Car Payments Are NOT OK
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- Опубликовано: 27 ноя 2014
- Warning: This is a rant about car loans. My sister Jackie has been told her whole life that having a car loan is a normal and acceptable. This video is me telling her it's not OK to make car payments if you don't have the money in the bank to pay cash for the car.
UPDATE: Jackie accepted the challenge! Mission accomplished. More to come.
UPDATE 2: Our friend Jim Collins liked this video so much he included it in his own MANIFESTO!! What an honor, thank you Jim. Check it out:
jlcollinsnh.com/manifesto
Check out our Personal Finance Masterclass:
www.udemy.com/personal-financ...
Disclaimer: I don't mean car payments are never an option. If you have the cash to pay for a car and choose to invest it somewhere else that's fine.
Here's a video by Dave Ramsey that explains the "pay yourself car payments" a little more clearly:
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I'm not at all embarrassed by my $2500 vehicle. It gets me there and back all day, every day. I'm the guy in the parking lot, pulling out his jumper cables to help people with much newer cars (along with older ones - everyone gets a dead battery eventually). Anyone who is embarrassed about the kind of car they drive is stuck in the high school mentality of caring more about what strangers think than about living their lives. I'll worry about what other people think of my car the day I ask them to pay for it. Until then, it has to serve my purposes and no one else's.
Charles Eye good point
Just like no one should be shamed for driving a new car either.
Get what you like/can afford, it doesn't really matter. You need something Italian and unreliable (I know, redundant) and red anyway if you want to impress people.
Types of vehicles at my work runs the whole gamut and we all make relatively the same income. No one cares.
Your quote should be in a book of "Buying Cars" biography. Very out there in the mix.
I drive a 500 dollar Nissan :)
That sounds all good. Until you find out that 99% of females want a man who is “well off” and has high status. By owning a $1M home on the shore of California and drives and brand new Porsche…
The problem with people and finances is they always want a little bit more than they can afford. First it's a Honda Civic, then people make some more money and want to upgrade to the Accord. Then they make a little bit more and suddenly they need an Acura and on and on. No matter what people make, they want just a little more than they can afford.
I've been living debt free for the past 3 years and it's amazing. I don't have the nicest car and I don't live in a nice big house, but I've never felt more rich than I feel now.
I hear you man! All i want is a nice 2009-2010 Escalade Esv and pay cash then ill be set Then ill be able to feel what you feeling!
Mike Rogers richer*
Brian Ross hahahaha. asian cars are the best. its a fact.
Brian Ross nope not my opinion. jd power and consumer reports consistently rate toyotas hyundais and others as highest
Brian Ross if american cars were reliable id buy them. im sure there are some. but gm is a sheisty ass company if you ask me. leaving michigan for china. scrapping the ev1 car.... my sisters pontiac grand am is the biggest pos i ever worked on. problem after problem. at 50k a head gasket went out.
I literally got an ad for car loans before this video...
lol just a bit ironic :)
not the only one.
you are watching to many car loans videos or search for car loans :D google knows it! and makes the most of it
Same here
Same here just now lol
Someone once said...
"If you can't pay for it twice, you can't afford it."
Yeah, we all want to live beyond our means. But smart people don't.
with a car note you'll ended up broke with a old car at the end of the day.
The best part is where people say "I've been working hard all my life, I DESERVE a nice new car" and by that point, it's too late for them
Anyone else enjoy beaters for the sake of beating beaters? I've beaten beaters until they've been thoroughly beat, and then beat them some more.
Great advice y'all. I'm going to graduate debt free from FSU this May!
😂🤣😂 yesss bro 100%%%
I’m trying to graduate debt free too and find a job to pay for my master. Fingers crossed 🤞
You said $50,000 and then you said $15,000.... I'm confused
TWDxKILL3R what’s the difference if you’re financing?? It’s the same as buying anything else in life. Could you afford that phone or did you finance it?
The difference is the loan agreements for a $50,000 car differ vastly from that of a $15,000 car. The word "finance" in itself isn't bad. Do you live in a house? Did you finance it? Did you talk shit to everyone you know who financed their homes? Get off your high horse and stfu. You aren't better than anyone else because you can go online and try to make it out that people are immediately challenged because they chose to "finance" something.
@@SpendinThatCash a house appreciates in value...
@@juanreyes8564 not always does a house appreciate.
NEON I paid cash for my house and cash for all my cars and my food truck business. I took a 30k car loan once and paid it in 12 months to get credit and for tax reasons only because I had the cash in full. I will never pay a loan again the borrower is slave to the lender. If you ever want real money... have no zip zero debt at all. If you owe more than what you have cash you’re broke. Just because you have a few grand in your bank but owe 10 plus on anything, you’re broke. You can be wealthy but starting out owing money isn’t the way. Do you wanna start out ahead or spend 30 years trying to catch up?
I grew up in a family where I thought financing a car was normal. I was fortunate enough to meet a friend who taught me differently...
I use my car to commute to work. When buying a car my only requirement is a working radio and heater 😂
It's not embarrassing to pay cash for a car. What planet are you from?
I do not understand that, cash is king where I live.
I can easily get 15% discount on everything when I pay cash
None of you are getting what he means. He is not saying it is embarrassing to pay cash for a car. He is saying that if you're tight on cash and your choice is to choose between buying a $3000 beater (which you might find embarrassing to be seen in) or put $3000 on a down payment for a $15 000 car then you should just suck up the embarrassment in the meantime while you save cash for something you can buy later that you *won't* be embarrassed to drive.
I drive a thousand dollar POS, and I'm proud to be driving it!
Yep! I have two $1000 POS's lol
3000$ car is embarrassing ? I drove a 900$ car ..that’s embarrassing xD
They need to teach this lesson to Juniors and Seniors in High School, instead of telling them to go to college, get a $45K/year job and go get a car note!
You really think the system want you to learn this? School is nothing but a factory to work for someone else for the rest of your life
@@Sight2Behold I agree!!
America is awash with nice used affordable cars and so it baffles me that poor people will go for car loans.
Still drive my 2000 blazer that I bought used in 2002. I hate payments......
Keep up with the maintenance and your car will last .
Justin W Amen brother.
This was a great video, it was well made and informative. I am 16 and bought my first vehicle earlier this year for $800. It is a mid size four cylinder pickup, so it is extremely fuel efficient with only $40 a month in gas and actually very reliable. I am planning on keeping this vehicle until after college and have a full time job, before buying a new vehicle. In the mean time I am saving my money.
Good advise but reliability is non negotiable in my book. I suggest to not buy a $2-3k car but to get a $8-15k loan with a credit union and keeping the quality reliable car for 5-10 years. Always buy 2-5 year used car to avoid paying the dealer premium. Also get a hybrid or a fuel efficient vehicle!!!
