They should broadcast this video at school for kids to learn and become wise adults. Honest, insightful, contemporary, badly needed. Nothing but respect for you Motoman
My brother just financed a jeep Cherokee for 84 months with $0 down i tried to give him the Dave Ramsey speech but some people need to learn the hard way
Unfortunate, but very true. I always try plan B; which is to advise them to buy a 5 year old vehicle that's depreciated 30% from a dealer, but is still a really nice looking car. That way, they'll still learn a hard lesson after paying interest and watching their asset depreciate in value, but both the initial investment will be smaller, and the depreciation percentage will be smaller, which is a win-win as far as bad decisions go, relative to buying new. To anyone who's managed to read this much, do NOT buy a new car. You will HATE youself for taking on the debt within 6 months. That's how it happens.
In my opinion, the $70,000 Tahoe Premier and the $100,000 Escalade are some of the top "I bought it cause I could borrow the money" trucks on the road today. They are the 7 series of the school parking lot. A fashion statement in steel. In this world of trying to keep up with the Jones, making a payment equivalent to a mortgage just to haul your 2.5 kids and your dog around is simply ridiculous.
I agree with pretty much everything you said. Financial control comes down to needs and wants. You need food, housing, healthcare, reliable transportation. You want a fancy watch, jewelry, house, car..... Take care of your needs first then access your financial situation to figure out if you can afford the wants. I'm driving an 11 year old car now because it fits my needs and does not interfere with paying for my other needs. I have a enough credit to buy a new car, but I don't need it at this time.
Chuck Music exactly how I feel. I've done many bad purchases over the years. My recent one was a 2015 chevy ss sedan. I sold it after 8 months and kept my 17 year old 2000 Camry le with 229k and still drives great. It's paid off, and I can worry about paying off all my debt first before getting a want. That is what I've been working on for the past year now. Then I won't be strapped when I go get a new 50-70k truck or car of my choice.
KillaBandit I was liking where you were heading until you said new vehicle and truck 50-70k. Just because you have the money to do something doesn't mean you should do it
Keith Herzog $50-70k is what they cost these days. The car I am looking at is the Lexus GS F. It's an $80k car. The trucks $50k-60k. I make more than enough to pay for them.
KillaBandit Yeah I'm familiar with what trucks cost these days. I own a dozen of them for one of my companies, but I would just stick to 5x on any purchase. If your buying a 500k house you should have 2.5 mil in cash
I had something like this happen to me. I won a $13k motorcycle and yes I loved it but at the end of the day I asked myself would I pay $13k for this? Because by keeping it that's exactly what I was doing. I ended up selling it and I'm glad I did.
Great video! My wife and I are on BS2 and she knows I'm a car/plane/toy guy- its a struggle, but its worth it to get out of debt and stay out of debt. My future debt free supercar: 991 Turbo S :)
You introduced me to Dave Ramsey. I'm lucky to have stumbled across this video. This was the turning point for me with my finances and learning to create a budget. Thank you!
Great advice. When I was 29 in 2001, and was expecting my first child, I bought my dream car, a 2001 Porsche Boxster S. Although my wife and I were doing okay, it owned me. I kept it for 5 years and put 105k miles on it. However, it created a lot of financial stress on me. Fast forward to 45. I am debt free and doing better, but scared to make that mistake again. However, a key factor into my next car purchase will be, "how much will I use the car?" As I still drive a lot, I want to enjoy what I drive, so, I may look at getting a used 911. I won't take the initial depreciation hit and would daily drive it for the long haul.
almost hit my 40s and driving a Macan GTS... just put down deposit of brand new 922 carrera S and expecting it in 12 months minimal I know all along buying a brand new 911 doesnt make too much sense from financial perspective, however, considering it might be the only 911 I would own and I will keep it for a long time, I can't help but buy a brand new one Hope I will do better in next a few years to cover all the depreciation : )
Delayed gratification along with spending real money (cash) is the key. Let someone else take the ass kicking on the new car. If you are patient enough you can typically get what you really really want - just not right now. And oh, by the way, a paid for car does drive much better.
This is great! I just finished my freshman year of high school, and I took a finance class where we had a program taught by Dave Ramsey. My dad is getting a 2018 Q7 Prestige, and I learned quite a lot about it from you tech and first drive reviews.
I bought a 1400 sq ft house, have savings/investments, own a 2014 Corolla with a 6-speed stick then purchased an old 2004 Boxster S with low miles in GT silver metallic. The car stickered for $50k but I paid $19k. It needs a little work from sitting for so long but overall a budget Porsche I enjoy.
I did buy a manual Corolla :/ however I feel using it for my dependable and cheap daily driver leaves me with more funds for my fun hobby cars. I don't want to be stuck with high repair and maintenance costs so I can daily something interesting.
Another Dave Ramsey rule of thumb is total value of all motor vehicles in the household should not exceed 50% of annual income. To buy a $150k vehicle, not only do you need to pay cash for it, you also need at least $300k/year income.
Harley Pebley A more important rule of thumb is never blindly follow rules of thumb. What’s special about 50%? Is that gross or net income? If you can’t answer these, then you have no business recommending it.
I run a financial planning practice and agree with most of what you say here. The “you gotta have friction” is a great way to articulate things. The comments toward leasing, I always will disagree with. It is not always the most expensive way to have a car. For many people, they tend to buy a car wether it be financed or paid in cash, drive it for 1-5 years and then repeat this process again for a newer model. For these people, leasing is the perfect option because although they never “own” a car.... they are freeing up cashflow each month for other priorities/investment opportunities. And whats the good of “owning” a car, if it is simply going to depreciate every single year you own it and then you sell it in 1-5 years? I ask this question in another way.... would you buy a stock of a company, if I told you it would fall in value by20% each year for the next 5 years??? Likely not. For these people in particular, i say “buy what appreciates, rent what depreciates”. For all other folks who enjoy keeping a vehicle for a longer period of time, yes buying smart and preferably used makes a whole lote of sense. PS: to your question, I own a 2016 Acura TLX 3.5V6 SHAWD. The finance guy in me could not feel right owning an expensive to maintain german car. (Unless it is a porsche cayman, which is my next big savings goal!). Always enjoy your content, keep it up Motoman!
Harley Pebley I agree with that. I’ve also felt that my car shouldn’t exceed my non taxed income. Even though I can save for it I still feel that this car is priced for someone who makes more so either I make more money or I don’t buy it.
Wow, that's a great story! My wife and I recently paid off over 40k in debt and paid off our house and got a decent nest egg put away while we wait on our baby girl to arrive. I also started a project build on my channel in this time and had so many people in my personal tell me what I was doing wrong and how my priorities out of whack and it got old, quick. I've been wanting to make a video about being a car guy and budgeting, when I do would it be ok to mention and link to your video?
