How Cars Keep You POOR!
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- Опубликовано: 30 сен 2018
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Cars have become an integral part of American society. While it can feel like buying a new car is granting you new freedom, buying a new car is more likely to take away your freedom and security.
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Two Cents was created by Katie Graham, Andrew Matthews, Philip Olson CFP® and Julia Lorenz-Olson and is brought to you by PBS Digital Studios. We love dropping some knowledge on all things personal finance and helping you make better money decisions.
Two Cents is hosted by Philip Olson, CFP® and Julia Lorenz-Olson
Directors: Katie Graham & Andrew Matthews
Written by: Andrew Matthews & Julia Lorenz-Olson
Produced by: Katie Graham & Amanda Fox
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SOURCES:
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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.
...Your comment
@@lifepresent3183 ... Your rebuttal.
@@DagoRuiz HAHA HA Anyways
A marriage
Samsung phones in particular. Don’t know why 🤷🏻♂️
I live in Los Angeles. I went on a date with a guy 5 years ago who works at a big car company (I forgot the company's name). He's a lobbyist and basically bribes the government into making all American infrastructure highways and streets so you're basically forced to buy a car. I'm 33 and I hate driving. It puts me on edge, makes me tired, and irritable. Even at 16 l dreaded getting my license. I'm working on getting a remote job so l never have to drive anywhere ever again.
Great video! Very informative.
I hate driving too! It’s horrible and only getting worse. My car just broke down and I don’t think I’m going to replace it. Hope you find a great WFH job!
Public transport, walkable roads should be an option, I see so many people forced to drive even when they don't care about driving (which I understand) driving should be a choice not a forced chore
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)
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
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 debt. Good luck...
laxfan727 because the school doesn't teach financial education. They teach students to be slave for money in the future.
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
School brainwashes you to fail life financially or to be a slave forvever at least
4 years ago this was excellent advice, but with the price of used cars being nearly the same as new it just doesnt pay off to sacrifice the warranty. Also, part of that depreciation is the miles put on the car. Its difficult to factor that in if you only go by the 5 year rule.
Add the fact that used cars tend to use more fuel, which has become quite expensive too.
I want an old ass car that i can work on and that doesnt yell at me
It’s still solid advice now. The used car market is in decline and certainly not a reason to buy new (in my opinion).
I just paid $26,000 for a new car. It has a 10 year warranty, and 3 years of free oil changes, air filter changes, tire rotation, and wiper blades. It's advertised to get up to 55 mpg, and I average about 48 mpg. My biggest complaints about buying a new car are the higher insurance, and higher property taxes. I suspect what I will save on everything else will make up the difference along with the piece of mind that a factory warranty offers.
Yeah, this didn't age well.
I bought my car brand new with the intention of holding onto it as long as I can. I'm glad I bought what I did because it saves on fuel against nearly anything made today and it's still my favorite model. I've been payment free for nearly four years and I've owned the car for almost ten, and it's in great shape. I'm thinking it could probably last at least another 5-10 years in my care, if not a bit better.
What type of car do you have?
@@deliennemoncrieft1688 2014 Focus
Way to go man ! I’m a technician for Honda, and I drive a Honda Fit. Paid cash for it, extremely reliable and great on gas. My coworkers are constantly make fun of me, asking me why I drive that, that it doesn’t suit me. Meanwhile they are upgrading their cars yearly ! It’s like they compete with each other. Different mentality, I’m trying to retire young, not look cool now driving the newest car.
. So smart! Good for you.I wish everynody would understand that👏
that's a good thinking. i believe everyone should have the same thinking. cars depreciate fast so buying a car and planning to have it for a short period will actually burn you up financially.
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
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.
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
“I got rich doing this”
The first step to building wealth is figuring out your goaIs and risk toIerance - either on your own or with the heIp of a financiaI pIanner, and foIIowing through with an inteIIigent pIan, you wiII gain financiaI growth over the years and enjoy the benefits of managing your money.
I am fortunate I made productive decisions that changed my finances (gathered over 1M in 2years) through my financiaI planner. Got my 2nd house in Feb, and hoping to retire soon. Give this a try and attain good-returns.
researvh this in fuII, if you care.
FinanciaI-Advisor REBECCA MARTIN WATSON
FinanciaI-PIanner Rebecca Mart-Watson (in fuII)..
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
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 😂
My wife and I have a different strategy. We buy new with 40-50% down and keep the car about ten years. We rotate out one car every 5 years with a 3 year loan. I always have a 2 year gap with zero payments and I'm in one now. I keep up on all maintenance mostly myself and wax about 6 times a year to keep them looking good over the course of 10 years which helps maintain the value.
