@@nofurtherwest3474 You are kind of right. Currently my 20 year old Mercedes is sitting in the parking lot because I've been trying to figure out the engine problem for a couple weeks now. Though it was a reliable commuter for 6 years and has never let me down until now. Definitely some stress involved, even if I gave it to a workshop they probably wouldn't find the issue immediately, but charge me for parts that wouldn't have to be replaced. I'm doing it all myself, so I can atleast send new parts back that weren't causing the issue. So my point being: if you drive an old car, make sure you own 2 old cars, so atleast one of them works haha.
@@JohnKowalskyDrive I think if you have the tools and are handy then sure it would make sense. But I don't have the tools or the know-how. No one ever taught me how to work on cars. I guess I grew up sheltered. My dad was ok with cars but for whatever reason didn't teach me. Now you can get on youtube and learn to do anything though. But frankly... what is money for? with money you can solve problems. with money i can just lease a new car and never worry about maintenance. i can get a new car every 3 years. I grew up with always used cars and probably I'm a little traumatized by that. I don't like spending so much time in the shop and you never know if the mechanic is honest or is ripping you off. I would just prefer to not have to deal with it at all.
@@nofurtherwest3474 Truth is many workshops have no idea how to diagnose a vehicle properly.(Me included, but I'm still learning) So they will start replacing parts that were probably ok and charge you for it anyway because "it had to be done". So yeah you pay your lease or however you finance your new car to have no stress with the typical old car bullshit. I totally get it.
Why buy things we don't need, with money we don't have, to impress people we don't know!! Insane. My only regret is not grasping this concept sooner in life.
Yes, all this keeping up with the Joneses is the American way. Our entire economy is built around consuming things...anything. I always say to people I wish everyone driving a luxury or 200 plus k sports car should also have their total debt in bright lights in their cars.
I own three cars. A 2014 Mazda 3, a 2008 Mazda Miata, and a 1990 Mazda Miata. All bought new and paid off for years. I drive all three regularly. They all have purpose. I enjoy driving them. At age 74, I am debt free and live on my Social Security. My only financial worry is keep in my energy use down. So I keep my 1100 sq. ft. rental house at 60 deg. F in the Winter, and 78 deg. f in the Summer. No hardships endured. I sleep easy at night. My secret; Happiness is an illusion. The secret to enjoying life is contentment. I live by the credo: The grass is “not” greener on the other side. Works for me.
My husband drives a 2004 Toyota Highlander with 185,000 miles and I drive a 2008 Toyota Corolla with 207,000 miles on it. We love our old cars and I dread the day I have to replace them, but when I do it will be paid for in cash as we've been saving since we don't have any debt. We've never asked the bank how much how we could afford. We raised three boys in our cozy 682 sq ft house that cost us $52,000 in 2007.
I had the pleasure of working with a retired marine as a fellow teacher. He always had a nice new truck to park in the parking lot. I asked him how he always had a nice new car. He replied, I am a horrible mechanic so when I first got my bonus for foreign tour I bought my first truck with cash. After that I have always set aside a car payment in the savings. I have always had cash for my vehicles. I have saved thousands that others pay with loans and interest. He said in fact I don't have a credit card. If I don't have cash, I go without. He said my wife stays home to raise our children. I'm close to getting my second retirement here at school. We have everything we really need or want. My dad taught me to pay myself not a bank or credit company. I thought that was inspiring and have paid cash for my last two cars, paid off my credit cards and recently paid off my house. It is wonderful freedom!
@@jayc4715 Cars and property cost vastly different amounts. If he had bought property he can't afford, he'd be in debt, and he'd still need cars. I'd much rather buy a car I could afford than property I can't afford.
I remember growing up in the 70s and 80s and the cars on the road were not always nice. There were a lot of beaters with a heater…now I’ve noticed all the cars are nice. Just makes me wonder how many people are in cars they can’t afford.
@@totuudentorvi7781 I can remember in the 60's 70's 80's when people bought houses that needed some work, had 30 or 40 year old kitchens and bathrooms, and lived in them while they saved money to fix them and upgrade stuff. Now they go way deep in debt for fancy places built like crap
I have A 16 year old Honda. Paid cash for it. It drives nice, is low maintenance and I like not having car payments. I'm not rich, but I can buy anything I want. I just make sure its something I really need before buying it. Stuff does not buy happiness. Eating out does not buy happiness, keeping up with the Jones does not buy happiness. I am content to live simple. Walking my dog brings joy as I enjoy being outside.
Me too! 2007 Honda Fit with 91,000 miles! Paid $6300 three years ago to tow it behind our old motorhome. Sold the RV but kept the Fit because I haul PINBALL MACHINES in it! Yeah the space in the back with the seats folded down is downright AMAZING. Anyway, it is probably worth more than I paid for it but I'll be giving it to my daughter once she starts to drive. Then I'll go back to my 2006 Tacoma truck I bought in 2007. I wish I learned about buying and holding onto reliable cars a lot sooner. Wife drives a 2010 Lexus RX350 with 115k two owner miles. Paid $12k. We will drive it 300k+ miles easy, that is what I got out of our 2003 RX300!
I sure hope it runs like new with only 96,000 miles on it. You only drive it to buy groceries? I drive a 2007 Ford Escape with 196,000 miles. I bought it when it had 50,000 miles.
Those platforms are some of the most bulletproof vehicles out there. Too bad that American manufacturers have stopped making those types of solid, SIMPLE, “easy and inexpensive to maintain and repair” vehicles. They were successfully used as taxis and police vehicles, many with absurdly high miles on them. Tells you all you need to know! The newer ones with digital dashboards and instrument clusters are a totally different story! 🙄 I sometimes think they’re doing this on purpose (planned obsolescence!)
Ha, Ha, Ha, same here. I'm driving a 2003 Lincoln Town Car, very comfortable, reliable car. 5 years ago i bought it for $3500 cash, has cost me nothing but oil changes and gas. It's my 3rd. Town Car in 12 years ... $3500 was the most I paid for any of them. 12 years of Town Car ownership for about $10,000. Works for me.
Cars are easily the single worst purchase made by most people. Not that it’s bad to buy a car - but because most people do it so badly. Fortunately doing it right can be done going forward. The single best way for most people to improve their personal finances is to just once pay cash for a good car and then drive the wheels off of it. This way on a small scale anyone can enjoy leveraging the savings to raise their standard of living. This is a powerful way to make a positive change. A lot of people think that living frugally means misery - what it does is to elevate your game.
In some countries there are laws against that, under the pretense of "caring for the environment" - after a certain car age (usually 3 years) you start paying costly road tax and will have to pass stringent inspections. Like Germany and Japan, which also happen to have huge auto industry.
The total cost of a very small car for the owner and society is higher than the base salary in many European countries but governments, banks and corporations like the heavy taxes, high costs, and profit. The consequences on quality of living and city planning are massive and hard to quantify.
@@aristotle_4532 You do you. Owning a car is part of how I feel most people raise their standard of living for the access and opportunities of easy transportation. Its just that most people do it badly on the financial side and spend way more money than necessary. Get it right and avoid the drain of finance charges. Also learning how to do basic maintenance pays huge dividends, because the savings can be used for other purposes.
It's ok to buy a new car. I bought one in 2005. Still driving that new car. 250k miles. Many vacations. Drove it to work. Daily use. It was worth the investment
Nicely done. I don't understand how people missed the point. You've been driving the same car for 19 years. Bought new, maintained properly (assumed) and will continue until it needs replacement. That's how you get value for money.
@@ki-ka Buying a new car and using it for a very long time can be cheaper than a different option. A car is a capital asset that depreciates, but different cars depreciate at different rates.
I just stick to work save by things in cash. House, car, clothes, groceries whatever. Working great so far. I don't do debt. I mean you got 4 walls to stare at and 4 tires to get you down the road. Doesn't make it any different whatsoever if the walls are plated with gold or the 4 wheels getting you down the road are shiny or not. It's all the same.
I am 76 and I don't remember credit cards being used as I was growing up. We did without until we could afford to purchase something in cash. I eventually did acquire a credit card, which is paid off in full automatically every month, so that I could have a convenient record of my purchases. I've bought all my cars for cash and kept them until their cost of maintenance far exceeded their value. I consider myself lucky that owning possessions to bolster my ego has never been a strong motivator.
I have a 2012 Honda crv. 172 thousand miles. Still going strong. My car has been paid off for the past 4 or 5 years and there is no feeling like having a paid for vehicle !! Thank you for your content Joahuq
This is the best episode yet. I have a Nissan Pathfinder 2011 that just made the 204,000 mile mark with regular maintenance and taking care of it. I plan on keeping it a very long time.
Thank you for this video. I have felt the yearning to buy another car. My current car is 15 years old. However, I only have approximately 50,000 miles on it. And, of course, it is paid off...after watching this video and hearing your wise words....I ask myself why I would want another car payment? Nope....I am sticking to what I am driving...it takes me where I need to go and I don't have a car loan. Thank You again! This video came at the nick of time!
That's great! Every day you keep it is money in your wallet. That's what I'd tell myself to resist the pressure to "just get a new car." It's hard but it will become easier when you see how much money you save over time!
