For example, cash buyers have no need for GAP insurance. Doug says he doesn’t penalize cash buyers and I won’t call him a liar. But, many a manager will go a bit lower on price up front thinking they will recoup it in back. If they know up front it’s a cash deal, they adjust accordingly.
Whether it makes sense to finance or pay cash has nothing to do with whether the good in question is depreciating or not. What matters is the total cost which is the sales price plus interest in the case of financing versus the sales price plus opportunity costs in the case of a cash deal. The opportunity costs depend on what type of missed investment is being considered. If the return of the missed investment is higher than the interest charged I’m better off financing. What investments to consider depends on the individual situation. If my financial well being does not depend on the money spent on the car then I can invest in riskier asset classes that tend to guaranty a rate of return above the interest rate of the loan as long as I can wait out a market downturn. If I need the money at a given time - for example to make the monthly payments on the loan - I will be hard pressed to find a non-volatile investment with a return rate higher than the loan‘s interest, in which case paying cash is advantageous. Again, whether the good that is being financed depreciates or not is entirely irrelevant in this context. It‘s an argument that I hear most often from folks who don’t really have to decide between these two alternatives.
Because you make your money in financing……poor video dude. Does not put you in a good light- Your video should be named: DONT BUY CARS-A DEPRECIATING ASSET Wait until this video gets to Dave Ramsey……gonna go viral!
Really, the truth is if cant pay cash (or a very short term auto loan with large down-payment), then need to purchase a cheaper car. People accepting a car loan as basically a fact of life do not accumulate wealth. And financing a depreciating asset makes even less sense than paying cash for a depreciating asset- pay cash, then invest the dollars that would have gone towards a car payment into the market, and you will come out ahead, with the added bonus of no debt!
What if you can get 5% financing and a historical average of 10% indexing to the S&P 500? Wouldn't the interest you start compounding today be more valuable well down the road than the interest you would pay on the car over the next 5 years?
@@BenzsandBowTiesfair enough but typically people paying cash already have nice portfolios. Too many people out there living with everything financed and highly leveraged just to look at getting by with monthly payments.
I’m confused. I brought a car for $40,000 cash. Fast forward 20 years and the car is now worth $0 and still running (Lexus LS). Would I have still have the some of the original cash left over if I leased or did a trade in every 3 years?
Find a compound interest calculator online, start with $40,000, choose whatever yearly return you think is reasonable… (the S&P has averaged a 10.2% return historically but maybe back it for be conservative… 7%? You can even zero out monthly contributions. After 20 years of compounding, what would that 40k have been worth? That’s what I’m referring to here.
“Why would you turn hard earned cash into a depreciating asset?” Instead you think it preferable to have debt tied to a deprecating asset? The dealers make money when buyers finance (through them), that’s where you are coming from here.
Dealers make money from financing, yes, but that’s not my point here. Debt can be paid with future earnings. If you have a huge chunk of cash now, turning it into a car instead of investing it is a huge miss in my eyes AND you won’t have a credit history to fall back on if you ever really need to borrow money.
I've never had a car loan rate above 4%. It makes no sense to pay cash when that money could be left in an investment earning >7%. I can understand the mentality of not wanting to be in debt, but you're also missing out on opportunities, provided you're responsible.
Exactly. My two cars right now are at 0% and 2.9% and the latter (an MB) will most likely be paid off early. This will boost my credit and the cash I didn’t spend upfront will have grown way more in the meantime. I think the naysayers here are the people who didn’t shop around for a low interest rate or couldn’t get one because their credit sucked.
If the car company is offering me 2.9% and my money market is paying 4.5%, I borrow the money. If risk free rates are lower than the car loan, I pay cash. assuming I have the cash. Am I missing something? Yes, a car is a depreciating asset, doesn’t matter to me. I only care about the loan rate versus my risk free savings rate?
Do you think the car company offers you attractive rates out of the goodness of their heart? They do it because they make money from you, and you inevitable end up paying more in the purchase price.
Truth is that everyone needs to buy something on credit at some point The key is only buying the "right" things on credit The problem is that no one has the list of "right" things for you Some credit purchases are on nearly everyone's "right" list (eg houses) You only live once, don't drown in debt but don't be afraid to treat yourself (in moderation) Pay cash for most items though.