That's the way to do it, cars don't have to be money traps.
If you sell it after the 10 years, how much money do you lose on average, how much extra do you pay on interest and how much more is your insurance fee compared to a cheap car? And dont forget opportunity costs from the down payment, you could have put these 20-30k into stocks. In addition, you have spendings for your wax and stuff not mentioning the extra time it takes you to do. I dont see the benefit of your strategy.
@freunddeswaldes575 I usually salvage around a quarter of the value out of the vehicle after 10 years. I buy only high resale value cars like my Lexus NX. Cost of the wax is around $30/ year so that's not even a factor plus i enjoy waxing the vehicles. My wife and I save and invest nearly 40% of our income... yes if I were super frugale I could absolutely make more money in the market long term if I bought a cheap car. I prefer vehicles that look and drive like new after 10 years. There is also the higher likelihood of the safety features failing after that point. For us this strategy works perfectly. It depends on your situation, and our strategy would not apply to most people.
@@nicksmith8141 Okay I see your point now. I am german and for most of us cars are an emotional thing. I could buy a 5yo Ford Mondeo for 10k, use it for 125.000 miles until it breaks. Including all costs for maintanance, insurance and taxes, it would cost me 300€ p.m. over a time of 10 years.
I do 1 year leasing instead. including all costs I pay 430 for a Ford Kuga, I can drive it for max 13.000 miles (20k km) and then switch to a brand new car again. Benefits are greater safety, more gadgets, I dont need to care about anything but filling gas in. Super reliable and a great variety every year.
So to say I overspend a bit for cars, but when you drive a lot, having fun while doing it, makes you happier long term. As you say it comes down on what you can afford on amenities. For me personally, I would never spend more than 500€ per month for cars. atm I spend 12,5% of my income for leasing.
Exactly. Most people don't make money flipping cars, they make money by having a car reliably take them to a place to make money. Depreciation shouldn't mean anything to the vast majority of people as long as you're slightly ahead of the depreciation curve with a strong downpayment
I stopped driving 3 years ago. I long-boarded for 3 years, but a few months ago I bought a scooter. 130mpg (give or take) and $75 a year insurance.
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.
*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😏
🇨🇦 glad this came up during an auto-worker protest against CEO pay raises. Nova Scotia needs more & better walking, trains & busses
I bought an old car and it was far from sunshine and rainbows. They’re forgetting that older cars need replacements a lot more often In the 3 years I had my 10 year old car I had to replace the exhaust, replace the brakes, replace the wheels, go through multiple batteries change my fuel tank, and finally change break pads. I drove her fine and safe and still felt like I was just waiting for something else to go wrong. So I Buy new but I don’t ever bite at their offer. A true salesman would wiggle you down to a reasonable price for both parties.
This right here!🎉
If you are buying an old car, it's wise to have a portion of money stashed specifically for repairs, since sooner or later you are going to need it.
It also makes sense to do repairs in a batch. Like, you need to have suspension done? Might as well get a brake job too, since everything is disassembled anyway. It's a bigger outright payment, but in the long run cheaper, than having the said brake job 2 months later as a separate repair. Also may make the car more reliable.
I would suggest putting aside for repairs from 20% of your car purchase budget (if the car costs about 6 your post-tax monthly incomes) to 50% or over, if the car costs 1 post-tax income or less.
The more a car is a need rather than a want, the more you need to set aside as an emergency repair/car replacement fund.
Also, having work done in batches GREATLY saves time
"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. ☠️
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.
Great video, really educational.
We bought our first car almost 1 year ago, after 3 months of searching in the used market, we found 1 good car with a serious difficulty.
Anyway before we found the good car, and because we met tons of scammers we had envisaged to go and check new cars, when we did, I made some calculations, I found out that the payment of the car after 5 years will cost roughly the money it costs to buy an economical housing apartment (Morocco), guess economic studies do help in real life after all.
So, it was OUT OF THE QUESTION, luckily afterwards, a friend of mine was selling her car and I was the lucky buyer.
(We had decided to actually put that car's money, around 40% of the house, as down-payment and finance the rest with a loan, to get the economical apartement...)
It depends A LOT on your job also, my parents have to go to job in 3-4 places 10-20km away from each other (per day). I don’t know about other countries but in mine… it’s impossible to do that without a car.
It is very easy in any places with good train connection. Sorry it was difficult for your parents, but that‘s not how it has to be.
@@Alina_Schmidt again, idk how it is in other countries but there is NO way they would be able to do their job without a car.
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
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.
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 .
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
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!