I have a 2003 Toyota Highlander, only one owner previously short time. Bought it at 50k mi. I'm retired RN now. Been only driver, kept maintenance up. Decided to do some expensive maintenance done, but, it goes and goes. 240k
I have a 12 yr old Swift, still runs like a new one since I maintain it meticulously. Happy to sit and drive on it everytime, recently given a new paint job and feels more exciting. Everyone can buy a new Car Only Legends can run and maintain an Old Car
cars and bikes are passion for many people. In reality, anything works for commuting or road trips, from the oldest beaten up slow car to the latest exotic supercar. I prefer the cheap, uncomplicated, dented old cars because i can not bother about losing my time and mental energy being affraid to scratch it or being stolen. Your choices dictate your life and buying a car is sometimes a life changing decision (for worst most of times)
My 19 year old Honda civic has needed numerous repairs however it still costs me way less than a new car. It’s been paid off for a long time. Plus I don’t like or need all the bells & whistles on new cars.
That's what I have to weigh on too. Even if I am paying 300 a month in repairs, I'm still not paying 500-700 for a new car that I absolutely have to make the payment on. I don't see the point of financing a used car as the warranty is usually a hassle and the risk of breakdown increases even more. And newer cars are so expensive to repair when something does break.
Netherlands/ Dutch here. I drive a Subaru Legacy from 2006. I paid it via a bank transfer. I bought the car in 2014. I bought that car because it is a good quality branch. We have yearly car checks here so your car is always in a good and save condition. It will cost but as much as on a cheaper (less well built) car. It has 315000 km on the counter. It has a chain so no belt driven engine. The chain has never to be replaced. And as my parents once said: don't buy nonsense items and keep your money in your pocket. And close the tap while. Rushing your teeth and shut of the light behind you. Use a bicycle instead of your car. Saves money and is good for your health.
That's how I think about my money, in terms of opportunity cost. So whenever I think about buying something, I think to myself, what if I invested it instead. And that usually stops me from buying luxury items, as 99% of them depreciate in value. Opportunity cost is everything. The only time I bought a new car was when I got a rebate of over 20K for it (2019 plug in hybrid). I still took a full price auto loan at 2.5% at 60 months, invested that rebate amount, and after 5 years, it paid for itself, and then some. Best deal of my life.
Smart. I drive a reliable POS. I have yet to hear a good argument for getting a nice car. In fact, I WANT people to judge me on the car I drive. The people of real substance won't care.
I had a 2001 for 7 years then I upgraded to a 2007 this year. I paid cash, now I'm not worried about debt with high payments. I'm debt free, it took me years, but it was worth it.
My Jeep Wrangler lasted 20! I only retired it because I live in the snow belt and the rust got it…. It was working perfectly fine but could not pass inspection due to frame issues. A guy into building cars bought it and replaced the frame - a project with his son so he could learn about working on cars. 210K miles. Yes I bought another Jeep Wrangler
….When i Retired 2 yrs ago .. I Decided to purchase a Reliable -well built vehicle for Traveling . I bought a New 2022Lexus LS 500 . Oh by the way this one was built in JAPAN !! I kept my 2011 Honda pilot ( just turned 200,000 miles this week . The Honda is used primarily around town for transporting items from Home Depot,Lowe’s etc .. Oh yes Both Paid in Full !!!
I was two payments away from owning my car when some young people decided it would be fun to steal it & go for a joy ride. It was recovered but had total damage so we were forced to buy another car. We bought a pre owned but have payments all over again & it wasn't our fault. Our stolen car was going to need some repair but was still in warranty & some non warranted items like tires were going to have to be paid for but would have been easily covered by having no car payment. Sometimes plans just don't work out.
Take the complete COST, not just the price, of that car (or anything for that matter) and divide it by the hours/weeks/months/years you’ll be working to pay for it. Then make your decision. When I convert the money into time and effort I can more clearly see how much LIFE a I’ll spend for that item. Hope that helps you with your purchasing decisions. God bless.
You reminded me of my awesome dad. He owned a bread and pastry delivery business ( 1 truck ). 1 of 7 children raised off of my dad's hard labor. He put most of us through college as well, my mom sewed part time at home. I laugh when I think about his answer to us when we asked for something frivilous : " Do you know how many loaves of bread I have to sell to pay for that?" ( you can see by my spelling, I'm the only one who didn't attend college ). But, guess who's been debt free for decades. ( All of us ).
Take the complete cost, including the original sticker price, the cost of maintenance (which increases over time) and the cost of insurance. The overall cost of ownership for the life of the vehicle. Consider the advantages of enhanced safety and improved efficiency with a new car. If you do not know much about cars, you need a first-class dealership mechanic to look carefully at your old car to make sure it is safe. That can be expensive. The overall numbers may mean you should buy a new car. It is complicated.
Perfect timing Josh! I was actually contemplating looking at a new car today. A dealership is running a special on a car I’m very interested in. I am debt free and have been setting aside money every month to purchase a car with cash. I don’t have the total amount yet and almost went off the rails and against my original plan, because the deal seemed too good to pass up, that is…until I saw your video. 😅 Thank you my friend!
@@therichbuddha3277 I payed cash for a 5 year old Escalade 10 years ago. It’s still fine but I bought a beater car for going to work. First beater was $500. Got hit by a drunk so I bought another $500 beater. The Escalade is a stupid vehicle. If I ever sell it I won’t buy another one.
Depends what is your goal. If car for you is metal box to drive you from A to B then ok. By this logic we should never buy watch, or cheap watch is the same with expensive one - because they both tell the time, but there a people who enjoy in watches and have a collection of expensive watches. Same with the cars - from status symbol, different needs, racing, car shows, collections, up to car for daily needs. And yes it is good and exciting to drive old car - I own 68 Mustang Bullitt.
2006 Ford Freestyle; 218,000 miles on it and still runs like a champ. Never bought a new car and never will. Bought this car for $4,700 like 13 years ago. Been out of debt since I was 36, I'm now 60. Paid cash for all my used cars. Run them until the wheels fall off of them. I already saved up $8,000 for my next purchase. Just don't know when that will be.
Nice one, just pay attention to the cooling parts, pipes and flanges. Change oil above manufacturer's recommendation and you'll be golden. 2004 Audi here and still keep on the fast lane.
What timing. I recently purchased a used truck. It's an 8 year old truck but I can make it last at least another 8. Plus nobody really cares what you drive. The best cars are the ones that are paid off. I try to drive them as long as they will go. Also I get some new car smell spray and spray it in there and to me I get the new car experience!
I had never buy a new car.i am happy with my Camry 2005 and the best thing about it is that rides like a Camry 2020 cause the mileages are less than 80ks...love it
So many people with lengthy car loans struggle to pay the monthly payment, then by the time the car is paid off, it's starting to need some of the higher maintenance items. They are led to believe by the dealership that it's better to just buy a new car. The cycle continues. It's really sad. When I travel somewhere and rent a car, the new features are really nice, but I have a hard time justifying getting rid of my old car if I can't pay cash for it.
In 2005 my husband was shopping for a new work vehicle (company owned). I was bored and looking around the car lot. Found one I loved but wanted a specific color. Sales guy called the next morning as my dream truck just rolled off the semi. Before I knew it I had a new 2006 Explorer Limited. Still driving it. Just rolled 76k miles (I obviously obviously don't drive far). We are good friends. It had some dings, but I am 74 and have a few myself. Point is...I am perfectly fine with my old truck. I could care less about newer and better. We are good. ❤
I enjoy my 1999 E39 528iT. It has 268,000 miles. It gets daily compliments from strangers. I have had it for twenty years. It is kept in my garage. I also have an E39 530i 2003 which I bought five years ago for five thousand dollars. I have spent five thousand dollars on it yet I believe it is money well spent as neither of them is currently depreciating.
I bought a 2020 Honda Fit. I made the last payment today. My intention is take care of it till it no longer functions. I still love it as much as the day I bought it. I know financing is not always the best way, but at the time it was my best option. The best used cars cost almost the same. Today I drive by dealerships and see prices on used cars that boggle my belief. It gets great mileage and I only work 3 miles from home. So, now My plan is to increase savings. I am going to up my 401k withholding which is pretty significant already.
I have a 2015 Lexus RX350 I purchased new. With the pandemic, and retiring two years ago, it’s got under 80k mi. It was paid off four years ago. I will die with this car. It’s still in mint shape, has been dealer maintained all its life when due, and runs like a Rolex. Outside of regular maintenance, I’ve never spent a dime on it. I will die with this car, before I give another nickel in interest to another finance company. Being debt free and retired is the definition of freedom.
I drive a 2008 Honda CR-V with 330,000 miles on it. Works great (although I am a mechanic, so that might help). It looks fine, is extremely reliable, and transports my family and my expensive bicycles that are worth more than it. People always tell me that my family needs a newer and “safer” car, but can never explain to me why that is. It’s one of the most wasteful things I can imagine spending money on. It makes me cringe whenever someone tells me “well I can’t afford $2000 per year to maintain my old car, I’ll just buy a new one” That’s never going to be cheaper than maintaining your old car. Unless you have something truly horrible like a Geo Metro or a Jaguar/Land Rover or something.
