I’m starting to feel overwhelmed with these rising car payments. The rates are insane, and now I’m hearing about people defaulting on loans left and right
Same here. My car payment eats up a huge chunk of my budget every month. Add inflation to the mix, and it feels like there’s no breathing room. I’ve even considered selling my car and downgrading, but I’m not sure if that’s the smartest move.
I’ve been thinking the same. It’s not just about making the monthly payment; it’s how it impacts everything else-savings, investments, even emergency funds. Speaking of which, do any of you work with an investment advisor? I could use someone to help me figure out how to get ahead, even with these challenges.
I do. My CFA, Joseph Nick Cahill, has been a lifesaver for situations like this. He’s helped me diversify my portfolio, build a solid emergency fund, and avoid financial pitfalls like overextending on car loans. He offers free consultations, so there’s no harm in reaching out.
I’ve heard of Joseph Nick Cahill too. He’s known for helping people maximize their investments, even in tough times like these. He offers free consultations, so if anyone feels stuck in their finances, he might be worth reaching out to.
Thank you so much for the suggestion! I really needed it. I looked him up on Google and explored his website; he has an impressive background in investments. I've sent him an email, and I hope to hear back from him soon!
I drive a 24 year old Toyota Corolla that I bought new. I still have the car after 24 years of course. It still looks good and runs like a top. I was able to retire with a 2 million dollar net worth, a paid off house and no debt. I can basically live off my Social Security income without tapping into my 401 k plan or savings. I believe a lot of that has to do with my beloved Toyota.
Congratulations!. 🎉🍾🎈🎊 I’m happy for you!. Back in 2013, I paid cash for a brand new 50 MPG Toyota Prius Hybrid. Still running like new. Since retiring I rarely drive; so my Prius will likely outlast me. Thank God I have never been materialistic and always a saver. Living frugally and being a minimalist(consumer marketing schemes/traps won’t work on me. I don’t need their crap), I retired free of debt and happily left the wage slavery rat race workforce system in 2021 with my employer matched and unmatched retirement accounts, my nice size savings and emergency fund which will see through at least 2 years of my expenses. Not to mention collecting my well earned Social Security benefits I paid into for decades. The last 24 years busting my butt working in healthcare as a (RT)Respiratory Therapist(my 2nd career) and through the Covid/Delta pandemic 😷. Prior to that, I busted my butt 10 years working in the Graphics field(my 1st career) until my 3rd layoff due to company loss of contracts and revenue. I then earned my degree, passed my state licensure board exams and required certifications, became a Respiratory Therapist, then retired. To save money💰in these uncertain and ridiculous inflationary times, our family of retirees consolidated. I moved from my former residence. My sister, her husband and son opened their home 🏡 for me(my sister’s brilliant idea 💡). I’m renting a room and contributing money 💵 for household necessities: groceries. A win, win for all of us. Today our family of retirees is gratefully blessed, thriving and enjoying a well earned comfortable retirement. God is providing. So no worries or fears here/Peace of mind. This is true wealth.😊
@@cathyallshouse2981you would be a minority. You could have got a lemon. If it was newer that possibility is higher. The older ones this guy was talking about are tanks. I had a 95 Tacoma and I put 400k miles on it. Your bad experience is not what most people experience. There is a reason why most millionaires drive Toyotas. Your comment comes off jaded . Be happy for this guy. He made good decisions in life
True, but as an atheist I never take on debt. Net worth 1.7 million at 45. My dad taught me to only buy what I could pay for. Paid for house. Paid cash for my Outback. Worked through college and graduated debt free. Currently make 130K a year. Just pumping up my savings and mutual funds.
I have been on my debt free journey for 3 years now. I have 2 paid off cars. My only debt is my house. I am really shocked by how quickly money stacks up when I don’t have debt payments every month. My mind is blown🤯
@@therichbuddha3277 Meh, back in 2012, my wife and I decided to get into a $1200 per month mortgage instead of riding around in car mortgages. We love our modest home. We are able to pay for the mortgage because we drive good reliable used vehicles. That's just us though. My latest car is a 2010 Nissan Versa 1.8 hatchback with 151k miles. It looks decent and I paid $4700 cash for it so that we can keep paying off my house. Good luck out there.
as a 20year old guy, fighting the urge to waste all my savings on a sports car is at times almost irresistible. thank you for speaking sense into us with this video.
I bought my first property at 25 (I'm 40 now and work part time ) . When I was driving a stupid car at 25 my banker colleagues laughed at me. Now they work as they don't have a choice. I work when I feel like it.
Yep. 23 years for me without a payment. Driving a 2008 minivan that we purchased in 16 with cash. I probably drop $1500 in repairs (on top of maintenance) a year, but that's like 2 new car payments. In total in 2023, I paid $4573 in total automotive costs. That's insurance, gas, renewals/taxes, maintenance, and repairs.
You are correct Austin. What's even worst than having a car on finance is, having a truck on finance. You'd have to be a special kind of moron to finance an 80k truck, when you don't even work in construction or landscaping. The pain is really felt at the pump and when you lose your job. When I got our Used Accord, (3 years ago) I could walk into any dealership and drive out with a brand new car/truck. I have good credit and had plenty of money for a big down-payment. However I decided to get a used one instead. Still driving it today with no major issues, at over 200k on the odo. Costs me about $200- / month to keep it up, FULLY PAID and now it's actually worth more than when I got it! I am not here to impress anyone, as long as it gets me from A to B in relative comfort and safety, that's all it matters. Peace
I used some of my emergency fund to pay off the remaining balance back in May. One of the best decisions I've made. I'm rebuilding what I had and should be back on track at the end of this year, which is the original time I would've paid my car off. It just feels better to drive it knowing I have the title to it!
Nice timing. I just spent $1,000 to have brakes serviced AND had a $450 payment for auto insurance. Even if your car is paid off, you still get screwed. But if you have a payment for a car, even worse. Moral of story: Cars destroy personal wealth.
I quit driving back in 2021. I live within walking distance of most places or I take the public transit bus which is only a dollar a trip. It is a lot cheaper than owning a car. Yes sometimes I do miss having my car but I have learned to live without it
I love my paid off land yacht! 2011 Grand Marquis Ultra reliable, just replaced struts and coil springs front and back for $300. That's with name brand parts. 29mpg highway
My car has been paid off for years. Actually, we are debt free. Getting the car paid off, freed up $500/month. We were able to pay off a lot with that. We're saving for our next one now.