John Smith paid 1k for my car a year ago and is running like a champ still after 12k miles later
6/6/19....I bought a new 2009 Toyota Camry Hybrid in April 2008.
They had sold all the 2008s & sold me an early 2009 that they hauled from NC to Atlanta.
I paid $27,000. CASH b/c I didn't wantva car pmt. It depreciated 15% ---$4,050.--- the moment I drove it off the dealer's lot.
I just hit 121,000. miles this past week & have bought 3 sets of tires & had regular 5,000. mi oil change/maintenance @ local Toyota dealers. No accidents...I am the only driver....inside leather seats & carpet need cleaning but it would look like new when I have it detailed. I plan to drive it as long as I can without having to make too many/expensive repairs.
WHEN I need to get another vehicle, it will be ANOTHER Toyota
Hybrid or maybe a Lexus Hybrid---
but a nice/clean low mileage USED one---b/c I will pay CASH + I
am retired & don't drive much now
that I am retired.
0% rate for NEW dealer financing is great---but automatic 15% minimum depreciation just driving it home is a BIG HIT even for a rich person. Plus so many GREAT condition used cars out there with cars being returned at end of lease + so many nearly new trade-ins for those who have NEW CAR FEVER!
TOO MANY PPL with college debt + home mtgs + children to raise + credit card debt + health expenses
----THAT SEEMS TO BE THE NEW NORMAL IN THE USA NOW!
Dave Ramsey needs to get out & TEACH/PREACH his CASH CASH CASH PHILOSOPHY TO ALL THESE POOR BROKE PPL!
I remember when I was looking for a car and I went into a used car place that almost only deals with cars 1 to 5 years old, and when they found out I was going to try to pay for a car in full, they brought in a financial specialist to try and talk me out of it. I got my GTO elsewhere, but I did pay cash and wasn't embarrassed at all.
I bought my 96 F150 for $3300 with my own money that I worked over 2 summers as well as my Christmas money, birthday money, graduation money, and money for taking care of my neighbor's dog.
Since I bought the truck with my own money I don't have to worry about car payments at all.
+CJ Colvin Awesome. Props. Keep it that way and stay out of debt
+Kevin Johnstone Sounds like a plan man and besides I love my truck more than any new car you see on the road today.
+CJ Colvin Yeah I felt the same way about my 01 accord fully loaded until I hit a deer lol. It's the "my first car" mindset
Prices are that high for a 96 car? I woulda thought it would be in the 2000s.
lol I love the I can't afford to save 400 a month but then signs a contract to do so anyway. it's so true for so many people
Couldn't agree more, car payments is putting alot of people in debt.
I'd wager he didn't pay cash for his house! I bought a car at the age of 21 that cost $13,000 after taxes, title, financing, etc. Paid it off in under two years. I went through half a dozen cash cars between the age of 16 and 21, I quit two jobs because my transportation was not reliable. Having purchased a car with a warranty is one of the best decisions of my life, and no I couldn't "afford" it in cash, in fact I was unemployed when I got it (due to lack of transportation). Finance a damn car, people! But obviously, be responsible with your money.
Your wrong, your just giving your money away to debt. 20 years no notes and i have nice cars. You have to know how to buy a used car thats all.
THIS MAN IS 100% RIGHT!!!! Life of no carpayment, no student loan, no credit card!!!!
I'm a loan officer at a decent size credit union and I completely agree with you! Don't borrow money for things you don't need. People get "need" and "want" confused.
Eight years ago, I walked into a car dealership and said, "If you can get me into a new Corvette for less than $700 a month, I'll take it." I'm so grateful that they couldn't make the terms work as I'd be stuck in debt today instead of living aboard full time and having $500,000 in savings today instead of being broke.
Great video. Thank you. I have made stupid decisions buying cars with loans. I love the smell of my 2010 Nissan Versa Manual transmission and manual windows with 77K miles paid for in cash parked in the garage of my 270k home. While I’m paying my mortgage sooner others are struggling making car payments and mortgage payments. People wake up!!! It is insane spending aprox 1/2 of your annual income on a car. An item that looses value drastically.
"Loses" not looses.
after I pay off my Camry I am so done with car payments period
I have a question what about if you wanna finance a used car for 10k and you only have to pay 150 $ a mouth. Until the car is payoff then it's yours so you can make a down payment and each moth try to add more so it doesn't last that long
Dude you are so right.... I am currently driving a 1996 Toyota Corolla with no door handles on the inside... I have to put windows down to get out and the car has about 183,000 miles and needs a new timing belt... I am so tempted to get new or used car but I will keep using this car till it explodes lol I don't want to be paying a $260 payment every month the next 6 years. Good advixe
timing belt is normal maintenance. Those cars will go 300k with proper maintenance. Be sure to also have the water pump replaced, it is only like 30 5o 50 bucks.. and right there while they do the belt.
djkenny Thanks for the advice.. I will try to replace both..
Dude. Keep driving it. Who gives a crap what other people think of you. You have no payments and you are saving! I drive a 10 years old crappy Subaru wagon. I save 75% of my take home pay, I have 2 rental condos, and a very healthy investment portfolio in mutual funds, stocks, etc.. I achieved all of these by saving and NOT HAVING A CAR PAYMENT! My 10 years old Subaru is so bad that it's good. The door handle on the inside broke on the driver side, so i broke the passenger side on purpose to make it look even. BAHHAHAHHAHHAHHAHH
@kinny78 , mutual funds have never been good to me. How are they to you? I decided to dump my mutual funds.
GooberVlogs I feel you bro!😂😂 I've been driving a fucked up 2003 Hyundai Sonata for 1.5years now, and I got almost $10.000 saved! I'm getting a 2005 Infiniti fx35 in few months😊. Fuck car loans
At 35 I've never had a car loan. My wife and I drive cheap cars that to be honest we don't maintain that well. But you know what, when you don't have a car payment, you got money.
+Jeff Marner Well said.
Jeff Marner Money and a pit to throw it in.
Jeff Marner Same here. Very smart.
Jeff Marner Amen brother don't listen to any modern car lovers on here.
With Uber, Lyft, public transit, and my bicycle, car ownership is looking like less of an option for me.
Cars are expensive, even if you buy them cash. There's still insurance, tire changes, maintenance, parking fees, etc.
what is you can get a loan at 2-3% interest? then its worth it to get a cheaper car?
It's human nature to want things we can't afford, now. Great advice on how to get your finances in order and not be a debt slave! I am driving a beater now, and have learned the importance of living below my means. It's a liberating feeling folks.
Buy a 49cc scooter for your commute. Rent cars for longer distance trips.