I am not suggesting that the path to wealth is buying many things and financing them. One of the main points to this video is that if you are only ever going to pay cash for things in your life, you better hope that you have so much of it that you would never need to borrow for any reason. I see many clients with huge amounts of cash that are unable to borrow money because they have no credit history.
Those are the same people who die before they spend all (or any) of their money. Save enough for an emergency fund and use the rest on experiences, not things. I for one don’t plan to leave my kids anything!
People tend to leave out “RISK” when borrowing money vs investing it in the market. Unless you are very wealthy and will always have money on hand to pay off the debt, it makes sense to borrow, but if you are financing a loan with the premise of keeping a specific job to make payments, then cash is King. 👑
Doug, I like your videos and find them interesting. I'm seeing a lot of different opinions on this topic. You make good points on both sides but I find cash works best for me. On another note, using the handicap parking spot in other videos is not a good look.
Chris, thank you for your feedback! The parking spot issue has been addressed. On too many occasions we had lot personnel that would temporarily park cars there when unloaded for transport. It was never ok and I realize that especially after filming a few videos with cars there, however brief it was. Thank you for reminding us how important it is to leave those spots open at all times.
I don't think even you believe what you're selling here, you just showed yourself as a true car salesman. Too bad, I liked you. Price of the car, plus finance charge, minus depreciation at the end of the term equals more of a net loss than if I pay cash. Of course you already know this, you talk of negative equity in your video's you silly man.
The guy's job depends on selling debt. 70% of the people who walk into dealerships have no business buying new cars. However, the dealership model is so inefficient and outdated because it is so capital intensive; look at the other videos where you can see the facility he works at. Dealers are forced to spend millions on improvements to their dealerships to remain competitive and they have to employ at least 80-100 staff when honestly a dealership should be able to get by at a third of that number. Those salesmen walking on the floor are just quote monkeys as we say in tech sales for a monthly payment and sales price. They aren't actually selling anything because 90% of the people going to a Mercedes dealer already know the model and build they want. But again, dealers get away with this because of dealership franchise laws and so they remain a necessary evil if you want a new car.
So basically what he’s saying is they make money off every car they finance through Mercedes or whoever they get points off the deal so he prefer that because that’s how they make money. They don’t make money off your one time cash payment
I like your channel but please don’t give financial advice. 😂 It’s like asking the pope to explain the universe. You’re selling a useless overpriced luxury product that caters to the wants of people not their needs.
I appreciate the kind words! Regardless of my profession, I will continue to preach the importance of responsible credit usage so that you have the ability to borrow money if you ever need to. That’s the message of this video
@@ph3733 No you don’t get it. Some people who have fulfilled all their needs, like me, and have a stable income for life, like me, are now going to do what they want with their money. I’m not gonna just sit on it till I’m on my deathbed. Time to enjoy life and fulfill my wants. (And yes, I do have enough cash to pay off my car loan if necessary but I’d rather earn 7+% conservatively on it and pay the loan at 2.9%).
@@sschwen8050 A car gets you from point A to B...buying a Mercedes is not a need its a want. A want that can depreciate rapidly..his suggestion means you are paying interest on depreciation. But I do understand that many of his customers dont ever care about owning and will just continue to do lease after lease
He's talking about opportunity cost and he's totally right. I buy cheap cars but I still finance providing the finance cost is minimal. I'd rather keep my cash to do what I need to do with it.
It’s a difficult question to answer because everyone has different spending habits, but generally the core models are more affordable thank many realize, especially when compared do almost every other auto maker which have steadily become similarly priced over the years
I really appreciate this guy as a person but his advise is for suckers..... if you can't buy this product with cash you don't need it and if its depreciation is a problem you also don't need it
Inflation is rapidly slowing (for goods not services). Cars are now depreciating rapidly. Finance the car and pay it off quickly but not before the DMV issues the title. Dealers get a kickback from the finance company and will pass some of it on if you’re a good negotiator. Keep the rebate in exchange for a higher rate when applicable. Always 100% finance (use dealer financing with no prepayment penalties) in case the title is bad or they can’t provide one to DMV. This protects you.