Thank you for sharing, one of the car expenses that we forget all the time is parking space. Monthly parking at work $120.00 Monthly parking at condo $ 110.00 Plus daily parking when you visit other city or area etc.
I have a used car and it still runs like new. It is only 9 years old. I got it for $3100(one-time purchase and no car loan) and I love driving it. I think it was a worthwhile purchase.
Amen! Haven't had a car payment for 29+ years - buy em and hold em is our mantra - replaced a 1993 Buick Regal GS (16 years/320,000 miles) - running a 2009 Honda Fit (new-cash) and a 2015 Honda Odyssey (new-cash) now, and they are running like champs (take care of them and they will take care of you....). Paying off your mortgage (if you have one) as quickly as possible is a winner too.
Hubby and I are driving an old piece of crap that we share. Been paid off for a long time. Wish I would have understood this though when we were younger. Now we get it......cash cars only. Nothing financed.
Nice that you two can share a car. My wife and I work overlapping shifts on different sides of town. We tried the 1 car thing. It didn't work at all. 😕
@@notanomad9320 I I also have two old paid for Toyotas one of them is a 2010 Corolla.I’m not totally against the car but I love my paid off bicycles way more 😂. Very little maintenance no license plate or insurance no parking issues no gasoline just good ol fashion man power and let’s don’t forget the awesome benefits of exercise . I leave those cars sit as much as possible!
@@CharlesJones-bu5hk bikes are ok in good weather but when it gets 20 below and snow drifts you have to deal with, I prefer my car. I have all the winter gear but the car works better in those conditions. I rode year round many years before I had a car, it's not easy.
I bought a rebuilt 2007 honda accord with 142,000 miles on it for $4,500 back in 2015. I am driving her to this day. She's got a little over 204,000 miles on her and I am not planning on breaking up with her until she decides she's had enough of me😂. Best $4,500 ever spent. Love your car and she will love you back!
@ghostwrench2292 more or less extreme or not, I just do me. Not alone but it's made me successful beyond my wildest dreams and I always stay below my means but now my means is beyond what I want and need so I'm sweet. Sorry didn't mean to rhyme. I'm grateful to God. Stay Uncommon brother
my opinion is simple, buy a car you can afford without any loans. Once we had a car stolen just after we've bought a house, and we had very little money left, so I've bougt a 2001 micra for £400 which I've ended up selling for the same price after 8 months. Right now I'm driving a 2005 passat b5.5 and it's a very reliable model, and it also costs around £900-ish. I could now easily afford more expensive car, but i prefer old reliable models.
Having a car on finance is crazy to me, I've always bought a second hand cars in cash. I'm 40 and on my 3rd car. I know a guy that is 63 and changes his car every 2 years and is always broke.
@@Kyledudegot buying a car cash doesnt mean the car is always trash, im not sure if thats what you were getting at, but theres lots of great reliable cars for under 10,000 usd.
True its very much a luck draw or you have to know about cars I brought a mechanic out and everything and that car was still a lemon . Financing isn't the best but sometimes you gotta do what you gotta do I just can't afford to make the same mistake.
I would 100% rather take the buss but where im at it's 110 degrees and it takes an hour and 30 minutes to get there to work , and it makes it SOO DIFFICULT to get anywhere , I really hated the idea of car payments but im so over the whole 3 hr commute , and I really don't want to take a risk with a cash car anymore . 😂 Lol
@Kyledudegot - the problem with public transportation is that it can take 4 times as long to get anywhere with walking to the bus stop, waiting for it, having to transfer, etc…so you pay with your wasted time. Not to mention dealing with the weather. I would take public transportation but then I would need to leave for work 2 hours earlier and get home 2 hours later. That’s 4 hours a day commuting and that doesn’t even account for any errands I need to run. The American way is not conducive to not owning a car (or two).
In Germany i pay for my VW Polo / Natural Gas. only Tax of 22 Dollar a Year. 60 Miles cost 8 Dollar Gas and insurence is 300 Dollar a year. But pay of is also in Europe the most importent thing.
I drive a Honda Fit LX (most basic model). Paid cash for it new in 2015. I don't drive much so makes no sense to have anything nicer (6k miles/yr ). Always reliable and cheap to maintain.
I love my paid-for car! It’s Toyota Camry 2020, why I bought brand-new and paid it off in giant consistent payments very quickly. My regular payment was $577, and I paid $5,000 and even more monthly. I was burdened by the car payment. Now, I’m paying off my student loans: $62,000 paid in 9 months, 9 out of 12 student loans are paid in full, with $43,000 to go.
Clearly you are very fortunate. Many people have to survive off of $62k per year and you are able to put that much toward student loans in only 9 months.
*Excellent!! Everyone needs more than their salary to be financial stable. The best thing to do with your money is to invest it rightly, because money left for saving always end up used with no returns.*
My car is my father's 1st car,then after some years it was my older brother's 1st car.then it was given to me as my 1st car.this car has so many great stories and good memories that money can't buy.surely my son will be his 1st car too.
Loving your channel, Austin. I was just thinking the other day that of every material possession I have, there is none I am more grateful for than my car. It's nothing fancy - a 2013 Honda Civic, which I leased new and then financed to own. I paid it off in 2022, and thanks to the pandemic, which got me switched to working from home, now has less than 125k miles on it. It is reliable, gas efficient, it helped tremendously in building my credit, and best of all, it's mine free and clear. I got myself into some credit card debt (very foolishly, as I actually make a decent salary and should never have needed credit) and am aggressively paying it down - hope to be debt free in about 8 months by living frugally and throwing all my extra money at the debt. A simple, content life is my ultimate goal. I've watched a lot of minimalism/frugal living channels lately, and yours is by far my favorite. Thanks for all the perspective, and keep up the good work!
Wise advice as always! There are still good used car deals to be found, especially with private sales. I highly recommend a Japanese car, under $5K, with under 100K miles. Just be sure to have it checked out by a competent mechanic prior to purchase. I bought my 2017 Subaru Forester new 8ish years ago. It was $30K, with 0.9% interest. (Remember those days)? I paid it off years ago, and continue to make the equivalent monthly car payment into a high interest savings account. I only dip into that account if I need a repair on my car or e-bike.