Our house will be paid off next year which should give plenty of time for saving up for a Porsche (probably Macan GTS) in 2020. Great video and great advice!
I'll never forget a buddy of mine showing up in a modified 911 turbo. I gave him huge compliments telling him how proud I am of him accomplishing such a feat. He told me that I could do the same, that the payments aren't too bad. As a married dude, with two kids I couldnt make sense of paying monthly payments on a depreciating assets. I couldnt even justify spending that much money on something that would just be for me. Fast forward a year later, I bought an Accord 2.0T Sport that I'm in love with. Of course I hear the comments, the "you coulda, Why didn't.." But instead of going into debt to buy a car, I bought a home and then a 2nd home. Currently right now I'm working on building my 3rd home while my buddy has now "upgraded" into a 720s Mclaren. Beautiful car, however I noticed that he's stressed about making the payments on his 720s, his supercharged range rover sport, his fiancee's m340i and his luxury penthouse apartment. Long story short, never take financial advise from anyone that wants to live way beyond their means.
OMG , thanks i needed that . I totaled my 2013 bmw 535 about a year and a half ago . I walked away from the accident with minor bumps and bruises but i walked away . I remember how relieved I felt when then adjuster called to tell me the car was totaled. My thoughts were omg no more $675 payments to pay for the remaining 36 months. I then bought a used honda element for 4k cash and used that $675 per month saving to grow my small business. fast foward to this week I was looking into getting a new Jeep Wrangler 4 door and this video helped me decide .I have a great job that pays well and a small business that since the accident has grown steadily and though the payments for a new jeep wouldn't be difficult at all its not a priority at this time . Growing my business , as well as doing some upgrades to a triplex rental property i just purchased are . I have also managed to pay down 75% of my dept while socking away almost 80k in the bank . The element runs great still (needs an oil change though ) but i will continue with it til the wheels fall off .WHEWWWWWW that was close, I'm refocused Thank you very much . Eventually I would love a nice Jeep Wrangler with some modifications but I'm going to wait until my dept is 0 and the element wont start up , its a honda so that might be a while still . Thanks again .
Great advice and video, this is the first video I have seen from your channel. Subscribed. I am 24 and I just made the biggest mistake financially ever. I just bought a brand new car, and now I'm hustling like crazy to pay this thing off completely. I paid 30k (plus interest and taxes) for a car that is now worth 17k. I'll never go new again.
I am one of the two people in the world who did not know Dave Ramsey before this video. ( Not being US based. Yet ). So bless you MotoMan for introducing me to Dave Ramsey. I will get one of his audiobook right now.
Wow. This is extremely well done. It's so rare to find the personal finance and automotive worlds combined despite the fact that they are far from mutually exclusive. I have always been a car guy but I could never relate to most of the big spenders who jokingly wait for their next paycheck to buy more racing parts. One of my biggest thrills as a teenager was racing and beating guys in my paid-for $5k dollar beater who had $30k+ cars "bought" with an auto loan. I don't see myself owning an expensive car at any point in my life. They are fun and awesome but at the end of the day they are not a necessity, they are depreciating "assets" and material items. This should never be forgotten. I have taken so much more interest in value vs. money when it comes to my car hobby. I recently re-entered the auto scene and bought a $7k c5 corvette. I'm having a blast knowing my financial risk is low and my insurance is cheap. But most of all I question how much better is a newer Corvette or Porsche? Are they 5 to 10 ($50-$100k) times faster or more fun or more exciting? I doubt it.
Wow great insight and knowledge shared with us. Too many times people tell their subscribers on RUclips what they want to hear not necessarily what is truly relevant. You've got me going back-to reading Dave Ramsey's books again because they're so much wisdom in what he teaches and you're right if you can't put the cash down you probably don't need it thank you so much and I will look forward to more of your videos I had not subscribe before but I will now thank you
this reflects exactly my thoughts, and more seriously my concerns about young people getting themselves into debt for no good reason. A lot of cars today are ridiculously overpriced purely because of the easy PCP finance available for them. It would not surprise me if the banks start to withdraw these schemes in the near future when they realize that these cars are not worth the money they claim to be worth, and then we'll see a lot of cars plummet in value (especially the likes of BMW, Mercedes and Porsche).
Yep, I don't much care for most of the "sage" advice people like Ramsey try to shove down peoples throats. They act like every one should feel and have the exact same priorities that they do and if you don't your a Effin idiot. When in reality we are all completely different. We all have different outlooks and different interests and priorities. There is no one "formula" for financial success, there are many and it all depends on the individual.
I am a big time car guy. I have owned anything from classic muscle cars to raptors to super cars. I started to listen to Dave about 2 years ago and am now in a Tacoma. One reason is that they have the highest resale value. But that Porsche looks sexy. 😍
I appreciate putting yourself out there on the video. The comments have been great as well. I find for me discipline was the hard and critical ingredient. I've since gone back to cash only motorcycles as I know the racket only too well and made dumb mistakes but important for life learning, early on in life. Looking to going back to cash only for cars as I did in my youth. Where I live now unfortunately requires a really reliable vehicle for daily transit (esp. extreme heat and long distances with no public transit), whereas in my youth public transportation was my best friend and saved me tons of money. This way i had an easier time putting money away for my dream fixer-uppers (e.g. Audi 5000s and 4000s). Also finding and befriending good and reputable car shops and mechanics has been my second success factor with cars and motorcycles. Saved me tons with my Audi/VW jones. Driving one of my dream cars now; a 2010 MINI Cooper S Convertible; bought two years ago. I don't like that I had to finance, due to bad timing, even though I can easily afford it. I would have preferred to have been able to wait a couple of years and maybe buy a 2006 with cash.
Certain vehicles, say you ordered luckily a GT3RS... and now you go to sell it the dealer market alone is 90k markup. You make money off of certain vehicles due to market fluctuations
I 100% agree. Most fords, GM, Chrysler, Nissan, Mitsubishi and low end German cars are just for those who need a get around ride or don't have enough discipline to wait and purchase want they truly want. I've wanted a 911 for basically 30 of my 41 years of life. I have a few more things to accomplish before I get it but there is definitely a 911 targa4 GTS in my sights. That is the ride that I'd drop $150k plus on and not blink twice. I love Toyota land cruisers too!
Well said motoman! I live and breathe this philosophy. Never paid more than 8000$ for a car until after I got an education, got married, bought 3 houses (1primary, 2investment) and had a baby. No handouts other than the cost of my education.