18$ a day is a good rental
Yes! A small CC scooter is the way to go. People think that buying a motorcycle is fuel efficient and cheap (brand new for a 300 is like 6K OTD). But they don't realize maintenance is a bitch. A scooter though is much cheaper, reliable, and easy to maintain.
A scooter like a motorcycle is dangerous.
I have a good amount of money saved up but dont feel like spending it all right away. If I can put $0 down with an APR less than 2%, I would rather make payments and build my credit.
That's what people don't understand. I would to the same as you.
That is a good deal if you put your saved money somewhere that makes more that 2%. I avoided paying off my 3% mortgage because my money was doing better elsewhere, my credit was established already but that could be a good reason as well as long as your cash is making you money.
do you have no student loans? No debt? House all paid for? 1000 emergency fund? do you have 3-6 months living expenses? is your retirement account doing okay?
*+Pin The Tail Productions* yes, yes, yes, no, yes, no, yes, yes, yes, no, no, no, yes, no, yes, no, no, no, yes, yes, yes & no.
Pin The Tail Productions someone has been watching dave.
I want to show this video to my dad every time I turn around it’s I need to get a car note
I have a story about this actually as well - about 4 years ago I bought a 2001 Honda S2000 for $14.6k. It was my first ever car purchase after getting my first real job. Mind you, I had literally $2k in my account. But it was my dream car and a personal goal, and a very good price for the mileage (only 47k). I put $1k down and got a loan for the rest - payments were like $300/month which I could pretty easily afford. Fast forward 2 years and one of my best friends was driving me home in it (I had been drinking that night), and he totaled it on the interstate. After fighting with the insurance company, I actually MADE just over $4k on the car after paying off the bank. That model year S2000 is a relatively rare car esp w/ the mileage it had, and I had originally purchased it during the off-season when the prices for convertibles dipped slightly. B/c I got such a great deal on it originally and bc it was a rare, unique car with few similar examples mileage-wise on dealer lots in my state (all of which were listed well over $16k b/c it was the summer) I was successfully able to make $$ on it. A case like mine where the car actually appreciates will only transpire with a very select group of cars, but the point is if you're smart about what/when you buy you can take out a car loan, keep your cash, and not stress about losing money. Also that left over $1k allowed me to start a photography side-business that today makes me the same amount every month. If I had invested that amount in the car, it would've sat there doing nothing for me for 2 whole years. Keeping your cash liquid is important!
very smart advice, 30 years ago I was in my mid twenties, of course I bought cars on time, however now that I'm in my 50's, I buy older cars, keep them forever and pay cash for them, buy a car from an older person, they baby their cars, big cars especially, you can get a lot of car for your money because they're not in big demand, I paid $850.00 for my 92 Crown vic 4 years ago, bought from original owner, have no problems with it, still driving it, runs excellent, no payments, insurance is cheap, starts everytime and get's me around, I don't worry about a $500.00 truck payment and high insurance rates, my money goes in the bank every month. Yes I understand when your young, everyone wants a new car, however getting one on time is expensive, wait until you save for it, its much cheaper and you appreciate it more, and you own the car, it doesn't own you!
3500 for a 02 crown vic had 80,000 miles now has 500,000 and one 500 transmission ,,,,not bad at all
MrOrlandobob2 dude not fucking bad at all my friend. godamn gotta love ford.
0:02. That's exactly how my country southern accented friend says "RENT". 😂
I am forty and the only car loan that I have ever had was to my dad. He did not charge interest and was flexible when I could not make payments. A nineteen-year-old coworker said "If you buy a used car you pay for a new car in repairs" before purchasing a new Volkswagen. I believe that all of my car repairs over twenty years add up to enough to purchase one new Civic. I currently drive a 2000 Civic, so arguably, it would have worked out the same financially had I bought my Civic new in 2000 and taken care of it this whole time. Meanwhile my sister bought a brand-new Chevrolet and paid $15,000 in repairs after the extended warranty wore out. She kept telling people how smart she was for paying for the extended warranty, but why did she keep it after it ran out? It might have been cheaper to trade in her vehicle at that point!
My phone is almost five years old. My car is twenty. I just bought my first television and people probably think that 43" is small. I do not spend money at all like people around me, but my money just goes for basic necessities.
I always wonder if I would waste money if it ever became an option.
Late to the conversation but if you are concerned about having to "fix" a used car, don't think of repairs is dollars but in "car payments." If you had to have $1,000 worth of repairs done to your used car that would be less than 2 average car payments + collision insurance premiums for 2 months + 2 months of State vehicle tax on a new car vs. your old one.
Do a little homework and find out what used cars give the best service over time... Toyota Corolla would be a good start. But any car that can be shown to have given good service may be a deal if the vehicles as a group have a bad reputation. I would however avoid cars that have a reputation for transmission problems. Some would surprise you... Honda Acura's have transmissions that regularly bite the dust north of 180,000 miles. If you can find a manual transmission in a car..get that. Avoid CVT Continuously Variable Transmissions like the plague in a used car. With reasonable gas prices now, instead of paying a premium for a high fuel mileage car, you might do better with one that doesn't do as well but has a better up front price.
Every week raise the hood and check the oil (change it ever 5,000 miles)and automatic transmission fluid (read the owners manual for a how-to, some cars vary in how it's done). Look at the brake fluid reservoir and power steering oil level. Look for cracks or looseness in the accessory belts.With the engine off and cold, try to wiggle any of the driven accessories you can reach. Check your tire pressure. Buy a mid grade set of tires from a dealer that include tire rotations every 5,000-7,500 miles. In all these things, you don't have to be a mechanic... you are looking for sudden changes in status that should be looked a by the competent mechanic that you've asked around for.. and ask for the best mechanic in town...they charge the same rate.
And lastly.....PAY CASH!
What about a 2010 Chevy equinox over 220k miles& needs the engine replaced. Use it as a trade in or go ahead & pay to get the engine replaced & continue without having a note?
As a trade in you'll just be giving the dealer the car. Sell it yourself and keep the money. Dealers are desperate to sell cars and you can drive a hard bargain.
If the car suits you other than a worn out engine then I'd talk with a competent mechanic about an engine out of a wreck. On Craigs list 2013 equinox w/140K they're asking $6500..would probably take $5800 cash. Looks like you could spend $2000 all up installed for a engine with less than 75000 on it and drive the car for another 5 years. That would be $400 a year for car that you know it's history and it's body style still looks current sounds ok. Start a savings account and put $150/month in it. In 5 years you'll have $9000 + $1000 from sale of the equinox. Then since you've had time to look for a deal, buy yourself a 3 year old nice used car and drive it for another 12 years.
