Back in 2003 , I bought a 1996 Subaru svx for $7000, original price $30,000. I saved $23000, buy a good car that no body want. There are car out there that are like that, so do your research.
The american public school system is broken and has been for decades now. Norway for example, teaches students finances beginning in the 3rd grade. American public schools systems on the other hand are like you'll figure out how to do finances the hard way once you get in debt. Good luck...
Smartest thing I've ever heard. "If you cant save 300 a month, you can't afford a 300 dollar car payment." I've really never thought like that. Great video!!
If you can't afford to throw a grand away, you can't afford a car AT ALL. I don't understand people and their incessant desire to enslave themselves. And the people that buy stupid overpriced cars are the same that don't take care of their house because "they don't have time" and whom won't rent it out because "they like their privacy". Psh, they'll have time to get FORECLOSED ON at a fraction of the home's value and they'll get the privacy of living under a bridge.
@@manictiger lmao you good? I bought a car brand new (2020 toyota corolla) and yes i owe around 300 dollars a month and i don't see myself slaving around nore find the need to do so. Stop making sad assumptions about others lmao. My house is spotless btw and currently renting 2 homes which in one of them i did rent out a room when i used to live there.
@@manictiger well there is a portion of society that wants your finances soo much that they will directly and subliminally suggest that you need things. What dosnt help is when the segment of the population these tactics hit or are targeted towards are the undereducated and poor. Thats why this exist. Purposely misleading people why many people appear to enjoy enslaving themselves. Its really not that hard to understand whats going on here really.
@@ernestochang1744 they mean regular cars. Everyone that knows a little bit about cars knows that cars like the Dodge demon will increase in value because there aren't many of them. They just mean Nissan Versa's, Nissan Altima etcetera.
Nah having a nice ride is fun, you gotta try it once in your life. I bought a 40k sports car and it takes me 1.5 years to pay it off aggressively. Is it a waste of money, sure but is it worth it? Kinda not gonna do it again though
*True!* I was very nearly convinced a few months ago to spend 15k on a really nice second hand BMW but I just kept thinking how often that car is going to break down and how expensive it will be to fix so in the end I just said fuck what everyone else wants me to do and bought an ok car for 3k and stuck the left over 12k back in my pocket
I was in the car market in February 2024, and no 5yr old car depreciated 63%. At MOST it was 25% depreciation, which is what I bought my car at. Did weeks of research so I know that 63% depreciation at 5yrs is CAP.
The car market is very weird right now. I bought a new car last year because it was cheaper than buying a used car (3-5 years older) of the same model. Never in my wildest dreams did I picture myself driving a new car, but here we are. I'm hoping this isn't the new normal.
@@arkaddong8675 Poor mindset? Actually that's what most people, who got rich on their own, did. Always, ALWAYS live below or at least within your means. Focus on growing your income + Living below (or within) your means = Long-term Success
Tip as someone who sells cars; (I know this video is old) When you get your car CASH, Do NOT tell the dealership. Haggle them for the best price and they'll make up on the back end with interest. THEN pay off the car when the first bill comes in. You paid $1-6 in interest and saved some extra cash on the front end of the car, too
Never pay your car cash !! Always finance. Now if you have shit credit that’s your problem, always do tt&l as down payment and then pay your loan a year ahead, you save your interest. If you pay cash for your car and something happens like an unsuspected total loss you’re out of your money... always finance with minimum down payment and pay ahead and don’t forget your gap insurance.
@@superpeluso1, you should fully insure the car against total loss even if you paid cash, especially if the car is new and costs more than a few thousands. Not sure how getting a loan will ensure that you're not out of money in case of total loss.
It also completely ignores the fact that after 5 years you pay off the car and use it free for next 5+, while the used car maybe need to be replaced again. New cars have better financing options. Not very well researched video.
@@ArekDevYup! Very pedestrian. I'll trust a car I used from a brand new state and I can use for years vs one from someone I don't know if he was doing drifts every weekend.
As a car enthusiast, a car is a tool for regular people. One of the biggest things they missed is reliability, you’ll save thousands by getting a car that lasts and you’ll save by not having to buy another car, generally stick to reliable brands (Japanese, American, Korean) but also look at the individual brands and models, as some reliable manufacturers can still make a bad car. Use consumer reports to check on reliability, they tend to agree with what I’ve seen firsthand in the real world. Another great thing to check is what common issues the cars that you’re interested in have, how often/likely is it? How much will it cost to fix? Are replacement parts available? Etc. Another very important thing to look at is the condition of the car, even as a wannabe expert I always make sure to have a 3rd party mechanic do an inspection on a car I’m about to buy, even if it is a dealer you should do this, it doesn’t matter how reliable a car if the previous owner ran it into the ground. Lastly if you need an easy choice, just buy a toyota
Toyota or Hondas are always safe and reliable choices for a little daily driver/gas saver, I like old Chevy/Ford trucks too from the 1980s and earlier, easy to work on and lots of aftermarket support
I don't think the brand is that important. It matters but how people care about the car is more important. But I don't think reliability will save a lot of money. However, choosing a smaller car or a sedan instead of a SUV will. Because it's cheaper to buy, gives you better gas mileage, causes less load on the engine , can have a less powerful engine for the same performance (more reliable and cheaper insurance), has cheaper maintenance and lower repair costs.
Also, some cars hold their value for longer. In New Zealand we recently bought a 2016 Toyota Camry with 132000km. A similar spec Rav4 costs literally twice as much. Camrys aren't popular here so you can find them very cheap. They would usually be owned by older people so they wouldn't be driven as hard. Rav4's are very popular so dealers charge a premium for them. And they both cost nearly the same when new.
I've managed just fine in the modern world without a car. Nothing against cars, I love to "take the wheel" now and again for fun, but I don't own one. Public transportation and ride share for the J-man. Thanks for wisdom.
Don't you just teleport all over the place? I mean you can do pretty much anything. Why bother with vehicles at all, unless you are a secret petrolhead... I bet you have a motorcycle... The son of God is definitely a biker.
New infrastructure bill should have sidewalks/bike lanes on any road built/repaved in any urban/suburban area. I worry about you vehicles that don't have bumpers.
And to everyone who says "5 year old cars aren't reliable," or "the added maintenance costs offset the savings." That is simply not true. Do some research. Read some articles. There are many, many cars that still run perfectly fine 10 years later. I had a 1999 Honda Civic from 2012 to 2018, until someone ran in to me and totaled it. I had maintenance that had to be done on it, sure. Things had to be replaced over the years, power steering pump, front brake calipers, and some other things, but I never had any serious problem that left me stranded on the side of the road. Compare that to a family member who bought a brand new car in 2013. 4 years later the transmission went out on them during a road trip, leaving them stranded on the side of the road. They had to walk several miles to the nearest gas station to call for help. The point is: New ≠ guaranteed reliability Used ≠ automatic problems Car problems happen to everyone. I bought mine for $3,000, they bought theirs for $20,000. Maybe I've had to put more money into maintenance for my car, but nowhere near $17,000 (more like $2,000).Having said all that, making a decision isn't only about the math. They had a nicer, newer car, with leather seats, bluetooth, and other bells and whistles. I had a simple, basic car that got me from point-A to point-B reliably. It was clean and comfortable, and I loved it (RIP). IF (big IF) you can afford a new car, that's your choice. But don't fool yourself into thinking that you need one when you can't afford one.
You read our minds, Tim! The most common critique we received when this originally aired was the "un-factored cost of maintenance" on used vehicles. Research done by Edmund's showed the average maintenance cost on many commuter cars was a relatively tiny factor from years 3-10 of the car's life. Thanks for jumping in on this one early! -- Philip :)
I still think that not explicitly doing an overview of maintenance costs is a bit disingenuous to the argument. Whether you intended it or not, it feels like cherry picking. If the goal of this is to truly help people, not including relevant variables is not fair. I also find the tone of this video to be a bit too judgemental.
Clutch, that's a fair critique. We did omit the factor of maintenance in our example scenario. However, we also omitted the factor of insurance (much higher with a new vehicle). When both of these add'l factors are added into the mix, we found that the argument against new cars becomes even stronger. Frankly, the main reason we didn't include every relevant variable is because we aimed to keep the episode under 5 minutes. We'd love to explore the variables you mentioned... plus Electric Vehicles, selling a used car, different makers and their maintenance costs... etc. Alas, maybe on another episode! -- Philip :)
Most reliable car I've ever owned, barring a couple days when I had to clean the carb out, was a 1984 Subaru. 24 years old so that car has a decade on me. Bought it for under $1500, got fresh tires and a few other repairs, and had the time of my life before I had to sell it a few months ago to go work abroad. Quality is timeless*. *(so long as you can keep it rust free and make sure the mechanical clearances stay to spec)
Many times I bought a 7 year old car and keep it for seven. Back then cars were easier to work on and I did all my own maintenance beyond service. That helped. I have spent less in my whole life with 2 cars than a new top of the line truck. That is a fact. You are buying with after tax income and if you finance you are giving yourself a triple whammy. No money to move up in assets.
Seriously. This video needed to be called "How NEW Cars Keep You poor!" Ramsey screamed about mobile homes, when what he hated was NEW mobile homes. Kind of click baity.
Which model? Looking for a Lexus to replace dumpster fire current car. Not the first time someone said their Lexus has lasted quite a long time, so I’m always curious which models are doing so well
N S Honestly wouldn’t recommend a Lexus if your finances are tight because all Lexus’s have timing belts which are expensive to replace and, if not done in time, will cause the engine to, practically, self destruct. Most 4 cylinder Toyota’s or Honda’s do not have this issue, especially if they were made after the year 2000-2001 when both companies decided to do away with belts in favor of much longer lasting metal chains in their four cylinders. Sorry for the long response but I would hate if anyone found this out the hard way!
I got into an argument with my economics prof at college because he kept insisting that a car was an asset and I flat out told him that anything that does nothing but take money from you from day one and even costs you to get rid of it is NOT an asset. He even said this right after saying assets appreciate in value!
1:43...."Calling cars a 'bad investment' is like calling a honey badger a bad heart surgeon"....thats idiom show how nightmare worst was situation...😷😷
@@kurtdanielson9862 Yes but that is a different kind of asset. While it was an asset to have a car it wasn't an asset in the economical sense. Assets gain value over time. Unless you own a 57 Chevy I don't think your car appreciated over time.
If Ride-sharing services end up going the way they are planned to go in the future, they'll save us a lot of money. Too many people will be against it (people who are stuck to the idea of driving and owning their own car), but if the idea that driverless, self-driving cars can be ordered like taxis to take us where we want to go at any time... if that really takes off and people buy into it, we wont need as many driveways and parking lots anymore and less people will need to buy and take care of cars. We'll only have to pay when we need it, and like buses maybe they can give monthly or annual passes or even student and senior discounts. It'll also potentially be a lot cheaper than what we pay for services like Lyft and Uber now. People would only need to drive their own cars for recreation, not to get to work or school. Cant happen until 5G happens though. Also, it'll mostly benefit cities and suburbs.
For many people,cars aren't just things that take you from a to b...they are your best friend that gives you most beautiful memories to keep throughout the life🚘
I feel it starts a bit later like 8 years so yeah 4-8 is the place you want to own a car. Although some cars are not expensive to maintain. One that i had had an expensive service after 8 years and from there it could be normal service for many years but yeah the handles started to fail. Here and there.
In 2021 this isn't much of an issue anymore unless you really need your Bluetooth, GPS, and radio just to drive from A to B. A little bit of research you can avoid most issues that would stop a car made in the last 10 years from driving safely. Unless of course, you insist on driving something exotic. Then you're on your own.
This! Old cars are great when you buy them but soon they start to have problems and then you either start funneling money into fixing it PLUS you can't use the car when it's being repaired and then you either have to sell it or to the junk yard it goes when it gets bad enough. With a new car, you don't have those worries for a looong time. I'd say it's like buying any appliance. You don't buy it for it to make you money.