I have a very successful friend who once said something that got my attention. He said that the difference between him and most other guys was that when most guys see a beautiful woman standing outside of an office building who's looking over a 7 Series most guys think of meeting the beautiful woman. He on the other hand sees it differently in that he thinks to himself "If I buy the building I'll generate enough income to buy the BMW and get the girl."
Watch a Mecum auction (or any other current auction) and watch what 10 year old luxury sports cars sell for. You will never think of new again. 04-07 Mercedes, BMW's, Audi's for around 10K in excellent condition. My 05 BMW 330CIC is worth less than 14K with 38K miles on it. Maintenance varies with models. Do some research and enjoy.
Excellent piece you did. Makes lots of sense. Now that I'm older I like buying a new car every year or so because it's fun for a change. However my main priorities have been taken care of.
I think you hit it when you said many cars exist due to easy finance. I would say that "enthusiast cars" would be the exception (mostly) since the motivation for buying is different. Many of the "luxury" brands I would definitely place in this category though - in fact, even most "basic" cars only exist because easy financing is available - how many Chevy Sprint owners *CAN* pony up the cash to buy one outright?!? Summary: MOST modern car companies can ONLY exist due to credit!
Excellent, balanced video with real life anecdotes. Appreciate the honesty & really good advice. Not surprised you've lots of views on this. Thanks, UK viewer.
The problem is everyone would be driving beaters. Most people are idiots and have no idea how much money they make, how much taxes are costing them, how much anything is. They see $400 a month and say "I can come up with that" and they get whatever car the max payments they can afford is. If you actually needed real money to buy things upfront they would be getting $400 total price cars because that is all the money they have. Obviously, no one wants to work every single day and end up driving a super garbage car, but that is the reality. The only way to afford nice things is by making a ton more money.
You can buy a nice car if you have half of the car's cost. Put it all down and finance the rest of the other half on a 5 year term. The idea is to pay off that loan in 2 years with no penalty. This was how I got my Mercedes.
I think this is a good area of life to use the tattoo mindset. the idea of, yes you want that tattoo (car in this example), however thats a big commitment (car is cash, vs a tatoo, is the permanency), so a good idea is to wait a year, and if you still really want that tattoo, then its a safer decision.
Agree so much with you. This is a really great video man, good job. I like how you talk in this one better than most of your other car reviews :P In terms of cars, I LOVE them like you do, but I also wanted to be retired early (before I'm 40). So I've settled on buying used fun cars. For about $2000-3000 per year depreciation and maintenance, in the last 8 years I've owned a 07 WRX, 05 M3, 11 S4 and an 05 Boxster S. Yeah I never had the latest and greatest, but I've had so much fun while being relatively frugal.
I've enjoyed your car reviews in the past, but I actually hit the 'subscribe' button today because of this video. Having bought the Dave Ramsey books and companion workbook, and being a car guy like you, this resonated with me on so many levels. Thanks for a brilliant video that actually conveyed some wisdom mixed with passion...that's rare these days on You(yawn)tube. ;)
You can have the house and the car. You just have to earn more. Simple. If you don't earn enough, adjust your expectations. What's very rarely achieved is contentment. Contentment is priceless.
I'm a casual viewer of your videos and reviews but I'll be looking for more stuff like this, maybe I was just missing the askmotoman series. Big fan of this type of content though, really great quality. Thanks for sharing.
I have always paid cash for everything, even my house. I have no debt and a high income (1%er territory), and I am madly in love with the Macan GTS. I can write a check for one pretty easily. My dilema is that im so used to being frugal and prudent, that writing a check that size for a car feels stupid. I also would feel like a "show off", which I really dont want to be. I ljust like cars...and especially that one. I think I would love driving it, but would feel like an idiot every time I sat in it for spending that much. Still undecided.
In Norway we have insane taxes on motor size and horse power, so buying a pertrol or diesel car is actually 3x the price of the car in the USA. So here the Tesla model S is the best car to buy because of the extreme taxes on petrol and diesel cars. The tesla is a fun car to drive due to 100% torque, and who wouldnt want a 700hp electric tesla over a bmw 520i? (in norway these cars cost the same)
Congrats on the new Porsche, lol ... and hope you get your home settled soon. I have no kids and the house was paid for a decade ago, and agree with 95% of what you said. But I did finance some of my Turbo S. :)
Yup. When I first started lusting over cars, a base 318i was about 30K and for some reasons this figure got stuck in my head, ever since then I have never wanted to buy a car over 30K (with the exception of my 996 which wasn't a rational decision). No matter how much I am earning now, I still couldn't go over this amount. I will continue to buy used car under 30K. Oh, no financing though. I borrowed to buy a car once and I would never do it again.
Ive never bought a car that would not sell when its time to let it go. It pays to buy the right color and model the first time. Bought a black on black 2004 Bmw 745 for 35,000$ drove 3yrars and sold for 17,000$ almost half back. I love European cars. They may deprecate but at least you get something back.
I wish I would have watched this before buying my new truck. On the bright side I know I'll be able to pay it off quickly assuming my job situation stays the same. I really should have just saved up the cash and bought something similar for full price
Like many, I am so terribly sorry to say, I purchased a nice, new vehicle when I was a kid, and I financed it...sigh. Anyway, like you mentioned it's an expensive lesson, but one well worth learning. Today my perspective is this, 1) I've learned to fix my own vehicles, it was hard I admit, and frustrating, but the skill set I have now is not too shabby. 2) I only purchase vehicles I want, at the price I wish to purchase them at. This often means there is a bit of time I must wait for depreciation. Like death, depreciation seems to be inevitable, and so, I can get the Cars and Trucks I want for %15 to %20 per cent of the initial pre tax cost. People think I'm stupid of course, People say, "but you gotta fix this, and that, and the other thing." Fair enough, but...I actually enjoy fixing these things myself, sourcing parts and so on, so I can't see my disadvantage.
I'm a School Bus Driver and I have bought three brand new porsches. My first one when I was in my twenties. I have other vehicles for transportation and day to day needs. Cars (most cars) are money pit, depreciating assets or liabilities but some of us are car lovers and/or have a passion to drive so we make the psychological sacrifice to put hard earned money on something that has four wheels which wont appreciate. Real Estate is A LOT better investment in life as I have been lucky to have a passion for it. That, those investments keep going up and up to the point its crazy to realize to the point to where they are now here in the silicon valley. Ridiculous!!! But If my number in life would come out today or tomorrow Ill be very happy to know that I drove Porsches for fun even though a lot of money went to it. So the morale is Go for what you love and have passion for, period. You only have one life.