Cheers
@@aceroadholder2185 Thank you
my one caveat as a mechanic, i try to push people to look in the 3500-4000 dollar range.
i live in the rust belt so that may be part of the reason but good reliable cars at $3000 are few and most things i see with a $2000 price tag are poo with lots of current and future expenses that will soon make it just as expensive as a $3500-$4000 car.
does not mean deals are not out there, just that i feel the layman's safest bet is somewhere in the 3500-4000 range contingent a mechanics inspection.
I am proud of my $1000 1997 toyota camry that I put 88 miles daily with a check engine light for over a year running strong like a beast
My boyfriends neighbor was deported and gave me his minivan. It's not new (2002) but my prior vehicle was about to kick the bucket. I get teased constantly for driving ugly cars but I drive what I can financially pay for. It is functional and I love it
I totally agree with this guy. If you can't pay in full, YOU CANT AFFORD IT.
+Abandoned TN so you mean that all the people who are financing their cars, actually do not afford them?!!
+Navsangeet Brar Not all, but most.
+Navsangeet Brar Not really. If you lose your job tomorrow and you start missing payments come next month, no you couldn't afford that car.
Roger Williams if we want to look at it this way then we should have enough money in our pocket to buy food for whole life. What if we loose our job, you know!! Financing is a mean to an end for majority in American economy, it is a choice, its a matter of control, hence works differently for different people based upon their own control of their means and kind of choices they make based upon their means. I honestly agree that your notion is true for the people with less control on their life.
Naturally, everyone won't be able to use the advice in the video. I totally get that, and that's not what I'm suggesting.
What I am suggesting is that most Americans go into debt to buy new or newish cars because we have been socialized to believe that that is what we're supposed to do. It has been weaved into the cultural fabric of this society.
Of course we justify going into car loan debt in all sorts of ways, but it seems to me that it is more out of a psychological need to fit in than it is about necessity.
Great video, it is a real shame that most find it acceptable, kids, parents, everyone sees it acceptable to go into debt for a car. Subscribed bro
I heard that if someone buys a car and the year model is 2015 or later, they get a car note. Is that true or false?
You can get a car note with any year car, usually the newer the car the more expensive it is so more likely people will get a loan (car note). If you save your money you can buy a 2-3 year old car in cash and avoid the car note.
As someone who has a car payment. I wish I had seen this when I "purchased" my car 3 years ago.
All that money I'm currently wasting each month, thinking about all the freedom I would have right now to travel some more it makes me sad :/ Never again. And on top of that, insurance for someone my age is extremely high, I get embarrassed telling people how much I pay, something I didn't take into account before I signed that paper.
Granted, I really do love my car and I do take care of it, because I want this car to last me a long time. Never trading it in... First and last time I'll deal with a loan.
Don't worry, we all make mistakes in life. Live and learn.
I love this.
Thanks!
this guy is trying to make you feel bad for buying something that you want. Live your life enjoy yourself while you can you only live once and while your saving all your money someone else is buying your car. Imagine how long it'll take for you to own a house if you live by his logic
His arguments is only about car and seemingly only about used market car. This method doesn't scale up that well to high cost like you said, a house.
come back and comment after you're an adult...
I'd rather spend the money on a vacation than a piece of shit that depreciates 50% in 3 years
Even for a house. Why get into a stupid amount of debt for a matchbox? Make your own fucking house for $4000
Dude your user name..is yo daddy...and you’re trying to give financial advice???
Many years ago my car took a major hit mechanical wise...it cost me $ 2,700 to get it back on the road. I took a closer look at my finances and I wasn't willing to let my old car go and let my hard earned my go as well. So thought it was better to pay the $ 2,700 than getting in debt for many times over to this day I still drive the same car every day and I do all regular maintenance and plan to keep it as long I can. Thanks for kicking some sense into people's head many folks just want to be seen driving something it doesn't 't belong to them.
We sing from the same song sheet. My friends' eyes glaze over when I talk about it. When I was young, my grandfather told me to never pay interest on a depreciating asset (like a car). The mentality is to acknowledge that you will always have a car payment, it's just that you make the payment to your self instead of some lender. As soon as you have saved enough to pay cash for the car you want, you buy it (with no interest) and keep making the payment for the next car. So many people think that zero percent interest is the same thing. It is not! With a pocket full of cash you can always get a significant discount off the price of the car. Thanks for posting this and I hope you manage to convince a few viewers. A huge thumbs up from someone of like mind!
Amazing! My boyfriend is about to get a financed truck. So expensive! I will show him this video. :D Thanks for sharing.
I don't disagree with you, but the number of people who can afford to pay cash for brand-new cars is so low that the car industry *relies* on people getting car loans. No car loans equals no more car industry.
The same applies to pretty much every other consumer item. If people only bought what they could afford to pay for in cash in full, then the consumer electronics market (among others) would collapse along with the car industry.
This is the nature of modern economies.
And why should you or I be a sucker for the car industry's gain?
Blake McClary Because cars don't start out preowned.
If no one ever bought new, it would be like Cuba everywhere.
dchawk81 Europe, look at Europe, and also most of the world besides America, many ways to get around for cheap and be able to save money to later buy a vehicle.
MOBEEN© USA doesn't have public transit infrastructure like most of Europe. We have states bigger than most countries.
Having said that, it's available in some metros like NYC and works fairly well there.
dchawk81 The UK is 1/3 the size of Texas yet there is a population more than twice that of Texas, I do take into account what you mean, although the people of our society can take a slice of the cake from the end instead of digging spoons in the middle randomly, excluding the agriculture and oil industry workers, but comparing to how close retail stores are in NY, such could've been possible within other states, also looking at a city like Houston you will see way to many financed cars in close quarter areas, where if transportation was not done by a car, the government could implement a better method.
I agree with this video all the way. A co-worker of mine fell in love with a brand new domestic shit car, purchased and financed it for the next 8 years. He intends to pay for this on a bi-weekly basis by driving for uber. Now his 1 year old car racked up a lot of kilometers....I bet the car won't last until the financing period ends......
this video is a bar of gold. I wish more people could think this way.
Payments are not a problem, people and their lack of common sense is. I can afford £300 payment, so that means i focus on £300 offers. Some people will be able to afford £300 but will get £500 car finance. And then after couple of months they are surprised that they cannot keep up with payments. thats a reality. i rather pay £300 and drive brand new golf r than save up and have 10 years old nissan.
In the UK two in five of the working population have less than £100 in savings. Yet you look around you and a lot of people on minimum wage are driving brand new cars. Anyway they will find out the hard way.
I never consider stuff mine until I have paid them off idk why but I guess it’s kind of a good thing
Hi Mike, I don't have a car yet, but there's lot of buzz around using a rental car. Use only when you want to go around with family. Rest of the time use public transport. Any suggestions?