@@user-tb7rn1il3q Why would you want to add any more to a financial loss?..Paying interest on a lost/depreciated money GAP only helps if the car is wrecked or totaled...right?
Lol you were right that this was going to be a topic with ppl of strong opinions. It totally depends on the apr and your rate of return. But if your viewers are Toyota/honda buyers they're used to 6-7.99% rates, it makes sense why they always say cash is king.
You can give a financed car back, if needed. You can't give a car back if you paid cash. The money is gone from day 1. It's better, and less risky, to keep your cash on hand instead of tying it up with a depreciating asset. Think of paying interest as the cost of making the bank take on the risk.
I would not pay cash for either, but if I had to, I could at least justify the appreciating asset as it, in theory, would be able to return me the same or more than what I initially paid.
This is exactly why, especially for luxury cars, I am a huge proponent for leasing because it offers the most downside risk protection. Even financing a car you open yourself up to the uncertainty of depreciation over time.
Thanks for the analysis! I have a quick question: My OKX wallet holds some USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How can I transfer them to Binance?
Yeah those rich people have no clue! Financing a luxury car and paying depreciation is the way to true wealth. Bro when you pay cash for everything and have no debt or payments whatsoever - you can buy anything you want and you don’t have to grovel for a bank to finance it. You just buy it!
Always ask yourself how does the person advising you benefit from you taking their advice. He even said it in the video, they benefit from the banks by you taking a loan. Go to this guy to buy a car nothing else. He isn’t a financial advisor. Stay in your lane dude.
CASH IS KING!!!The best piece of advice in this clip is the 6 seconds of silence at 2.05. Never take financial advice from a car salesmen! It defies credibility that Mr Horner can recommend paying cash for something that goes up in value (a house) while encouraging financing a depreciating asset (like a Merc). Mr Horner asks "Why would you want to turn cash into a depreciating asset?". If you finance a vehicle, you're turning cash (your monthly payments) into a depreciating asset and throwing some extra cash into the wind at the financer company. By the car you can afford, with cash if you can, if you can't, buy what you can afford and remember that people don't care as much about what you drive as you might think!
@@BenzsandBowTies Watched and listened twice, mate. You talk about investing and paying dividends and attempt to persuade your viewers toward financing over purchasing with cash. Sounds like financial advice to me.
Seems I struck a nerve with a few people, I'm not sure they watched the entire video, but this video is mostly about responsibly using debt so that you will have the ability to borrow money if and when you need it!
Yeah cash is not king in some situations. I have 8 figure net worth but still carry a mortgage at 2.6% and I also do "single pay leases." I won't lease with mercedes though because their incentives are garbage especially on AMG and S class lines. BMW and Toyota have the best single pay lease options and they negotiate well on M and 7/8 series. If Mercedes corporate would get their act together in quality and lease specials, I would consider switching back.
@@Fedgery007 @amgsince2017 didn't disclose where the decimal was $100,000.00 could be his 8 figures and you will lose 100% of that one pay lease if you total the car the first day
This isn't a hot take. It's a backwards take. Why would you pay cash for a depreciating asset? Borrowing money isn't free. Why would you COMPOUND your cost on a depreciating asset? Your argument is based upon a premiss FOR cash. You even say in your argument "why not invest so it can pay dividends". Let me flip it.... Take out a loan on this item so you can pay the interest to someone else while the car both depreciates AND cost you money in interest. Look at this channel pretty favoribly but come on..... This is the equivalent of your realtor just telling you to buy the house with some issues that may or may not cost you tons of $$$ down the line.
Matt.. to pay cash for a car would mean that you have the cash available now to sink it into a depreciating asset. Let's say you turn $50,000 into a car today. What will that cost you in 5, 10, 15, 20, 30 years vs financing / leasing it and paying interest on future earnings?
@@BenzsandBowTies what you’re missing is that because people take loans instead of using cash. They are often purchasing more car than they really should and putting themselves in a bad situation.