There are advantages but cars get old. I paid off my car and then ended up with thousands and thousands of mechanical expenses, so much that I was forced to buy a new car… never again.
I am still driving my 2003 Toyota Camry. Runs great. Never gives me any trouble. I have enough money in savings to buy a new car in cash but as long as my Camry still is in good shape, I am not getting a new car. Credit Unions are the best place for low car loan rates. Also I have always used a car broker and that saved me a lot of money plus I didn't have to haggle.
I bought my 2013 kia Rio brand new. For $12500. Had the car 11 years. Been paid off since 2017. I am still happy with my car. Been good to me all that time. Of course it's showing it's age. But I will NOT do $47lk cars
Never had a car. The public transport in Germany is every 5 mins and costs 49€ a month unlimited travel. Bus train tram anywhere in the country and borders of the other 10 countries
That would be nice but American public transport is not nearly so convenient as in Germany. Additionally, your whole country is roughly the size of the state I live in (Arizona) with a population over 10 times that of Arizona, so a lot higher population density in Germany.
Austin, this such an overlooked method for a person to get further ahead in life financially than they can possibly imagine. I paid my Honda Accord off in 2013 (paid an extra $100/month to pay it off quicker). Once in awhile I get tempted to buy a newer vehicle, but then check myself and say inwardly, "are you crazy? Why would you do that to yourself?" Even if I could pay cash for it, I'd rather set up my money to be working for me, not the other way around.
Best advice I got was to research a reliable car, learn to perform simple to moderate maintenance and always save to pay cash. I have always bought immaculate condition 2nd hand cars that I still own, maintain and drive without owing anyone.
Back in 1993, I bought a nice red 1971 Chevrolet Monte Carlo for $12,000 and I've been driving it ever since. Parts are easily available and relatively cheap and I do my own work, although it doesn't need much. It runs and drives as comfortably as a new car, and still looks like a modern car. Most people don't know it's 53 years old. If you want to save a ton of money, I definitely recommend you get an old car.
The $30k I owe on my car is at 4.1% APY and the $30k I put into 1 month Treasury bills are paying me 5.4%, which still is a profit even after taxes. More importantly, I have $30k that will help me survive for longer if I were to lose my job tomorrow.
I kept my 2004 Kia Sorento for 20 years, I sold it this summer and bought a 2018 Chevy Volt, the interest is crazy and I’m not use to car payments. I’m getting ready to pay it off soon and I’ll be keeping this car for a long time. No more car payments for me.
We got our only car new in 2020. $520 a month at 2.49%. Chose to take a loan instead of paying cash in full. Our car didn't hold us back. We were still able to purchase our second house a year later (with a mortgage) on one income in a high cost of living area.
Austin, I watch your videos now and then, but I am subscribed. You and I think alike financially. I am in Portland, Maine. Do you come to Maine? I pay in full habitually. You're right, no car payments. However, what makes my vehicle more valuable, is that I sleep in it. That means no rent payments, no electric, and so forth. Great channel! Continue to trumpet your wisdom into the ears of the poor. Jesus, in the Gospel of Thomas, says that poverty lives in you if you do not know how to create for yourself. From his teaching, we could also say that wealth dwells in you if you implement these principles of wisdom which you articulate and present so beautifully.
We haven't had a car payment in 15 years and hopefully we never will again. Our current cars are around 10 years old and going strong. No plans to replace either of them. That is a _lot_ of money saved. Much of which was stashed away in the Roth's.
I enjoy cars and I’m working at building my wealth so my preferred method is to rent out nice vehicles for special occasions. That way I get the experience of the nice car for a couple days and then give it back. This allows me to utilize my paid off car to the fullest
True, good advice my 2012 Highlander is paid for and this weekend I'll save 500 bucks changing my own brakes, rotors, and oil. I get the good stuff and an oil change cost me 38 bucks and yes I could do it cheaper.
Paid mine off 4 years ago, paid it off in 3 instead of 5.. Saved the money I would have made in payments along with extra, so next time I go to buy one, I can pay cash for it. FREEDOM!
Company car ~ $350 month , includes. "unlimited" fuel, wash and windscreen washer fluid fill ups. Used to drive 2007 Ford until i had to take company car , but it's still a quite efficient way to drive a new car. Leasing fee for similar would fee at least $500 alone.
I bought my used 2006 Honda CRV over 3 years ago with cash. All other repairs have been through good mechanics I know of instead of paying next to a fortune at the auto shops.
Learning to maintain your car and have no payment are the two best ways to improve your budget. Oil changes are very pricey, replacing brake pads is also very expensive, but you can literally do these two things for 1/4th the price by learning to do it yourself.
I own both of my cars outright an dit does help me divert that money into investments. Insurance costs are out of control as well, so it makes this all the more important.
A paid off car is a good idea for the average middle-class with a 9-5 job. However, investors park their money into income producing assests that appreciate in value and then use use that cash flow to pay off liabilities that depreciate. I finance all of my cars.
Yes, yes, yes. Now in my early 60, I retired last year. The best transportation advise, I would give anyone age 25, 35, 45, 55, or 65, is to only buy a quality "used" automobile and if, possible at the time of purchase to pay for it fully in "CASH". Trust me, this will make both your current and future financial life so much better. The only error that, I noted in this video is with the loan interest rate you cited for either a new or used automobile from between 48-months (4-years) to 72-months (6-years). Because for the past 40-years, I have never had to pay more than eight (8)-percent for either a new or used car loan. My advise to persons looking to buy either a new or used automobile is to first check rates at a couple of Credit Unions, Banks, and Savings & Loans. Then apply for a pre-approval at the two with the lowest vehicle interest rates. Once you receive your two approval letters, please remember to take them with you when you are out shopping for your car (smile ... smile).
A lot of people make the mistake of buying too much car. I certainly did in my 20s and it’s one of the biggest financial mistakes. However, lessons learned. I drive a ten year old car that I paid for in cash. No debt beyond mortgage. I feel sad to see a 26 year old make the too much car or truck mistake and struggle with the payments on top of the gas and insurance. It’s almost like a rite of passage but the numbers are double from when I was 26!!!
In 2015 I traded in my 2006 car and purchased a 2014 car with a final price tag of 13k I wrote a check for it and still have it. That my friend is freedom.