My job requires I travel everyday, all over my state and occasionally to neighboring states. Often in rural areas without cell service. I put 3000-4000 miles a month on my car. I get mileage reimbursement. I have to be on time to my clients appointments. I want to get rid of my car payment, but am afraid of buying a older, cheap car -afraid I will deal with constant car issues, getting stranded in shady areas, etc etc. I am trying to decide if I should get a cheap car and risk it, or pay off my car at a fast pace with a second job. Advice?
A two year old car will still be very dependable with the former owner paying for a big share of the deprecation.
It's all dependent upon your scenario. You act like people don't have kids, or don't need to build credit, or like you won't run into maintenance you're going to already need when buying a beater. This shit is so one dimensional that I can smell privilege. Now, I could very well be wrong about the last statement, but it's definitely okay to be making car payments that you can afford and for some people that may not live in the area with the most jobs or best public transpo, it can be very much required. The only thing I truly recommend when financing a car is: if you truly don't have enough money in the bank to buy the car outright like this Jabroni pretends everybody can, then get the gap insurance when applicable. I just finished paying off my 5-year loan at the beginning of this year and my cars running strong and in great condition. But not everybody has the same number of car-savvy friends that I've been fortunate to have so it might not be for everyone. The only thing was I really wish I got the gap insurance for my car cuz I will admit, there were a few hurdles along the road (namely the 3rd and 4th year) where it was a real struggle, but alas, it was definitely worth it, and I don't see myself getting a new car too soon unless something unexpected happens (accident, stolen, I die, your mom, etc.)
So don't think this dude is the right answer to your car problems, this way too bias.
" The hearse doesn't drive by the bank "
Enjoy your money, don't slam people who responsibly finance things, especially cars.
If you get a low interest rate, you really aren't wasting much money. A 0.9% rate on 20k is 1800 in interest. Let's say that's over 5 years. That's $360 a year or $30 a month, which isn't a huge amount to anyone. During that time you have a car that is reliable, good on gas and under warranty (assuming you bought a fuel efficient new car). I don't see how that is a negative thing.
And if you lose your job?
If you lose your job, how are you going to pay the insurance on a car anyway? You'd have to sell the car to eat.
the whole idea behind paying for a used car in full, is having extra money. and what would a responsible person do with the extra cash? SAVE IT. The money you would use to finance a car, has now become an emergency fund.
Your going to need that emergency fund when the radiator goes.
ULTRA RARE SABRA I had a 1997 Ford Escort beater that I paid $250 for. I am a HUGE DIYer so I paid very little shop labor for anything...just tires and alignment.
That car cost me more per month, averaged out, just in parts, than the 2014 Ford Focus I financed with sport package, leather, moonroof, ambient light package, the whole works.
The 1997 Escort was a rough, unreliable, ugly, uncomfortable car that barely got 28mpg.
The 2014 Focus was...the exact opposite and easily got 35mpg.
I saved on gas and repair headaches but had to pay extra insurance.
The Focus was a net win. Way more comfortable, quieter, reliable, easier on fuel, better handling, ice cold AC and hot heat, clean fresh cabin air, not embarrassing to have passengers in, quiet blower fan.
Honestly, old cars suck and are not the savings people make them out to be. ESPECIALLY if they don't have the ability to make major repairs themselves.
Oh and I didn't mention rust. The Escort...yep. Deteriorating. The Focus? Not.
The Wife and I are sick and tired of our Car notes, hers is paid off in 1 1/2, we are going to sell the other and buy a 3K Truck. We are sick of spending so much money on car notes.
Jackie is very blessed to have a wonderful brother steering her in the right direction. I currently drive a 2002 Chevy Cavalier with 162 km on it. My friends constantly tell me I'm crazy to think a 14 year old car could possibly last another two years. I just tune them out and keep driving my beautiful fully paid for 2002 car. Thanks for validating my way of thinking.
I have an 03 Cavalier with 215k. Still going strong. The last car I owned was a 93 skylark with 243k on it and I just got rid of it last year. So cars can last 20 to 25 years.
I'm working the system. I got a 0% interest car loan even though I had the money to pay for the car, instead I set aside that money and am investing that money and making interest on it and paying down the 0% interest loan slowly. At the end of the five years, I would've made money from the investment. And, if I decide I don't like the hassle of having the extra payment every month, I can just pay it off in full whenever I feel like it.
It's exactly just like how you are paying for your phone bills, electricity, cloths, shoes. Paying for a car I don't find a huge problem with that. It's a personal choice. You deserve it if you work hard paying for it.
Exactly!
You finance your clothes and shoes...?
@@minor7b5natural9 There's an option for that nowadays. Encountered that on a few sites that sell suits and shoes.
The 2 best automotive deal of my life
Purchased a 200,000 mile rusted 1984 Corolla 5 speed manual in 1998 for $250. I drove it trouble free for 3 years. Changing the oil 4 times and tires once. Three sets of wiper blades. In 2001 I hit a pothole and the rear tire went through the trunk. I drove it to the junk yard and they gave me $50 for it. The sold the doors hood trunk and lights welded the rear axel and drove it around the junkyard for years.
I purchased a new 2000 Celica GT 5 speed for $17,000. Paid $400 a month for 4 years. I sold my Celica on Cl in 2012 in one day with 315,000 miles on it. Not one major problem. The front brakes lasted 100,000 miles , the clutch 200,000 miles.
Those were my two best cars. My 2013 BRZ has been paid off for about 6 months. Horrible mention to my 2001 Jeep Cherokee that has 285,000 miles and is running fantastic. I purchased it 1 year old for 17k. in 2002.
weeks before I stumbled into this logical mentality I went ahead and financed a new vehicle and the next morning I cried because I knew it was the biggest mistake I ever made in my life. stupidity has no age limit. Now I budget like no other and am currently selling a lot of the things I realized that I don't need in my life. This sort of thinking Is now leading me down the path of minimalism and I absolutely love it.
That's a great realization to have :) good luck on your new path!
"A way to get around town" people are always relating cars to a driving appliance and not something that people have passion for. There are car enthusiasts that have car loans because that's what they are passionate about. You also mentioned a deteriorating interior of the car and how it's a junk car but now you're still paying the same amount as you did when it was new. How about you treat your car with pride and wash it, clean the interior and use some armor all on it to make it last, also, go in for regular maintenance if you can't do it yourself. SO many people buy cars and think they don't have to do anything to them. It's a machine, things need replacing after a certain amount of time and fluids need changing. Way to shame everyone who wants to have a nice car and that can budget their bank account to afford the car they want. If they can afford a $200 biweekly payment then who cares. You're not a financial advisor so you've got no idea what you're talking about. This video is so dumb and pointless. "Oh you can't afford that $300,000 house without Cash?! well then you better live on the street or at mommy and daddies house because you can't afford it!". That is exactly your logic.
littlesimpson2 - THANK YOU!!! YOU GET IT!! And it sounds like you're a fellow driving enthusiast. Glad to meet you!