Yup. But based on these comments, apparently people -have a crystal ball- did a little research and bought a perfectly maintained used car with no problems.
I bought used broken cars, I fix em myself then I drive em or even sell em back. Never had to go to a dealership ! Ahhh feels good to be mechanically inclined.
It does depend on where you live though. There are plenty of countries and regions where you're not allowed to just pop the bonnet and start changing your oil (or for that matter do any other maintenance).
Why not just buy 2 electric bikes and weld them together seems cheaper than even repairing a car. also i think if done right we could make all roads have more lains just because the new mode of transportation is so small ruclips.net/video/V6kJOXr3HzA/видео.html
I immediately went to the comments once I heard that too. Seeing cars in my area still costing way higher percentage even after 10 years. Not to mention the fact that average APR has gone up more than twice since this video SMH...
They depreciated for sure in comparison with new cars prices. It held true and will held true in the future, it's a depreciating asset, not an investment.
I’m so glad my father convinced me not to take an $18,000 car loan for this new SUV I liked. Instead I got a used car with cash and am much better off. These car dealerships are predatory and tried to make me think I could afford a vehicle twice my budget with debt. Not making that mistake again. Student loans are already frustrating enough.
@@RoggvirTheGreat I've never bought a new car in my 81 year old life......"Let someone else take the beating" as my wife's uncle often said. I currently drive an 88 Pontiac Fiero 5 speed which I paid cash for seven years ago, and had only 20K on it. Now has over 70K trouble free miles.
Its not about money. It's about convenience and flexibility to travel anywhere whenever you want. Also in case of emergency having a personal vehicle is indispensible. You cannot judge everything by monetary gain or loss.
In 2024 no car that is 5 years old is being sold for 63 percent less than it was new . Maybe 20-25 percent . Car prices are ridiculous and have always outpaced what a dollar is actually worth .
Yes, it is like this in Sweden as well and probably the rest of Europe. It is disturbing to pay such a high price for a five year old car in which rust and other signs of misuse has started to shown. I'm beginning to think that I should have taken that car loan/finance a new car in 2018.
You're probably just better off buying a car that's a few years old. I was looking at Traverses and a 2019 one was just a few grand less than a 2022. Might as well get the newer vehicle.
Idk, here in Romania a car that would sell for 20k new is sold for 7-8k at 5-7 years old and 100-150k kilometers. I'll say for the average Joe that is the best option, still low maintenance, not that much use on the car and a steep discount. Of course, you sould check it for correct milage, accidents, even maintenance if the previous owner can provide that to you, 8k is a lot of money. For me personally, I am a self thought mechanic, I would never spend more than 2k on a car, that's where the best band for the buck is if you don't pay for labor (and probably get ripped of by a service) and know how to source some of the more expensive parts for cheap.
problem is that the us never learned like the rest of the world so you pretty much need a car since there is no great transportation system in the us (except in big cities etc) europe is a prime example for freedom, in switzerland (where I live) you can come around without a car because there are trains, buses, trams and so on...
@@anotherprofile7954 Actually, America did know about public transportation but car companies and oil companies bought it and then proceeded to get rid of it so that everyone needed to have a car (or two). Then they called this dependency on cars "freedom" and the rest is history.
@Austin Martín Hernández You are right, freedom of transportation is a relative concept. Public transport is not freedom as you are dependent on a fixed schedule and the quality of service from the bus/train company. A car means a bit MORE freedom. You are not dependent on a fix schedule. you can drive whenever and wherever you want but it comes at a much higher cost. Plus spending hours in traffic jams, while trains are passing by, its not exactly freedom ( it could be amuzing to see this in car commercials)
$500 dollars for fresh mask, renovation, maintenance, insurance total $5000 and if you call now will give you a special bonus of a kick in the behind! 😂 lol
“We can't afford the life so abortion rised Can't afford the truth so we told a lie Can't afford a funeral cause the cost is high GOD DAMN we can't even afford to die” -Papoose: Monopoly
Cars is just a way of donating money to corporations(faceless people) just for a moment of comfort while you're driving in it. Where's the comfort when you are out of your car? Financial burdens,driving to workshops for regular maintenance, people around you taking advantage of you and using you as their free chauffeur(even your own wife treats you as a free chauffeur)
MegaMiir no, old cars are cheaper but will cost still a lot (maintenance, taxes, gasoline etc) so better use the public system (if there is one in you area)
@@MegaMiir It depends on your location really. A car will certainly help you a lot if you live in the middle of nowhere but if you live in a city with good PT and/or amenities within walking distance, it's pretty pointless.
All cars can still keep you poor even the used ones. Depending what you get. I know a couple friends who have Chrysler’s cause they like them even though it’s costing them extra $$$ on maintenance.
2011 Volvo bought in 2012. I bought an extended warranty, that did not cover me one month over. The mileage was within range. But I past the 36 month warranty, shy of a month. My best experienced was leasing in my twenties and thirties. Depends no on age and where you are stationed in life, at any given time. Pick a cost effective way of managing your monies.🤔☑️
@@djbhe toyotas in general. As real car reviews said when people ask 'what new car should I buy': "if you're only goal is to get to point A to point B get a Carola or Camry. They're not flashy but they get the job done & they do it reliably but nobody wants to listen"
Brilliant!! I was fortunate to have an aunt who, when I was a young boy, remarked to me that the difference between wealth and poverty is interest. She explained to me in short order the difference in paying interest and earning interest and it is stunning. Great video!!
I bought my car new and don't regret it but I definitely don't think I'd do it again. I feel like you have to do it once in a lifetime just to get that new car smell lol
Singapore public transit is amazing though, and Ubers are super cheap. Singapore is also very walkable/bikable. In most of the US, getting around without a car is impossible. I honestly would prefer US becomes more like Singapore
@@syawkcab Limitations forces creativity. Similar situation in Japanese cities, South Korean cities, and USA East Coast cities (especially Manhattan, New York).
Only one thing to add, while buying a car with cash sounds like a good idea to avoid any interest from a payment plan, a lot of dealerships will actually charge you more if you pay in cash because they know they'll be missing out on their percentage of the interest that you pay the loan company. Usually the best thing to do is to agree to a payment plan (make sure there is no clause that penalizes you for paying it off early!) and then just immediately pay the car off.
@@GazzaDazzletell them you want to finance for 6 years and you will likely get a lower out the door price but higher interest rate. When the first payment comes, pay it off. That’s the best way to buy a car.
1:45 we need cars, this video is all about buyung new car you can't afford, how about getting yourself a SH car and enjoy the benefits and utility a car offers?
I bought a 4 year old car at 60% from the new car price that had only 1 previous owner (old lady) and just under 9000 miles on the clock! Was like brand new as she kept in her garage. Had it for over 7 years before selling with no major repair - just normal car repairs, the odd tyre pop, new brake pads etc. You can find plenty of used cars 4-5 years old at massive discount just like new. I saved $16k by buying second hand that just looked as good as new. Invested that $16k in my mutual funds (averaged over 12%/year for last 7 years) so compounded that $16k saving has grown to about $37k ! Now I will keep the $37k invested and just take off $15k out for my next car and keep rest invested. Do this and each car is free and will be free for rest of life while rest of money continues to grow!
You should take those $37k out of the stock market for the next 2 years if you don’t want it to flash crash to $17k with the next recession, that’d be super depressing.
@@DaybreakPT Well he said "mutual funds" didn't say he was trading directly in the market, maybe his funds are conservative and have more bonds than stocks.
@@DaybreakPT Instead of wasting time trying to get a degree and job building someone else's business, I went into stock trading. We're not just immune to a market crash; we thrive in it. Volatility is good for traders. I want that 5%+ movement every day, because, of that, I can maybe only grab 3%+. In both directions, that's 10%+ and 6%+. Trying to predict the distant future is an excercise in futility. I just keep it tactical. When the stock turns bullish, so do I. When it's bearish, so am I. I short it one day, buy long the next and sometimes, I'm just sitting there, waiting, like a sniper waiting for ROE confirmation.
Good afternoon, Michael here from Nigeria 🇳🇬, just came across your channel & I am hooked! Your videos are so well presented in a lucid, easy to understand way, coupled with great animations. What a fun filled way to learn financial intelligence! Kudos to you both King 👑 & Queen 👑
Wait watt? hold up the phone hold up the phone!!! did they really say that cars depreciate in value?I'm about to end this whole channels career Hold my beer. AHem www.businessinsider.com/1962-ferrari-250-gto-breaks-record-selling-for-484-million-2018-8 www.motoringresearch.com/car-news/geneva-supercars-rocketed-value/ www.caranddriver.com/news/a18742019/shelby-daytona-coupe-auctioned-for-7-25m/ www.barrett-jackson.com/Events/Event/Details/1955-MERCEDES-BENZ-300SL-GULLWING-COUPE-137813 www.barrett-jackson.com/Events/Event/Details/1908-FORD-MODEL-T-TOURING-TIN-LIZZY-178648 www.barrett-jackson.com/Events/Event/Details/1970-DODGE-CHARGER-R/T-HEMI-SPECIAL-EDITION-224490 classics.autotrader.com/classic-cars-for-sale/1967-chevrolet-camaro-for-sale www.autotrader.ca/cars/nissan/skyline/ www.motor1.com/news/301460/mclaren-senna-us-spec-auction/ www.motor1.com/news/139148/most-expensive-mclaren-p1-auction/
Yeah it’s scary how volatile the used car market is. Anything from the last decade is going to be at least $12k unless it’s has a ridiculous amount of miles on it. And even if you get a decent deal on it, you could just be buying someone else’s problems.
Because the high class has money to invest like if you would give money to a poor he would spend it on necessity like food etc because he don't have access to those things where as a rich person would invest because he already has everything necessary thing he need
@@xxSwaggDaddyxx Yes sir I dont have a tesla but it doesn't mean I envy who have those. I enjoy being a cyclist. as stated on this video 'How Cars keep you poor'
Right now, Tesla cars hardly depreciate. A used one is almost the same as new. There are other factors to consider of course. Like all the safety features only available in a Tesla. It's up to each person to decide if it's worth it for them.
Even for business use, an electric bike with a trailer would make a lot of sense :) Scooter + public transport could be useful as well in some cases, after all, it is more efficient to use rails instead of roads :)
@@neoasura I also live in a place with winter lows in the range of 0 to -10°C. When I have to ride in this, I simply put on a ski jacket, some gloves, and an ear warmer band, then carry on as usual. Never caught a cold in 4 years of year round commuting. Sounds like you need to grow some gonads my friend.
My wife has a garage full of beanie babies too! Where I live you have to have a car, you can't get a job, to medical appointments, to buy food or have any kind of access to any services at all without one. Due to paying for maintaining and fueling it I can't afford a rent deposit to move somewhere with public transport. Cars can literally make you a prisoner if you don't play your cards right.
I bought a 2007 Honda Civic for CDN$6,300 in 2016. Best decision ever. Never had car problems. Never had to worry about breaking it down. To date I have only done regular maintenance done like oil change etc... And every time I look at it, it puts a smile on my face. I’m most content and satisfied with my purchase. Could careless of what others think. This ride never out a dent in my pocket. I’m going to stick to used vehicles and purchase of Honda’s for the foreseeable future.