Very well put ... thanks for the message. Opportunity costs is one of the $ principles that have stuck with me for more than 3 decades. It made me able to retire 20 years ago at 38. I feel so blessed to have learned it at a very early stage in life.
There can also be stress with constantly buying old cars worrying if they can get you from point A to point B. The constant stress of fixing them and getting towed can add up as well. Buying a reasonable vehicle and maintaining it is key because nothing is a free ride. I now have used and a slightly new car I try my best to maintain both because buying new is no longer an option with prices rising.
One good thing about living in a third-world country is that we are always going through an economic crisis so we think very much about where our money goes (electricity bill? food? etc.). But that doesn't mean we don't spend money without consideration. So the concept you bring in this video is necessary no matter where you live.
My 2006 Ford Focus has 230,000km on the clock, runs well, parts are cheap and i can service it myself. Insurance is almost nothing. It's so nice having no car debt ever again.
This message/video is so fu**ing dope, bro! I've listened to it like 10-12 times in a row, taken notes, and shared the link with my friends. It's not that the information is brand new. It's more about the: organization, presentation, and timeliness of it for me. THANK YOU
I started down this path of buying older reliable rust free Toyota vehicles for cheap about 25 years ago, and it has worked well for me. Even after I factor in repairs and maintenance I am still saving tens of thousands of dollars when compared with buying new or newer vehicles. My current work truck is a 2002 Tundra that I have driving since 2003, and my newest Tundra is a 2007 that I bought in '17, I drive it for fun and have it available as a back up work truck for when the '02 needs servicing. Sticking with the manufacturers maintenance schedule for 'severe service' is the only way to keep them going & going
I sold my gas guzzling Acura MDX 6 years ago because I was spending $260 per month on gas. This was when gas cost half of what it is today. I ended up buying a Tesla Model 3 Performance. I liked the car so much that I purchased the stock. I ended up making $200,000 from the stock purchase. I essentially ended up getting the car for free.
This is spot on. This should be part of high school and college curriculum every single year, and there should be a test on it, and you shouldn’t be able to move on, until they get an “A+” on the test.
I purchased a brand-new Honda Civic Del Sol off the lot in 1993 and still drive it daily. Cut down on the wants and concentrate on the needs. Sounds boring but keeps you out of financial trouble.
I can fully agree, with a hearty "Amen!" In my younger self, 'want' never realized the years of finance charges & added charges...my dad taught me daily maintenance blooms years of dedicated service from an older vehicle, or our house too! Enjoyed your talk, I'm learning, still, at 68, hello from KY❤
1991 Honda Civic hatchback 5 speed. Daily drive it 100 miles a day. 40+ MPG, extremely low insurance, very low cost to maintain. Very reliable. Great car that makes me $
I drive a 1995 Toyota Corolla XE. 1.3 engine. Low maintenance, and cost friendly. I also have a 2020 Honda Beat 110cc. Both help me with good income. Never been better.
I have never owned a new car. Have a 2012 Chevy sonic. Used, paid under 7,000. 5 speed. 5 years owned so far. Hate computerized cars that are out there. Hope to make it last longer than my ptcruiser ( ten years).
I used to have an old Subaru car. It served me well for almost 20 years. Sadly, it was not in keeping with the staff in the school where I worked! You have to buy a new one seemed the lament! You could see how Australia fell into the present predicament.
Im 70 now. I've got enough, if anything I'm asset rich and cash poor. All my life I have tried to only buy things I can keep that includes education ( not always institutional often how something works so I can repair it) Most of the stuff in our house is second hand and a large amount of it we have had for longer than I can remember. We cook 99% of our meals, eating out is a treat not the norm. I enjoy life and I don't miss a new car, I've had 2 in my life, they cost heaps, depreciate quickly and modern ones are almost impossible to fix so why would I bother all I want is something that is reliable. You are right and I was told the same thing when I was younger, probably one of the few things I actually listened too :)
I had my share of unreliable used cars in my 20s when I had no money. I'm 50 now, I buy new and keep them 8-10 years and do all the maintenance myself. They're still running decent have under 100k and still worth something at trade in time. Someone else can deal with the expensive major maintenance items I can't do myself at home. Life is too short not to enjoy a few luxuries.
A word of caution: Don’t assume that keeping an older vehicle is always more cost effective than getting a different car. The older a car gets, and the more miles you put on it, the more expensive it will become to maintain it. You can offset some of the cost if you or someone you are close to is mechanically inclined, but there will still be a cost. Parts wear out and need to be replaced, including big ones like the motor and transmission. So be careful, weigh the costs, and when necessary, buy a replacement. It doesn’t have to be new. Used vehicles tend to cost less, and you can get some that are in pretty decent shape.
I learned this the hard way, trying to take care of an old f150 drove me insane. "The straight 6 is legendary the truck will last forever". That's not how it works.... All vehicles age and have problems and it just gets insane. Especially on my truck I would buy parts that would fail after only a short time. Constantly having to fix it, trouble shoot. Plus if you live in an apartment how are you going to do major repairs on an older vehicle? I think people hate on newer cars too much. They seem to think older vehicles all lasted 1 million miles without any repairs and I have extreme doubts on that. It doesn't matter what car it is, once you get to like 20 years old, 200,000+ miles you are taking gambles. Truly I think cars are mostly disposable. Buy a used car drive it as much as you can with basic maintenance if it starts giving you major headaches ditch it and find something else.
@@hhjhj393Cars are usually almost problem free for the first 120k miles. Past that, it depends on a lot of factors as to how much cost and trouble it will be to keep it going. I’m at 150k having done many very major repairs (DIY) in the last 25k miles and I’m pretty tired of it. I think one more year a most before I replace my oldest car. At some point it’s not worth the hassle and cost.
I got tired of paying for gas and repairs. I bought a Tesla to commute to work. I have not looked back. My wife liked the Tesla so much that she bought one as well.
@@mocheen4837 I did the same. Bought a model y last year and planning to buy a model 3 soon to replace our 2nd car. Tired of maintenance and slow gutless economy cars.
Driving an 02 4runner with 413,000 kms. Love it but im also dropping 3 grand on it this week for rear axle bearings and brakes. 🙄😃 Truck is otherwise strong and runs well. Can't imagine paying 40-70 thousand on a new or even couple years old one.
I've never had a car payment in >30 years of driving. My current daily driver is 50 years old. I'm an extreme case maybe.. but add up all the extra money in principle, interest, insurance in a year on a new car- minus the cost of parts for repairs on an old car, & consider the number of hours spent working on the car, it works out as a pretty decent rate of pay if you enjoy the job.
I think the best lesson is moderation. If you want a new car then save up to get it. Rather than buying a ten yr old one which will cost more on maintenance insurance and gas in the end. Get a moderate cost new car and keep it for ten years or more. Saving money every month is like giving it to old car for all the costs I mentioned above. Make a good down payment and a flexible paying monthly fee. (Coming from a person who had three preowned cars so far and no new car yet but saving for one …soon to happen)
I don't drive, so I've never owned a car. With the money i saved not owning a car, i was able to buy a house and pay it off. Whenever i mention this, someone inevitably points out that a house costs so much more than a car. My response is "are you sure about that?" Add up everything that you spend on your car including gas, oil, taxes, insurance, traffic tickets, parking, maintenance, repairs, etc. Take what you spend on your little gas guzzler in a year and divide it by twelve. This is what your car is costing you every month. Could this be a house payment on a modest home? Could it be a significant portion of a house payment? If you're still renting, be sure to also add your rent to the total. Honestly, even if i was able to drive, i wouldn't want a car. They just seem like a lot of trouble and expense and I've managed to get through life without one.
I drive a 2002 Toyota Camry XLE with 236,000 original miles on it. Runs perfect. Body good. Bought it 6 years ago private sale. 22 years old and no car payment.
I drive my W 202 C180 MB, bought new in 1999. I use it as my daily drive and now has 222000 kms. I had it painted after 23 years and looks fabulous (aspen green)...Most kms are made in city of Athens Greece heavy traffic. Of course it is regularly maintained and drives as new after 25 years.
I own an 11 years old Toyota pick-up truck i bought brand new in 2013. It still works and runs flawlessly, but I miss the added comfort, convenience and safety of the newer models. I could change it for a new pick up truck next year, but I hesitate thinking I could maybe give better use to the money needed as in vacations for instance. I will keep thinking on it.
I can buy any car on the market but I just bought a 2006 Toyota Avalon with 40k on it. It replaced a 2008 Toyota Avalon with 200k miles on it. I drove the 2008 for a decade.
I bought a new Honda Civic in 1999. 25 years later I'm still driving it; 123,000 mi. Drives like a dream - in a good way. Best car I've ever owned, karma, and the best investment. Nothing wrong with buying a new car - if you can afford it - just keep it for at least 10 years. I'm hoping for 30 or more years of almost trouble-free years with the Civic.
Most cars these days can last 300,000 miles and more with regular maintenance and occasional repairs on things that wear out like brakes and tires. And they can be extremely reliable. Having a new car is no guarantee that you won't have a breakdown. The cost of frequently trading vehicles is second only to trading homes. Do yourself a favor. Keep your vehicle as long as possible and enjoy tens of thousands of dollars in savings. And drop full coverage insurance if you are a safe driver and save even more. My current daily driver is 14 years old, has 270,000 miles and is a pleasure to own.