What do you think about leasing if you can deduct the payments as business expenses which brings down your gross earnings for taxation? Like you said EV cars that subsidized to the tune of $10,000 lease out at ridiculous low lease rates so why is that a bad deal? You are right that most high-end sports cars are terrible for leasing because they take such a huge hit on residual value.
don't know if the deduction myth is the same over the pond as over here, but there used to be a time here, when everyone pretty much thought "oh, he has a business, he just puts it down as costs and it's basically free". nope. You don't pay tax on the money you use to pay for the car, so it's cheaper... and you might also get the actual car without tax, which is still cheaper, but it's nowhere near free.
Cars are the worst "investments" hands down. Don't ever let anyone tell you that a car is an investment. No affordable new car today will go up in value. They only depreciate. The only cars that have the chance to go up in value are the very special ones such as the 911R, the 918 or the Ford GT. But those are ridiculously priced to begin with.
Never heard of you before, but seeing where your head is at and you being a car guy, I had to subscribe! Ya, my Porsche: $6200, 1986 944 Turbo (cash). I'm with you, maybe one day the 911. I think easy financing is what gets the average American into the average commuter car. Or, those that are feature loaded and appear as luxury but are less expensive, like Chrysler 300, Hyundai anything, etc.
Long time ago I was told a nice story - never buy a car that is more expensive than how much you make in a year. If you do - you will struggle with something - will it be the insurance, the servicing or a decent set of winter tires. What do you think?
Just got into ~150k debt for a mortgage. Yep, it's scary, but the alternative is to just pay rent and have that money go nowhere, from a net worth standpoint. This way at least I have the place I can sell if I really have to. Hopefully the market won't tank, though I have some cushion there still. Cars... well. My 911 will have to wait. I do have an advantage though. I really like the 996... Let's just wait and see if it's still going down in price. And I'm toying with getting the last Saab 9-5 as a daily maybe. They seem to hold value pretty well, the sedans. (The scant few combis are already collectible. I've seen one offered for $100k recently!)
I'm lucky because I don't have a desire to own such expensive sports since they don't appeal to me. My passions is towards Japanese cars from the 90's, 00's that feel raw and are manual so that really lowers the price for my toys cars. I personally didn't want to buy used so I comprised with something that feels old school but is new. ~ A 2018 WRX STI ~ which is my paid off toy car and love it. I have no desire to upgrade to anything more expensive =) ~ However, in the future I'd really like to find a nice RX-7 FD or NSX in the future to add to the collection =) ~ By the way, superb video!
When you buy a $150k porsche, the money that you used didnt just evaporate. It is parked in that car. When you sell it, you are going to get a portion of that money back. Unlike for example, a $150k worth of potatoes. If you buy the right Porsche, you might even make money on it, all the while enjoying your purchase.
I became debt-free in January after the death of my father. Maybe we should catch up. My life is very different than when I last spoke with you. But thank you for those words. I am on a different track, the Dave Ramsey track.
I have zero debt: haven't had a credit card in 9 years, no car payments, after I paid off my undergrad I paid cash for MBA, and paid off my house. I've followed Dave since I was 24, 33 now. Now that I'm making more than I ever have, money goes toward investing and FUN (giving is fun too). I'll never have debt ever again in my life. Good post, Will.
To be able to afford a $50,000 financed, I'd like to see the borrower being debt free and making $100,000/year on a stable job. That's the baseline. Leasing a $150k Targa 4S is probably around high $3,000/month before taxes, so you better be making $200k per year to comfortably afford it.
Rolls royce sells because of easy finance. more than 80% are leased because an extra 1k a mo is worth it from an s class but when writing a check for 250-350k more it sure isn't
Absolutely love this video. I already liked your channel and have been subscribed for months, but this is one of my favorite off-topic videos! I will unsubscribe and re-subscribe as requested!
Shocks! I’ve been looking for this video! Question though, will you give a rough time frame as to when to achieve the “Dream Car” after sorting out the priorities? Will you say after 5 years 10years etc? Thank you :)
Good question. It's not a time thing, it is a ratio thing. Meaning, all your other priorities need to be sorted before going hog wild on a car. And even at that, you want to apply the ratio principal to that car purchase. For example, you want to be out of debt, 6-12 months emergency fund (after this recent clown show, I would HIGHLY suggest 12), own your home, kids college funded (if applicable) and retirement on solid ground with continued contributions. After that, take a look at what your net worth and income are and figure out what percentage of that makes sense and is comfortable to allocate to a 'fun car'. Dave's book 'The Total Money Makeover' goes over this in great detail. Also, there is no law saying you have to drive a boring car while sorting these steps out - - - just one that you can afford and does not have debt on it.
Dave is all about buying nice things....without credit.
They should broadcast this video at school for kids to learn and become wise adults. Honest, insightful, contemporary, badly needed. Nothing but respect for you Motoman
My brother just financed a jeep Cherokee for 84 months with $0 down i tried to give him the Dave Ramsey speech but some people need to learn the hard way
Hey - you can't lead a horse to water . . . He will soon learn, that will be a VERY expensive lesson for him!
MotoManTV , I think you CAN lead a horse to water, you can't make him drink.
christian Chichester Uggh yep sometimes people just gotta learn the hard way.
Unfortunate, but very true. I always try plan B; which is to advise them to buy a 5 year old vehicle that's depreciated 30% from a dealer, but is still a really nice looking car. That way, they'll still learn a hard lesson after paying interest and watching their asset depreciate in value, but both the initial investment will be smaller, and the depreciation percentage will be smaller, which is a win-win as far as bad decisions go, relative to buying new. To anyone who's managed to read this much, do NOT buy a new car. You will HATE youself for taking on the debt within 6 months. That's how it happens.
if it was at 0% and all his payments were going towards it and he got a good deal, I would say that's an awesome deal.
In my opinion, the $70,000 Tahoe Premier and the $100,000 Escalade are some of the top "I bought it cause I could borrow the money" trucks on the road today. They are the 7 series of the school parking lot. A fashion statement in steel. In this world of trying to keep up with the Jones, making a payment equivalent to a mortgage just to haul your 2.5 kids and your dog around is simply ridiculous.
I agree with pretty much everything you said. Financial control comes down to needs and wants. You need food, housing, healthcare, reliable transportation. You want a fancy watch, jewelry, house, car..... Take care of your needs first then access your financial situation to figure out if you can afford the wants. I'm driving an 11 year old car now because it fits my needs and does not interfere with paying for my other needs. I have a enough credit to buy a new car, but I don't need it at this time.
Chuck Music exactly how I feel. I've done many bad purchases over the years. My recent one was a 2015 chevy ss sedan. I sold it after 8 months and kept my 17 year old 2000 Camry le with 229k and still drives great. It's paid off, and I can worry about paying off all my debt first before getting a want. That is what I've been working on for the past year now. Then I won't be strapped when I go get a new 50-70k truck or car of my choice.