Wait watt? hold up the phone hold up the phone!!! did they really say that cars depreciate in value?I'm about to end this whole channels career Hold my beer. AHem www.businessinsider.com/1962-ferrari-250-gto-breaks-record-selling-for-484-million-2018-8 www.motoringresearch.com/car-news/geneva-supercars-rocketed-value/ www.caranddriver.com/news/a18742019/shelby-daytona-coupe-auctioned-for-7-25m/ www.barrett-jackson.com/Events/Event/Details/1955-MERCEDES-BENZ-300SL-GULLWING-COUPE-137813 www.barrett-jackson.com/Events/Event/Details/1908-FORD-MODEL-T-TOURING-TIN-LIZZY-178648 www.barrett-jackson.com/Events/Event/Details/1970-DODGE-CHARGER-R/T-HEMI-SPECIAL-EDITION-224490 classics.autotrader.com/classic-cars-for-sale/1967-chevrolet-camaro-for-sale www.autotrader.ca/cars/nissan/skyline/ www.motor1.com/news/301460/mclaren-senna-us-spec-auction/ www.motor1.com/news/139148/most-expensive-mclaren-p1-auction/
@@ernestochang1744 I really hope you are sensible enough to not actually believe that, unless you actually care about earning money on the car years after dying.
@@kagayakiraion5307 its actually true, some cars you cant get anymore from the factory so they skyrocket in value rather then go down, if youre a millionaire this is the best investment you can make in your life, some racing rich guy fanatic can then buy it off you, for like 140% of the original value, and of course because there was a only a limited ammount of cars made, or the car is legendary he/she will pay that ammount
Come to Thailand, people dont know what depreciation is and will try to sell their 10 year old 150k mile junker for as much as they bought it new. Then dummies will buy it on credit. Its ridiculous here.
Do you have tariffs imposed on imported cars? In Ukraine we have it to "stimulate native production" which is almost absent for other reasons (and "to save clean air" although we already have lots of outdated cars on the roads). So the situation is similar except I'm not sure if there are credits on used cars.
I can normally only afford to buy a car when its at least 10 years old and 90% depreciated. But then it has also got to be Japanese because i need total reliability.
@@thenman23 I drive my Chrysler minivans into the ground. On my second. 16 years old now, got another 4 years before i consider getting yet another Chrysler minivan. Other than that, i am with you on Toyota and Honda.
Not if you could be earning more money if you could reach a higher paying job via the car. Cars aren’t just for funzies. They are for utility, especially for poor people who live in an area with high segregation and low quality public transportation. (If you drive downtown and don’t see the blocks flip back and forth over and over between well-maintained and run down, your city is segregated. If you have to rely on busses for everything, and the bus line isn’t run like it is in Curitiba, you have crappy public transportation that is only good for holiday trips, not reliable transportation to work.)
@@jlj5487 If you've got the job offer in writing, then sure. But that isn't exactly a common situation, so it wouldn't be the best advice for the largest amount of people watching. I understand that you have to spend money to make money, but being risk-averse is just human nature. And it's not without reason.
Been my philosophy, my whole life. My most recent car I bought for $700. 2001 Nissan Sentra. Sometimes I have to replace stuff I go to the junkyard but it’s still running.
Dave Ramsey's method is even better for cars. Basically, save up and buy an older, but reliable vehicle with cash (or try the haggle & finance then payoff at 1st bill trick). Next, take the money you would have paid for vehicle payments to start saving up for your next vehicle (NEXT Vehicle Fund), only set aside 25% for maintenance & upkeep. DON'T spend it!!! Bonus points for investing it in a HYS to compound interest on it (I shop around quarterly. Inflationary rate hikes made that fun! 🤑) If it's still decent when you're ready to switch, sell it yourself because dealers will always low ball you. Upgrade when you've got enough saved, it dies or when it becomes too much of an expense keeping up with maintenance. Check out DR's videos for more ideas. Dave's definitely the OG on how to save money and build wealth.
I like the fact that you pointed out the truth that leasing doesn't get you out of paying for depreciation and rather getting you to pay for most of the depreciation. People who like leasing cars often got trapped by the misconception.
Not sure what state you are in, but at least in CA and most other states I'm familiar with, leasing agreement definitely doesn't cover insurance (unless you are talking about those monthly subscription services like the Polestars). Leasing agreement also requires you to have a minimum tire tread level left when the car is returned at the end, so if you do drive the full 30K after 3 years, chances are you will have to replace the tires before returning the car to the manufacturer or pay a penalty. Please pay attention to the fine prints on the back of the agreement. Many manufacturers offer 2 or 3 year free basic services (oil and oil filter changes), but that's same for both financed or leased cars, so that is irrelevant.
@@realemail2459it is situational. In the regular time before Covid and before the wild used car market started, I used to say never do lease buy-outs unless you are forced to (such as having a lot more miles on the car than the lease term allows so you either buy the lease out or pay huge over-mileage penalty, so buying the lease out would make sense there). However, I advised my mom to buy out her leased Civic last year because she got the lease before Covid, then 3 years later the new & used car market went nut. For her case, buying out the lease was way better than her trying to shop her a replacement car.
RUclips taught me how to change the oil, filters, spark plugs, coolant, battery, tires etc. Getting a decent beater car (Honda, toyota, $2k-5k) is 100% worth the experience. My '09 Honda fit was a tad bit shy of $3k
@@KiM-wz9iy driver assist/ self driving tech+ advanced safety features :) but you can find a good portion of that in several 2016-2018 models in the 15k-30k range now. All 2016 and later teslas have hardware to support the full self driving package.
It's simple buy a car new or used.....be rigourous on the maintenance of your vehicle from engine to tires , just follow maintenance schedule and that car will last you a long long time. Plus don't abuse your car either. I've paid off my truck and I feel free now I take my truck for maintenance very often. Take care of your car. In the long run it will save you money.
I love my car. I bought an 03 Hyundai Accent for $1600. It doesn't need a lot of gas, and I don't feel burdened financially. Hands down better than a new car.
Sadly as a mother with a kid, without any help, I need one. For those shopping trips because it would be really hard to go grocery shopping with a toddler in tow by bus.
A car in the US is essential to your employment. It's sad to see some people spending too much on a car they can't afford, and when they repo man comes for it, they lose their job.
Not only in the US. If I take the bus to work I have to walk 5 minutes to the bus stop then 40 minutes in the bus( with people with flue and other nasty shit) and another 10 minute walk. Almost 2 hours travel time. By car it is 20 minutes. By bicycle 30 minutes . Public transport ain't free either.
I live in KY and there's NO public transportation here, true. But in a town with 10k people, it's also small enough to walk across in about 20-30 minutes. I walk downtown (12 blocks, a mile and change) and people act like I've run a marathon. We have a car mindset in the US.
@@milkeywhey2998 why? You can buy a cheap car for cash. We bought or vw for 6k cash, and put 8k towards a 13k Yukon XL that we still owe 4k on but are paying off next month. We do however have a truck we still are paying off. We owe 15k from an 18.5k loan but are paying off it in April. The truck loan has an interest of 2.9% and the Yukon 3.5%. So the life of the loan it's hardly anything. Only reason we are deciding to pay them off so quickly is we are buying a house and when it's built, our mortgage will be high, so to offset, we are getting rid of 500mon payment between the 2 cars. Look, I'm not a money person. 5yrs ago I lived paycheck to paycheck and my credit score was 425, now it's 750 and have 3 cars and about to buy our dream house by honestly following money logic like this. It sucks for the first few years (I'm a car guy) but slowly save your money and put it towards a house.
It's not like most people, especially in rural areas, have a choice.. Without decent public transportation, you won't be able to get to work without a car. Moving is pretty expensive as well and simply getting a new job is not that simple at all. Now imagine your car breaks down after multiple costly repairs..
@@andrewmarasek620 I understand and agree with your point but with interests close to 0% I would buy a land or invest on something that wont lost its value over the years
This is so true. Only thing I would add is that you don't have to get rid of a car after 5 years of ownership! Our cars are pushing 20 years old now and over 200k miles (both bought when over 5 years old for a fraction of new), and we just budget for a couple thou in maintenance each year - way cheaper than buying a newer car. And we also hedge our bets by renting cars for infrequent long trips instead of taking our beaters. For $150-200 for a weekend or $300-400 per week a couple times a year, we get to drive an almost new car for long trips and vacations, and often end up with an upgrade to a luxury car/suv or a convertible.
Yeah, this is how I've felt. Buying new makes more sense when keeping the car 10+ years since you know how well it was maintained. Buying used is on average cheaper, but adds more risk.
Smart. I maintain my own vehicles so maintenance is not a big expense. Saves me thousands. My vehicles are, on average, 18 years old. My newest vehicle out of the six I own is 7 years old.
Goes to show how crazy the used car market has gotten that a 2012 Honda Civic (ie the car that was 5 years old when this video came out and are now 10 years old) are still upwards of $12-15 today, and 2017 Civics are still $20k
I bought a 2016 Civic EX 33,000 miles in 2018 for $15,750. Car payment was $242. Fast forward summer 2022, my wife bought a 2016 Civic LX 90,000 miles for $16,500. Her car payment is $410 (higher interest, but same term)
You didn't mention insurance rates. Most new cars cost more to insure than the older siblings. You didn't mention repair costs (by value). This is a major sticking point for most car shoppers. They don't want to buy used because they are scared of being hit by a lemon. So often, the real advice is more like "buy a car 2.5 to 4 years old". Because you take away some of the fear of driving a clunker, but still get the benefits of lower costs.
Nope. Depends upon the brand you're going for. Getting a used Toyota or Lexus or Honda that's even 10 year old can get you a great deal with better reliability than many brand new cars
@@mrtechstawk Or a Jeep, Chevy, Ford, VW, Hyundai, etc.. The "only buy Japanese" idea hasn't been accurate for over a decade now. You just need to look up the make, model, and year of the vehicle and do some research. Find out what the common complaints are for that specific vehicle. Ignore the brand, it's not relevant anymore. The specific car is what you need to know about.
@@T1Oracle this is not entirely true, but still useful to look up the exact model and year. Because Honda has had some terrible transmission issues in some of their vans and Toyota also has had some issues with early CVT transmissions. I bought a Nissan 4.5 years ago and it’s been a dream, because comparatively for our budget it was the best choice.
Wrong. Insurance rates are set more by your age and type of vehicle. Not so much cost of vehicle. Also a newer vehicle will better safety rating lowering the potential cost of medical bills. This is also taken in to account in your rate.
Car guys don’t buy new cars. They buy enthusiast cars for a good price. Non car guys buy a new car to … impress (?) … other non car guys I guess? Or they buy a new luxury car / SUV because they don’t like driving.
The point of the video wasn't about not buying a car, it was about buying something that's a minimum of 5 years old so you are actually getting your moneys worth instead of buying an asset that's worth 10% less the second you drive it off the lot and paying larger amounts of interest.
Convincing people a purchase that may enable some other activity is an "investment" is one of the great cons of sales tacticians. Depending on what you're buying and what you want to do with it the item might be a "necessary expense" but it's certainly not an "investment".
@@mesonofgibIt is an enabler, which is also an investment. An investment is sth that will (potentially) enable you to make more money or turn a profit, so a car is an investment, an expensive car isn’t.
I personally buy cars that are 2-5 years old, have depreciated already a decent amount, keep them for 3 yrs or so and then sell them. I usually only lose about 1-4 thousand. I then put that money into a another car that’s about 2-5 yrs old again. Helps me keep up with the tech and it depreciates at a much lower rate than buy new all the time or trading in. And I try to sell private, I usually get a little more.
The tech lands up costing you more when it breaks. I have a 2005 Honda Accord hybrid. 110k miles, still drives great. I bought it in 2008 and paid it off in ‘13. Sure, I’d love a backup camera. But as this video mentions, it’s financially not worth it.
That’s great that you have the knowledge to inspect cars and know the auto industry. Most people do not. It’s your knowledge and experience saving you money, not your purchases. That being said, what types of cars do you normally stick to?
I'm curious why you are not mentioning maintenance and repairs. And do you buy everytime 100% good cars? Never had issues with used cars? There is always a risk that car had some weird incident, which can cause you to lose $$$ in repairs. Or are you just selling it and buying another one?