I have completely gameified this concept. I'm a few months away from my CR-V's 250,000 mile anniversary with me - There were 70k miles on it when I bought it, and 320,000 on the odometer is right around the corner ❤
Or just pay cash for a new car and drive it for 20 years - and counting. Last year we bought a second new car for cash - it will be what we use for travel/trips etc. The original car is now for every day running around. The key is never take out debt and buy something ONLY if you can pay cash. If you owe nothing, you can afford to build your savings/investments.
I'm in England - and for some years have chosen to drive cheap old cars - three years ago I paid £300 for a little Citroen, which even for me was the least I've ever paid and driving it home couldn't help but giggle at how little it cost. In that time it's travelled more than double the UK average per year and has just clicked over 200,000 miles.....requiring virtually no repairs. I can go anywhere a driver of a car costing a hundred or two hundred times more can....plus for any enthusiast who's watched the cheap old car features on 'Top Gear' you'll know the fun and 'attachment' these vehicles can bring......besides that I genuinely think modern cars are downright ugly and full of unecessary tech!
I Love my 2003 honda accord 4 cylinder I basically can fix the entire car but what I Love is the parts are in demand when you go to a dismantle place I have a huge list to choose from or online there is a long list to choose from and the parts are cheap, 87 octane 👍🏼 fits everywhere
I pay cash for new cars and drive them for 10years or more. I haven’t had a car loan since the 80s. Commitment to zero debt is the best thing I’ve done for myself.
At least 10 years. My current car is 12 years old. We put a lot of miles on them. We can well afford it. We live beneath our means and save a lot. We don’t need to live like paupers though. When we decide we want a new car we trade in the old and pay cash for the balance. Don’t really have to justify it do I??
Oh I’m sorry. I wasn’t asking you to justify. I was asking for clarification - just to make sure I read your comment correctly. Sounds like “drive for ten years” isn’t some math that you did on the best time to trade-in. It’s just more like “when we feel like it.” Correct?
While I do agree to a certain extent, keeping and maintaining an old car is definitely not without burden! My current daily driver is a 2012 and I recently sold my secondary vehicle which was a 2009. Living in Canada, the main issue is rust, which of course rapidly diminishes the resale value, but also means that at some point the vehicle may no longer be safe to drive. I’m definitely a proponent of keeping a vehicle as long as feasible but, like everything else in life, there’s a limit!
Got 3 (for now) 90s volvos. White 855 turbo wagon, black 2.5 na wagon 340000 kms and a 2000 c70 convertible. Low maintenance, uberquality ultrareliable cars that is super easy to fix yourself. Will keep driving those forever. Most expensive one was the convertible, 4500 dollars+180 dollar fix.
100% agree with this. I make good money but haven’t had a car payment in 15 years. Sure, my ride isn’t fancy but it’s reliable. I event do most of the repairs myself. Every month without a car payment to make is a gift of peace of mind to myself.
I'm still driving my 2004 Dodge Ram that I purchased used about 15 years ago. I live in the Northeast so rust is an issue. I paid 5000 a few years back to have the rust fixed and it's still running strong. I've seen trucks only a few years old that are rotted out. To me it's not worth buying a new truck for 60,000 that's just going to rust out. Not having a truck payment makes me very happy!
Amen, brother, you said it well. My father, may he rest in peace, taught me this when I was a little boy and I've lived by it ever since, and can say that it served me and still serves me wellI. So much, that I've taught it to my wife and our offspring, But, I fear that most viewing this video will not listen or do as you allude to, which is a shame. Thanks for sharing. Cheers.
It depends on the availability of the car parts of the particular make and model readers AND it depends on what context the word "OLD" a person means . But, what I think the smart thing to do , is buy an older car certainly , but make sure that it is one that you can still get the car parts to it , which is your mass produced makes and models of its own era . And the auto shops are not going to have any difficulties ordering , or that the mechanic can source from the auto wreckers because they have one of the same , as they were numerous on the road . And to keep it on the road and running well, MAINTAIN IT . Water , oil , and air in tyre checks often . Keeping it clean . Nice clean windows so your visuals have less blind spots . Look after it . Don't do burn outs to save the tread on your wheels , and avoid grinding the gears , and drive safely . 🚙
I'm driving a 16 year-old Toyota minivan here in Manila and it has not given me problems for the longest time! Sure it ain't no Supra but it does get me from A to B and adventures here and there! I dread the day I may have to part ways with it due to things that are beyond my control. It's be like saying goodbye to family...
I like my older car. It has the hand crank windows which means in an emergency, I can roll down the windows to get out of the car. Remember the newer models are more computerized and more subject to computer and computer chip failure. The cost for a new computer chip is usually A LOT more than it would be to buy a different car. The older cars are much easier to fix because they don't have a computer in them. ⭐️Remember⭐️ : Preventative maintenance goes a long way.
I love my old car - 32 years old with 286,600 miles. Paid cash for it. I knew I'd eventually need to replace it so I put away 100/month for years. I didn't need to replace it until it was 23 years old but it ended up just being the starter so I got that fixed and kept the car. My other car is another reliable Toyota, now 11 years old. I got it with a zero interest loan. And bc I already owned a Toyota,they gave me $1000 toward the down-payment 🙂
I have a 2006 Toyota Corolla 1.4 D4-D hatchback and it runs like a swiss clock. Already 18 years old and had zero issues with it. I just do the regular maintenance and always use premium diesel. It's a car built to outlast me.
I bought a 2012 reg car back in 2021 for 6K ( Audi A4 Avant diesel) it was presented by the very honest sales guy in its unclean state but importantly it had a great service record and had all the stamps and receipts. Don’t be fooled by over polished detailed cars which a retailer will add a premium for that . The car is now done 32000 trouble free miles and most used cars will do silly mileages if serviced and cared for.
The rule of thumb for me is, unless you have truly disposable income, buy cars outright, and drive them until they don't drive anymore. There is no reason to have a car payment, ever.
"Anything that cost you your peace is too expensive." 😲 Wow!
"Anything that costs you your peace is too expensive."
That same principle can be applied to relationships.
Frankly, a used car costs me more peace. I've had both. New car brings peace. Old car brings stress. He has it backwards.
@@nofurtherwest3474 You are kind of right. Currently my 20 year old Mercedes is sitting in the parking lot because I've been trying to figure out the engine problem for a couple weeks now.
Though it was a reliable commuter for 6 years and has never let me down until now.
Definitely some stress involved, even if I gave it to a workshop they probably wouldn't find the issue immediately, but charge me for parts that wouldn't have to be replaced. I'm doing it all myself, so I can atleast send new parts back that weren't causing the issue.
So my point being: if you drive an old car, make sure you own 2 old cars, so atleast one of them works haha.
@@JohnKowalskyDrive I think if you have the tools and are handy then sure it would make sense.
But I don't have the tools or the know-how. No one ever taught me how to work on cars. I guess I grew up sheltered. My dad was ok with cars but for whatever reason didn't teach me.
Now you can get on youtube and learn to do anything though.
But frankly... what is money for? with money you can solve problems. with money i can just lease a new car and never worry about maintenance. i can get a new car every 3 years.
I grew up with always used cars and probably I'm a little traumatized by that.
I don't like spending so much time in the shop and you never know if the mechanic is honest or is ripping you off. I would just prefer to not have to deal with it at all.
@@nofurtherwest3474 Truth is many workshops have no idea how to diagnose a vehicle properly.(Me included, but I'm still learning)
So they will start replacing parts that were probably ok and charge you for it anyway because "it had to be done".
So yeah you pay your lease or however you finance your new car to have no stress with the typical old car bullshit. I totally get it.
Why buy things we don't need, with money we don't have, to impress people we don't know!! Insane. My only regret is not grasping this concept sooner in life.
Exactly. Even if you did know them buying something on credit you cannot afford is not impressing smart people it's impressing stupid people.
Yes, all this keeping up with the Joneses is the American way. Our entire economy is built around consuming things...anything. I always say to people I wish everyone driving a luxury or 200 plus k sports car should also have their total debt in bright lights in their cars.
If anyone wonders then this quote is by Morgan Housel
That was a lesson we had in grade school.
Well spoken
And I‘d like to add: try to impress people who don’t care at all for you because they are so desperate trying to impress other people
I own three cars. A 2014 Mazda 3, a 2008 Mazda Miata, and a 1990 Mazda Miata. All bought new and paid off for years. I drive all three regularly. They all have purpose. I enjoy driving them. At age 74, I am debt free and live on my Social Security. My only financial worry is keep in my energy use down. So
I keep my 1100 sq. ft. rental house at 60 deg. F in the Winter, and 78 deg. f in the Summer. No hardships endured. I sleep easy at night.
My secret; Happiness is an illusion. The secret to enjoying life is contentment. I live by the credo: The grass is “not” greener on the other side.
Works for me.
My husband drives a 2004 Toyota Highlander with 185,000 miles and I drive a 2008 Toyota Corolla with 207,000 miles on it. We love our old cars and I dread the day I have to replace them, but when I do it will be paid for in cash as we've been saving since we don't have any debt. We've never asked the bank how much how we could afford. We raised three boys in our cozy 682 sq ft house that cost us $52,000 in 2007.