KillaBandit I was liking where you were heading until you said new vehicle and truck 50-70k. Just because you have the money to do something doesn't mean you should do it
Keith Herzog $50-70k is what they cost these days. The car I am looking at is the Lexus GS F. It's an $80k car. The trucks $50k-60k. I make more than enough to pay for them.
KillaBandit Yeah I'm familiar with what trucks cost these days. I own a dozen of them for one of my companies, but I would just stick to 5x on any purchase. If your buying a 500k house you should have 2.5 mil in cash
Keith Herzog 2.5mil cash???? Lol. Don't know how you get your numbers but no way.
I had something like this happen to me. I won a $13k motorcycle and yes I loved it but at the end of the day I asked myself would I pay $13k for this? Because by keeping it that's exactly what I was doing. I ended up selling it and I'm glad I did.
Depends on the bike, if it's an HP4 I'm buying it from you
The total money makeover is life
Great video! My wife and I are on BS2 and she knows I'm a car/plane/toy guy- its a struggle, but its worth it to get out of debt and stay out of debt. My future debt free supercar: 991 Turbo S :)
Live in $20,000 tiny house, drive $150,000 Porsche 4GTS. Easy.
If you're single with no kids, hell yeah! Less to clean, more time to go driving! :)
You and me both...I need to check when my mortgage is up, haha.
Priorities ;)
Exactly you can live in a car but you cant race a house! 😂
John Kang Unless you're in a race to build wealth lol
You introduced me to Dave Ramsey. I'm lucky to have stumbled across this video. This was the turning point for me with my finances and learning to create a budget. Thank you!
I didn't buy a new car until I paid my college loans off.
I did the same.
smart!
Great advice. When I was 29 in 2001, and was expecting my first child, I bought my dream car, a 2001 Porsche Boxster S. Although my wife and I were doing okay, it owned me. I kept it for 5 years and put 105k miles on it. However, it created a lot of financial stress on me. Fast forward to 45. I am debt free and doing better, but scared to make that mistake again. However, a key factor into my next car purchase will be, "how much will I use the car?" As I still drive a lot, I want to enjoy what I drive, so, I may look at getting a used 911. I won't take the initial depreciation hit and would daily drive it for the long haul.
Patrick Sipple I'm in a similar situation and also looking for a used Porsche. Buying a new one just doesn't make financial sense.
almost hit my 40s and driving a Macan GTS...
just put down deposit of brand new 922 carrera S and expecting it in 12 months minimal
I know all along buying a brand new 911 doesnt make too much sense from financial perspective, however, considering it might be the only 911 I would own and I will keep it for a long time, I can't help but buy a brand new one
Hope I will do better in next a few years to cover all the depreciation : )
Delayed gratification along with spending real money (cash) is the key. Let someone else take the ass kicking on the new car. If you are patient enough you can typically get what you really really want - just not right now. And oh, by the way, a paid for car does drive much better.
This is great! I just finished my freshman year of high school, and I took a finance class where we had a program taught by Dave Ramsey. My dad is getting a 2018 Q7 Prestige, and I learned quite a lot about it from you tech and first drive reviews.
I bought a 1400 sq ft house, have savings/investments, own a 2014 Corolla with a 6-speed stick then purchased an old 2004 Boxster S with low miles in GT silver metallic. The car stickered for $50k but I paid $19k. It needs a little work from sitting for so long but overall a budget Porsche I enjoy.
Nice! You are or on your way to be the 'Millionaire next door . . . '
I did buy a manual Corolla :/ however I feel using it for my dependable and cheap daily driver leaves me with more funds for my fun hobby cars. I don't want to be stuck with high repair and maintenance costs so I can daily something interesting.
Great video! Dave Ramsay fan here as well. Glad to see a car guy with the same principles.
Another Dave Ramsey rule of thumb is total value of all motor vehicles in the household should not exceed 50% of annual income. To buy a $150k vehicle, not only do you need to pay cash for it, you also need at least $300k/year income.
Harley Pebley A more important rule of thumb is never blindly follow rules of thumb. What’s special about 50%? Is that gross or net income? If you can’t answer these, then you have no business recommending it.
Its net lol
Or have 3 million
I run a financial planning practice and agree with most of what you say here.
The “you gotta have friction” is a great way to articulate things.
The comments toward leasing, I always will disagree with. It is not always the most expensive way to have a car. For many people, they tend to buy a car wether it be financed or paid in cash, drive it for 1-5 years and then repeat this process again for a newer model. For these people, leasing is the perfect option because although they never “own” a car.... they are freeing up cashflow each month for other priorities/investment opportunities. And whats the good of “owning” a car, if it is simply going to depreciate every single year you own it and then you sell it in 1-5 years? I ask this question in another way.... would you buy a stock of a company, if I told you it would fall in value by20% each year for the next 5 years??? Likely not. For these people in particular, i say “buy what appreciates, rent what depreciates”.
For all other folks who enjoy keeping a vehicle for a longer period of time, yes buying smart and preferably used makes a whole lote of sense.
PS: to your question, I own a 2016 Acura TLX 3.5V6 SHAWD. The finance guy in me could not feel right owning an expensive to maintain german car.
(Unless it is a porsche cayman, which is my next big savings goal!).
Always enjoy your content, keep it up Motoman!
Harley Pebley I agree with that. I’ve also felt that my car shouldn’t exceed my non taxed income. Even though I can save for it I still feel that this car is priced for someone who makes more so either I make more money or I don’t buy it.
Wow, that's a great story! My wife and I recently paid off over 40k in debt and paid off our house and got a decent nest egg put away while we wait on our baby girl to arrive. I also started a project build on my channel in this time and had so many people in my personal tell me what I was doing wrong and how my priorities out of whack and it got old, quick.
I've been wanting to make a video about being a car guy and budgeting, when I do would it be ok to mention and link to your video?
Our house will be paid off next year which should give plenty of time for saving up for a Porsche (probably Macan GTS) in 2020. Great video and great advice!
I'll never forget a buddy of mine showing up in a modified 911 turbo. I gave him huge compliments telling him how proud I am of him accomplishing such a feat. He told me that I could do the same, that the payments aren't too bad. As a married dude, with two kids I couldnt make sense of paying monthly payments on a depreciating assets. I couldnt even justify spending that much money on something that would just be for me. Fast forward a year later, I bought an Accord 2.0T Sport that I'm in love with. Of course I hear the comments, the "you coulda, Why didn't.." But instead of going into debt to buy a car, I bought a home and then a 2nd home. Currently right now I'm working on building my 3rd home while my buddy has now "upgraded" into a 720s Mclaren. Beautiful car, however I noticed that he's stressed about making the payments on his 720s, his supercharged range rover sport, his fiancee's m340i and his luxury penthouse apartment. Long story short, never take financial advise from anyone that wants to live way beyond their means.