I manage to get my transportation payment to 0. I live in nyc so we take the subway and I found a technique to bypass the turnstile so free ride everytime.
I paid off my car this year in january almost a year earlier than i was scheduled to, the secret was to make what is called a principal payment on the loan, i did that and it was like i paid 10 payments at once
Also, if you defaulted on a car loan payment, many times, your car will become's bank property and towed away. it's no longer yours. if you paid fully for your car, it is 100% yours and you owe no one for it.
I found out very quickly how much money you can save avoiding a car when my company transferred me overseas. Sure, I was forced to use car hire and public transportation, but that cost pales in comparison to the loan and maintenance costs (the true hidden cost of vehicle ownership).
I almost bought a new car! (I know better) my husband told me no. I paid off my Lexus GS 3 years early. I just had to buy a new battery for my car $200 unexpectedly. Thank you for your videos.
I've always bought used Toyotas and my wife and I always had an extra vehicle as a backup just in case. Been working from home since 2020 and two of these vehicles get driven less than 500 miles each per year... seriously (We usually drive the most fuel efficient vehicle together). Both bought with cash, super cheap Registration and liability only insurance and I do the maintenance -- so maybe $300 in ownership cost each per year. I'm seriously considering selling both if these vehicles and just buy an E-bike.
I agree with this video, and I know this is a frugal finance channel, but this topic could bring up the larger picture of all the externalities of owning a car like pollution, carbon footprint, car maintenance, and very expensive road maintenance that tax dollars go to. I'd much rather have the freedom to travel without car by foot, bike, or public transport. It would be better for health, environment, and wallet. I watched a really interesting video by CityNerd on this topic.
Not having a car loan, for me, means I drove an older car which had expensive mechanical failures., several times a year. As well as not having access to the car while it's being repaired. In my experience, one must seriously consider repairs on an older vehicle I personally feel way more secure with a newer vehicle than an older one that might break down at any moment.
Here's how different my wife and I are: I refinanced my truck to lower my interest rate and shorten my loan by 6 months. My payment went up, and I still paid as much extra principal as possible. I paid it off 4 months early on the new, shorter loan, or 10 months earlier than what the original loan was. I freed up almost $700 per month. I was feeling good. Free of that burden. Proud to have it paid off. Then when I told my wife I finally paid it off, she immediately asked me if I was going to trade it in for a new truck. NO!!!!! I was horrified that that's how she thinks. 😡
Hail damage totaled out my ‘15 Accord v6. I paid $16,500 for it in 2019. Insurance paid out $13,300 and I keep the car. It is SO tempting to sell it for $10k and use the $23k to upgrade. It FEELS like free money. But I’m resisting. Pro tip: don’t test drive the new Model 3 Long Range. It’s too good. 😂 Makes my 0-60 in 5.9 seconds Accord feel like an absolute sloth. And the Autopilot is incredible. Resist resist! 😂
I've always paid my cars outright. They are second hand (usually 3 years old) although the one I have now was 5 years old when I bought it. I make my decision based on how much I want to spend. I really wanted a Volvo but wasn't willing to pay the price, so I opted for a BMW X1 instead. Before this I always drove Saabs, unfortunately they don't make them anymore. 😐 I only buy what I can comfortably afford and it feels good.
I’m starting to feel overwhelmed with these rising car payments. The rates are insane, and now I’m hearing about people defaulting on loans left and right
Same here. My car payment eats up a huge chunk of my budget every month. Add inflation to the mix, and it feels like there’s no breathing room. I’ve even considered selling my car and downgrading, but I’m not sure if that’s the smartest move.
I’ve been thinking the same. It’s not just about making the monthly payment; it’s how it impacts everything else-savings, investments, even emergency funds. Speaking of which, do any of you work with an investment advisor? I could use someone to help me figure out how to get ahead, even with these challenges.
I do. My CFA, Joseph Nick Cahill, has been a lifesaver for situations like this. He’s helped me diversify my portfolio, build a solid emergency fund, and avoid financial pitfalls like overextending on car loans. He offers free consultations, so there’s no harm in reaching out.
I’ve heard of Joseph Nick Cahill too. He’s known for helping people maximize their investments, even in tough times like these. He offers free consultations, so if anyone feels stuck in their finances, he might be worth reaching out to.
Thank you so much for the suggestion! I really needed it. I looked him up on Google and explored his website; he has an impressive background in investments. I've sent him an email, and I hope to hear back from him soon!
I drive a 24 year old Toyota Corolla that I bought new. I still have the car after 24 years of course. It still looks good and runs like a top. I was able to retire with a 2 million dollar net worth, a paid off house and no debt. I can basically live off my Social Security income without tapping into my 401 k plan or savings. I believe a lot of that has to do with my beloved Toyota.
Good for you. I've bought Toyotas several times with problems. Are you bragging?
Congratulations!. 🎉🍾🎈🎊 I’m happy for you!. Back in 2013, I paid cash for a brand new 50 MPG Toyota Prius Hybrid. Still running like new. Since retiring I rarely drive; so my Prius will likely outlast me. Thank God I have never been materialistic and always a saver. Living frugally and being a minimalist(consumer marketing schemes/traps won’t work on me. I don’t need their crap), I retired free of debt and happily left the wage slavery rat race workforce system in 2021 with my employer matched and unmatched retirement accounts, my nice size savings and emergency fund which will see through at least 2 years of my expenses. Not to mention collecting my well earned Social Security benefits I paid into for decades. The last 24 years busting my butt working in healthcare as a (RT)Respiratory Therapist(my 2nd career) and through the Covid/Delta pandemic 😷. Prior to that, I busted my butt 10 years working in the Graphics field(my 1st career) until my 3rd layoff due to company loss of contracts and revenue. I then earned my degree, passed my state licensure board exams and required certifications, became a Respiratory Therapist, then retired. To save money💰in these uncertain and ridiculous inflationary times, our family of retirees consolidated. I moved from my former residence. My sister, her husband and son opened their home 🏡 for me(my sister’s brilliant idea 💡). I’m renting a room and contributing money 💵 for household necessities: groceries. A win, win for all of us. Today our family of retirees is gratefully blessed, thriving and enjoying a well earned comfortable retirement. God is providing. So no worries or fears here/Peace of mind. This is true wealth.😊
@@happylistener4628Congrats to you too. Sounds like you managed your finances really well. 😀
@@cathyallshouse2981you would be a minority. You could have got a lemon. If it was newer that possibility is higher. The older ones this guy was talking about are tanks. I had a 95 Tacoma and I put 400k miles on it. Your bad experience is not what most people experience. There is a reason why most millionaires drive Toyotas. Your comment comes off jaded . Be happy for this guy. He made good decisions in life
Just put a alternator in this lady 1994 Corolla
that’s 30 years old
As The Bible says, the borrower is a slave to the lender.