@@arishem555 I've always bought reliable brands and beaten them til death. I had a Mitsubishi Galant years ago and got 180K+ miles out of it. I currently have a 2005 Honda Accord Hybrid and have 110K miles on it. Go for Honda, Toyota, etc, and you'll more than likely get near 200K miles out of it with regular maintenance. No car is maintenance free. But why spend $50K on a car that's going to be worth $22K 5 years later? As the video says, you lose 3 ways: the $28K depreciation, the interest you lost on that $28K when you don't invest in the stock market and the loan you took out to buy the car in the first place.
I drive around in a 20 year old sports car that still looks and handles as fresh as when it rolled of the lot and paid 3 grand for it. It's flashier, lighter, offers the same amount of freedom as a new car and I didn't have to sell my soul to a bank. Plus the rarity, reputation and type of car makes the price only go one way from where it is, up.
Same here, 31 year old sports car I've been restoring and maintaining that's been going up in value, both because it's a sought-after model and because of the work I've put into it. Few modern bells & whistles which is just how I want it.
I drive a 24 year old Miata purchased for $5,700. Aside from registration and insurance, I get by on $20 per week in fuel and a bit of oil once in a while. The common misconception is that old cars might be cheap, but will get you on repair and upkeep. That’s largely nonsense that people tell themselves to feel better about getting fleeced on new. The right old car will definitely save you money over newer, while serving the same function.
@@LateNightCable You just have to maintain it, which takes effort and money, and not everyone is that disciplined. People buy new cars as much out of neglect as out of vanity. But cars have parts and those parts eventually wear out, some sooner and some later and they all have to be replaced eventually. Take car of a well-made car though, and it'll end up costing you far less than continually replacing cars. But, again, not everyone's prepared to do that. Which is why I can't take those "We only make $250k a year and are barely scraping by" types. Spare me.
"How cars keep you poor"
RUclips ad: The all new 2020 Camry!
Haha
Lmao they are talking about chevy and bmw in this video. Buy a toyota and in the future you'll get most of your money back if you sell it
@@jesusgarcia9950 Not the point. You seem to have missed the point
🤣🤣🤣
Get the Cherokee limited. ☠️
It is impossible to find a five year old car that sells for 63% less than its original value. Dealerships are fuckin outrageous and shameless
True, buy private. Dealers are a rip.
Back in 2003 , I bought a 1996 Subaru svx for $7000, original price $30,000. I saved $23000, buy a good car that no body want. There are car out there that are like that, so do your research.
@@rebelusa6585
"Back in 2003" dude it's 2024 on the date, times different now
It's true. They hardly depreciate the value
This video is 6 years old. Things changed dramatically over the last couple of years.
Why do I learn more about finances from youtube than when I was in school?
The american public school system is broken and has been for decades now. Norway for example, teaches students finances beginning in the 3rd grade. American public schools systems on the other hand are like you'll figure out how to do finances the hard way once you get in debt. Good luck...
laxfan727 because the school doesn't teach financial education. They teach students to be slave for money in the future.
Because the far left democrats that have run all the big cities in the USA have
bee dumbing down education for the last 50 years!
Because school was made to make people into skilled laborers with just the right amount of brain power to be another cog in the machine and that's it.
Corporate America needs you to get on that rat wheel. That’s why
2:45 “All pain, no gain” more like “All pain, weight gain”
I’m sorry. 😂
That’s brutal, no need to give m a stroke😂
They should start manufacturing five year old cars.
Now that’s funny 😆
Good job you made me smile
Redesigning costs and a markup price would make it 20% more of the initial cost to buy a 5year old car.
I'm sold. This is a billion dollar idea
@Steve Terry i think id rather buy chinese than american. More reliable
I saved a lot of money on my car insurance by switching to bicycle
"100 minutes a day could save you 100% or more on car insurance." - Bicycle
Car insurance? If you regularly ride a bicycle you save a LOT MORE on medical bills in future than car insurance :)
😆😆😆
I walk
😂👍🏻
Can I think of anything that depreciates as fast...? A smart phone.
@@DagoRuiz HAHA HA Anyways
A marriage
Samsung phones in particular. Don’t know why 🤷🏻♂️
Seriously... I bought the Note 9 for $1,000 and it's already selling for $800 since 1 month ago. Pff.
Definitely but technology in general
USA needs more walkable streets
Surprised more people didn’t mention this. That and buses and bike lanes so people don’t need to own a car.
Getting stabbed, raped, mugged...no thanks
Smartest thing I've ever heard. "If you cant save 300 a month, you can't afford a 300 dollar car payment." I've really never thought like that. Great video!!
If you can't afford to throw a grand away, you can't afford a car AT ALL.
I don't understand people and their incessant desire to enslave themselves.
And the people that buy stupid overpriced cars are the same that don't take care of their house because "they don't have time" and whom won't rent it out because "they like their privacy". Psh, they'll have time to get FORECLOSED ON at a fraction of the home's value and they'll get the privacy of living under a bridge.
@@manictiger lmao you good? I bought a car brand new (2020 toyota corolla) and yes i owe around 300 dollars a month and i don't see myself slaving around nore find the need to do so. Stop making sad assumptions about others lmao. My house is spotless btw and currently renting 2 homes which in one of them i did rent out a room when i used to live there.
@@brianospina4387
3600 bucks a year for a depreciating asset, plus the higher insurance, if it's covered for full value. Good for you.
@@brianospina4387 toyotas are solid though because at least it’ll last you a long time without bullshit maintenance
@@manictiger well there is a portion of society that wants your finances soo much that they will directly and subliminally suggest that you need things. What dosnt help is when the segment of the population these tactics hit or are targeted towards are the undereducated and poor. Thats why this exist. Purposely misleading people why many people appear to enjoy enslaving themselves. Its really not that hard to understand whats going on here really.
You didn't even touch on the cost of insurance.,.
Kevin Korson Or repair (outside of regular maintenance). A 5yr old car in 2020 is going to be a bag of headaches.
And reliability? What is your overall opinion about this video?
In Ireland.....its extortionate 💥
I'm actually glad car insurance is a thing that way whenever I feel like a buying a car I remind myself how much of a scam car insurance is
I got screwed by the insurance of my car, it represents 20% of my spending
Being smart with your money is way cooler than having a hot new ride.
@@ernestochang1744 they mean regular cars. Everyone that knows a little bit about cars knows that cars like the Dodge demon will increase in value because there aren't many of them. They just mean Nissan Versa's, Nissan Altima etcetera.
Nah having a nice ride is fun, you gotta try it once in your life. I bought a 40k sports car and it takes me 1.5 years to pay it off aggressively. Is it a waste of money, sure but is it worth it? Kinda not gonna do it again though
*True!* I was very nearly convinced a few months ago to spend 15k on a really nice second hand BMW but I just kept thinking how often that car is going to break down and how expensive it will be to fix so in the end I just said fuck what everyone else wants me to do and bought an ok car for 3k and stuck the left over 12k back in my pocket
@@gerRule very smart
You can rent a car you want from someone for a week to get your jollies from it then be done with it.
coasteys coasteys yeah I already looked it up and it’s cheap to do
I was in the car market in February 2024, and no 5yr old car depreciated 63%. At MOST it was 25% depreciation, which is what I bought my car at. Did weeks of research so I know that 63% depreciation at 5yrs is CAP.
This video was made pre-pandemic...
Yeah, 6 years ago but the advice still helps
The car market is very weird right now. I bought a new car last year because it was cheaper than buying a used car (3-5 years older) of the same model. Never in my wildest dreams did I picture myself driving a new car, but here we are. I'm hoping this isn't the new normal.
@@TheUnshelteredHomeschooler yeah I saw that too
With the abundance of cheap and modern new cars produced by Chinese manufacturers, there's no need to consider second-hand cars.
bottomline, live within your means and in an appropriate lifestyle
Dave Ramsey tru
Poor mindset
@@arkaddong8675 Poor mindset? Actually that's what most people, who got rich on their own, did. Always, ALWAYS live below or at least within your means. Focus on growing your income + Living below (or within) your means = Long-term Success
@@arkaddong8675 How is that a "poor mindset"? Is it a "poor mindset" to NOT be broke and be financially independent? What a stupid thing to say.
*live below your means
*Dave Ramsey has entered the chat*
"SELL THE CAR"
Jon M. I can hear Dave Ramsey screaming “you’re driving your FREAKING retirement folks!“. 🤣😎
Sell so much the kids think they're next!
You should not look inside a restaurant unless you’re working there.
Graham Stephan > Dave ramsey
Get a bike😏
Tip as someone who sells cars;
(I know this video is old)
When you get your car CASH, Do NOT tell the dealership. Haggle them for the best price and they'll make up on the back end with interest. THEN pay off the car when the first bill comes in. You paid $1-6 in interest and saved some extra cash on the front end of the car, too
KevinAlustrium mhm this is good to know 🤔
Great insight mate!
Good tip, I'll keep this in mind! :)
Never pay your car cash !! Always finance. Now if you have shit credit that’s your problem, always do tt&l as down payment and then pay your loan a year ahead, you save your interest. If you pay cash for your car and something happens like an unsuspected total loss you’re out of your money... always finance with minimum down payment and pay ahead and don’t forget your gap insurance.
@@superpeluso1, you should fully insure the car against total loss even if you paid cash, especially if the car is new and costs more than a few thousands. Not sure how getting a loan will ensure that you're not out of money in case of total loss.
5 tears old car is a saver. But also consider the maintenance cost
Second hand japanese or korean cars - you’re fine!
Need to consider top price dealership maintenance costs to keep warranty valid on shiny new car.
It also completely ignores the fact that after 5 years you pay off the car and use it free for next 5+, while the used car maybe need to be replaced again. New cars have better financing options. Not very well researched video.
@@ArekDevYup! Very pedestrian. I'll trust a car I used from a brand new state and I can use for years vs one from someone I don't know if he was doing drifts every weekend.
Get a well-kept Toyota or a newer Tesla.
As a car enthusiast, a car is a tool for regular people. One of the biggest things they missed is reliability, you’ll save thousands by getting a car that lasts and you’ll save by not having to buy another car, generally stick to reliable brands (Japanese, American, Korean) but also look at the individual brands and models, as some reliable manufacturers can still make a bad car. Use consumer reports to check on reliability, they tend to agree with what I’ve seen firsthand in the real world. Another great thing to check is what common issues the cars that you’re interested in have, how often/likely is it? How much will it cost to fix? Are replacement parts available? Etc. Another very important thing to look at is the condition of the car, even as a wannabe expert I always make sure to have a 3rd party mechanic do an inspection on a car I’m about to buy, even if it is a dealer you should do this, it doesn’t matter how reliable a car if the previous owner ran it into the ground. Lastly if you need an easy choice, just buy a toyota
Cars are happines for me
Toyota or Hondas are always safe and reliable choices for a little daily driver/gas saver, I like old Chevy/Ford trucks too from the 1980s and earlier, easy to work on and lots of aftermarket support
I don't think the brand is that important. It matters but how people care about the car is more important. But I don't think reliability will save a lot of money.
However, choosing a smaller car or a sedan instead of a SUV will. Because it's cheaper to buy, gives you better gas mileage, causes less load on the engine , can have a less powerful engine for the same performance (more reliable and cheaper insurance), has cheaper maintenance and lower repair costs.
Also, some cars hold their value for longer. In New Zealand we recently bought a 2016 Toyota Camry with 132000km. A similar spec Rav4 costs literally twice as much. Camrys aren't popular here so you can find them very cheap. They would usually be owned by older people so they wouldn't be driven as hard. Rav4's are very popular so dealers charge a premium for them. And they both cost nearly the same when new.
Buy a volvo it'll last you lifetime 😂
car guys: i’m gonna pretend like i didn’t see that
Nah it's about new cars. True car guys always buy used
@@hughjassstudios9688 Car legends buy wrecked and fix it themselves
1366 overclocker he’s talking about the models 1 or 2 years old.