I see what both you guys are saying bottom line people have to buy cars they can afford cause if you have good credit low interest rate why not match the depreciation of the car monthly ? Problem is people don’t buy cars they can afford 😭
100% dealer financing with no prepayment penalties is the smart way to purchase a car especially if they don’t have the title. This protects the buyer. You can always pay off the loan or refi later.
I ain’t the smartest math person but I ain’t never hear of anyone with negative equity on a cash transaction.
Only makes sense if the loan interest is a lower percentage compared to what you make on investing. Doesn't matter if it's a credit card, mortgage, or auto note.
If you’re in a position where you need to build or improve your credit, buying a high priced luxury car is not what you should be doing. If you are buying a Mercedes to improve your credit, it’s more likely a sign as to why your credit needs to be built or improved in the first place. If you can afford to pay cash, it’s a sign you likely don’t need any help with building your credit score.
This might be the most ill informed dumb advice ever give on social media. Ever!
Pay Cash for a Good Used Toyota 2012-2016
That was a lot of words to say “my product is out of reach for most consumer without large amounts of debt.”
When I read these comments it just tells me people either don`t invest or don`t understand how investing works.
That is my concern as well. I am not in here suggesting “investing” in cars. On the contrary. Build credit so you can borrow if you need to, but more importantly, invest and watch it grow!
I completely understand what you are saying. If I can finance something with a super low interest rate or even 0% interest. Which there are a lot of deals out there for it. If I pay you 40k 5 years from now versus 40k now you are losing on the deal because 40k isn’t worth what it was 5 years ago. Take that 40k put in the S&P 500 and it’s probably frowned upon to 70k by then.
Not only do dealers make money by arranging the financing, most mark up the rate as well. One thing Doug failed to mention was that cash buyers historically don’t buy anywhere near the level of the grossly overpriced “products” in the Finance office. For example, cash buyers have no need for GAP insurance. Doug says he doesn’t penalize cash buyers and I won’t call him a liar. But, many a manager will go a bit lower on price up front thinking they will recoup it in back. If they know up front it’s a cash deal, they adjust accordingly.
Whether it makes sense to finance or pay cash has nothing to do with whether the good in question is depreciating or not. What matters is the total cost which is the sales price plus interest in the case of financing versus the sales price plus opportunity costs in the case of a cash deal. The opportunity costs depend on what type of missed investment is being considered. If the return of the missed investment is higher than the interest charged I’m better off financing. What investments to consider depends on the individual situation. If my financial well being does not depend on the money spent on the car then I can invest in riskier asset classes that tend to guaranty a rate of return above the interest rate of the loan as long as I can wait out a market downturn. If I need the money at a given time - for example to make the monthly payments on the loan - I will be hard pressed to find a non-volatile investment with a return rate higher than the loan‘s interest, in which case paying cash is advantageous. Again, whether the good that is being financed depreciates or not is entirely irrelevant in this context. It‘s an argument that I hear most often from folks who don’t really have to decide between these two alternatives.
Cash makes more sense than owning overpriced vehicles
You don't penalize someone for paying cash. Aren't you a saint? I sleep a lot better owing no money.
Because you make your money in financing……poor video dude. Does not put you in a good light-
Your video should be named: DONT BUY CARS-A DEPRECIATING ASSET
Wait until this video gets to Dave Ramsey……gonna go viral!
Really, the truth is if cant pay cash (or a very short term auto loan with large down-payment), then need to purchase a cheaper car. People accepting a car loan as basically a fact of life do not accumulate wealth. And financing a depreciating asset makes even less sense than paying cash for a depreciating asset- pay cash, then invest the dollars that would have gone towards a car payment into the market, and you will come out ahead, with the added bonus of no debt!
Cash is king unless you can get under 3% apr
What if you can get 5% financing and a historical average of 10% indexing to the S&P 500? Wouldn't the interest you start compounding today be more valuable well down the road than the interest you would pay on the car over the next 5 years?
@@BenzsandBowTiesfair enough but typically people paying cash already have nice portfolios. Too many people out there living with everything financed and highly leveraged just to look at getting by with monthly payments.
I’m confused. I brought a car for $40,000 cash. Fast forward 20 years and the car is now worth $0 and still running (Lexus LS). Would I have still have the some of the original cash left over if I leased or did a trade in every 3 years?