You should also take into account the maintanence costs. Old cars tend to have problems more frequently.
Also, in my country Turkey, the value of used cars doesn't depreciate that fast, because of high taxation. We have 90-160% additional tax (depending on the engine size) for cars. So the used car prices are also very high.
That's why you buy something from the 90s. Easy and cheap to maintain
@@Keeg02. he never said that of the new or old price.
Many european countries have strict pollution rules taxing cars by their pollution norm, engine size or mass (annually or more frequent) .
Not to mention a car from the '90s can rapidly turn to full loss is anything needs fixing.
@@georgesbv1definetely not just buy something with a lot of after market parts
@@georgesbv1 ok? If your cheap car breaks down guess what you can do? Buy another cheap car!
@@georgesbv1cars from the 90s have lots of aftermarket parts and the repairs are fairly simple and don’t require software. If you’re really pinched for something go to the junkyard and pull it off that. Idk if y’all have pick and pulls in turkey but they’re gods gift to the home mechanic.
I disagree with buying a car used mainly from personal experience. My spouse and I bought a six-year-old car used and spent $12,000 on it, and it completely broke down three years into our five-year loan. The mechanic we brought it to that we considered reputable before and after said it needed a complete engine replacement, which would have been another $4000 after parts and labor. So, my wife and I sold it for $300 to a neighbor. The neighbor was able to fix it by replacing the water pump, but because of the car's design, he said it would have been about $2000 in labor just to get to the water pump. So, basically, my wife and I took a $11,700 bath. She and I could have gotten a new car at that time for about $15,000 to $18,000 and we would probably be driving it today since the prior new car that I purchased lasted me 19.5 years since I took good care of it.
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.
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.
In 2021 I bought my wife a 2 year old Subaru Outback for her birthday. The car had only 5,600 miles on it. We donated her 18 year old Camry to our church.
Last December (2022) I needed to replace my 13 year old RAV4 with a 3 year old Subaru Forester that had only 4,700 miles.
Every month we put money aside so that when our current vehicles wear out we can pay cash for their replacement.
We normally keep our vehicles for 12-20 years or until they need a major repair.
We usually replace them with a lease return vehicle as most people who lease their vehicles take good care of them.
Though our vehicles aren’t new when we buy them, they still have low mileage so we can drive them for years to come.
We refinanced our house 2 years ago so our interest rate is only 2.9% on a 30 year fixed rate. We make 2 extra payments a year so we’ll have our house paid off in about 15 years. This will be about the time my wife retires so we won’t have a mortgage.
Also... car taxes, insurance, parking lot, maintenance repairs, fuel, etc. It's a mess. I decided to cycle and use public transport, and only buy a car if I really have nowhere else to put my money. If a car is making a substantial impact on your budget, it's not worth it.
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.
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
As a European, idk if what I'll say applies in the US, but if you borrow at the bank for a car, the interest will be *_much_* lower if they are for a new car. For instance, when I purchased my car in August 2022, the interests I could get for a new car was 1.6%, while that it was 4.8% for a used one.
Basically, what I did was to purchase a 1.5 year old car, that was still considered "new" for the bank (condition:
this did not age well, a car priced new 12.000 € in 2019 is now 15.000€ with 40.000km
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)
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
I decided to go with this route, bought a 5 yro Honda with low mileage. Everything runs fine except for the suspension, the previous owner was a bit harsh when dealing with bumps. Now its on the garage for a suspension fix. Come to think of it I do save alot, but I would rather go with different option next time. Lease a car for max of three years, put a large down payment (50% when possible), choose the car with highest resale value and relaibility index, maintain the car properly since brand new. I did that with my previous car, a Mitsubishi, and I retain more than half the price of the car when brand new (interest and inflation excluded) after 9 years of ownership.
Not all vehicles depreciate. Some do appreciate (like a sports car).
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.
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
A few more things to add:
-Start researching which engines and transmissions are most reliable before you even get to a dealership
-stop buying large trucks and SUVs when you seriously don’t need one
-Used cars are good, but old luxury cars are intentionally cheap because they’re money pits if you’re not mechanically inclined
-Avoid red and dark-colored cars to save on insurance
Why would dark cars cost less?
My 99 STi has gone up almost 100% in value since bought 8 years ago :D
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.
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
@@lukerossi8676 What grade?
@@plumpus1634 senior in hs. It was last year
😂bruh is that RYAN GOSLING
I thought the same thing!
thanks for sharing. I enjoy and learn from your videos!!!
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.