Not if you get rich
Nice profile pic
I've managed just fine in the modern world without a car. Nothing against cars, I love to "take the wheel" now and again for fun, but I don't own one. Public transportation and ride share for the J-man. Thanks for wisdom.
Thanks J-Man. I'm surprised you don't have a bicycle, though. Better for the environment, your body, and it's fun too! -- Philip 👨🏻
As a matter of fact, I do have an use a bicycle!
Don't you just teleport all over the place? I mean you can do pretty much anything. Why bother with vehicles at all, unless you are a secret petrolhead... I bet you have a motorcycle... The son of God is definitely a biker.
I found Jesus ! Once again 😁
I drive an 18 wheeler for a living, and I don't own a car.
Been using my bike, getting lots of excersize, staying healthy, and no traffic can halt my route. Savings thousand's every month.
This sounds very similar to "i just stay home. There is no need for cars you can order food to deliver!"
That sounds familiar to "I live alone, I don't have a wife and kids".
I drive 50min to work everyday. Imagine me biking
New infrastructure bill should have sidewalks/bike lanes on any road built/repaved in any urban/suburban area. I worry about you vehicles that don't have bumpers.
Cars shouldnt even exist, change my mind.
Schools: this is too usefull to teach.
They don't teach personal finance and philosophy for a reason. They give you access to very important things, like money (power) and reason.
Noone would be fooled to take out huge student loans for worthless degrees if they taught this
I actually had to watch this for a class
@@ronnieDshman18 What grade?
@@plumpus1634 senior in hs. It was last year
And to everyone who says "5 year old cars aren't reliable," or "the added maintenance costs offset the savings." That is simply not true. Do some research. Read some articles. There are many, many cars that still run perfectly fine 10 years later.
I had a 1999 Honda Civic from 2012 to 2018, until someone ran in to me and totaled it. I had maintenance that had to be done on it, sure. Things had to be replaced over the years, power steering pump, front brake calipers, and some other things, but I never had any serious problem that left me stranded on the side of the road. Compare that to a family member who bought a brand new car in 2013. 4 years later the transmission went out on them during a road trip, leaving them stranded on the side of the road. They had to walk several miles to the nearest gas station to call for help.
The point is:
New ≠ guaranteed reliability
Used ≠ automatic problems
Car problems happen to everyone.
I bought mine for $3,000, they bought theirs for $20,000. Maybe I've had to put more money into maintenance for my car, but nowhere near $17,000 (more like $2,000).Having said all that, making a decision isn't only about the math. They had a nicer, newer car, with leather seats, bluetooth, and other bells and whistles. I had a simple, basic car that got me from point-A to point-B reliably. It was clean and comfortable, and I loved it (RIP).
IF (big IF) you can afford a new car, that's your choice. But don't fool yourself into thinking that you need one when you can't afford one.
You read our minds, Tim! The most common critique we received when this originally aired was the "un-factored cost of maintenance" on used vehicles. Research done by Edmund's showed the average maintenance cost on many commuter cars was a relatively tiny factor from years 3-10 of the car's life. Thanks for jumping in on this one early! -- Philip :)
Good points my one gripe is that the mileage of said car is much more important than its age in years
I still think that not explicitly doing an overview of maintenance costs is a bit disingenuous to the argument. Whether you intended it or not, it feels like cherry picking. If the goal of this is to truly help people, not including relevant variables is not fair. I also find the tone of this video to be a bit too judgemental.
Clutch, that's a fair critique. We did omit the factor of maintenance in our example scenario. However, we also omitted the factor of insurance (much higher with a new vehicle). When both of these add'l factors are added into the mix, we found that the argument against new cars becomes even stronger.
Frankly, the main reason we didn't include every relevant variable is because we aimed to keep the episode under 5 minutes. We'd love to explore the variables you mentioned... plus Electric Vehicles, selling a used car, different makers and their maintenance costs... etc. Alas, maybe on another episode!
-- Philip :)
Most reliable car I've ever owned, barring a couple days when I had to clean the carb out, was a 1984 Subaru. 24 years old so that car has a decade on me. Bought it for under $1500, got fresh tires and a few other repairs, and had the time of my life before I had to sell it a few months ago to go work abroad. Quality is timeless*. *(so long as you can keep it rust free and make sure the mechanical clearances stay to spec)
Many times I bought a 7 year old car and keep it for seven. Back then cars were easier to work on and I did all my own maintenance beyond service. That helped. I have spent less in my whole life with 2 cars than a new top of the line truck. That is a fact.
You are buying with after tax income and if you finance you are giving yourself a triple whammy. No money to move up in assets.
The dealership can't even work on em now! 🤬
New cars are for the filthy rich. I've had my 95 Lexus for the last 7 years and it barely costs a dime to insure and maintain
*or idiots
@@patriciomunoz2830 Or Idiots
Seriously. This video needed to be called "How NEW Cars Keep You poor!" Ramsey screamed about mobile homes, when what he hated was NEW mobile homes. Kind of click baity.
Which model? Looking for a Lexus to replace dumpster fire current car. Not the first time someone said their Lexus has lasted quite a long time, so I’m always curious which models are doing so well
N S Honestly wouldn’t recommend a Lexus if your finances are tight because all Lexus’s have timing belts which are expensive to replace and, if not done in time, will cause the engine to, practically, self destruct. Most 4 cylinder Toyota’s or Honda’s do not have this issue, especially if they were made after the year 2000-2001 when both companies decided to do away with belts in favor of much longer lasting metal chains in their four cylinders. Sorry for the long response but I would hate if anyone found this out the hard way!
Most of people buy new cars just for the status, sadly many people believe that owning a brand new car is a symbol of success.
My friend drives a 1967 Morris Minor.
It might not be symbol of success but it sure is a status symbol
It is a symbol of success..... It measures how much you can spend ... And you can only spend a lot if you're making a lot
@@a.t.1894 Warren Buffet drives a used car.
@@stayathomemarine ..he's not into cars. He tips 100 dollars at restaurants though.
Car enthusiasts: "I know, and I'm getting another one"
Yes🤣
Hell yeah
Yeah, but real enthusiast pay cash.
Car enthusiasts make continual car payments all their lives, completely enslaved to debt.
Car enthusiasts usually prefer used cars as well
Don't like to drive, made my life choices based on no car, managed to finish paying my property early.
Calling it a “Asset” is the first mistake.
I got into an argument with my economics prof at college because he kept insisting that a car was an asset and I flat out told him that anything that does nothing but take money from you from day one and even costs you to get rid of it is NOT an asset. He even said this right after saying assets appreciate in value!
When my car was the only way to get to my very well paying job, I do call it a very valuable asset.
@@kurtdanielson9862 I totally agree. This is especially true in life insurance sales where imagine is a big deal.
1:43...."Calling cars a 'bad investment' is like calling a honey badger a bad heart surgeon"....thats idiom show how nightmare worst was situation...😷😷
@@kurtdanielson9862 Yes but that is a different kind of asset. While it was an asset to have a car it wasn't an asset in the economical sense. Assets gain value over time. Unless you own a 57 Chevy I don't think your car appreciated over time.
The title should just be called "how new cars keep you poor"
a car is a car :0) new or old
You clearly didn't watch the video.
@@amapparatistkwabena ),:
Austin Martín Hernández depends on which old car!
“Buying a new car and buying from a dealer” individual owners can hook you up if you know how to navigate them
50 years later-
How Uber Keeps You Poor
Nashe 😂😂😂
😂😂😂😂😂
If Ride-sharing services end up going the way they are planned to go in the future, they'll save us a lot of money. Too many people will be against it (people who are stuck to the idea of driving and owning their own car), but if the idea that driverless, self-driving cars can be ordered like taxis to take us where we want to go at any time... if that really takes off and people buy into it, we wont need as many driveways and parking lots anymore and less people will need to buy and take care of cars. We'll only have to pay when we need it, and like buses maybe they can give monthly or annual passes or even student and senior discounts. It'll also potentially be a lot cheaper than what we pay for services like Lyft and Uber now. People would only need to drive their own cars for recreation, not to get to work or school. Cant happen until 5G happens though. Also, it'll mostly benefit cities and suburbs.
How self-driving cars make us poor
Bicycles : allow us to introduce ourselves
For many people,cars aren't just things that take you from a to b...they are your best friend that gives you most beautiful memories to keep throughout the life🚘
Damn true bruhhh🥹
Buy a 3 years old Toyota with 60 000 miles, change oils regularly and ride forever.
Scotty Kilmer 🕴
Do you watch that guy?
Yes 🙂
Thanks alot
@@davidjikia9522 he gives good advice but I wouldnt mention him. he is WAY BASIC.
@@rightconditions2010 please elaborate
Sure the depreciation curve is flatter at 5 years... but the maintenance and repair curve starts to drastically increase.
I feel it starts a bit later like 8 years so yeah 4-8 is the place you want to own a car. Although some cars are not expensive to maintain. One that i had had an expensive service after 8 years and from there it could be normal service for many years but yeah the handles started to fail. Here and there.
In 2021 this isn't much of an issue anymore unless you really need your Bluetooth, GPS, and radio just to drive from A to B. A little bit of research you can avoid most issues that would stop a car made in the last 10 years from driving safely. Unless of course, you insist on driving something exotic. Then you're on your own.
This! Old cars are great when you buy them but soon they start to have problems and then you either start funneling money into fixing it PLUS you can't use the car when it's being repaired and then you either have to sell it or to the junk yard it goes when it gets bad enough. With a new car, you don't have those worries for a looong time.
I'd say it's like buying any appliance. You don't buy it for it to make you money.
Yup. But based on these comments, apparently people -have a crystal ball- did a little research and bought a perfectly maintained used car with no problems.
Yeah, most cars start to break down in 5-7 yrs.
I bought used broken cars, I fix em myself then I drive em or even sell em back. Never had to go to a dealership ! Ahhh feels good to be mechanically inclined.
Nicollo Malik Lavelle
It’s a serious blessing, just being able to change your own tires and change your oil will save you a ton
Teach us your way
Doing your own mechanic work is a great skill.to have.
It does depend on where you live though. There are plenty of countries and regions where you're not allowed to just pop the bonnet and start changing your oil (or for that matter do any other maintenance).
Why not just buy 2 electric bikes and weld them together seems cheaper than even repairing a car. also i think if done right we could make all roads have more lains just because the new mode of transportation is so small ruclips.net/video/V6kJOXr3HzA/видео.html
Since when Ryan Gosling started doing youtube
😂
Will Rogers - 'Too many people spend money they haven't earned, to buy things they don't want, to impress people that they don't like.'
I thought Tyler Durden said that?
I guess George Carlin said that
63% depreciation after 5 years ? Ahh the good old days. Try buying a 5 year old car in 2023 and see how much it depreciated.
I immediately went to the comments once I heard that too. Seeing cars in my area still costing way higher percentage even after 10 years. Not to mention the fact that average APR has gone up more than twice since this video SMH...
@@xjunebug1452 it's like that all over the globe. Maybe in places like the UK this depreciation rate still holds true somewhat.
They depreciated for sure in comparison with new cars prices. It held true and will held true in the future, it's a depreciating asset, not an investment.
@@tranceyydefinitely not 63%
Lol, I bought 6 yrs old Mazda 6 for 6750£. Awesome car
I’m so glad my father convinced me not to take an $18,000 car loan for this new SUV I liked. Instead I got a used car with cash and am much better off. These car dealerships are predatory and tried to make me think I could afford a vehicle twice my budget with debt. Not making that mistake again. Student loans are already frustrating enough.
Good for you man. Bought a 2012 F150 with cash so I didnt have a monthly payment. Avoid being in debt if you can.
@@RoggvirTheGreat I've never bought a new car in my 81 year old life......"Let someone else take the beating" as my wife's uncle often said. I currently drive an 88 Pontiac Fiero 5 speed which I paid cash for seven years ago, and had only 20K on it. Now has over 70K trouble free miles.
right on!