682 sqft house?????????????
No way 682ft. That is less than 30ft by 30ft.
Options now gone
@@Dustin-tt4gx easily doable. Modern people have no idea 🙄
I built an accessory dwelling unit bigger than that! OH my that is a TINY HOUSE!
"If it costs you your peace, it is too expensive. "Thank you so much, Joshua!
I had the pleasure of working with a retired marine as a fellow teacher. He always had a nice new truck to park in the parking lot. I asked him how he always had a nice new car. He replied, I am a horrible mechanic so when I first got my bonus for foreign tour I bought my first truck with cash. After that I have always set aside a car payment in the savings. I have always had cash for my vehicles. I have saved thousands that others pay with loans and interest. He said in fact I don't have a credit card. If I don't have cash, I go without. He said my wife stays home to raise our children. I'm close to getting my second retirement here at school. We have everything we really need or want. My dad taught me to pay myself not a bank or credit company. I thought that was inspiring and have paid cash for my last two cars, paid off my credit cards and recently paid off my house. It is wonderful freedom!
Q
He could of bought more property instead
@@jayc4715 Cars and property cost vastly different amounts. If he had bought property he can't afford, he'd be in debt, and he'd still need cars. I'd much rather buy a car I could afford than property I can't afford.
@@TC1Z2L3 by properties in talking rental properties..and ive bought them for less than what a nice used loaded pick up truck costs
I would put that cash in stocks and have the monthly payment on the car or buy a used car
I remember growing up in the 70s and 80s and the cars on the road were not always nice. There were a lot of beaters with a heater…now I’ve noticed all the cars are nice. Just makes me wonder how many people are in cars they can’t afford.
MANY, MANY!
Almost everyone. And the same is true with the homes people live in too.
@@totuudentorvi7781 I can remember in the 60's 70's 80's when people bought houses that needed some work, had 30 or 40 year old kitchens and bathrooms, and lived in them while they saved money to fix them and upgrade stuff. Now they go way deep in debt for fancy places built like crap
I drive a 20 year old SUV that has been paid off for a while, and I still can’t afford it.
At least a home has the possibility of keeping or increasing in value and often does. A car never does.
I have A 16 year old Honda. Paid cash for it. It drives nice, is low maintenance and I like not having car payments. I'm not rich, but I can buy anything I want. I just make sure its something I really need before buying it. Stuff does not buy happiness. Eating out does not buy happiness, keeping up with the Jones does not buy happiness. I am content to live simple. Walking my dog brings joy as I enjoy being outside.
Totally agree.
@@Carole616I own two Hondas. 21 and 19 years old
Me too! 2007 Honda Fit with 91,000 miles! Paid $6300 three years ago to tow it behind our old motorhome. Sold the RV but kept the Fit because I haul PINBALL MACHINES in it! Yeah the space in the back with the seats folded down is downright AMAZING. Anyway, it is probably worth more than I paid for it but I'll be giving it to my daughter once she starts to drive. Then I'll go back to my 2006 Tacoma truck I bought in 2007. I wish I learned about buying and holding onto reliable cars a lot sooner. Wife drives a 2010 Lexus RX350 with 115k two owner miles. Paid $12k. We will drive it 300k+ miles easy, that is what I got out of our 2003 RX300!
@@ttllW-lx5mi Honda gang rise up!
Yeah me too, Civic Type-R and Del Sol, both new condition.@@heyitsbroski
My car is 11 years old and I see no reason to change it for a new one. It works!
Learn how to do oil changes and see if you leave no trace.
me too and it is the most reliable car I have ever had.
Keep it and maintain it. I have a 20 year old pickup truck. No payments, low insurance rates and easy to work on.
Exactly. I'm driving a primordial Toyota. It may outlast me.
@@poekiemanpoekieman9224 You can buy a Rolls Royce bodykit from China for $199, chicks can't tell the difference.
I paid my car off two days ago!! No more debt, I'll never have a car payment again.
Wow, I bet it feels great.
Yea! I celebrate with you.
Congratulations! Just a recommendation though, do keep some spare money for maintenance/repair, once is out of warranty 👍🏻
Congrats! But don’t say never any more car payments. That car won’t last forever! Start saving your Pennie’s.
@@TripReviews thanks! you're right but I'll probably have a used car if I need one
My daughter recently commented on our older van. I told her I love my paid off vehicle!!! She seemed to appreciate my excitement 😂
My old Crown Vic is fire engine red, 25 years old, 96,000 miles, paid off, and she runs like a new one
ohhhh...would love to see a picture of her!
I sure hope it runs like new with only 96,000 miles on it. You only drive it to buy groceries? I drive a 2007 Ford Escape with 196,000 miles. I bought it when it had 50,000 miles.
2000 towncar 122k runs like a dream
Those platforms are some of the most bulletproof vehicles out there. Too bad that American manufacturers have stopped making those types of solid, SIMPLE, “easy and inexpensive to maintain and repair” vehicles.
They were successfully used as taxis and police vehicles, many with absurdly high miles on them. Tells you all you need to know!
The newer ones with digital dashboards and instrument clusters are a totally different story! 🙄 I sometimes think they’re doing this on purpose (planned obsolescence!)
Ha, Ha, Ha, same here. I'm driving a 2003 Lincoln Town Car, very comfortable, reliable car. 5 years ago i bought it for $3500 cash, has cost me nothing but oil changes and gas. It's my 3rd. Town Car in 12 years ... $3500 was the most I paid for any of them. 12 years of Town Car ownership for about $10,000. Works for me.
Good advice.... maintain your old car and drive it as long as you can
Cars are easily the single worst purchase made by most people. Not that it’s bad to buy a car - but because most people do it so badly. Fortunately doing it right can be done going forward. The single best way for most people to improve their personal finances is to just once pay cash for a good car and then drive the wheels off of it. This way on a small scale anyone can enjoy leveraging the savings to raise their standard of living. This is a powerful way to make a positive change. A lot of people think that living frugally means misery - what it does is to elevate your game.
In some countries there are laws against that, under the pretense of "caring for the environment" - after a certain car age (usually 3 years) you start paying costly road tax and will have to pass stringent inspections.
Like Germany and Japan, which also happen to have huge auto industry.
The total cost of a very small car for the owner and society is higher than the base salary in many European countries but governments, banks and corporations like the heavy taxes, high costs, and profit. The consequences on quality of living and city planning are massive and hard to quantify.
@@aristotle_4532 You do you. Owning a car is part of how I feel most people raise their standard of living for the access and opportunities of easy transportation. Its just that most people do it badly on the financial side and spend way more money than necessary. Get it right and avoid the drain of finance charges. Also learning how to do basic maintenance pays huge dividends, because the savings can be used for other purposes.
It's ok to buy a new car. I bought one in 2005. Still driving that new car. 250k miles. Many vacations. Drove it to work. Daily use. It was worth the investment
You're missing the point of this video
It is not an investment, it is consumption.
What kind of car is it?
Nicely done.
I don't understand how people missed the point.
You've been driving the same car for 19 years.
Bought new, maintained properly (assumed) and will continue until it needs replacement.
That's how you get value for money.
@@ki-ka Buying a new car and using it for a very long time can be cheaper than a different option. A car is a capital asset that depreciates, but different cars depreciate at different rates.
I just stick to work save by things in cash. House, car, clothes, groceries whatever. Working great so far. I don't do debt. I mean you got 4 walls to stare at and 4 tires to get you down the road. Doesn't make it any different whatsoever if the walls are plated with gold or the 4 wheels getting you down the road are shiny or not. It's all the same.
I am 76 and I don't remember credit cards being used as I was growing up. We did without until we could afford to purchase something in cash. I eventually did acquire a credit card, which is paid off in full automatically every month, so that I could have a convenient record of my purchases. I've bought all my cars for cash and kept them until their cost of maintenance far exceeded their value. I consider myself lucky that owning possessions to bolster my ego has never been a strong motivator.
I have a 2012 Honda crv. 172 thousand miles. Still going strong. My car has been paid off for the past 4 or 5 years and there is no feeling like having a paid for vehicle !! Thank you for your content Joahuq
Please excuse auto correct. JOSHUA
It took you 8 years to pay off a car? Yeesh
"I'd rather live in peace with less than stress out with much" I love this quote from you❤
This is the best episode yet. I have a Nissan Pathfinder 2011 that just made the 204,000 mile mark with regular maintenance and taking care of it. I plan on keeping it a very long time.
Thank you for this video. I have felt the yearning to buy another car. My current car is 15 years old. However, I only have approximately 50,000 miles on it. And, of course, it is paid off...after watching this video and hearing your wise words....I ask myself why I would want another car payment? Nope....I am sticking to what I am driving...it takes me where I need to go and I don't have a car loan. Thank You again! This video came at the nick of time!
That's great! Every day you keep it is money in your wallet. That's what I'd tell myself to resist the pressure to "just get a new car." It's hard but it will become easier when you see how much money you save over time!
@@mariah3654 Thank You!