Owe no man anything but love.
@@rudymalizia8842 very deep and factual.
True, but as an atheist I never take on debt. Net worth 1.7 million at 45. My dad taught me to only buy what I could pay for. Paid for house. Paid cash for my Outback. Worked through college and graduated debt free. Currently make 130K a year. Just pumping up my savings and mutual funds.
I have been on my debt free journey for 3 years now. I have 2 paid off cars. My only debt is my house. I am really shocked by how quickly money stacks up when I don’t have debt payments every month. My mind is blown🤯
Right, consumer debt is a wealth killer.
Like Dave Ramsey said “You know what you have when you don’t have any payments? Money.”
I just sold my car today, 500$ more monthly not to mention the insurance, registration and misc costs.
The insurance on a new car is like another whole car payment nowadays.
Closer to $1,000 all in.
@@therichbuddha3277 Meh, back in 2012, my wife and I decided to get into a $1200 per month mortgage instead of riding around in car mortgages. We love our modest home. We are able to pay for the mortgage because we drive good reliable used vehicles. That's just us though. My latest car is a 2010 Nissan Versa 1.8 hatchback with 151k miles. It looks decent and I paid $4700 cash for it so that we can keep paying off my house. Good luck out there.
More money for fun things, like mountain bikes 😂
as a 20year old guy, fighting the urge to waste all my savings on a sports car is at times almost irresistible. thank you for speaking sense into us with this video.
I bought my first property at 25 (I'm 40 now and work part time ) . When I was driving a stupid car at 25 my banker colleagues laughed at me. Now they work as they don't have a choice. I work when I feel like it.
@@mskhumalo5118that’s so awesome. I’m 28 and am trying to be like that. Gonna be debt free in 5-6 months
I just paid off my car in July and even though the payments were just 187/mo, it feels great!
I haven’t had a car payment in 12 years. Best feeling ever.
Yep. 23 years for me without a payment. Driving a 2008 minivan that we purchased in 16 with cash. I probably drop $1500 in repairs (on top of maintenance) a year, but that's like 2 new car payments.
In total in 2023, I paid $4573 in total automotive costs. That's insurance, gas, renewals/taxes, maintenance, and repairs.
What about repairs?
??? There were no cars when the bible was written.
It’s so freeing not having a car payment ! Thanks Austin ! ☺️
How many income producing assests that produce an income do you own? Or have you wasted all of your money on cars?
Yup. Got a paid off Escalade and paid off impala. I’ll never go back into an auto loan ever again!
Smart!
You are correct Austin. What's even worst than having a car on finance is, having a truck on finance. You'd have to be a special kind of moron to finance an 80k truck, when you don't even work in construction or landscaping. The pain is really felt at the pump and when you lose your job.
When I got our Used Accord, (3 years ago) I could walk into any dealership and drive out with a brand new car/truck. I have good credit and had plenty of money for a big down-payment. However I decided to get a used one instead. Still driving it today with no major issues, at over 200k on the odo. Costs me about $200- / month to keep it up, FULLY PAID and now it's actually worth more than when I got it!
I am not here to impress anyone, as long as it gets me from A to B in relative comfort and safety, that's all it matters. Peace
I used some of my emergency fund to pay off the remaining balance back in May. One of the best decisions I've made. I'm rebuilding what I had and should be back on track at the end of this year, which is the original time I would've paid my car off. It just feels better to drive it knowing I have the title to it!
Nice timing. I just spent $1,000 to have brakes serviced AND had a $450 payment for auto insurance. Even if your car is paid off, you still get screwed. But if you have a payment for a car, even worse. Moral of story: Cars destroy personal wealth.
A car is a bottomless pit of your wealth
I quit driving back in 2021. I live within walking distance of most places or I take the public transit bus which is only a dollar a trip. It is a lot cheaper than owning a car. Yes sometimes I do miss having my car but I have learned to live without it
If you work from home and can go everywhere you need on foot / bus / taxi in worst case, there is no need for a car at all.
Also the car lifestyle can get quite isolating vs this way.
Any advice for the people that is impossible for?
What if work from home but can afford to pay 10k cash for a car and still have savings?
@@KingzVibe buy an e bike- done. Or an mopen.
That only works if you live in a place with a good public transit program.
I love my paid off land yacht! 2011 Grand Marquis
Ultra reliable, just replaced struts and coil springs front and back for $300. That's with name brand parts. 29mpg highway
Perfect. Last year of that panther platform. I’m looking to do the same but crown Victoria.
i've been preaching this for 50 years. You're a smart guy!!!
My car has been paid off for years. Actually, we are debt free. Getting the car paid off, freed up $500/month. We were able to pay off a lot with that. We're saving for our next one now.
Freedom of Mobility Power!!!✊💪
Thank you for sharing, one of the car expenses that we forget all the time is parking space.
Monthly parking at work $120.00
Monthly parking at condo $ 110.00
Plus daily parking when you visit other city or area etc.
Wow 😮
You have to pay to park at work? At your condo? I have never heard of that.
I have a used car and it still runs like new. It is only 9 years old. I got it for $3100(one-time purchase and no car loan) and I love driving it. I think it was a worthwhile purchase.
You are so right vehicles drain you in more ways then money....
car loans
Fuel, maintenance, insurance, garaging it. Washing and cleaning....
I paid cash for my used 2009 Camry years ago and since then I save $50 a month for my next car. I love having no car payment.
Greetings from Ghana in West Africa. You are absolutely right.
Greetings!
I was going to pay my car off next year, but just paid it off today 🎉 I feel so good not to have any debt
That’s awesome! Congratulations!