Great story . . . thanks for sharing!
OMG , thanks i needed that . I totaled my 2013 bmw 535 about a year and a half ago . I walked away from the accident with minor bumps and bruises but i walked away . I remember how relieved I felt when then adjuster called to tell me the car was totaled. My thoughts were omg no more $675 payments to pay for the remaining 36 months. I then bought a used honda element for 4k cash and used that $675 per month saving to grow my small business. fast foward to this week I was looking into getting a new Jeep Wrangler 4 door and this video helped me decide .I have a great job that pays well and a small business that since the accident has grown steadily and though the payments for a new jeep wouldn't be difficult at all its not a priority at this time . Growing my business , as well as doing some upgrades to a triplex rental property i just purchased are . I have also managed to pay down 75% of my dept while socking away almost 80k in the bank . The element runs great still (needs an oil change though ) but i will continue with it til the wheels fall off .WHEWWWWWW that was close, I'm refocused Thank you very much . Eventually I would love a nice Jeep Wrangler with some modifications but I'm going to wait until my dept is 0 and the element wont start up , its a honda so that might be a while still . Thanks again .
Great advice and video, this is the first video I have seen from your channel. Subscribed.
I am 24 and I just made the biggest mistake financially ever. I just bought a brand new car, and now I'm hustling like crazy to pay this thing off completely. I paid 30k (plus interest and taxes) for a car that is now worth 17k. I'll never go new again.
This was great advice.
I am one of the two people in the world who did not know Dave Ramsey before this video. ( Not being US based. Yet ). So bless you MotoMan for introducing me to Dave Ramsey. I will get one of his audiobook right now.
I watch your stuff on and off. This by far was the best video you have ever done.
WOW - thanks!
Wow. This is extremely well done. It's so rare to find the personal finance and automotive worlds combined despite the fact that they are far from mutually exclusive. I have always been a car guy but I could never relate to most of the big spenders who jokingly wait for their next paycheck to buy more racing parts. One of my biggest thrills as a teenager was racing and beating guys in my paid-for $5k dollar beater who had $30k+ cars "bought" with an auto loan. I don't see myself owning an expensive car at any point in my life. They are fun and awesome but at the end of the day they are not a necessity, they are depreciating "assets" and material items. This should never be forgotten. I have taken so much more interest in value vs. money when it comes to my car hobby. I recently re-entered the auto scene and bought a $7k c5 corvette. I'm having a blast knowing my financial risk is low and my insurance is cheap. But most of all I question how much better is a newer Corvette or Porsche? Are they 5 to 10 ($50-$100k) times faster or more fun or more exciting? I doubt it.
Wow great insight and knowledge shared with us. Too many times people tell their subscribers on RUclips what they want to hear not necessarily what is truly relevant. You've got me going back-to reading Dave Ramsey's books again because they're so much wisdom in what he teaches and you're right if you can't put the cash down you probably don't need it thank you so much and I will look forward to more of your videos I had not subscribe before but I will now thank you
this reflects exactly my thoughts, and more seriously my concerns about young people getting themselves into debt for no good reason. A lot of cars today are ridiculously overpriced purely because of the easy PCP finance available for them. It would not surprise me if the banks start to withdraw these schemes in the near future when they realize that these cars are not worth the money they claim to be worth, and then we'll see a lot of cars plummet in value (especially the likes of BMW, Mercedes and Porsche).
It's all about priority, I know guys having big houses but driving old decent cars and I know guys living in shacks but maintaining a sports car.
Yep, I don't much care for most of the "sage" advice people like Ramsey try to shove down peoples throats. They act like every one should feel and have the exact same priorities that they do and if you don't your a Effin idiot. When in reality we are all completely different. We all have different outlooks and different interests and priorities. There is no one "formula" for financial success, there are many and it all depends on the individual.
Thanks, I have been fighting with myself about buying an E92 M3. I need to wait and own the car.
Same boat. :(
Should have put all that money into a Low Fee Vanguard Index Fund. You’d be driving a 2019 Porsche 911 GT3 R S
I am a big time car guy. I have owned anything from classic muscle cars to raptors to super cars. I started to listen to Dave about 2 years ago and am now in a Tacoma. One reason is that they have the highest resale value. But that Porsche looks sexy. 😍
Great insight, Mike! One of the reasons I love this . . . ruclips.net/video/aw4I9v__FcU/видео.html
I appreciate putting yourself out there on the video. The comments have been great as well. I find for me discipline was the hard and critical ingredient. I've since gone back to cash only motorcycles as I know the racket only too well and made dumb mistakes but important for life learning, early on in life. Looking to going back to cash only for cars as I did in my youth.
Where I live now unfortunately requires a really reliable vehicle for daily transit (esp. extreme heat and long distances with no public transit), whereas in my youth public transportation was my best friend and saved me tons of money. This way i had an easier time putting money away for my dream fixer-uppers (e.g. Audi 5000s and 4000s).
Also finding and befriending good and reputable car shops and mechanics has been my second success factor with cars and motorcycles. Saved me tons with my Audi/VW jones. Driving one of my dream cars now; a 2010 MINI Cooper S Convertible; bought two years ago. I don't like that I had to finance, due to bad timing, even though I can easily afford it. I would have preferred to have been able to wait a couple of years and maybe buy a 2006 with cash.
Certain vehicles, say you ordered luckily a GT3RS... and now you go to sell it the dealer market alone is 90k markup. You make money off of certain vehicles due to market fluctuations
I 100% agree. Most fords, GM, Chrysler, Nissan, Mitsubishi and low end German cars are just for those who need a get around ride or don't have enough discipline to wait and purchase want they truly want. I've wanted a 911 for basically 30 of my 41 years of life. I have a few more things to accomplish before I get it but there is definitely a 911 targa4 GTS in my sights. That is the ride that I'd drop $150k plus on and not blink twice. I love Toyota land cruisers too!
Well said motoman! I live and breathe this philosophy. Never paid more than 8000$ for a car until after I got an education, got married, bought 3 houses (1primary, 2investment) and had a baby. No handouts other than the cost of my education.
I have a very successful friend who once said something that got my attention. He said that the difference between him and most other guys was that when most guys see a beautiful woman standing outside of an office building who's looking over a 7 Series most guys think of meeting the beautiful woman. He on the other hand sees it differently in that he thinks to himself "If I buy the building I'll generate enough income to buy the BMW and get the girl."