Couldn't have said it better myself, well done littlesimpson2.
Lots of car enthusiasts buy used, most that I know do. Many car enthusiasts swear by older cars instead of new okes
littlesimpson2 lol very true but you also should buy with in your means, I've, people pay up 500 a month and only get like 1300 a month of income.
littlesimpson2 PREACH!
The way I see it, is why empty out your whole savings account on a nice pre owned 25k truck or car when you can spread out the payments, negotiate a good payment with low a rate and still have your savings intact?
If you can easily afford the note why not get it? Or if possible pay more towards the principle and pay it off early?
Credit is everything. And if used right, it can be a powerful tool to get what you want.
I know plenty of fiscally responsible people who've taken out short term car loans. People who do put money in the bank. People who do have IRAs and 401(k)s. I'm one of them. I'm in my late 40s and have owned exactly 3 cars in my life. One was a 78 Impala that I drove through high school and college. The next was a Nissan that I bought new when I was 28. I financed it for 2 years and drove it for 18. That's right. I drove it for 18 years. I finally replaced it last year when I was 46. I got a new CRV. I put $6k down and financed the rest at a .09% APR. I'm currently paying more than the minimum in my car payment so I'll be done with this loan earlier. I'm loving the car and enjoying peace of mind. I'll keep it for at least 10 years if not longer. You can't dismiss everyone who finances a new car as an irresponsible idiot.
I bought my car cash, and I thought the dealership was going to have a fit, first I didn't tell them I was paying cash, and set a limits to what I would pay, they gave me a big value for my trade in thinking they would get me in financing , but at the last second I handed them a cashiers check and the had to give me change, they were piss. This is a tale I win in the end..
You re absolutely right. I have bought and financed one new car in my life. That was 30+ years ago. When I realized how badly I got ripped off, I decided never to do it again. From then on, it has been reasonably priced used cars. I don't mean junkers either. Back in 2011 I bought an almost like new 2001 Chevy Malibu with 98,000 miles on it. $4500. paid cash. Liability only insurance. I drove it for 5 years and gave it to my oldest daughter. It had 248,000 miles on it at that point. I decided to go for something big and comfortable and RWD. I bought another near new 2006 Mercury Grand Marquis with 47,000 miles on it for $6500. Cash. Again minimum liability insurance only. I've probably saved $20,000 over the past couple of decades by avoiding full coverage, so even if the car gets stolen or totaled I'm money ahead. That car now has 130,000 miles on it, and I fully expect it to reach 300,000. I am a mechanic, and seriously over maintain my vehicles. My next vehicle, if I live long enough to need one, will probably be a used truck. I also only buy from private sellers. Lower price, no sales tax or dealer fees, plus I really don't want to be supporting crooked dealers.
Car loans....simply throwing away money on interest charges
Larry Wright sure "only" 3% but also the depreciation of buying a new car is stupidly high during the first 50,000 miles
I agree Larry. Also taking into account that if you were to finance a newer used vehicle, and can get a lower interest rate on that portion, you're basically given free money. Also, the ability to add gap insurance to the loan for a small fee. Just in case it gets totaled, you're covered in the event insurance does not pay what the car is worth, and gap insurance will kick in and take care of the rest. There are definitely still arguments for going with low interest loans as long as you do have the money to pay it off if ever needed.
vono360 I guess that's okay but interest is still interest. Bought my g35 cash for 13k and it's probably worth around 9k now. so for $111.11 a month I'm happy with that.
Ben Powe Interest rates are very low. The depreciation is what's killing you.
B Davis depreciation can kill me?☺️that's not good, as am to young to die////////
:D I agree 100% .. I am saving for 2 years so I can buy my car cash.
Grace Faith Awesome!
Grace Faith did you actually buy it cash??
how much the rate for car loan in your country?
exactly what Ive been telling all my friends, they kept laughing at my 01 Infiniti i30, but I paid cash for it 5 years ago, it was 90 thousand miles for around $4000. I got rear ended twice and I got over what I paid for it from insurance, also, I fix it all the time by my self if any minor thing comes up, like oil change, air filter change, oxygen sensor change, exhaust muffler change, mass air flow sensor change ext...the bottom line is, the car still drives smooth and I will only replace it if I can't fix it any more, and by that time hopefully I'll have enough saved up for a better car.
i can buy my car cash but i still took out a loan...would rather have that money siting in my savings for a rainy day while building my credit..but if i didnt have that money to buy it cash i would not have taken the loan
+Alumnikiid thats what I thought too
Our economy is dependant on people paying more than they can afford.
Don't fall for it.
Nothing wrong with a loan as long as it's been thought out and not impulsive.
This guy speaks the truth! I only wish I'd known this as a young man. The last new vehicles I bought were in '97 and 2003. I'm still driving both of them and haven't had a payment for 10 years. The freedom to have that money that was invested will be a blessing when it comes time for me to retire. Living BELOW your means is the way to financial responsibility.
What do you invest in for only 400 a month?
what if its a 2016 Mustang gt??
Breton Luna bro I'm so close to buying a 2013 Subaru wrx and it's 22k I'm scared
ken Kaneki how much you putting for downpayment? you have good credit?
Breton Luna first time buyer but I'm willing to put 8k
ken Kaneki bro, thats a really tough decision. but if its your dream car go for it
Breton Luna Shit man thanks
Car loans are fine, here is the trick: buy new, intend to drive it for years to come (10 years), if financing is 0% than no brainer, if financing is 0.99% it's ok because by 72 or 84 months inflation has made it negligible. The worst thing you can do is get an expensive car you don't intend on keeping around at 4.99% financing...
Also if you can afford to buy a new car for $30,000 and you are getting 0- 0.99% financing think of it as a loan with no interest, can you go to the bank and make them lend you 30G for nothing, of course not. So again with inflation you are a winner. Use your cash to pay off other shit at much higher interest rates like credit card/student loans/mortgage
Barcha91 This is exactly why you use the banks money for almost free if you have good credit.
You are paying more for the new car than you should have if the financing is subsidised (i.e. getting ripped off). Pay cash for a car or anything less than a house.
It's nice to think you could be able to set aside the 2-400 dollars per month as a "car payment" by buying a 1500 dollar car or whatever, but I've been dealing with 1500 dollar cars for the majority of my adult life. The reality of being the 4th or 5th owner of a vehicle is that you can easily spend the equivalent of what you would spend on a car note in repairs on that vehicle, and end up in a perpetual sink hole of buying more $1500 vehicles that you can't dig yourself out of.