I have a 2003 Toyota Highlander, only one owner previously short time. Bought it at 50k mi. I'm retired RN now. Been only driver, kept maintenance up. Decided to do some expensive maintenance done, but, it goes and goes. 240k
I have a 12 yr old Swift, still runs like a new one since I maintain it meticulously. Happy to sit and drive on it everytime, recently given a new paint job and feels more exciting.
Everyone can buy a new Car
Only Legends can run and maintain an Old Car
cars and bikes are passion for many people. In reality, anything works for commuting or road trips, from the oldest beaten up slow car to the latest exotic supercar. I prefer the cheap, uncomplicated, dented old cars because i can not bother about losing my time and mental energy being affraid to scratch it or being stolen. Your choices dictate your life and buying a car is sometimes a life changing decision (for worst most of times)
My 19 year old Honda civic has needed numerous repairs however it still costs me way less than a new car. It’s been paid off for a long time. Plus I don’t like or need all the bells & whistles on new cars.
That's what I have to weigh on too. Even if I am paying 300 a month in repairs, I'm still not paying 500-700 for a new car that I absolutely have to make the payment on. I don't see the point of financing a used car as the warranty is usually a hassle and the risk of breakdown increases even more. And newer cars are so expensive to repair when something does break.
Netherlands/ Dutch here. I drive a Subaru Legacy from 2006. I paid it via a bank transfer. I bought the car in 2014. I bought that car because it is a good quality branch. We have yearly car checks here so your car is always in a good and save condition. It will cost but as much as on a cheaper (less well built) car. It has 315000 km on the counter. It has a chain so no belt driven engine. The chain has never to be replaced. And as my parents once said: don't buy nonsense items and keep your money in your pocket. And close the tap while. Rushing your teeth and shut of the light behind you. Use a bicycle instead of your car. Saves money and is good for your health.
Love my 1978 Chevrolet Silverado truck. Drive it everyday.
I drive a '78 too. Paid for Pontiac Bonneville.
That's how I think about my money, in terms of opportunity cost. So whenever I think about buying something, I think to myself, what if I invested it instead. And that usually stops me from buying luxury items, as 99% of them depreciate in value.
Opportunity cost is everything.
The only time I bought a new car was when I got a rebate of over 20K for it (2019 plug in hybrid). I still took a full price auto loan at 2.5% at 60 months, invested that rebate amount, and after 5 years, it paid for itself, and then some. Best deal of my life.
Driving a 19 year old Toyota Yaris with roll up windows; I’d rather spend money on travelling 💖
You did Well
Smart. I drive a reliable POS. I have yet to hear a good argument for getting a nice car. In fact, I WANT people to judge me on the car I drive. The people of real substance won't care.
Roll up windows😀
12 year old Yaris here checking in 🙋♂️
I have a 2013 Hyundai but recently bought a 96 Civic and I Love the roll up windows.
I had a 2001 for 7 years then I upgraded to a 2007 this year. I paid cash, now I'm not worried about debt with high payments. I'm debt free, it took me years, but it was worth it.
Excellent advice. I sent this vid to my Son. I still drive a 2005 v6 Camry 259000 on the clock. Bought her 2 years ago for 3K
My Jeep Wrangler lasted 20! I only retired it because I live in the snow belt and the rust got it…. It was working perfectly fine but could not pass inspection due to frame issues. A guy into building cars bought it and replaced the frame - a project with his son so he could learn about working on cars. 210K miles. Yes I bought another Jeep Wrangler
….When i Retired 2 yrs ago .. I Decided to purchase a Reliable -well built vehicle for Traveling . I bought a New 2022Lexus LS 500 . Oh by the way this one was built in JAPAN !! I kept my 2011 Honda pilot ( just turned 200,000 miles this week . The Honda is used primarily around town for transporting items from Home Depot,Lowe’s etc .. Oh yes Both Paid in Full !!!
I was two payments away from owning my car when some young people decided it would be fun to steal it & go for a joy ride. It was recovered but had total damage so we were forced to buy another car. We bought a pre owned but have payments all over again & it wasn't our fault. Our stolen car was going to need some repair but was still in warranty & some non warranted items like tires were going to have to be paid for but would have been easily covered by having no car payment. Sometimes plans just don't work out.
Sorry to hear that
No insurance then?
Take the complete COST, not just the price, of that car (or anything for that matter) and divide it by the hours/weeks/months/years you’ll be working to pay for it. Then make your decision.
When I convert the money into time and effort I can more clearly see how much LIFE a I’ll spend for that item. Hope that helps you with your purchasing decisions. God bless.
You reminded me of my awesome dad. He owned a bread and pastry delivery business ( 1 truck ). 1 of 7 children raised off of my dad's hard labor. He put most of us through college as well, my mom sewed part time at home. I laugh when I think about his answer to us when we asked for something frivilous : " Do you know how many loaves of bread I have to sell to pay for that?" ( you can see by my spelling, I'm the only one who didn't attend college ). But, guess who's been debt free for decades. ( All of us ).
Take the complete cost, including the original sticker price, the cost of maintenance (which increases over time) and the cost of insurance. The overall cost of ownership for the life of the vehicle. Consider the advantages of enhanced safety and improved efficiency with a new car. If you do not know much about cars, you need a first-class dealership mechanic to look carefully at your old car to make sure it is safe. That can be expensive. The overall numbers may mean you should buy a new car. It is complicated.
Perfect timing Josh! I was actually contemplating looking at a new car today. A dealership is running a special on a car I’m very interested in. I am debt free and have been setting aside money every month to purchase a car with cash. I don’t have the total amount yet and almost went off the rails and against my original plan, because the deal seemed too good to pass up, that is…until I saw your video. 😅 Thank you my friend!
Depende on the deal if you can get de discount now and pay off the car early can be a good deal
You got that right. Stress sucks , peace of mind is bliss.
Had same car 16 years and still drive it without payments for over 14 years.
My Lexus is 13 years old and runs like a swiss watch. Over 200,000km. Buy a good reliable brand right off and it will last. What is yours?
Me too, haha 🎉
@@therichbuddha3277 Peugeot 207 😊 210k km, got it on a Kaufland reward game 😂
@@therichbuddha3277 I payed cash for a 5 year old Escalade 10 years ago. It’s still fine but I bought a beater car for going to work. First beater was $500. Got hit by a drunk so I bought another $500 beater. The Escalade is a stupid vehicle. If I ever sell it I won’t buy another one.
Depends what is your goal. If car for you is metal box to drive you from A to B then ok. By this logic we should never buy watch, or cheap watch is the same with expensive one - because they both tell the time, but there a people who enjoy in watches and have a collection of expensive watches. Same with the cars - from status symbol, different needs, racing, car shows, collections, up to car for daily needs. And yes it is good and exciting to drive old car - I own 68 Mustang Bullitt.
Both my vehicles are older. They cost me in maintenance for sure, but nothing beats getting into my older M3 and getting out for a rip! 😛
2006 Ford Freestyle; 218,000 miles on it and still runs like a champ. Never bought a new car and never will. Bought this car for $4,700 like 13 years ago. Been out of debt since I was 36, I'm now 60. Paid cash for all my used cars. Run them until the wheels fall off of them. I already saved up $8,000 for my next purchase. Just don't know when that will be.
Thank you for the reminder that Less means peace & more leads to more stress. Appreciate your videos.
Driving a 2010 Audi A4 1.8t with added CarPlay and cruise control, and lowered wider tires. I love it. Gonna drive it as long as possible.
Nice one, just pay attention to the cooling parts, pipes and flanges. Change oil above manufacturer's recommendation and you'll be golden. 2004 Audi here and still keep on the fast lane.
One of the most expensive vehicles to maintain. Surprised a '10 is still on the road.
What timing. I recently purchased a used truck. It's an 8 year old truck but I can make it last at least another 8. Plus nobody really cares what you drive. The best cars are the ones that are paid off. I try to drive them as long as they will go. Also I get some new car smell spray and spray it in there and to me I get the new car experience!
I had never buy a new car.i am happy with my Camry 2005 and the best thing about it is that rides like a Camry 2020 cause the mileages are less than 80ks...love it
So many people with lengthy car loans struggle to pay the monthly payment, then by the time the car is paid off, it's starting to need some of the higher maintenance items. They are led to believe by the dealership that it's better to just buy a new car. The cycle continues. It's really sad. When I travel somewhere and rent a car, the new features are really nice, but I have a hard time justifying getting rid of my old car if I can't pay cash for it.
In 2005 my husband was shopping for a new work vehicle (company owned).
I was bored and looking around the car lot. Found one I loved but wanted a specific color.
Sales guy called the next morning as my dream truck just rolled off the semi.
Before I knew it I had a new 2006 Explorer Limited.
Still driving it. Just rolled 76k miles (I obviously obviously don't drive far).
We are good friends. It had some dings, but I am 74 and have a few myself.
Point is...I am perfectly fine with my old truck. I could care less about newer and better. We are good. ❤
God bless you 🤝
I enjoy my 1999 E39 528iT. It has 268,000 miles. It gets daily compliments from strangers. I have had it for twenty years. It is kept in my garage. I also have an E39 530i 2003 which I bought five years ago for five thousand dollars. I have spent five thousand dollars on it yet I believe it is money well spent as neither of them is currently depreciating.