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
Well from finance side they are fully right. But from the mechanic side, it's more costly to do maintenance for the car that is 5 years old, than for brand new one. So actually buying a 5 y.o car eliminates comfort and increase money spending on maintenance and total costs on car gonna be 30-50% higher than regular maintenance of BN car. It's more about comfort and maintenance cost rather than saving some money. and remember: A greedy man pays twice.
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)
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
Many years ago I purchased a used low mileage salvage title Infinity. The car was already fully repaired by Professionals and I saved thousands of dollars purchasing it. I've had zero issues with it and it now has 160k miles and still running strong. Best purchase I ever made.
First time on this channel.
This is great!
Totally agree with you. Smart investment
5 year old cars now days cost almost as much as brand new ones
Used and new cars are very, very, very expensive.
Everything’s expensive this decade.
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
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
A 5yr old car is also at the stage where slightly bigger repairs will be required once or twice a year. Still this makes lots of sense.
I agree on some parts, however used cars tend to require major services that can not only eat up your time without a car, but also un-necessary expenses that are often not covered under warranty and have to be paid out of pocket.
Scenario, the car requires a major service for a car with 50k miles, it costs 2.5k from a reputable shop to address said issues. Now let's add in cost of rental car at $50 a day for 20 days = $1,000. Now you're at $3.5k.
The thing is, there are pros and cons to both not just one size fits all, it's compromising based on your current situation. If you're looking to pay cash for a car, expect it to have reliability issues, failures, electrical problems, etc. sooner than later and have a rainy day fund for those expenses including loss of car if engine problems can only be addressed by installing a brand new engine. I've owned several cars, mostly used (2-4k cash price) to financing relatively newer but used cars 5-6 years old to now leasing a new car.
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 😢
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
life is hard without a car especially if you live in a country where the mass transport system sucks
I live out in a smaller town and public transport doesn't even exist here. Impossible to live here without a car.
Cars are not an asset; they are a depreciating liability
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).
The used cars get you in the repair/ maintenance phase. There is no winning with any car. New or used.
Depends what used car you get some such as most Toyotas will reach 200k before having a major issue while others like Fiat Chrysler vehicles will need an Transmission rebuild before 100k...
Not if you buy a good car. Lol
Older Toyotas and Hondas can last long and have inexpensive parts still in circulation.
You have to be smart no matter what. Research your vehicle's history and design flaws, know what to look and to pay for, know a good mechanic shop, then figure the repair cost in the price.
I bought a 98 Corolla at $1000 with another $1500 in repairs (valve gasket) and equipment that I expected. Better $2500 flat then thousands more for newer cars with extensive repair costs and warranty limitations.
Some cars actually appreciate, though. But these are special cookies.
Get a toyota or honda. You'll win a little
The problem is that unless the Car is a TOYOTA, MAZDA or a HONDA IT WILL stat having issues at about 7 years or 80,000 miles.
This video tells a message that most people don't even have to think about - it generally says „Don't buy a new car and especially do not buy any car for money you don't have.“. I don't know how the things are in America, but in Europe it's pretty normal to buy used cars. In fact, almost no one buys new cars for personal use here.
This should be titled "How new cars keep you poor."
@@p12anjacobmlgnoscoper86
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.
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.
I had a 87 Mustang GT Convt. That was my daily driver for 31 years and the drive train never went on 87 GT. I drove from NY City to californnia around 9 times and drove back in forth from NY to Central Florida around 38 trips kept up oil changes and maintenance. It was the only relialbe car i ever owned i Toyoto Carolla one of the most unreliable cars i ever owned and had a few GM Cars and Trucks a bunch of Junk. I have now a 2013 Lincoln MKS 3.7 v6 so far it hasnt let me down at all it never went to any machanic Shop or Dealer. It has 347k miles on it and runs like new and looks like new. Ive only changed oil on it and trans fluid and did itvmy self❤
Best way to combat “Depreciation”…..
Buy a Toyota. I bought a 2018 Tacoma and sold it 5 years later for almost the same price I paid and with 79k miles. Now I have a 2021 4Runner and the value has actually maintained to $40 at 40k miles. Not bad after owning it for 2 years now.
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.
@@rightconditions2789 please elaborate
For the first time, since the dawn of RUclips, the algorithm has finally recommended me a video I actually needed to watch.
The key to affording a car on finance is putting a decent downpayment like 15 to 20 % makes the car much more affordable compared to straight financing with 0 downpayment
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!