PRICELESS! A modern day version of 'No son, let's walk down there and *&$K all of them' . . . :)
Watch a Mecum auction (or any other current auction) and watch what 10 year old luxury sports cars sell for. You will never think of new again. 04-07 Mercedes, BMW's, Audi's for around 10K in excellent condition. My 05 BMW 330CIC is worth less than 14K with 38K miles on it. Maintenance varies with models. Do some research and enjoy.
Excellent piece you did. Makes lots of sense. Now that I'm older I like buying a new car every year or so because it's fun for a change. However my main priorities have been taken care of.
With your style, charisma and knowledge, im sure you could make a 2 hour film about watching a newly painted wall dry interesting.
Your last point is absolutely spot on. Best car buying advice EVER !!!
I think you hit it when you said many cars exist due to easy finance. I would say that "enthusiast cars" would be the exception (mostly) since the motivation for buying is different. Many of the "luxury" brands I would definitely place in this category though - in fact, even most "basic" cars only exist because easy financing is available - how many Chevy Sprint owners *CAN* pony up the cash to buy one outright?!? Summary: MOST modern car companies can ONLY exist due to credit!
Best commentary I have ever heard! You are right, priorities what you make of them.
Excellent, balanced video with real life anecdotes. Appreciate the honesty & really good advice. Not surprised you've lots of views on this. Thanks, UK viewer.
The problem is everyone would be driving beaters. Most people are idiots and have no idea how much money they make, how much taxes are costing them, how much anything is. They see $400 a month and say "I can come up with that" and they get whatever car the max payments they can afford is. If you actually needed real money to buy things upfront they would be getting $400 total price cars because that is all the money they have. Obviously, no one wants to work every single day and end up driving a super garbage car, but that is the reality. The only way to afford nice things is by making a ton more money.
You can buy a nice car if you have half of the car's cost. Put it all down and finance the rest of the other half on a 5 year term. The idea is to pay off that loan in 2 years with no penalty. This was how I got my Mercedes.
Good advice!
I think this is a good area of life to use the tattoo mindset. the idea of, yes you want that tattoo (car in this example), however thats a big commitment (car is cash, vs a tatoo, is the permanency), so a good idea is to wait a year, and if you still really want that tattoo, then its a safer decision.
Agree so much with you. This is a really great video man, good job. I like how you talk in this one better than most of your other car reviews :P
In terms of cars, I LOVE them like you do, but I also wanted to be retired early (before I'm 40). So I've settled on buying used fun cars. For about $2000-3000 per year depreciation and maintenance, in the last 8 years I've owned a 07 WRX, 05 M3, 11 S4 and an 05 Boxster S. Yeah I never had the latest and greatest, but I've had so much fun while being relatively frugal.
I've enjoyed your car reviews in the past, but I actually hit the 'subscribe' button today because of this video. Having bought the Dave Ramsey books and companion workbook, and being a car guy like you, this resonated with me on so many levels. Thanks for a brilliant video that actually conveyed some wisdom mixed with passion...that's rare these days on You(yawn)tube. ;)
You can have the house and the car. You just have to earn more. Simple. If you don't earn enough, adjust your expectations.
What's very rarely achieved is contentment.
Contentment is priceless.
I'm a casual viewer of your videos and reviews but I'll be looking for more stuff like this, maybe I was just missing the askmotoman series. Big fan of this type of content though, really great quality. Thanks for sharing.
I have always paid cash for everything, even my house. I have no debt and a high income (1%er territory), and I am madly in love with the Macan GTS. I can write a check for one pretty easily. My dilema is that im so used to being frugal and prudent, that writing a check that size for a car feels stupid. I also would feel like a "show off", which I really dont want to be. I ljust like cars...and especially that one. I think I would love driving it, but would feel like an idiot every time I sat in it for spending that much. Still undecided.
I really appreciate this video. I am almost out of my lease and you have encouraged me to continue my education. Thank you so so much.
In Norway we have insane taxes on motor size and horse power, so buying a pertrol or diesel car is actually 3x the price of the car in the USA. So here the Tesla model S is the best car to buy because of the extreme taxes on petrol and diesel cars. The tesla is a fun car to drive due to 100% torque, and who wouldnt want a 700hp electric tesla over a bmw 520i? (in norway these cars cost the same)
Congrats on the new Porsche, lol ... and hope you get your home settled soon. I have no kids and the house was paid for a decade ago, and agree with 95% of what you said. But I did finance some of my Turbo S. :)
Yup. When I first started lusting over cars, a base 318i was about 30K and for some reasons this figure got stuck in my head, ever since then I have never wanted to buy a car over 30K (with the exception of my 996 which wasn't a rational decision). No matter how much I am earning now, I still couldn't go over this amount. I will continue to buy used car under 30K. Oh, no financing though. I borrowed to buy a car once and I would never do it again.
Ive never bought a car that would not sell when its time to let it go. It pays to buy the right color and model the first time. Bought a black on black 2004 Bmw 745 for 35,000$ drove 3yrars and sold for 17,000$ almost half back. I love European cars. They may deprecate but at least you get something back.
This is validation to buy a corvette when I save up next year
I wish I would have watched this before buying my new truck. On the bright side I know I'll be able to pay it off quickly assuming my job situation stays the same. I really should have just saved up the cash and bought something similar for full price
MotoMan, you are THE man. Thank you for sharing your private story. Sage advise.
This is really great advice!
Like many, I am so terribly sorry to say, I purchased a nice, new vehicle when I was a kid, and I financed it...sigh. Anyway, like you mentioned it's an expensive lesson, but one well worth learning. Today my perspective is this, 1) I've learned to fix my own vehicles, it was hard I admit, and frustrating, but the skill set I have now is not too shabby. 2) I only purchase vehicles I want, at the price I wish to purchase them at. This often means there is a bit of time I must wait for depreciation. Like death, depreciation seems to be inevitable, and so, I can get the Cars and Trucks I want for %15 to %20 per cent of the initial pre tax cost. People think I'm stupid of course, People say, "but you gotta fix this, and that, and the other thing." Fair enough, but...I actually enjoy fixing these things myself, sourcing parts and so on, so I can't see my disadvantage.
I'm a School Bus Driver and I have bought three brand new porsches. My first one when I was in my twenties. I have other vehicles for transportation and day to day needs.
Cars (most cars) are money pit, depreciating assets or liabilities but some of us are car lovers and/or have a passion to drive so we make the psychological sacrifice to put hard earned money on something that has four wheels which wont appreciate.
Real Estate is A LOT better investment in life as I have been lucky to have a passion for it.
That, those investments keep going up and up to the point its crazy to realize to the point to where they are now here in the silicon valley. Ridiculous!!!