A perfect example is that in April of 2016 I bought a $1500 car with 150k miles on it (talked down to $1350 for the sake of brevity). By June of 2017 I had put $3,000 into it to keep it running, and by the time I decided I had enough in July of 2017, there was an estimated $1700 more that would need to be paid out to keep it safe and running for the upcoming winter.
There comes a point in your life when you have to weigh the costs vs. benefits of paying out repairs sporadically and usually at the worst times vs. paying a consistent amount and having a bumper to bumper warranty for x amount of years/miles. In 3 years I will own my car free and clear, fix everything that goes wrong under warranty, and THEN, after warranty, know exactly whats wrong with it as it happens, and be able to budget accordingly for the repairs for the remainder of the life of the vehicle. That is completely different than gambling on a car you find on craigslist and hoping you got something that was taken care of.
Also, while your dictionary definition of afford may be technically correct, it is one of those words that is heavily modified by a capitalist society. I have very high job security in an industry and with a company that is not going anywhere soon. My paycheck will not be dwindling, and will in fact grow over time. This, combined with a very minimalistic lifestyle means that I CAN afford $250/month for a new car, because I KNOW that money will be there. There are obviously a lot of people who take out loans for things that they cannot afford to pay back, but your video's mood seems to suggest that this is the majority of people, and that is willful ignorance.
Overall interesting video with some interesting thoughts, but imho laced with far too much emotional, ideological hippy shit. This country was built on debt, and will continue to be long after either of us are around. Would it be nice to pay cash for everything? Sure. Is it practical? In some cases, probably. In the real world however, it's nice to know that NO MATTER WHAT, when I walk outside tomorrow I simply won't have to wonder anymore if today is the day that a trip to Subway will turn into the most expensive sandwich I ever bought. ($486 by the way... including the cost of the sandwich, paying the tow truck driver for a tow + a ride home, and the repair... which turned out to be a 50 dollar part.... still bitter about that one.)
Best of luck to your Sister-in-law, and have a phenomenal night!
Absolutely agree with you!
I just done the same. Bought a brand new car with real money. Now I can do whatever I want with it. I can run him slow, fast, hard, burn it, crash it, scrape it or just treat it nicely and NOBODY has nothing to say about it because the car is MINE!
I also bought the cheapest insurance I could get and by not lease the car and therefore be obliged to have a full insurance (arround 1800Dollars/year), I pay 350 Dollars/Year and no fees for credit, no limitation in miles, etc. I recognize that in 4 years I will save about 8000 dollars that I can put towards an investment, some vacation, fuel, etc.
Time value of money, you fool... Not everyone wants to drive a craigslist car...
Jay Weber YES...because what they will pay in maintenance ect on a...BUM!!! MOBILE...You..might as well buy! A good reliable!!! Car!... You will SAVE !!!! On the END with a A Newer Car 👍👍
Knock yourself out on buying a piece of shit that'll waste $15,000-20,000 in depreciation in only 3-5 years. $15,000-$20,000 that you could have saved in future repairs of an older car which is just as nice and is only missing stupid, irrelevant features like a backup camera. or $15,000-$20,000 you could have saved on gas.
A 2017 Honda Civic will only save me on average $100 a year in gas, in comparison to my 97 Civic; a car that's 20 YEARS OLDER than it!!
Just like I took the Red Pill, and never got married. Seen too many men in my 34 yrs on this Earth pretty much sentenced to a life of poverty due to a bad divorce and insane child support. Stupid games, stupid prizes. I drive a 10yr old Civic cause I want to, they do cause they have to. Big world of a difference. I can easily pay 20k cash tomorrow for 2017 Civic LX. But why? That Civic will last me 10 more yrs. I do most of the maintaince myself and I bought it new, so no abuse.
I bought an '01 Chevy Malibu in 2006, paid it off in 2011, and still have it...and I've sunk maintenance money into it that would've gone toward payments. It's still running strong, and it feels _wonderful_ to NOT have a car payment! The cheapest car to have is the one you already own, so I intend to hang on to this free-and-clear car with no major problems until I can't anymore, but I don't when that'll be since I put money into maintaining it.
I totally agree with you.That's why I retired at age 44.To me,security is money in the bank.The advice your giving is spot on
This is only a problem if you don't know how to create income and assets. Stop being poor.
savage
preach
Savage is right
if you live in the US you can change classes anytime you want to stop making excuses
Even if you have no vehicle and no job. You could start with a company like Uber right now. If interested you can get an extra bonus by going to this link.
get.uber.com/p/eats-courier/?invite_code=u2df5b4wue
The risk is always there to be layed off for whatever reasons and still having to pay for a 15 grand liability. The burden is always there. It is not a smart decision. Period.
You might argue that you live of your savings during that time but if you have enough money to endure unemployment, there was no point in financing the car in the first place.
Tie your cash up into a depreciating asset rather than using the bank's money at minimal rates all for the sake of being able to say "I don't have a car payment." Sounds like the sort of financial advice I'd expect to hear from someone that drives a scooter and produces arrogant "I don't have a car payment" videos for RUclips.
Well said! Taking out a .9 to 1.9 interest loan is a no brainer. Not saying people should be buying $50k cars unless they can afford it. But, no reason folks can't have something reasonably nice and reliable, especially if they commute like I do. I spend at least 12 hours a week in my $15k car and it makes that portion of my day bearable. In the end I only lose what's lost on depreciation, which is about $1000 last year, not bad considering I put on 30,000 miles. The interest is there but minimal at 1.9%.
If you have the cash to buy it then sure ...finance it. The issue is when you can only afford a $10k car, but you finance a $50k car just because the dealer says you can afford it. If you have $10k cash, just finance a $10k car at low interest and do something else with your $10k (investment wise, not buying another car...)...
Well said Danny. for someone that has an excellent credit score that can land a car loan with low interest rates(under 3%) and little money down, its a no brainer to take the rest of the capital you would pay in full with cash and invest in something that will return +5% and compound it rather than watch your asset depreciate.
Ok, a few things come to my mind here:
1. The reason you are financing a car is because you don't have the resources or discipline to put cash into a sinking fund for a car. So if you think you have the discipline to put the difference into an investment, you are delusional. That money is going to go toward other depreciating "assets": vacations, clothes, TVs, smartphones, etc.
2. You can rationalize this all you want to, but you cannot rationalize your way to wealth.
3. By all means, you are a grown up, do what you want. All I ask is this: when I'm in the 1% because I made smart decisions with my money, and you're stuck in the doldrums of the middle class because you keep rationalizing stupid financial decisions, don't elect some goober like Bernie who's going to demand me to pay my "fair share". You have a chance to get rich. You're driving it.