Amen! Haven't had a car payment for 29+ years - buy em and hold em is our mantra - replaced a 1993 Buick Regal GS (16 years/320,000 miles) - running a 2009 Honda Fit (new-cash) and a 2015 Honda Odyssey (new-cash) now, and they are running like champs (take care of them and they will take care of you....). Paying off your mortgage (if you have one) as quickly as possible is a winner too.
Hubby and I are driving an old piece of crap that we share. Been paid off for a long time. Wish I would have understood this though when we were younger. Now we get it......cash cars only. Nothing financed.
Nice that you two can share a car. My wife and I work overlapping shifts on different sides of town. We tried the 1 car thing. It didn't work at all. 😕
Cars suck I love my bicycle so much more 😂😂😂😂 I can park for free and park wherever I want 😂😂
I love my paid off Toyota Corolla IM but I also love my fat bike, mtn bike, tandem and road bikes. I want it all!
@@notanomad9320 I I also have two old paid for Toyotas one of them is a 2010 Corolla.I’m not totally against the car but I love my paid off bicycles way more 😂. Very little maintenance no license plate or insurance no parking issues no gasoline just good ol fashion man power and let’s don’t forget the awesome benefits of exercise . I leave those cars sit as much as possible!
@@CharlesJones-bu5hk bikes are ok in good weather but when it gets 20 below and snow drifts you have to deal with, I prefer my car. I have all the winter gear but the car works better in those conditions. I rode year round many years before I had a car, it's not easy.
I bought a rebuilt 2007 honda accord with 142,000 miles on it for $4,500 back in 2015. I am driving her to this day. She's got a little over 204,000 miles on her and I am not planning on breaking up with her until she decides she's had enough of me😂. Best $4,500 ever spent. Love your car and she will love you back!
Bad debt is suffocating, if you can't afford it 10x then don't go anywhere near it. Stay Uncommon!
So for every $100 you need to spend, you don’t buy unless you have $1000? A little extreme perhaps?
@ghostwrench2292 more or less extreme or not, I just do me. Not alone but it's made me successful beyond my wildest dreams and I always stay below my means but now my means is beyond what I want and need so I'm sweet. Sorry didn't mean to rhyme. I'm grateful to God. Stay Uncommon brother
The advantage of living car free, new perspective!
A car ad just appeared straight after this vid 🤣
my opinion is simple, buy a car you can afford without any loans. Once we had a car stolen just after we've bought a house, and we had very little money left, so I've bougt a 2001 micra for £400 which I've ended up selling for the same price after 8 months. Right now I'm driving a 2005 passat b5.5 and it's a very reliable model, and it also costs around £900-ish. I could now easily afford more expensive car, but i prefer old reliable models.
Having a car on finance is crazy to me, I've always bought a second hand cars in cash. I'm 40 and on my 3rd car. I know a guy that is 63 and changes his car every 2 years and is always broke.
I tried doing that ended up buying a car that was a lemon messed up wasted 10,000 . And I'm now carles
@@Kyledudegot buying a car cash doesnt mean the car is always trash, im not sure if thats what you were getting at, but theres lots of great reliable cars for under 10,000 usd.
True its very much a luck draw or you have to know about cars I brought a mechanic out and everything and that car was still a lemon . Financing isn't the best but sometimes you gotta do what you gotta do I just can't afford to make the same mistake.
I would 100% rather take the buss but where im at it's 110 degrees and it takes an hour and 30 minutes to get there to work , and it makes it SOO DIFFICULT to get anywhere , I really hated the idea of car payments but im so over the whole 3 hr commute , and I really don't want to take a risk with a cash car anymore . 😂 Lol
@Kyledudegot - the problem with public transportation is that it can take 4 times as long to get anywhere with walking to the bus stop, waiting for it, having to transfer, etc…so you pay with your wasted time. Not to mention dealing with the weather. I would take public transportation but then I would need to leave for work 2 hours earlier and get home 2 hours later. That’s 4 hours a day commuting and that doesn’t even account for any errands I need to run. The American way is not conducive to not owning a car (or two).
if one has enough money in the bank, makes little sense to pay off the note all at once. Money on hand is worth more than in the future.
If you invest
In Germany i pay for my VW Polo / Natural Gas. only Tax of 22 Dollar a Year. 60 Miles cost 8 Dollar Gas and insurence is 300 Dollar a year. But pay of is also in Europe the most importent thing.
Wow!!
I drive a Honda Fit LX (most basic model). Paid cash for it new in 2015. I don't drive much so makes no sense to have anything nicer (6k miles/yr ). Always reliable and cheap to maintain.
I love my paid-for car! It’s Toyota Camry 2020, why I bought brand-new and paid it off in giant consistent payments very quickly. My regular payment was $577, and I paid $5,000 and even more monthly. I was burdened by the car payment. Now, I’m paying off my student loans: $62,000 paid in 9 months, 9 out of 12 student loans are paid in full, with $43,000 to go.
Clearly you are very fortunate. Many people have to survive off of $62k per year and you are able to put that much toward student loans in only 9 months.
*Excellent!! Everyone needs more than their salary to be financial stable. The best thing to do with your money is to invest it rightly, because money left for saving always end up used with no returns.*
Trading is the best to boost your financial income. but you will need a professional guide on that.
Where can I reach out to an expert trader?
She mostly attend to client's faster on Telegrams, using the user name.
*@Mavis131 that's it*
All the way from TX, I employ her services, Very smart lady. I am glad you guys found her
They’re not called dealerships, they’re stealerships
It’s not stealing when you willingly sign the loan forms. Don’t like the terms? Don’t sign. Easy.
Sage advice. I came to this conclusion recently too when I was reminded of how much interest I pay.
Everyone needs to listen to this one twice. At least.
My car is my father's 1st car,then after some years it was my older brother's 1st car.then it was given to me as my 1st car.this car has so many great stories and good memories that money can't buy.surely my son will be his 1st car too.
Loving your channel, Austin. I was just thinking the other day that of every material possession I have, there is none I am more grateful for than my car. It's nothing fancy - a 2013 Honda Civic, which I leased new and then financed to own. I paid it off in 2022, and thanks to the pandemic, which got me switched to working from home, now has less than 125k miles on it. It is reliable, gas efficient, it helped tremendously in building my credit, and best of all, it's mine free and clear. I got myself into some credit card debt (very foolishly, as I actually make a decent salary and should never have needed credit) and am aggressively paying it down - hope to be debt free in about 8 months by living frugally and throwing all my extra money at the debt. A simple, content life is my ultimate goal.