Find a compound interest calculator online, start with $40,000, choose whatever yearly return you think is reasonable… (the S&P has averaged a 10.2% return historically but maybe back it for be conservative… 7%? You can even zero out monthly contributions. After 20 years of compounding, what would that 40k have been worth? That’s what I’m referring to here.
Ok howabout we meet half way and pay 50% downpayment . now everyone is happy.
🤣
“Why would you turn hard earned cash into a depreciating asset?”
Instead you think it preferable to have debt tied to a deprecating asset?
The dealers make money when buyers finance (through them), that’s where you are coming from here.
Dealers make money from financing, yes, but that’s not my point here. Debt can be paid with future earnings. If you have a huge chunk of cash now, turning it into a car instead of investing it is a huge miss in my eyes AND you won’t have a credit history to fall back on if you ever really need to borrow money.
In a time where we hear just crazy stories about people having large amounts of negative equity in their vehicles ....and cash is not king?
I've never had a car loan rate above 4%. It makes no sense to pay cash when that money could be left in an investment earning >7%. I can understand the mentality of not wanting to be in debt, but you're also missing out on opportunities, provided you're responsible.
concur my last car was a CPO Mercedes at 1.9 percent interest so hard to see paying 3X that interest on a new car
Exactly. My two cars right now are at 0% and 2.9% and the latter (an MB) will most likely be paid off early. This will boost my credit and the cash I didn’t spend upfront will have grown way more in the meantime. I think the naysayers here are the people who didn’t shop around for a low interest rate or couldn’t get one because their credit sucked.
If the car company is offering me 2.9% and my money market is paying 4.5%, I borrow the money. If risk free rates are lower than the car loan, I pay cash. assuming I have the cash. Am I missing something? Yes, a car is a depreciating asset, doesn’t matter to me. I only care about the loan rate versus my risk free savings rate?
Do you think the car company offers you attractive rates out of the goodness of their heart? They do it because they make money from you, and you inevitable end up paying more in the purchase price.
The purchase price is separate from the financing.
Truth is that everyone needs to buy something on credit at some point
The key is only buying the "right" things on credit
The problem is that no one has the list of "right" things for you
Some credit purchases are on nearly everyone's "right" list (eg houses)
You only live once, don't drown in debt but don't be afraid to treat yourself (in moderation)
Pay cash for most items though.
You won't become rich leasing or taking out a loan on a car. The people saying cash is king have all that money for a reason.
I am not suggesting that the path to wealth is buying many things and financing them. One of the main points to this video is that if you are only ever going to pay cash for things in your life, you better hope that you have so much of it that you would never need to borrow for any reason. I see many clients with huge amounts of cash that are unable to borrow money because they have no credit history.
@@BenzsandBowTies Why the need to borrow if they have huge amounts of cash? For the fun of the paperwork and paying a monthly bill?
Those are the same people who die before they spend all (or any) of their money. Save enough for an emergency fund and use the rest on experiences, not things. I for one don’t plan to leave my kids anything!
Inflation at 2.8% is not high.
I should point out that this video was taken over the summer, so yes in regards to inflation you are absolutely correct it's much reasonable now.
I like to buy everything with cash including cars.
Unless they provide you a good title at the same time you hand over the money you could get swindled.
@ Swindled from a dealer???
People tend to leave out “RISK” when borrowing money vs investing it in the market.
Unless you are very wealthy and will always have money on hand to pay off the debt, it makes sense to borrow, but if you are financing a loan with the premise of keeping a specific job to make payments, then cash is King. 👑
what about the value of the Amg 63 G wagon 🤗
Doug, I like your videos and find them interesting. I'm seeing a lot of different opinions on this topic. You make good points on both sides but I find cash works best for me. On another note, using the handicap parking spot in other videos is not a good look.
Chris, thank you for your feedback! The parking spot issue has been addressed. On too many occasions we had lot personnel that would temporarily park cars there when unloaded for transport. It was never ok and I realize that especially after filming a few videos with cars there, however brief it was. Thank you for reminding us how important it is to leave those spots open at all times.
This is why people hate car salesman.
Why ‘s that?