But If my number in life would come out today or tomorrow Ill be very happy to know that I drove Porsches for fun even though a lot of money went to it.
So the morale is Go for what you love and have passion for, period. You only have one life.
I really liked that question. Cars that are only selling because of easy financing
Ford F Series, Escalade, Suburban, Yukon, Tahoes have to be on that list of easy money vehicles.
What do you think about leasing if you can deduct the payments as business expenses which brings down your gross earnings for taxation? Like you said EV cars that subsidized to the tune of $10,000 lease out at ridiculous low lease rates so why is that a bad deal? You are right that most high-end sports cars are terrible for leasing because they take such a huge hit on residual value.
Will cover the whole deduction myth in our leasing special.
don't know if the deduction myth is the same over the pond as over here, but there used to be a time here, when everyone pretty much thought "oh, he has a business, he just puts it down as costs and it's basically free". nope. You don't pay tax on the money you use to pay for the car, so it's cheaper... and you might also get the actual car without tax, which is still cheaper, but it's nowhere near free.
The title caught my eye since i just started the Dave Ramsey plan. I will own a GTR or a 911at some point. i am now subscribed to your channel.
Welcome to the 7 baby steps!!!! Definitely NOT the easy way, but I promise you WELL worth it . . .
Cars are the worst "investments" hands down. Don't ever let anyone tell you that a car is an investment. No affordable new car today will go up in value. They only depreciate. The only cars that have the chance to go up in value are the very special ones such as the 911R, the 918 or the Ford GT. But those are ridiculously priced to begin with.
Never heard of you before, but seeing where your head is at and you being a car guy, I had to subscribe! Ya, my Porsche: $6200, 1986 944 Turbo (cash). I'm with you, maybe one day the 911.
I think easy financing is what gets the average American into the average commuter car. Or, those that are feature loaded and appear as luxury but are less expensive, like Chrysler 300, Hyundai anything, etc.
Long time ago I was told a nice story - never buy a car that is more expensive than how much you make in a year. If you do - you will struggle with something - will it be the insurance, the servicing or a decent set of winter tires. What do you think?
absolutely right, came to this realization this year
Just got into ~150k debt for a mortgage. Yep, it's scary, but the alternative is to just pay rent and have that money go nowhere, from a net worth standpoint.
This way at least I have the place I can sell if I really have to. Hopefully the market won't tank, though I have some cushion there still.
Cars... well. My 911 will have to wait. I do have an advantage though. I really like the 996... Let's just wait and see if it's still going down in price. And I'm toying with getting the last Saab 9-5 as a daily maybe. They seem to hold value pretty well, the sedans. (The scant few combis are already collectible. I've seen one offered for $100k recently!)
I'm lucky because I don't have a desire to own such expensive sports since they don't appeal to me. My passions is towards Japanese cars from the 90's, 00's that feel raw and are manual so that really lowers the price for my toys cars. I personally didn't want to buy used so I comprised with something that feels old school but is new. ~ A 2018 WRX STI ~ which is my paid off toy car and love it. I have no desire to upgrade to anything more expensive =) ~ However, in the future I'd really like to find a nice RX-7 FD or NSX in the future to add to the collection =) ~ By the way, superb video!
I subscribed because of this video. Thanks for the advice, hope to continue learning from you!
When you buy a $150k porsche, the money that you used didnt just evaporate. It is parked in that car. When you sell it, you are going to get a portion of that money back. Unlike for example, a $150k worth of potatoes. If you buy the right Porsche, you might even make money on it, all the while enjoying your purchase.
I subscribed because of this video!! This was great information!!
I became debt-free in January after the death of my father. Maybe we should catch up. My life is very different than when I last spoke with you. But thank you for those words. I am on a different track, the Dave Ramsey track.
Amen- probably never going to spend more than 30k on a car. A bit more for the wife but not too much. Daily an ND :)
New viewer here, love me some Dave Ramsey!
Good points. Words to live by for sure.
I have zero debt: haven't had a credit card in 9 years, no car payments, after I paid off my undergrad I paid cash for MBA, and paid off my house. I've followed Dave since I was 24, 33 now. Now that I'm making more than I ever have, money goes toward investing and FUN (giving is fun too). I'll never have debt ever again in my life. Good post, Will.
To be able to afford a $50,000 financed, I'd like to see the borrower being debt free and making $100,000/year on a stable job. That's the baseline. Leasing a $150k Targa 4S is probably around high $3,000/month before taxes, so you better be making $200k per year to comfortably afford it.
Rolls royce sells because of easy finance. more than 80% are leased because an extra 1k a mo is worth it from an s class but when writing a check for 250-350k more it sure isn't
This vid got you another suscriber
Your best video to date. Very well done!
Totally agree!!!
Grant Cardone has a recent video out saying that buying a house is the absolute worst thing you can do with your money.
9:24 it's that video done already? can't find it.
Not yet . . . Figure in the next 6 - 8 weeks.
Gimme a nice 2011-12 911 GTS and the extra $90k.
"I'm still a car guy, I'm not gonna buy a Toyota Corolla no matter how great of appliance it is" WAHAHAHAHA LOVE IT!!!!! 😁👍🏻
dpajc056 Can't hate on a car with a model history of walking to 250k miles, easy, with regular maintenance & care. And can keep on pushing lol
I love Dave Ramsey, great story.
sage advice here kids...
I don't need Dave Ramsey to tell me, only buy what you can afford, whether it's a Porsche or a Civic.
Absolutely love this video. I already liked your channel and have been subscribed for months, but this is one of my favorite off-topic videos! I will unsubscribe and re-subscribe as requested!
Shocks! I’ve been looking for this video! Question though, will you give a rough time frame as to when to achieve the “Dream Car” after sorting out the priorities? Will you say after 5 years 10years etc? Thank you :)
Good question. It's not a time thing, it is a ratio thing. Meaning, all your other priorities need to be sorted before going hog wild on a car. And even at that, you want to apply the ratio principal to that car purchase. For example, you want to be out of debt, 6-12 months emergency fund (after this recent clown show, I would HIGHLY suggest 12), own your home, kids college funded (if applicable) and retirement on solid ground with continued contributions. After that, take a look at what your net worth and income are and figure out what percentage of that makes sense and is comfortable to allocate to a 'fun car'. Dave's book 'The Total Money Makeover' goes over this in great detail. Also, there is no law saying you have to drive a boring car while sorting these steps out - - - just one that you can afford and does not have debt on it.
great points
You're a Sun Devil? No way didn't know that! Go Devils!
And DAMN proud of it! Fork 'em:)
Thanks for the video helped put things in perspective
crown vic! wouldn't mind paying 3k in cash for a car that provides the cheapest way of transportation