Danny Unger i drive a scooter, i've no car loan :P
fite me
man that is one of the core values of my channel... I still drive the same $2000 car I bought in 2009 and it has 181k miles and I have saved so much money... paid my school loan off, mortgage off, and padding the savings
Had to come back a while to find this one (heard about this one in your Butcher Block Island video).
RIGHT ON!
I have never, and will NEVER, buy a new car.
My first (used) car literally died on my way to my first job interview. Needless to say I did not get the job. I've financed ever since. If you buy a car new you can make it last a lot longer because you'll know it hasn't been abused. My current car is a 1999 Ford Explorer that i bought new, and yes I paid $18000 for it and yes I made payments for 3 years, but, I still have it, it's been a great car for 17 years because it WASN'T used up by some asshole before I got it. So, I already did the experiment and proved you wrong.
Buy new, insure it, change the oil, keep the receipts, fix it if something breaks and it'll always be good as new.
As long as you keep it then yes, you are ahead of the game. If you change out every few years, you are better off going the used route just because of depreciation.
I guarantee, you did virtually no critical inspection of the vehicle before you bought it.
David Battle You really should have done better research before you purchased the used car. Most of the time there are red flags and mechanic people with experience you can pay to inspect it before driving off. All used cars are not bad, used cars are smarter buy than new in most cases.
your issue was not because of buying a used cars. your issue was caused by lack of a proper pre-purchase inspection.
What you said is true but you're not the type of person he's talking about in this video. He's talking about the people who drop their vehicle at the end of a lease/warranty and grab another one and keep making payments, not the ones who keep them.
Mike, Two years ago I signed a car note that I now still pay for. It was a five year loan for a $10,000 2013 Chevrolet Impala. I pay $296 a month, but even two years later I still actually owe around $9,500 for it. I still pay my $296 a month but now I'm having big issues where the vehicle barely wants to drive. Before then, we'd had a 1996 Pontiac Grand Am. It was a shitty car, but we paid $1,000 cash for it and it lasted us nearly three years.
I truly wish I had saved up money like you suggested. Instead, now I'm in a huge bind paying on a car that barely works versus owning a car free and clear that did work until it completely died. I am definitely subscribed to your videos and I can't wait for more tips.
I don't completely agree with this. First, the debt from a car loan is not the same as the debt from a credit card because once you pay off the car, you still have the car (at least in theory). Second, the trouble with buying a $2k car is, that the reason it's so cheap is because somebody is trying to get rid of it before it starts to become a liability. No one is going to sell you their car if it's still reliable and in good shape with years of life left in it. Not for $2k anyway.
I used to think like you, "I'd rather save my money" I'd tell myself. But then one day, I sat down and did the math. I added up the total cost (excluding age related repairs, maintenance items like oil changes, which would've happened anyways) and the number of miles I drove on all the cars I had bought in the past eight yrs and found that if I had bought a brand new, compact car in 2006 (the year I bought my first $1200 car) I would have spent anywhere from $2-4k less, and the car would only have had about 130-160k miles on it. Meaning I still would've had a reliable car that was worth about $4k. I was spending more time and money on shitty cars than I would've on a new car. So the next year, I went out and bought a brand new, base model F150, put $20k down and got a loan for the rest. Paid as much as I possibly could every month and the money I didn't spend on repairs and extra maint also went towards the loan. It's now three yrs old with 40k miles. The best part? It's paid for. And since I was the original owner, I had control over the break-in period and the first few miles of it (always the most critical in a vehicle's life).
Granted, I wouldn't buy a brand new car for a 16yo, but sometimes it's better to think of it as an investment than an expense.
There's an awesome book called the millionaire next door which states that most millionaires that they've researched start with this simple idea as well. They buy good cars around the 5 year old mark (because that's when the most depreciation has occurred) and they usually pay cash. Makes sense to me.
I'm thinking of financing a car its 18k (literally the car of my dreams and I'm a huge car guy ) I have 9k to give as a down payment. Is this a bad idea???
I actually took this guys advice and around a year ago bought a 2002 Toyota Corolla for $2000 cash. The paint is rusty, but the interior is extremely clean, and for about the first 6 months it was a great little car. I was able to save up enough during that time to completely pay off my student loans and credit cards. I am now sitting here debt free with money in the bank, but know it is about time I get a better car. The risk, as others mention, is that with these old beater cars you never know what to expect. My car guzzles oil like water, I have to fill it up with a quart or two almost three times a month and when I'm on the highway I get the sense that I may need to pull over at any moment. Besides that, it's just plain embarrassing to drive such a beat up car. I'm proud that I was responsible enough to get it to begin with to be able to pay off my debts and save up money, but I believe also it damages my image as a professional to be driving around in a green rusty dented tuna can.
I’m older. We used to put 20% down for our houses and cars. We financed at the most for only 3 years. I think you are right. People place too much importance on new cars. I just got my first car loan in over 15 years. I loved my 2005 Prius. I would still have her now if it wasn’t totaled. I had to get another car. I found one 2 years old. It wasn’t expensive , but I plan to pay it of asap! I hate car loans. The norm is now to lease a car! Who does that? It’s basically renting a car! You have to have a larger down payment, keep the car in better condition, and never go over the allotted yearly mileage! That’s crazy! I’m planning on snowballing till I pay off my home loan. Debt is a serious pain in the @$$! Always pay more if you have it! And save for your large ticket items! I realize now, I had it easy! My student loan was only for $2500. The government could only issue student loans... and it was done at 4% or less! Vulture banks we’re not involved!
I took that challenge upon myself.
I used to drive a 2011 Nissan Altima. Parents bought it for me at the time but I got my job early and started paying for it myself. I hated it. I realized it wasn't for me and once it is paid up I wouldn't buy another car with a loan. It was fully modified and I tracked it on multiple race tracks. One day a person was texting and driving and I lost the car. I saw it as a great investment for me. I saved the money and went and bought a 2005 Prius with cash that I had already saved up. It was the best thing I've ever done. It's cheap on gas, tires and insurance. Sure it lacks the power but it's a daily while I invest my money and later get something fun. My car enthusiast friends laugh at it but they all buy their cars with loans and it just makes me cringe beyond infinity.
To me it's similar to you. If I cannot afford it I will not in no way buy it. A motorcycle is more affordable than a loan. Even when I can afford it why should I buy it? I should invest my money. Anyway because I had bought my car with cash I was able to save up a ton. I did buy a nice car but I'm flipping them now. :)
Thank you for the great video! Finally something neat I can share!
+My Action Videos Awesome! Congrats on paying cash. We love our Prius!