Because you lie
I don't think even you believe what you're selling here, you just showed yourself as a true car salesman. Too bad, I liked you. Price of the car, plus finance charge, minus depreciation at the end of the term equals more of a net loss than if I pay cash. Of course you already know this, you talk of negative equity in your video's you silly man.
The guy's job depends on selling debt. 70% of the people who walk into dealerships have no business buying new cars. However, the dealership model is so inefficient and outdated because it is so capital intensive; look at the other videos where you can see the facility he works at. Dealers are forced to spend millions on improvements to their dealerships to remain competitive and they have to employ at least 80-100 staff when honestly a dealership should be able to get by at a third of that number.
Those salesmen walking on the floor are just quote monkeys as we say in tech sales for a monthly payment and sales price. They aren't actually selling anything because 90% of the people going to a Mercedes dealer already know the model and build they want. But again, dealers get away with this because of dealership franchise laws and so they remain a necessary evil if you want a new car.
@@za4117 Luxury car dealerships are very expensive to run....so they need every avenue of revenue they can get to
So basically what he’s saying is they make money off every car they finance through Mercedes or whoever they get points off the deal so he prefer that because that’s how they make money. They don’t make money off your one time cash payment
Yes, dealerships prefer consumers to finance or lease. This post is not about that.
I like your channel but please don’t give financial advice. 😂 It’s like asking the pope to explain the universe.
You’re selling a useless overpriced luxury product that caters to the wants of people not their needs.
I appreciate the kind words! Regardless of my profession, I will continue to preach the importance of responsible credit usage so that you have the ability to borrow money if you ever need to. That’s the message of this video
Some of us are at a point in our lives where we already have all our needs and now we are going to fulfill our wants. Plus a car is not useless.
@ that’s what I said. It’s a want not a need. And it’s useless as you can achieve the same need with a much cheaper car.
@@ph3733 No you don’t get it. Some people who have fulfilled all their needs, like me, and have a stable income for life, like me, are now going to do what they want with their money. I’m not gonna just sit on it till I’m on my deathbed. Time to enjoy life and fulfill my wants. (And yes, I do have enough cash to pay off my car loan if necessary but I’d rather earn 7+% conservatively on it and pay the loan at 2.9%).
@@sschwen8050 A car gets you from point A to B...buying a Mercedes is not a need its a want. A want that can depreciate rapidly..his suggestion means you are paying interest on depreciation. But I do understand that many of his customers dont ever care about owning and will just continue to do lease after lease
He's talking about opportunity cost and he's totally right. I buy cheap cars but I still finance providing the finance cost is minimal. I'd rather keep my cash to do what I need to do with it.
What percentage of the population, do you think can afford a MB? Thanks enjoy your videos! 🎊✌️
It’s a difficult question to answer because everyone has different spending habits, but generally the core models are more affordable thank many realize, especially when compared do almost every other auto maker which have steadily become similarly priced over the years
I really appreciate this guy as a person but his advise is for suckers..... if you can't buy this product with cash you don't need it and if its depreciation is a problem you also don't need it
I appreciate the kind words but also to reiterate this video is about the concept of paying cash for everything being outdated advice
dave ramsey wont like this one! 😂
No he sure won't!
Dave Ramsey isn't as wise as he thinks. I gave up listening to him because much of what he says isn't even terminologically correct.
Debt = Servitude. If you can’t afford it, don’t buy it. Period.
@@JohnSwanagonCan you afford a a new car or a house? Nobody unless you are rich have cash to buy a house.
Can you use dealer cash or rebates for cash back to the customer ❓❓❓❓
You could take cash back in a deal if you really wanted to finance that amount
Inflation is rapidly slowing (for goods not services). Cars are now depreciating rapidly. Finance the car and pay it off quickly but not before the DMV issues the title. Dealers get a kickback from the finance company and will pass some of it on if you’re a good negotiator. Keep the rebate in exchange for a higher rate when applicable. Always 100% finance (use dealer financing with no prepayment penalties) in case the title is bad or they can’t provide one to DMV. This protects you.
100% finance guarantees you have massive negative equity
@ Regardless of how you pay the money has been lost. If worried about negative equity get GAP.