Student loans are an American problem. Its clear to me that the goal of the US government is to keep as many people as dumb as possible.
That is why I am staying in Europe, where education is free and the developed rail network makes owing a car obsolete
Its not about money. It's about convenience and flexibility to travel anywhere whenever you want. Also in case of emergency having a personal vehicle is indispensible. You cannot judge everything by monetary gain or loss.
💯
so true
so true
Wasting your time. This is propaganda.
Nope, its a luxury. Did you ever need a car as a kid?
In 2024 no car that is 5 years old is being sold for 63 percent less than it was new . Maybe 20-25 percent . Car prices are ridiculous and have always outpaced what a dollar is actually worth .
you are on point.
Yes, it is like this in Sweden as well and probably the rest of Europe. It is disturbing to pay such a high price for a five year old car in which rust and other signs of misuse has started to shown. I'm beginning to think that I should have taken that car loan/finance a new car in 2018.
You're probably just better off buying a car that's a few years old. I was looking at Traverses and a 2019 one was just a few grand less than a 2022. Might as well get the newer vehicle.
Maybe too much people watched this video.
Idk, here in Romania a car that would sell for 20k new is sold for 7-8k at 5-7 years old and 100-150k kilometers. I'll say for the average Joe that is the best option, still low maintenance, not that much use on the car and a steep discount. Of course, you sould check it for correct milage, accidents, even maintenance if the previous owner can provide that to you, 8k is a lot of money. For me personally, I am a self thought mechanic, I would never spend more than 2k on a car, that's where the best band for the buck is if you don't pay for labor (and probably get ripped of by a service) and know how to source some of the more expensive parts for cheap.
A job requires you to have a car but does not pay you enough to have one
Why do they require a car? Can you just walk or cycle?
Yes. They want you to think it's about freedom. Freedom is living somewhere you can get around without a car.
problem is that the us never learned like the rest of the world so you pretty much need a car since there is no great transportation system in the us (except in big cities etc)
europe is a prime example for freedom, in switzerland (where I live) you can come around without a car because there are trains, buses, trams and so on...
@@anotherprofile7954 Actually, America did know about public transportation but car companies and oil companies bought it and then proceeded to get rid of it so that everyone needed to have a car (or two).
Then they called this dependency on cars "freedom" and the rest is history.
50$ a month for unlimited bus tickets vs. average price of gas per month
Not quite. See NYC rents.
@Austin Martín Hernández You are right, freedom of transportation is a relative concept. Public transport is not freedom as you are dependent on a fixed schedule and the quality of service from the bus/train company. A car means a bit MORE freedom. You are not dependent on a fix schedule. you can drive whenever and wherever you want but it comes at a much higher cost. Plus spending hours in traffic jams, while trains are passing by, its not exactly freedom ( it could be amuzing to see this in car commercials)
Everything keeps me poor. Even breathing. Now I need a mask to breathe in the street.
Hello World I work and get it for free in my job
Hahahahaha bro you got a point
Thank you for the laugh
I kep saying...this world we shall by oxygen one day
$500 dollars for fresh mask, renovation, maintenance, insurance total $5000 and if you call now will give you a special bonus of a kick in the behind! 😂 lol
“We can't afford the life so abortion rised
Can't afford the truth so we told a lie
Can't afford a funeral cause the cost is high
GOD DAMN we can't even afford to die”
-Papoose: Monopoly
Cars is just a way of donating money to corporations(faceless people) just for a moment of comfort while you're driving in it. Where's the comfort when you are out of your car? Financial burdens,driving to workshops for regular maintenance, people around you taking advantage of you and using you as their free chauffeur(even your own wife treats you as a free chauffeur)
This should be titled "How new cars keep you poor."
@@p12jacob
So it should be how all cars keep you poor?
MegaMiir no, old cars are cheaper but will cost still a lot (maintenance, taxes, gasoline etc) so better use the public system (if there is one in you area)
@@anotherprofile7954 OR... start a carpool.
@@MegaMiir It depends on your location really. A car will certainly help you a lot if you live in the middle of nowhere but if you live in a city with good PT and/or amenities within walking distance, it's pretty pointless.
All cars can still keep you poor even the used ones. Depending what you get. I know a couple friends who have Chrysler’s cause they like them even though it’s costing them extra $$$ on maintenance.
When automobiles first came out, only the rich drove one and the poor rode the horses. Now, only the rich ride the horses and the poor drive the cars.
No rich people still have cars wtf
@@amasad4915 why so serious?
False! Rich ride the poor.
@@jbrown8601 lol
I'm poor and I don't even have a car 😢
Owning a car is like supporting another person who has to have steak every night.
Unless you own a 99 civic. Costs me near nothing and the manual trans gets me 45-50 per gallon
It's also supporting animal abuse, that "steak"
Weler Martins indeed
@@weler2491 Not sure if slaughter can be encapsulated in abuse.
@@DamianSzajnowski With this way of thinking that you have, i would never let you be close to my children.
I only buy cheap cars, but man does it beat biking in dreadful weather. Totally worth the cost.
Lol depreciation doesn’t exist if u drive a 96 Toyota Tacoma
Or first gen Acura NSX
Or a 80s BMW
Gotta ask for the water pump gasket and get them to explain what it looks like to you 😂😂
2011 Volvo bought in 2012. I bought an extended warranty, that did not cover me one month over. The mileage was within range. But I past the 36 month warranty, shy of a month. My best experienced was leasing in my twenties and thirties. Depends no on age and where you are stationed in life, at any given time. Pick a cost effective way of managing your monies.🤔☑️
My scat pack value is going up due to this pandemic.
For some reason my mum feel I need to buy a $40K car when my $20K car works just the way I want.
Don't listen to her.
Ask her to pay for it and watch her change her tune
what a stupid mutha
Your MUM's an idiot! sorry....
Don’t buy a car if you already have a perfectly healthy vehicle. Buying a Car is like a furniture investment but only worse.
As Scotty Kilmer rightly said Luxury cars are endless money pit
I subscribed him just now 👍
Unless it's a Lexus. Lol 😂🤣😂🤣😂🤣
@@djbhe toyotas in general. As real car reviews said when people ask 'what new car should I buy': "if you're only goal is to get to point A to point B get a Carola or Camry. They're not flashy but they get the job done & they do it reliably but nobody wants to listen"
Scotty fan here too.
@@Perceptence I mean if you're swimming in money then this video can be disregarded lol
Brilliant!! I was fortunate to have an aunt who, when I was a young boy, remarked to me that the difference between wealth and poverty is interest. She explained to me in short order the difference in paying interest and earning interest and it is stunning.
Great video!!
Happiness with a “new car” only last as much as the “new car smell”.
It’s a Blessing that becomes a curse.
Funny people
I bought my car new and don't regret it but I definitely don't think I'd do it again. I feel like you have to do it once in a lifetime just to get that new car smell lol
cooper I actually agree with you on that
@@cybersamiches4028 You look like a blessed curse...
Therefore, you should get a new car every 2 years or so and you'll be happy forever! 🤣
Cars are expensive in the US.
Me in Singapore: ***Laughs coldly***
Hahahahaha, laughs from Malaysia,
At least you guys have alternatives to driving.
Cars aren't even close to be expensive in the US, they're cheap as hell. 🌚
Singapore public transit is amazing though, and Ubers are super cheap. Singapore is also very walkable/bikable. In most of the US, getting around without a car is impossible. I honestly would prefer US becomes more like Singapore
@@syawkcab Limitations forces creativity. Similar situation in Japanese cities, South Korean cities, and USA East Coast cities (especially Manhattan, New York).
Only one thing to add, while buying a car with cash sounds like a good idea to avoid any interest from a payment plan, a lot of dealerships will actually charge you more if you pay in cash because they know they'll be missing out on their percentage of the interest that you pay the loan company. Usually the best thing to do is to agree to a payment plan (make sure there is no clause that penalizes you for paying it off early!) and then just immediately pay the car off.
That's no how car dealer works, they will still charge you just coz you wish to pay more for the loan.
The problem is banks are wise to that. In India, for example, pre-payments on car loans are not possible in Year 1 under the loan terms.
@@kunalsen2123 yea that's how banks make money.
@@GazzaDazzletell them you want to finance for 6 years and you will likely get a lower out the door price but higher interest rate. When the first payment comes, pay it off. That’s the best way to buy a car.
@@byronlocklear91 they will still charge u extra from the interest, even if u pay it off at once.
1:45 we need cars, this video is all about buyung new car you can't afford, how about getting yourself a SH car and enjoy the benefits and utility a car offers?
If you think drugs are expensive, wait until you get a girlfriend and buy a car.
But what is my gf is the one who finance me? Modern Problems require modern solutions 😁
@@robertweide5783 It means you're her bitch. Stings doesn't it?
@@robertweide5783 same my Gf paid my rent for 7 months
Gfs are expensive af!
Just buy a used car lmao
I didn't know Ryan Goslin had a RUclips channel, but how refreshing. Subbed
Raúl Goslin
Reynaldo Goslinguez you mean?? Mexican version 😁
Ramén Goslin
Ryan Gosling and Rachel McAdams
Ah yes. Refreshing like a nice gulp of gasoline!
I bought a 4 year old car at 60% from the new car price that had only 1 previous owner (old lady) and just under 9000 miles on the clock! Was like brand new as she kept in her garage. Had it for over 7 years before selling with no major repair - just normal car repairs, the odd tyre pop, new brake pads etc. You can find plenty of used cars 4-5 years old at massive discount just like new. I saved $16k by buying second hand that just looked as good as new. Invested that $16k in my mutual funds (averaged over 12%/year for last 7 years) so compounded that $16k saving has grown to about $37k ! Now I will keep the $37k invested and just take off $15k out for my next car and keep rest invested. Do this and each car is free and will be free for rest of life while rest of money continues to grow!
Interesting
Why not put the 15k in anotger mutual fund to prevent you from losing it all.
You should take those $37k out of the stock market for the next 2 years if you don’t want it to flash crash to $17k with the next recession, that’d be super depressing.
@@DaybreakPT Well he said "mutual funds" didn't say he was trading directly in the market, maybe his funds are conservative and have more bonds than stocks.
@@DaybreakPT
Instead of wasting time trying to get a degree and job building someone else's business, I went into stock trading. We're not just immune to a market crash; we thrive in it.
Volatility is good for traders. I want that 5%+ movement every day, because, of that, I can maybe only grab 3%+. In both directions, that's 10%+ and 6%+.
Trying to predict the distant future is an excercise in futility. I just keep it tactical. When the stock turns bullish, so do I. When it's bearish, so am I. I short it one day, buy long the next and sometimes, I'm just sitting there, waiting, like a sniper waiting for ROE confirmation.
Good afternoon, Michael here from Nigeria 🇳🇬, just came across your channel & I am hooked!
Your videos are so well presented in a lucid, easy to understand way, coupled with great animations.
What a fun filled way to learn financial intelligence!
Kudos to you both
King 👑 & Queen 👑
For the first time, since the dawn of RUclips, the algorithm has finally recommended me a video I actually needed to watch.
just buy a used toyota in good shape and keep watching scotty kilmer
Wait watt? hold up the phone hold up the phone!!! did they really say that cars depreciate in value?I'm about to end this whole channels career Hold my beer. AHem
www.businessinsider.com/1962-ferrari-250-gto-breaks-record-selling-for-484-million-2018-8
www.motoringresearch.com/car-news/geneva-supercars-rocketed-value/
www.caranddriver.com/news/a18742019/shelby-daytona-coupe-auctioned-for-7-25m/
www.barrett-jackson.com/Events/Event/Details/1955-MERCEDES-BENZ-300SL-GULLWING-COUPE-137813
www.barrett-jackson.com/Events/Event/Details/1908-FORD-MODEL-T-TOURING-TIN-LIZZY-178648
www.barrett-jackson.com/Events/Event/Details/1970-DODGE-CHARGER-R/T-HEMI-SPECIAL-EDITION-224490
classics.autotrader.com/classic-cars-for-sale/1967-chevrolet-camaro-for-sale
www.autotrader.ca/cars/nissan/skyline/
www.motor1.com/news/301460/mclaren-senna-us-spec-auction/
www.motor1.com/news/139148/most-expensive-mclaren-p1-auction/
@@ernestochang1744 AHAHAHHAHA
Lol
Buy a Toyota lol
You speak truth
The only issue is that used cars are hella expensive right now
so is everything else
Yeah it’s scary how volatile the used car market is. Anything from the last decade is going to be at least $12k unless it’s has a ridiculous amount of miles on it. And even if you get a decent deal on it, you could just be buying someone else’s problems.