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
In my country people often own 20+ years old cars that have old components that break all the time, so we spend money all the time just to fix them
The video saved my life in one way or another
Thank you so much🙏😁
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
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
I have an old car and I wonder if I should buy a new one to avoid any big reapir bills which potentially could come on the old beater such as new motor, gearbox, brakes, tires, springs exhaustpipe etc. My neighbour has made some calculations that looks like it would be more expensive to keep the old car instead of buying a new more reliable car at the dealership.
I think outside of pure finance, its important to know cars enough to buy one without major issues, if youre not buying new. Cars depreciate in value for a reason, and if youre not able to judge cars quality, or don't have someone trusted to do it for you, you should probably get new one.
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.
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!
They’re not going to cover it in the video because obviously they wouldn’t give free advertisement, but if you bought a 5 year old Toyota, you still have a solid 15-20 years of life left, and at least 2-300K miles. But a 5 year old Jeep and you’re already far into its total lifespan.
I really needed someone to tell me, buying a car isn't a wise idea. Thank you guys
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! 🤣
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.
You should do an updated video with post-pandemic/ inflation prices.
My life would simply be impossible without a car. It would take me 2 hours more travelling to and from my job everyday, 4 hours more on the weekend when I go see my in-laws, and I could simply not reach most of the places I like to hike to on my holidays. Cars are not only a lot of freedom, they save a lot of time to do more important things than being on foot in a metro wagon. Plus I love to drive, this makes my day happier. Viva the cars!
How people can call cars “freedom” is beyond me and a really high state of copium overdose.
With your car you are still dependent on a infrastructure (streets, gas stations/electric chargers, fuel/power supply, parking space) that you have barely any personal control over.
And what happens if your car breaks and you live in a car dependent city? You are just doomed until its fixed.
Please tell me how can anyone call this many decencies “freedom”? If we would at least live in the 80s where you could fix most car issues yourself…
Compare that to like, i don’t know, WALKING: i only need basic human needs i need anyway and 2 healthy legs.
So who is more free at the end?
The cynical suburban resident, that NEEDS a car to even keep the household running, or the simple dude living within (oft older, historical) cities that can just go out spontaneously to the 7-11 across the street without any expensive vehicle needed?
@@LegioXXI if something serious happens to my parents who live 1300 Kms away, I can be at their home in the next 12 hours. Same with my kids who live 1500 Kms away. Without a car I would have to find a plane, then rent a car, it cannot happen in the next 12 hours. This is freedom.
@@dominiquecharriere1285 again, such a phenomenally stupid comment. Nobody is trying to take your car away. But we need to have other options besides only driving cars, everywhere all the time.
@@discocycle nobody is trying to take my car away? Surely you don't live in western Europe. I have a little smart For two from 2012 my parents in law use, it's a "B" car (yellow sticker). On first of Jan next year this car cannot get inside big cities like Madrid or Barcelona. If I had it here in my city I would have to scrap it, a car that is still working fine and is passing all the pollution tests without any issues. Why?
lol when you don't realize that "freedom" is actually your ball and chain
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.
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 :)
TL;DR: *Buy a quality used car instead of a new car off the lot that will depreciate by 10% - Progressing to over 61% in the first 5 years. Thanks
I bought my car new and have had it for 13 years. I paid it in 5 years, so I have been done with its payments for 8 years. I own a condo on which I have been making additional mortgage payments for those 8 years. I will have paid my entire mortgage in 13 years. If I had bought a used car, by now it would be completely ruined, and I would not be able to keep making additional mortgage payments because I would need to replace it.
I learnt to manage my money through investments and it really works for me. They say money can't buy happiness but poverty can't buy anything.
There are so many ways to manage money and prepare for a relaxing future, we just always have to keep doing our best because whatever we plant now, we will harvest later, good or bad.
What I think everyone need is a Financial Adviser, who can help you get in and out of any investment at any time and you'd sure be in Profit
*ROCH DUNGCA-SCHREIBER,* That's whom i work with
My advisor is "ROCH DUNGCA-SCHREIBER". In terms of portfolio diversity, she's a genius. You can glance her name up on the internet and verify her yourself. she has years of financial market experience >>
@@dr.raymond8 Thanks so much I was able to find her page and I already leave her a message.
My 2 cents, you all didn't talk about the inevitable increase in maintenance costs and eventual need to turn over a car. A car is a depreciating asset, but most tools are, and cars are just that - a tool for mobility. So buying the 5 y/o car does save you on the purchase price, but some of those savings are eaten either by maintenances costs or the inevitable purchase of the next car. Buying new car, then, should have a 10-15 year service life, which would be 50% more than the service life of a 5 y/o car. It's still cheaper to buy the used car (assuming they do drop in value as much as they can, but economy cars don't, necessarily), but it's not $250 bucks a month cheaper.