I hear you. Happy owner of a 1997 540i (E39). 370000km and going just fine.
I bought a 2020 Honda Fit. I made the last payment today. My intention is take care of it till it no longer functions. I still love it as much as the day I bought it. I know financing is not always the best way, but at the time it was my best option. The best used cars cost almost the same. Today I drive by dealerships and see prices on used cars that boggle my belief. It gets great mileage and I only work 3 miles from home. So, now My plan is to increase savings. I am going to up my 401k withholding which is pretty significant already.
I have a 2015 Lexus RX350 I purchased new. With the pandemic, and retiring two years ago, it’s got under 80k mi. It was paid off four years ago. I will die with this car. It’s still in mint shape, has been dealer maintained all its life when due, and runs like a Rolex. Outside of regular maintenance, I’ve never spent a dime on it. I will die with this car, before I give another nickel in interest to another finance company. Being debt free and retired is the definition of freedom.
Good choice going with a Toyota. These things are reliable af!
Just sold 22 year old car. New car is 3 years old. Hope this car lasts me 20 years.
If it's a Toyota it will . anything else..it won't
@@jayc4715 Tell that to 2022+ Toyota Tundra buyers. Toyota's churning out some junk lately..
@@Wyde_Boi still probably better than anything the big 3 makes
@@jayc4715
That’s an oversimplification. Companies change over time. Reliability depends on the specific model.
@@Wyde_Boi ok .pre 2022 ..is that better
I drive a 2008 Honda CR-V with 330,000 miles on it. Works great (although I am a mechanic, so that might help). It looks fine, is extremely reliable, and transports my family and my expensive bicycles that are worth more than it. People always tell me that my family needs a newer and “safer” car, but can never explain to me why that is.
It’s one of the most wasteful things I can imagine spending money on. It makes me cringe whenever someone tells me “well I can’t afford $2000 per year to maintain my old car, I’ll just buy a new one” That’s never going to be cheaper than maintaining your old car. Unless you have something truly horrible like a Geo Metro or a Jaguar/Land Rover or something.
Very well put ... thanks for the message. Opportunity costs is one of the $ principles that have stuck with me for more than 3 decades. It made me able to retire 20 years ago at 38. I feel so blessed to have learned it at a very early stage in life.
There can also be stress with constantly buying old cars worrying if they can get you from point A to point B. The constant stress of fixing them and getting towed can add up as well. Buying a reasonable vehicle and maintaining it is key because nothing is a free ride. I now have used and a slightly new car I try my best to maintain both because buying new is no longer an option with prices rising.
But you could get sparingly used cars ❤
Best to teach our children these principles....
One good thing about living in a third-world country is that we are always going through an economic crisis so we think very much about where our money goes (electricity bill? food? etc.). But that doesn't mean we don't spend money without consideration. So the concept you bring in this video is necessary no matter where you live.
My 2006 Ford Focus has 230,000km on the clock, runs well, parts are cheap and i can service it myself. Insurance is almost nothing. It's so nice having no car debt ever again.
This message/video is so fu**ing dope, bro! I've listened to it like 10-12 times in a row, taken notes, and shared the link with my friends. It's not that the information is brand new. It's more about the: organization, presentation, and timeliness of it for me. THANK YOU
I started down this path of buying older reliable rust free Toyota vehicles for cheap about 25 years ago, and it has worked well for me. Even after I factor in repairs and maintenance I am still saving tens of thousands of dollars when compared with buying new or newer vehicles. My current work truck is a 2002 Tundra that I have driving since 2003, and my newest Tundra is a 2007 that I bought in '17, I drive it for fun and have it available as a back up work truck for when the '02 needs servicing. Sticking with the manufacturers maintenance schedule for 'severe service' is the only way to keep them going & going
I sold my gas guzzling Acura MDX 6 years ago because I was spending $260 per month on gas. This was when gas cost half of what it is today. I ended up buying a Tesla Model 3 Performance. I liked the car so much that I purchased the stock. I ended up making $200,000 from the stock purchase. I essentially ended up getting the car for free.
This is spot on. This should be part of high school and college curriculum every single year, and there should be a test on it, and you shouldn’t be able to move on, until they get an “A+” on the test.
I purchased a brand-new Honda Civic Del Sol off the lot in 1993 and still drive it daily. Cut down on the wants and concentrate on the needs. Sounds boring but keeps you out of financial trouble.
"Peace with Less" . 100% True.
I can fully agree, with a hearty "Amen!"
In my younger self, 'want' never realized the years of finance charges & added charges...my dad taught me daily maintenance blooms years of dedicated service from an older vehicle, or our house too! Enjoyed your talk, I'm learning, still, at 68, hello from KY❤
2009 Ford Crown Victoria here, 154k miles, running excellent…
Bulletproof
1991 Honda Civic hatchback 5 speed. Daily drive it 100 miles a day. 40+ MPG, extremely low insurance, very low cost to maintain. Very reliable. Great car that makes me $
Me too except in Ireland insurance is predatory on old cars.
My Nissan Sentra is from 2004 and has 200,000 miles. I love her.
I owned a 1987 Sentra that was literally one of the best cars I ever owned.
I drive a 1995 Toyota Corolla XE. 1.3 engine. Low maintenance, and cost friendly. I also have a 2020 Honda Beat 110cc. Both help me with good income. Never been better.
I have never owned a new car. Have a 2012 Chevy sonic. Used, paid under 7,000. 5 speed. 5 years owned so far. Hate computerized cars that are out there. Hope to make it last longer than my ptcruiser ( ten years).
I used to have an old Subaru car. It served me well for almost 20 years. Sadly, it was not in keeping with the staff in the school where I worked! You have to buy a new one seemed the lament! You could see how Australia fell into the present predicament.
Im 70 now. I've got enough, if anything I'm asset rich and cash poor. All my life I have tried to only buy things I can keep that includes education ( not always institutional often how something works so I can repair it) Most of the stuff in our house is second hand and a large amount of it we have had for longer than I can remember. We cook 99% of our meals, eating out is a treat not the norm. I enjoy life and I don't miss a new car, I've had 2 in my life, they cost heaps, depreciate quickly and modern ones are almost impossible to fix so why would I bother all I want is something that is reliable. You are right and I was told the same thing when I was younger, probably one of the few things I actually listened too :)
I had my share of unreliable used cars in my 20s when I had no money. I'm 50 now, I buy new and keep them 8-10 years and do all the maintenance myself. They're still running decent have under 100k and still worth something at trade in time. Someone else can deal with the expensive major maintenance items I can't do myself at home. Life is too short not to enjoy a few luxuries.
A word of caution: Don’t assume that keeping an older vehicle is always more cost effective than getting a different car. The older a car gets, and the more miles you put on it, the more expensive it will become to maintain it. You can offset some of the cost if you or someone you are close to is mechanically inclined, but there will still be a cost. Parts wear out and need to be replaced, including big ones like the motor and transmission.
So be careful, weigh the costs, and when necessary, buy a replacement. It doesn’t have to be new. Used vehicles tend to cost less, and you can get some that are in pretty decent shape.
Also, fuel efficiency of newer models is generally a lot better for the same class of car.
I learned this the hard way, trying to take care of an old f150 drove me insane.
"The straight 6 is legendary the truck will last forever".
That's not how it works.... All vehicles age and have problems and it just gets insane. Especially on my truck I would buy parts that would fail after only a short time. Constantly having to fix it, trouble shoot.
Plus if you live in an apartment how are you going to do major repairs on an older vehicle?
I think people hate on newer cars too much. They seem to think older vehicles all lasted 1 million miles without any repairs and I have extreme doubts on that.
It doesn't matter what car it is, once you get to like 20 years old, 200,000+ miles you are taking gambles.
Truly I think cars are mostly disposable. Buy a used car drive it as much as you can with basic maintenance if it starts giving you major headaches ditch it and find something else.
@@hhjhj393Cars are usually almost problem free for the first 120k miles. Past that, it depends on a lot of factors as to how much cost and trouble it will be to keep it going. I’m at 150k having done many very major repairs (DIY) in the last 25k miles and I’m pretty tired of it. I think one more year a most before I replace my oldest car. At some point it’s not worth the hassle and cost.
I got tired of paying for gas and repairs. I bought a Tesla to commute to work. I have not looked back. My wife liked the Tesla so much that she bought one as well.
@@mocheen4837 I did the same. Bought a model y last year and planning to buy a model 3 soon to replace our 2nd car. Tired of maintenance and slow gutless economy cars.
I drove a 4 runner till over 250000 miles, they checked and it had leakage all over, rusty and was no longer safe.
Driving an 02 4runner with 413,000 kms. Love it but im also dropping 3 grand on it this week for rear axle bearings and brakes. 🙄😃 Truck is otherwise strong and runs well. Can't imagine paying 40-70 thousand on a new or even couple years old one.
I've never had a car payment in >30 years of driving. My current daily driver is 50 years old. I'm an extreme case maybe.. but add up all the extra money in principle, interest, insurance in a year on a new car- minus the cost of parts for repairs on an old car, & consider the number of hours spent working on the car, it works out as a pretty decent rate of pay if you enjoy the job.