I've watched a lot of minimalism/frugal living channels lately, and yours is by far my favorite. Thanks for all the perspective, and keep up the good work!
I pd my car off Aug last year. It's been a nice payment free year 😁
As having paid off pick up truck I agree with him 100 percent. I sure save alot of money.
I moved to China 12 years ago. I haven't driven in 12 years.
Austin dropping the wisdom as usual. Thank you brother. 👍👍
It's just common sense mate, nothing mind blowing about what he says.
Wise advice as always! There are still good used car deals to be found, especially with private sales. I highly recommend a Japanese car, under $5K, with under 100K miles. Just be sure to have it checked out by a competent mechanic prior to purchase. I bought my 2017 Subaru Forester new 8ish years ago. It was $30K, with 0.9% interest. (Remember those days)? I paid it off years ago, and continue to make the equivalent monthly car payment into a high interest savings account. I only dip into that account if I need a repair on my car or e-bike.
There are advantages but cars get old. I paid off my car and then ended up with thousands and thousands of mechanical expenses, so much that I was forced to buy a new car… never again.
I am still driving my 2003 Toyota Camry. Runs great. Never gives me any trouble. I have enough money in savings to buy a new car in cash but as long as my Camry still is in good shape, I am not getting a new car. Credit Unions are the best place for low car loan rates. Also I have always used a car broker and that saved me a lot of money plus I didn't have to haggle.
I bought my 2013 kia Rio brand new. For $12500. Had the car 11 years. Been paid off since 2017. I am still happy with my car. Been good to me all that time. Of course it's showing it's age. But I will NOT do $47lk cars
Never had a car. The public transport in Germany is every 5 mins and costs 49€ a month unlimited travel. Bus train tram anywhere in the country and borders of the other 10 countries
That would be nice but American public transport is not nearly so convenient as in Germany. Additionally, your whole country is roughly the size of the state I live in (Arizona) with a population over 10 times that of Arizona, so a lot higher population density in Germany.
Austin, this such an overlooked method for a person to get further ahead in life financially than they can possibly imagine. I paid my Honda Accord off in 2013 (paid an extra $100/month to pay it off quicker). Once in awhile I get tempted to buy a newer vehicle, but then check myself and say inwardly, "are you crazy? Why would you do that to yourself?" Even if I could pay cash for it, I'd rather set up my money to be working for me, not the other way around.
It truly is an advantage. I have had a paid off car for years. I do want a new one in the next few years, but I am saving money for the next one.
I’m going to be living in my next car so I wanna get a new one. I’ve always dislike traditional housing.
Best advice I got was to research a reliable car, learn to perform simple to moderate maintenance and always save to pay cash. I have always bought immaculate condition 2nd hand cars that I still own, maintain and drive without owing anyone.
Back in 1993, I bought a nice red 1971 Chevrolet Monte Carlo for $12,000 and I've been driving it ever since. Parts are easily available and relatively cheap and I do my own work, although it doesn't need much. It runs and drives as comfortably as a new car, and still looks like a modern car. Most people don't know it's 53 years old. If you want to save a ton of money, I definitely recommend you get an old car.
The $30k I owe on my car is at 4.1% APY and the $30k I put into 1 month Treasury bills are paying me 5.4%, which still is a profit even after taxes. More importantly, I have $30k that will help me survive for longer if I were to lose my job tomorrow.
I kept my 2004 Kia Sorento for 20 years, I sold it this summer and bought a 2018 Chevy Volt, the interest is crazy and I’m not use to car payments. I’m getting ready to pay it off soon and I’ll be keeping this car for a long time. No more car payments for me.
We got our only car new in 2020. $520 a month at 2.49%. Chose to take a loan instead of paying cash in full. Our car didn't hold us back. We were still able to purchase our second house a year later (with a mortgage) on one income in a high cost of living area.
I love when Austin is clean shaven and it highlights how nice his hair is 😊
Austin, I watch your videos now and then, but I am subscribed. You and I think alike financially.
I am in Portland, Maine. Do you come to Maine?
I pay in full habitually. You're right, no car payments. However, what makes my vehicle more valuable, is that I sleep in it. That means no rent payments, no electric, and so forth.
Great channel! Continue to trumpet your wisdom into the ears of the poor.
Jesus, in the Gospel of Thomas, says that poverty lives in you if you do not know how to create for yourself. From his teaching, we could also say that wealth dwells in you if you implement these principles of wisdom which you articulate and present so beautifully.
WOW! This channel has grown a lot!
Felicidades Agustin!!
We haven't had a car payment in 15 years and hopefully we never will again. Our current cars are around 10 years old and going strong. No plans to replace either of them. That is a _lot_ of money saved. Much of which was stashed away in the Roth's.
Gano 90K cada año y ando mi bicicleta al trabajo!
I enjoy cars and I’m working at building my wealth so my preferred method is to rent out nice vehicles for special occasions. That way I get the experience of the nice car for a couple days and then give it back. This allows me to utilize my paid off car to the fullest
True, good advice my 2012 Highlander is paid for and this weekend I'll save 500 bucks changing my own brakes, rotors, and oil. I get the good stuff and an oil change cost me 38 bucks and yes I could do it cheaper.
Some people paying $1000 to 3200 car payments witch is insane 8 year car loan
Paid mine off 4 years ago, paid it off in 3 instead of 5.. Saved the money I would have made in payments along with extra, so next time I go to buy one, I can pay cash for it. FREEDOM!
Awesome!
Company car ~ $350 month , includes. "unlimited" fuel, wash and windscreen washer fluid fill ups. Used to drive 2007 Ford until i had to take company car , but it's still a quite efficient way to drive a new car. Leasing fee for similar would fee at least $500 alone.
I bought my used 2006 Honda CRV over 3 years ago with cash. All other repairs have been through good mechanics I know of instead of paying next to a fortune at the auto shops.
Learning to maintain your car and have no payment are the two best ways to improve your budget. Oil changes are very pricey, replacing brake pads is also very expensive, but you can literally do these two things for 1/4th the price by learning to do it yourself.
I own both of my cars outright an dit does help me divert that money into investments. Insurance costs are out of control as well, so it makes this all the more important.