That's why you dont buy one till the craziness goes down
Use a bike or take public transportation
@@petethemeatmeat6634 not everywhere has good public transport and not everyone conveniently as their work a 10 minute bike ride away from their house
That's why at my country, people bought around 130.000 new cars last year, while the second hand market was 3 times that.
Just buy a 94 Celica. Problem solved!
Ahmad Mohamad epic. Scotty ftw.
Rev up your engines......
Scotty jokes love it
I love scotty
Toyotas rule. Scotty is weird.
Low Class,, Spend
Middle Class,, Manage
High Class,, Invest
100% true
@Z Rus like that profile pic.
And the comment too.
Currently the middle class is spending as much
🤫🤯
Because the high class has money to invest like if you would give money to a poor he would spend it on necessity like food etc because he don't have access to those things where as a rich person would invest because he already has everything necessary thing he need
The way you explained depreciation was awsome.
I watch this every time I want to go out and buy a Tesla. Can’t resist much longer!
Bree Price sounds like something someone without a tesla would say.
tesla may depreciate much faster, just think like a smartphone. Technologies change a lot faster.
Paul Cuezon its a car. Who buys a car thinking it wont deprecate. Probably someone who doesnt have a tesla.
@@xxSwaggDaddyxx Yes sir I dont have a tesla but it doesn't mean I envy who have those. I enjoy being a cyclist. as stated on this video 'How Cars keep you poor'
Right now, Tesla cars hardly depreciate. A used one is almost the same as new. There are other factors to consider of course. Like all the safety features only available in a Tesla. It's up to each person to decide if it's worth it for them.
We all need to have an appreciation for depreciation.
I bet you're the type that hands out sugar free candy in Halloween.
@@GoldenSpike300 or bags of broccoli
Ha... I see what you did there.😁
I do not appreciate your depreciation remark.
GOLDENSPIKE3000 HAHA I KNOW RIGHT HE DOESNT LIKE LOSING MONEY WHAT A SQUARE AHAHAHAHA JUST GET SOME GUCCI BAGS AND SUPREME $500 TSHIRTS LIKE WTF LMAO
You convinced me I'm selling my car and getting a bicycle with a trailer. Incredible fat loss journey here I come
Even for business use, an electric bike with a trailer would make a lot of sense :)
Scooter + public transport could be useful as well in some cases, after all, it is more efficient to use rails instead of roads :)
This seriously works. I have been bicycle commuting for years.
@@TheBryce98 You obviously don't live in a cold climate, good luck riding a bicycle to work in northern Michigan during the winter.
@@TheBryce98 i aslo using bicycle for commuting its my 3rd bike
Last two was stolen 😭
@@neoasura I also live in a place with winter lows in the range of 0 to -10°C. When I have to ride in this, I simply put on a ski jacket, some gloves, and an ear warmer band, then carry on as usual. Never caught a cold in 4 years of year round commuting. Sounds like you need to grow some gonads my friend.
My wife has a garage full of beanie babies too! Where I live you have to have a car, you can't get a job, to medical appointments, to buy food or have any kind of access to any services at all without one. Due to paying for maintaining and fueling it I can't afford a rent deposit to move somewhere with public transport. Cars can literally make you a prisoner if you don't play your cards right.
Blonde up that man and we have a poor man's Ryan Gosling.
Norman P. I taught about that too xd
just looking at the thumbnail, i thought that it could be ryan.
Budget Ryan Gosling.
I clicked on the video to see if anyone mentioned his resemblance already lol
@Srdjan Kos ...Ba-HAAAAAAAAA....!!!!!!!!
Some people just love cars. They don’t care if they lose money.
it depends, i always go for used cars and sell after 2-3 years of use.
It’s mental poverty
Najo Yola W
@@najoyola298 It's a passion*
@@najoyola298 it's called hobby buddy
I bought a 2007 Honda Civic for CDN$6,300 in 2016. Best decision ever. Never had car problems. Never had to worry about breaking it down. To date I have only done regular maintenance done like oil change etc... And every time I look at it, it puts a smile on my face. I’m most content and satisfied with my purchase. Could careless of what others think. This ride never out a dent in my pocket. I’m going to stick to used vehicles and purchase of Honda’s for the foreseeable future.
i used have a honda as well. those cars are very reliable and easy to maintain
My 12 yr old Honda made the same sounds as my brand new jeep. I miss my Honda & his gas mileage. 😭
I had three Hondas in my life and the resale is great in any environment.
Same here. The my japanese box allowed me to make a downpayment for a home. Reliable and cheap.
@@LacieWhy Many call their Hondas boring and when they sell it, they miss it :)
Yeah i learned so much buying my first new car. My mom was so proud but i am very disappointed with my decision
I just discovered this channel like 3 videos ago and this channel is already my best...where have you been all my life?😭
For real. Now in my late 30s like wtf lol
Wait watt? hold up the phone hold up the phone!!! did they really say that cars depreciate in value?I'm about to end this whole channels career Hold my beer. AHem
www.businessinsider.com/1962-ferrari-250-gto-breaks-record-selling-for-484-million-2018-8
www.motoringresearch.com/car-news/geneva-supercars-rocketed-value/
www.caranddriver.com/news/a18742019/shelby-daytona-coupe-auctioned-for-7-25m/
www.barrett-jackson.com/Events/Event/Details/1955-MERCEDES-BENZ-300SL-GULLWING-COUPE-137813
www.barrett-jackson.com/Events/Event/Details/1908-FORD-MODEL-T-TOURING-TIN-LIZZY-178648
www.barrett-jackson.com/Events/Event/Details/1970-DODGE-CHARGER-R/T-HEMI-SPECIAL-EDITION-224490
classics.autotrader.com/classic-cars-for-sale/1967-chevrolet-camaro-for-sale
www.autotrader.ca/cars/nissan/skyline/
www.motor1.com/news/301460/mclaren-senna-us-spec-auction/
www.motor1.com/news/139148/most-expensive-mclaren-p1-auction/
I like their Partnership
@@ernestochang1744 I really hope you are sensible enough to not actually believe that, unless you actually care about earning money on the car years after dying.
@@kagayakiraion5307 its actually true, some cars you cant get anymore from the factory so they skyrocket in value rather then go down, if youre a millionaire this is the best investment you can make in your life, some racing rich guy fanatic can then buy it off you, for like 140% of the original value, and of course because there was a only a limited ammount of cars made, or the car is legendary he/she will pay that ammount
Come to Thailand, people dont know what depreciation is and will try to sell their 10 year old 150k mile junker for as much as they bought it new. Then dummies will buy it on credit. Its ridiculous here.
Do you have tariffs imposed on imported cars? In Ukraine we have it to "stimulate native production" which is almost absent for other reasons (and "to save clean air" although we already have lots of outdated cars on the roads). So the situation is similar except I'm not sure if there are credits on used cars.
@Álvaro de Bazán Is it? Thanks. Just practicing it as much as I can.
150,000 kilometer miles? Lol
When you say k at end of number it means thousands duh
@@fiarusgaming3420 K means thousand, not km.
I can normally only afford to buy a car when its at least 10 years old and 90% depreciated.
But then it has also got to be Japanese because i need total reliability.
basically. i wont even look at car thats not a toyota or honda anymore.
@@thenman23 I drive my Chrysler minivans into the ground. On my second. 16 years old now, got another 4 years before i consider getting yet another Chrysler minivan. Other than that, i am with you on Toyota and Honda.
I have a toyota 👅🔥
japanease old car are the best
@@BarakAvinoam italian cars are the best
My 1969 Bettle runs great. Payed off long time ago, and if anything is appreciating!
And that's even without mentioning insurance
Taxes and fuel too
I pay $4400 a year on insurance and roughly $3120 a year on fuel :D
Oh and my car payment is $700/month LOL
Sleepy Dan what car
@@TheWalamala 2017 Mustang EcoBoost Premium
Your tip of comfortably saving your car payment every month as a gauge of if you can afford the car or not is a FANTASTIC rule of thumb.
Not if you could be earning more money if you could reach a higher paying job via the car.
Cars aren’t just for funzies. They are for utility, especially for poor people who live in an area with high segregation and low quality public transportation.
(If you drive downtown and don’t see the blocks flip back and forth over and over between well-maintained and run down, your city is segregated. If you have to rely on busses for everything, and the bus line isn’t run like it is in Curitiba, you have crappy public transportation that is only good for holiday trips, not reliable transportation to work.)
@@jlj5487
If you've got the job offer in writing, then sure. But that isn't exactly a common situation, so it wouldn't be the best advice for the largest amount of people watching.
I understand that you have to spend money to make money, but being risk-averse is just human nature. And it's not without reason.
so what your saying is that since im saving over 2k a month that i CAN afford that 2013 Ferrari FF? maintenance included. :)
LancesArmorStriking
You can’t go searching for a job if you have no way to get to the interview. So your suggestion is to starve?
JL J you might be a dipshit - definitely double check with your doctor.
Been my philosophy, my whole life. My most recent car I bought for $700. 2001 Nissan Sentra. Sometimes I have to replace stuff I go to the junkyard but it’s still running.
Do you work on it yourself? And in 2024 where do you find cars for $700? Thanks
Dave Ramsey's method is even better for cars. Basically, save up and buy an older, but reliable vehicle with cash (or try the haggle & finance then payoff at 1st bill trick). Next, take the money you would have paid for vehicle payments to start saving up for your next vehicle (NEXT Vehicle Fund), only set aside 25% for maintenance & upkeep. DON'T spend it!!! Bonus points for investing it in a HYS to compound interest on it (I shop around quarterly. Inflationary rate hikes made that fun! 🤑) If it's still decent when you're ready to switch, sell it yourself because dealers will always low ball you. Upgrade when you've got enough saved, it dies or when it becomes too much of an expense keeping up with maintenance.
Check out DR's videos for more ideas. Dave's definitely the OG on how to save money and build wealth.
I like the fact that you pointed out the truth that leasing doesn't get you out of paying for depreciation and rather getting you to pay for most of the depreciation. People who like leasing cars often got trapped by the misconception.
Used leasing cars are usually driven more and harder than personally owned cars.
Leasing is also covering insurance, service and tire changes in some places so at the end is not a bad deal to be headache free from all these things.
Not sure what state you are in, but at least in CA and most other states I'm familiar with, leasing agreement definitely doesn't cover insurance (unless you are talking about those monthly subscription services like the Polestars). Leasing agreement also requires you to have a minimum tire tread level left when the car is returned at the end, so if you do drive the full 30K after 3 years, chances are you will have to replace the tires before returning the car to the manufacturer or pay a penalty. Please pay attention to the fine prints on the back of the agreement. Many manufacturers offer 2 or 3 year free basic services (oil and oil filter changes), but that's same for both financed or leased cars, so that is irrelevant.
What are your thoughts on lease buy-outs?
@@realemail2459it is situational. In the regular time before Covid and before the wild used car market started, I used to say never do lease buy-outs unless you are forced to (such as having a lot more miles on the car than the lease term allows so you either buy the lease out or pay huge over-mileage penalty, so buying the lease out would make sense there). However, I advised my mom to buy out her leased Civic last year because she got the lease before Covid, then 3 years later the new & used car market went nut. For her case, buying out the lease was way better than her trying to shop her a replacement car.