I think the best lesson is moderation. If you want a new car then save up to get it. Rather than buying a ten yr old one which will cost more on maintenance insurance and gas in the end. Get a moderate cost new car and keep it for ten years or more. Saving money every month is like giving it to old car for all the costs I mentioned above. Make a good down payment and a flexible paying monthly fee. (Coming from a person who had three preowned cars so far and no new car yet but saving for one …soon to happen)
I don't drive, so I've never owned a car. With the money i saved not owning a car, i was able to buy a house and pay it off. Whenever i mention this, someone inevitably points out that a house costs so much more than a car. My response is "are you sure about that?" Add up everything that you spend on your car including gas, oil, taxes, insurance, traffic tickets, parking, maintenance, repairs, etc. Take what you spend on your little gas guzzler in a year and divide it by twelve. This is what your car is costing you every month. Could this be a house payment on a modest home? Could it be a significant portion of a house payment? If you're still renting, be sure to also add your rent to the total. Honestly, even if i was able to drive, i wouldn't want a car. They just seem like a lot of trouble and expense and I've managed to get through life without one.
I drive a 2002 Toyota Camry XLE with 236,000 original miles on it. Runs perfect. Body good. Bought it 6 years ago private sale. 22 years old and no car payment.
I drive my W 202 C180 MB, bought new in 1999. I use it as my daily drive and now has 222000 kms. I had it painted after 23 years and looks fabulous (aspen green)...Most kms are made in city of Athens Greece heavy traffic. Of course it is regularly maintained and drives as new after 25 years.
I own an 11 years old Toyota pick-up truck i bought brand new in 2013. It still works and runs flawlessly, but I miss the added comfort, convenience and safety of the newer models. I could change it for a new pick up truck next year, but I hesitate thinking I could maybe give better use to the money needed as in vacations for instance. I will keep thinking on it.
My favorite is short and sweet: Just because you can justify something doesn’t mean you can afford it.
AND just because I can afford it, doesn't mean that I need (or even want) it.
I remember hearing if you can't afford two of something, then you shouldn't buy one of it. Helps keeps spending under control.
I can buy any car on the market but I just bought a 2006 Toyota Avalon with 40k on it. It replaced a 2008 Toyota Avalon with 200k miles on it. I drove the 2008 for a decade.
I bought a new Honda Civic in 1999. 25 years later I'm still driving it; 123,000 mi. Drives like a dream - in a good way. Best car I've ever owned, karma, and the best investment. Nothing wrong with buying a new car - if you can afford it - just keep it for at least 10 years. I'm hoping for 30 or more years of almost trouble-free years with the Civic.
Most cars these days can last 300,000 miles and more with regular maintenance and occasional repairs on things that wear out like brakes and tires. And they can be extremely reliable. Having a new car is no guarantee that you won't have a breakdown. The cost of frequently trading vehicles is second only to trading homes. Do yourself a favor. Keep your vehicle as long as possible and enjoy tens of thousands of dollars in savings. And drop full coverage insurance if you are a safe driver and save even more. My current daily driver is 14 years old, has 270,000 miles and is a pleasure to own.
I have completely gameified this concept. I'm a few months away from my CR-V's 250,000 mile anniversary with me - There were 70k miles on it when I bought it, and 320,000 on the odometer is right around the corner ❤
Or just pay cash for a new car and drive it for 20 years - and counting. Last year we bought a second new car for cash - it will be what we use for travel/trips etc. The original car is now for every day running around. The key is never take out debt and buy something ONLY if you can pay cash. If you owe nothing, you can afford to build your savings/investments.
I'm in England - and for some years have chosen to drive cheap old cars - three years ago I paid £300 for a little Citroen, which even for me was the least I've ever paid and driving it home couldn't help but giggle at how little it cost. In that time it's travelled more than double the UK average per year and has just clicked over 200,000 miles.....requiring virtually no repairs. I can go anywhere a driver of a car costing a hundred or two hundred times more can....plus for any enthusiast who's watched the cheap old car features on 'Top Gear' you'll know the fun and 'attachment' these vehicles can bring......besides that I genuinely think modern cars are downright ugly and full of unecessary tech!
I Love my 2003 honda accord 4 cylinder I basically can fix the entire car but what I Love is the parts are in demand when you go to a dismantle place I have a huge list to choose from or online there is a long list to choose from and the parts are cheap, 87 octane 👍🏼 fits everywhere
I pay cash for new cars and drive them for 10years or more. I haven’t had a car loan since the 80s. Commitment to zero debt is the best thing I’ve done for myself.
Completely agree!
You buy new? Sell than after ten years? And then use the trade-in for a new car? Why’d you pick ten years?
At least 10 years. My current car is 12 years old. We put a lot of miles on them. We can well afford it. We live beneath our means and save a lot. We don’t need to live like paupers though. When we decide we want a new car we trade in the old and pay cash for the balance. Don’t really have to justify it do I??
Oh I’m sorry. I wasn’t asking you to justify. I was asking for clarification - just to make sure I read your comment correctly. Sounds like “drive for ten years” isn’t some math that you did on the best time to trade-in. It’s just more like “when we feel like it.” Correct?
@@JoshuaBecker Yes. I understand the question now. No offense taken
While I do agree to a certain extent, keeping and maintaining an old car is definitely not without burden! My current daily driver is a 2012 and I recently sold my secondary vehicle which was a 2009. Living in Canada, the main issue is rust, which of course rapidly diminishes the resale value, but also means that at some point the vehicle may no longer be safe to drive. I’m definitely a proponent of keeping a vehicle as long as feasible but, like everything else in life, there’s a limit!
Got 3 (for now) 90s volvos. White 855 turbo wagon, black 2.5 na wagon 340000 kms and a 2000 c70 convertible. Low maintenance, uberquality ultrareliable cars that is super easy to fix yourself. Will keep driving those forever. Most expensive one was the convertible, 4500 dollars+180 dollar fix.
100% agree with this. I make good money but haven’t had a car payment in 15 years. Sure, my ride isn’t fancy but it’s reliable. I event do most of the repairs myself. Every month without a car payment to make is a gift of peace of mind to myself.
I'm still driving my 2004 Dodge Ram that I purchased used about 15 years ago. I live in the Northeast so rust is an issue. I paid 5000 a few years back to have the rust fixed and it's still running strong. I've seen trucks only a few years old that are rotted out. To me it's not worth buying a new truck for 60,000 that's just going to rust out. Not having a truck payment makes me very happy!
Amen, brother, you said it well. My father, may he rest in peace, taught me this when I was a little boy and I've lived by it ever since, and can say that it served me and still serves me wellI. So much, that I've taught it to my wife and our offspring, But, I fear that most viewing this video will not listen or do as you allude to, which is a shame. Thanks for sharing. Cheers.
It depends on the availability of the car parts of the particular make and model readers AND it depends on what context the word "OLD" a person means .
But, what I think the smart thing to do , is buy an older car certainly , but make sure that it is one that you can still get the car parts to it , which is your mass produced makes and models of its own era . And the auto shops are not going to have any difficulties ordering , or that the mechanic can source from the auto wreckers because they have one of the same , as they were numerous on the road .
And to keep it on the road and running well, MAINTAIN IT .
Water , oil , and air in tyre checks often .
Keeping it clean .
Nice clean windows so your visuals have less blind spots .
Look after it .
Don't do burn outs to save the tread on your wheels , and avoid grinding the gears , and drive safely . 🚙
Love my VW EOS 2008 hard top convertible, manual.
I'm driving a 16 year-old Toyota minivan here in Manila and it has not given me problems for the longest time! Sure it ain't no Supra but it does get me from A to B and adventures here and there! I dread the day I may have to part ways with it due to things that are beyond my control. It's be like saying goodbye to family...
I like my older car. It has the hand crank windows which means in an emergency, I can roll down the windows to get out of the car. Remember the newer models are more computerized and more subject to computer and computer chip failure. The cost for a new computer chip is usually A LOT more than it would be to buy a different car.
The older cars are much easier to fix because they don't have a computer in them.
⭐️Remember⭐️ : Preventative maintenance goes a long way.
I love my old car - 32 years old with 286,600 miles. Paid cash for it. I knew I'd eventually need to replace it so I put away 100/month for years. I didn't need to replace it until it was 23 years old but it ended up just being the starter so I got that fixed and kept the car. My other car is another reliable Toyota, now 11 years old. I got it with a zero interest loan. And bc I already owned a Toyota,they gave me $1000 toward the down-payment 🙂
I have a 2006 Toyota Corolla 1.4 D4-D hatchback and it runs like a swiss clock. Already 18 years old and had zero issues with it. I just do the regular maintenance and always use premium diesel. It's a car built to outlast me.
I bought a 2012 reg car back in 2021 for 6K ( Audi A4 Avant diesel) it was presented by the very honest sales guy in its unclean state but importantly it had a great service record and had all the stamps and receipts. Don’t be fooled by over polished detailed cars which a retailer will add a premium for that . The car is now done 32000 trouble free miles and most used cars will do silly mileages if serviced and cared for.
The rule of thumb for me is, unless you have truly disposable income, buy cars outright, and drive them until they don't drive anymore. There is no reason to have a car payment, ever.