A paid off car is a good idea for the average middle-class with a 9-5 job. However, investors park their money into income producing assests that appreciate in value and then use use that cash flow to pay off liabilities that depreciate. I finance all of my cars.
Yes, yes, yes. Now in my early 60, I retired last year. The best transportation advise, I would give anyone age 25, 35, 45, 55, or 65, is to only buy a quality "used" automobile and if, possible at the time of purchase to pay for it fully in "CASH". Trust me, this will make both your current and future financial life so much better. The only error that, I noted in this video is with the loan interest rate you cited for either a new or used automobile from between 48-months (4-years) to 72-months (6-years). Because for the past 40-years, I have never had to pay more than eight (8)-percent for either a new or used car loan. My advise to persons looking to buy either a new or used automobile is to first check rates at a couple of Credit Unions, Banks, and Savings & Loans. Then apply for a pre-approval at the two with the lowest vehicle interest rates. Once you receive your two approval letters, please remember to take them with you when you are out shopping for your car (smile ... smile).
A lot of people make the mistake of buying too much car. I certainly did in my 20s and it’s one of the biggest financial mistakes. However, lessons learned. I drive a ten year old car that I paid for in cash. No debt beyond mortgage. I feel sad to see a 26 year old make the too much car or truck mistake and struggle with the payments on top of the gas and insurance. It’s almost like a rite of passage but the numbers are double from when I was 26!!!
In 2015 I traded in my 2006 car and purchased a 2014 car with a final price tag of 13k I wrote a check for it and still have it. That my friend is freedom.
Love my 2009 Pontiac Vibe. Paid $5000. Change my oil and do my own maintenance. Best is zero car payments!
Tell this to the people running me off the road because my car is paid off and old.
Agreed! Makes me even happier my little bro was smart and paid for his car in cash! And that I don't drive at all! lol.
I manage to get my transportation payment to 0. I live in nyc so we take the subway and I found a technique to bypass the turnstile so free ride everytime.
I wish I could take a subway around!
@ElAgustin if you move to nyc I can teach you my technique. Of cause if the cops are in the station you still have to pay.
I paid off my car this year in january almost a year earlier than i was scheduled to, the secret was to make what is called a principal payment on the loan, i did that and it was like i paid 10 payments at once
Also, if you defaulted on a car loan payment, many times, your car will become's bank property and towed away. it's no longer yours. if you paid fully for your car, it is 100% yours and you owe no one for it.
I found out very quickly how much money you can save avoiding a car when my company transferred me overseas. Sure, I was forced to use car hire and public transportation, but that cost pales in comparison to the loan and maintenance costs (the true hidden cost of vehicle ownership).
I paid off my car 10 years ago and still run the same car. Best feeling ever!!!!!
Pretty much all lenders require a full coverage from any car, which can add for a new car insurance around $4000 year
Who else is managing well with only one car in the driveway?
Married 35 years and never bought a second car 🚗
Simple for me as my partner of 20 years has never learnt to drive! 😂
💯 Correct. We have 2 paid of cars. With the money we save, we put away money for utility bills and savings each week.
Owe 20k on my car it’s worth about half and I pay 513 a month. This has single handedly ruined my life financially for the last 3 years of having it.
I almost bought a new car! (I know better) my husband told me no. I paid off my Lexus GS 3 years early. I just had to buy a new battery for my car $200 unexpectedly. Thank you for your videos.
Don’t cheap out on tires and get an alignment when you get tires 😊 I like Michelin Yokohama and Continental tires 😊
I've always bought used Toyotas and my wife and I always had an extra vehicle as a backup just in case.
Been working from home since 2020 and two of these vehicles get driven less than 500 miles each per year... seriously (We usually drive the most fuel efficient vehicle together).
Both bought with cash, super cheap Registration and liability only insurance and I do the maintenance -- so maybe $300 in ownership cost each per year.
I'm seriously considering selling both if these vehicles and just buy an E-bike.
I have a paid off car and an electric bike and winter tires. I drive 5k miles per year and save on car costs also by using public transportation 😊
I agree with this video, and I know this is a frugal finance channel, but this topic could bring up the larger picture of all the externalities of owning a car like pollution, carbon footprint, car maintenance, and very expensive road maintenance that tax dollars go to. I'd much rather have the freedom to travel without car by foot, bike, or public transport. It would be better for health, environment, and wallet. I watched a really interesting video by CityNerd on this topic.
Not having a car loan, for me, means I drove an older car which had expensive mechanical failures., several times a year. As well as not having access to the car while it's being repaired. In my experience, one must seriously consider repairs on an older vehicle I personally feel way more secure with a newer vehicle than an older one that might break down at any moment.
Here's how different my wife and I are: I refinanced my truck to lower my interest rate and shorten my loan by 6 months. My payment went up, and I still paid as much extra principal as possible. I paid it off 4 months early on the new, shorter loan, or 10 months earlier than what the original loan was. I freed up almost $700 per month. I was feeling good. Free of that burden. Proud to have it paid off. Then when I told my wife I finally paid it off, she immediately asked me if I was going to trade it in for a new truck.
NO!!!!!
I was horrified that that's how she thinks. 😡
We have a paid off 2021 and 2023
Been biking to work for the last 4 months, paying off my BRZ. I’ve got $1800 left, then I’ll be completely debt free!
Paid my car all CASH!! Didnt want to have any payments at all....!! 😊😊😊
Hail damage totaled out my ‘15 Accord v6. I paid $16,500 for it in 2019. Insurance paid out $13,300 and I keep the car.
It is SO tempting to sell it for $10k and use the $23k to upgrade. It FEELS like free money. But I’m resisting.
Pro tip: don’t test drive the new Model 3 Long Range. It’s too good. 😂 Makes my 0-60 in 5.9 seconds Accord feel like an absolute sloth. And the Autopilot is incredible. Resist resist! 😂
Austin you are the best ☝️
I appreciate your kind words!
Since I start listen you, I change everything .you are very good man. And I hope all the best to you.
I've always paid my cars outright. They are second hand (usually 3 years old) although the one I have now was 5 years old when I bought it. I make my decision based on how much I want to spend. I really wanted a Volvo but wasn't willing to pay the price, so I opted for a BMW X1 instead. Before this I always drove Saabs, unfortunately they don't make them anymore. 😐 I only buy what I can comfortably afford and it feels good.