My solution: Just buy a used car for like 4k and get it fixed up. You'll save so much.
That’s what I did. And I paid like $1200 for it. 5 years later it’s still running
@@miguelrobb5719 Just got myself a 94 honda accord for 2k and it runs like a gem.
RUclips taught me how to change the oil, filters, spark plugs, coolant, battery, tires etc. Getting a decent beater car (Honda, toyota, $2k-5k) is 100% worth the experience. My '09 Honda fit was a tad bit shy of $3k
So what are new cars made for if we all buy old cars?
@@KiM-wz9iy driver assist/ self driving tech+ advanced safety features :) but you can find a good portion of that in several 2016-2018 models in the 15k-30k range now. All 2016 and later teslas have hardware to support the full self driving package.
It's simple buy a car new or used.....be rigourous on the maintenance of your vehicle from engine to tires , just follow maintenance schedule and that car will last you a long long time. Plus don't abuse your car either.
I've paid off my truck and I feel free now I take my truck for maintenance very often.
Take care of your car. In the long run it will save you money.
I love my car. I bought an 03 Hyundai Accent for $1600. It doesn't need a lot of gas, and I don't feel burdened financially. Hands down better than a new car.
Look after the car and the car looks after you how very true. My vw has 400k kms on the clock going strong 😂
This is the ultimate advice I was looking for🎉🎉🎉🎉🎉
Sadly as a mother with a kid, without any help, I need one. For those shopping trips because it would be really hard to go grocery shopping with a toddler in tow by bus.
Try living without a car in United States. Especially in cities like LA, Dallas and rural areas.
A car in the US is essential to your employment. It's sad to see some people spending too much on a car they can't afford, and when they repo man comes for it, they lose their job.
they said nothing about not owning a car. they advise a recently used car.
Not only in the US. If I take the bus to work I have to walk 5 minutes to the bus stop then 40 minutes in the bus( with people with flue and other nasty shit) and another 10 minute walk. Almost 2 hours travel time. By car it is 20 minutes. By bicycle 30 minutes . Public transport ain't free either.
Bro that's nothing try living with out a car in Wyoming, Alaska, or other nobody states you need a car in good, condition all the time and every day.
I live in KY and there's NO public transportation here, true. But in a town with 10k people, it's also small enough to walk across in about 20-30 minutes. I walk downtown (12 blocks, a mile and change) and people act like I've run a marathon. We have a car mindset in the US.
*Never buy a car if you can't afford to buy it cash. Period.*
You wish
Bought my with cash and hey I'm still poor.
@@milkeywhey2998 why? You can buy a cheap car for cash. We bought or vw for 6k cash, and put 8k towards a 13k Yukon XL that we still owe 4k on but are paying off next month. We do however have a truck we still are paying off. We owe 15k from an 18.5k loan but are paying off it in April. The truck loan has an interest of 2.9% and the Yukon 3.5%. So the life of the loan it's hardly anything. Only reason we are deciding to pay them off so quickly is we are buying a house and when it's built, our mortgage will be high, so to offset, we are getting rid of 500mon payment between the 2 cars. Look, I'm not a money person. 5yrs ago I lived paycheck to paycheck and my credit score was 425, now it's 750 and have 3 cars and about to buy our dream house by honestly following money logic like this. It sucks for the first few years (I'm a car guy) but slowly save your money and put it towards a house.
It's not like most people, especially in rural areas, have a choice.. Without decent public transportation, you won't be able to get to work without a car. Moving is pretty expensive as well and simply getting a new job is not that simple at all. Now imagine your car breaks down after multiple costly repairs..
@@andrewmarasek620 I understand and agree with your point but with interests close to 0% I would buy a land or invest on something that wont lost its value over the years
This is so true. Only thing I would add is that you don't have to get rid of a car after 5 years of ownership! Our cars are pushing 20 years old now and over 200k miles (both bought when over 5 years old for a fraction of new), and we just budget for a couple thou in maintenance each year - way cheaper than buying a newer car. And we also hedge our bets by renting cars for infrequent long trips instead of taking our beaters. For $150-200 for a weekend or $300-400 per week a couple times a year, we get to drive an almost new car for long trips and vacations, and often end up with an upgrade to a luxury car/suv or a convertible.
Yeah, this is how I've felt. Buying new makes more sense when keeping the car 10+ years since you know how well it was maintained. Buying used is on average cheaper, but adds more risk.
Smart. I maintain my own vehicles so maintenance is not a big expense.
Saves me thousands. My vehicles are, on average, 18 years old. My newest vehicle out of the six I own is 7 years old.
I used to rent for long trips often tossing 7/10,000 miles on a rental in 2/3 weeks. Back then cars were $20/25 bucks a day it was a no brainer.
Dont be cheap!
Im glad i brought a 12 year old corolla for $10k cash, Low maintenance No interest and already mostly depreciated.
Goes to show how crazy the used car market has gotten that a 2012 Honda Civic (ie the car that was 5 years old when this video came out and are now 10 years old) are still upwards of $12-15 today, and 2017 Civics are still $20k
Agreed....horrible example
Thats the aftermath of covid. The upcoming recession will bring the used market back to its natural state.
Yup thx to the x demic I get to prove cars can for once appreciate
Exactly. Chip shortages... such a weird period for the car market.
I bought a 2016 Civic EX 33,000 miles in 2018 for $15,750. Car payment was $242. Fast forward summer 2022, my wife bought a 2016 Civic LX 90,000 miles for $16,500. Her car payment is $410 (higher interest, but same term)
Me after watching the video: a'ight time to rebuild the rotary engine in my rx7 for the 8th time.
RX 8th? 😂😉
@@russellshaw8479 lol 😂😂
you are way smart
Man, I loved my '87 RX-7 back in the day....
You didn't mention insurance rates. Most new cars cost more to insure than the older siblings.
You didn't mention repair costs (by value). This is a major sticking point for most car shoppers. They don't want to buy used because they are scared of being hit by a lemon.
So often, the real advice is more like "buy a car 2.5 to 4 years old". Because you take away some of the fear of driving a clunker, but still get the benefits of lower costs.
Nope. Depends upon the brand you're going for. Getting a used Toyota or Lexus or Honda that's even 10 year old can get you a great deal with better reliability than many brand new cars
@@mrtechstawk Or a Jeep, Chevy, Ford, VW, Hyundai, etc.. The "only buy Japanese" idea hasn't been accurate for over a decade now. You just need to look up the make, model, and year of the vehicle and do some research. Find out what the common complaints are for that specific vehicle. Ignore the brand, it's not relevant anymore. The specific car is what you need to know about.
@@T1Oracle this is not entirely true, but still useful to look up the exact model and year. Because Honda has had some terrible transmission issues in some of their vans and Toyota also has had some issues with early CVT transmissions. I bought a Nissan 4.5 years ago and it’s been a dream, because comparatively for our budget it was the best choice.
@@e.h.8936 what Nissan did u buy daddy?
Wrong. Insurance rates are set more by your age and type of vehicle. Not so much cost of vehicle. Also a newer vehicle will better safety rating lowering the potential cost of medical bills. This is also taken in to account in your rate.
"We dangle a carrot in front of the horse, and it constantly chases after it, always thinking, Tomorrow will be the day I eat that carrot."
So this is how Non-Car Guys see Cars.
Not really non car guys see cars as status symbols or as symbols that you have made it in life car guys know used cars a lot more bang for the buck
For us car guys to take advantage, it is important that people keep buying new cars 😁😁
Strange isn't it. Imagine living your life not liking cars. I don't get it.
Car guys don’t buy new cars. They buy enthusiast cars for a good price. Non car guys buy a new car to … impress (?) … other non car guys I guess? Or they buy a new luxury car / SUV because they don’t like driving.
@@RustOnWheels Correct
A vehicle is an investment in the sense that having private transportation opens up a lot of different job oportunities.
The point of the video wasn't about not buying a car, it was about buying something that's a minimum of 5 years old so you are actually getting your moneys worth instead of buying an asset that's worth 10% less the second you drive it off the lot and paying larger amounts of interest.
Convincing people a purchase that may enable some other activity is an "investment" is one of the great cons of sales tacticians.
Depending on what you're buying and what you want to do with it the item might be a "necessary expense" but it's certainly not an "investment".
@@mesonofgibhow is it not an investment when it's providing you the mean to so many more money making opportunities as opposed to not having one
@@dailyactivities2610 Because that's not what "investment" means; an investment is something that will appreciate in value.
@@mesonofgibIt is an enabler, which is also an investment. An investment is sth that will (potentially) enable you to make more money or turn a profit, so a car is an investment, an expensive car isn’t.
I personally buy cars that are 2-5 years old, have depreciated already a decent amount, keep them for 3 yrs or so and then sell them. I usually only lose about 1-4 thousand. I then put that money into a another car that’s about 2-5 yrs old again. Helps me keep up with the tech and it depreciates at a much lower rate than buy new all the time or trading in. And I try to sell private, I usually get a little more.
The tech lands up costing you more when it breaks. I have a 2005 Honda Accord hybrid. 110k miles, still drives great. I bought it in 2008 and paid it off in ‘13. Sure, I’d love a backup camera. But as this video mentions, it’s financially not worth it.
That’s great that you have the knowledge to inspect cars and know the auto industry. Most people do not. It’s your knowledge and experience saving you money, not your purchases. That being said, what types of cars do you normally stick to?
I'm curious why you are not mentioning maintenance and repairs. And do you buy everytime 100% good cars? Never had issues with used cars? There is always a risk that car had some weird incident, which can cause you to lose $$$ in repairs. Or are you just selling it and buying another one?
@@arishem555
I've always bought reliable brands and beaten them til death. I had a Mitsubishi Galant years ago and got 180K+ miles out of it. I currently have a 2005 Honda Accord Hybrid and have 110K miles on it. Go for Honda, Toyota, etc, and you'll more than likely get near 200K miles out of it with regular maintenance. No car is maintenance free. But why spend $50K on a car that's going to be worth $22K 5 years later? As the video says, you lose 3 ways: the $28K depreciation, the interest you lost on that $28K when you don't invest in the stock market and the loan you took out to buy the car in the first place.
@@dontbanmebrodontbanme5403 I agree, - use car while it lasts. I decided to try myself with "tesla marketing". let's see where it will lead me.
the maths get more complicated when you need to take your family on a vacation during high seasons...
I drive around in a 20 year old sports car that still looks and handles as fresh as when it rolled of the lot and paid 3 grand for it. It's flashier, lighter, offers the same amount of freedom as a new car and I didn't have to sell my soul to a bank. Plus the rarity, reputation and type of car makes the price only go one way from where it is, up.
Same here, 31 year old sports car I've been restoring and maintaining that's been going up in value, both because it's a sought-after model and because of the work I've put into it. Few modern bells & whistles which is just how I want it.
Japanese?
@@vaselineeater2790 Yeah, it's an MR2 spyder (picture of it on my channel banner). Unless you're asking whether I'm Japanese, which is a no.
I drive a 24 year old Miata purchased for $5,700. Aside from registration and insurance, I get by on $20 per week in fuel and a bit of oil once in a while. The common misconception is that old cars might be cheap, but will get you on repair and upkeep.
That’s largely nonsense that people tell themselves to feel better about getting fleeced on new. The right old car will definitely save you money over newer, while serving the same function.
@@LateNightCable You just have to maintain it, which takes effort and money, and not everyone is that disciplined. People buy new cars as much out of neglect as out of vanity. But cars have parts and those parts eventually wear out, some sooner and some later and they all have to be replaced eventually. Take car of a well-made car though, and it'll end up costing you far less than continually replacing cars. But, again, not everyone's prepared to do that. Which is why I can't take those "We only make $250k a year and are barely scraping by" types. Spare me.