@@user-tb7rn1il3q
Why would you want to add any more to a financial loss?..Paying interest on a lost/depreciated money
GAP only helps if the car is wrecked or totaled...right?
Good video. Wrong, but good.
lol funny how a Dave Ramsey video popped up right after this one 😂
The algorithm is very smart!! 😂
Lol you were right that this was going to be a topic with ppl of strong opinions. It totally depends on the apr and your rate of return. But if your viewers are Toyota/honda buyers they're used to 6-7.99% rates, it makes sense why they always say cash is king.
If I want buy a car in cash why stop me?
You can do whatever you like!
You are saying it is better to take a loan on a depreciating asset than an appreciating asset?
Thats a wildly backwards take.
You can give a financed car back, if needed. You can't give a car back if you paid cash. The money is gone from day 1. It's better, and less risky, to keep your cash on hand instead of tying it up with a depreciating asset.
Think of paying interest as the cost of making the bank take on the risk.
You can sell a car that you paid for in cash just the same as a car you financed..
I would not pay cash for either, but if I had to, I could at least justify the appreciating asset as it, in theory, would be able to return me the same or more than what I initially paid.
This is exactly why, especially for luxury cars, I am a huge proponent for leasing because it offers the most downside risk protection. Even financing a car you open yourself up to the uncertainty of depreciation over time.
@@happygilmore2029But in an actual emergency how much time do you really have to convert a vehicle to cash?
Thanks for the analysis! I have a quick question: My OKX wallet holds some USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How can I transfer them to Binance?
Only two things make sense when purchasing a car leasing or paying cash
Only dealers say that 😅
Watch the video again! This is about responsible debt usage and having the ability to borrow money when you need it.
Yeah those rich people have no clue! Financing a luxury car and paying depreciation is the way to true wealth. Bro when you pay cash for everything and have no debt or payments whatsoever - you can buy anything you want and you don’t have to grovel for a bank to finance it. You just buy it!
Where in this video are we talking about building wealth?
Always ask yourself how does the person advising you benefit from you taking their advice. He even said it in the video, they benefit from the banks by you taking a loan. Go to this guy to buy a car nothing else. He isn’t a financial advisor. Stay in your lane dude.
CASH IS KING!!!The best piece of advice in this clip is the 6 seconds of silence at 2.05. Never take financial advice from a car salesmen! It defies credibility that Mr Horner can recommend paying cash for something that goes up in value (a house) while encouraging financing a depreciating asset (like a Merc). Mr Horner asks "Why would you want to turn cash into a depreciating asset?". If you finance a vehicle, you're turning cash (your monthly payments) into a depreciating asset and throwing some extra cash into the wind at the financer company. By the car you can afford, with cash if you can, if you can't, buy what you can afford and remember that people don't care as much about what you drive as you might think!
When you state “never take financial advice from a car salesmen” you’re signaling to everyone here you weren’t listening.
@@BenzsandBowTies Watched and listened twice, mate. You talk about investing and paying dividends and attempt to persuade your viewers toward financing over purchasing with cash. Sounds like financial advice to me.
This was very informative, someone had to say it!
Seems I struck a nerve with a few people, I'm not sure they watched the entire video, but this video is mostly about responsibly using debt so that you will have the ability to borrow money if and when you need it!
damn... i dont gotta borrow money... did i make it?
but don't you lose sleep at night worrying that you're not building your credit?!?
@@peeetah3133 lol... its only at 830... how do i get that 850 tho?
Yeah cash is not king in some situations. I have 8 figure net worth but still carry a mortgage at 2.6% and I also do "single pay leases." I won't lease with mercedes though because their incentives are garbage especially on AMG and S class lines. BMW and Toyota have the best single pay lease options and they negotiate well on M and 7/8 series. If Mercedes corporate would get their act together in quality and lease specials, I would consider switching back.
I won’t disagree that in BMW has been far more aggressive than MB in recent years
You don’t have an 8 figure net worth. 😂
@@Fedgery007 @amgsince2017 didn't disclose where the decimal was $100,000.00 could be his 8 figures and you will lose 100% of that one pay lease if you total the car the first day