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
This video came out at the perfect time. I'm a college student and I've been saving my money up to buy a 05 STI but I just can't seem to justify spending 15k on it at the moment.
Once you see the cash in the bank and the numbers growing in your accounts, it's hard to give all of it up. That's the power of real tangible money! I did something similar while I was in school (except for a Genesis Coupe). Ended up buying a slightly used one with $16,500 cash.... and 6 months later sold it because I decided I would rather invest that money. Don't get me wrong, I miss the car, but I'm positive that later I will thank myself heartily :)
love it motoman! to an average Joe like us, it's hard being a car enthusiast AND a financially responsible person. I managed to work it out but I don't think many of my friends did. I first listed out 3 levels of "dream car" 1) Practical daily driver and also fun (Mazda3), 2) Super fun but relatively affordable sports car (Miata or GT86) 3) A real sports car (911). And I do the following: get the cheapest car possible -> save up for retirement -> get my level1 dream car -> save up for a house -> get level 2 dream car -> send kids off to college -> get level 3 dream car
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.
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
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've honestly asked this question on reddit and FB with no good answers. Most of the personal finance advice pertaining to cars is to buy the cheapest thing you can and drive the wheels off of it and if you buy a nice car, you're a fool. As a car enthusiast, I really appreciate this advice and this perspective. Thank you MotoMan.
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!
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.
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.
I would say that luxury pickup trucks, e.g., King Ranch or Platinum in the Ford line, are driven by "easy financing". They probably would not exist without it.
Actually, the depreciation gap has been narrowing as automakers have flooded the market with trucks. www.autoremarketing.com/trends/3-reasons-smaller-depreciation-gap-between-trucks-cars
Totally agree. The sticker prices are bonkers on 4 wheel drive, 4 door trucks. Even packaged somewhere in the middle. And they're EVERYWHERE in middle America. I think financing plays a huge role.
Been watching your stuff for years now. As I huge car nerd myself, I enjoy your highly technical, detail oriented slant on your car reviews. You gave a nice change of subject in this video. Keeping perspective on life is so important. Keep the videos coming and I bet the viewers would like to see content about your house search (and your personal car search) too! :) You bring an earnestness and enthusiasm seen in the far minority of youtube content and I think the people who watch and subscribe can sense that and appreciate it. Thanks for your hard work! Will
I wish I had discovered Dave Ramsey sooner. I recently bought a used truck, and while I love it, had I forced myself to pay cash then I never would have paid as much as I did. Easy financing absolutely gets people in trouble, even when they know better. We think a car that costs another 10-15k more will make us happy, and I think it's even worse if you're a true die hard car person. There's always someone financed to their eye balls in the newest corvette, or GT-R, and you tell yourself that if they can make it work then so can you! I'm planning to sell my mustang so I can pay the truck off, but I hope that I'll decide to keep the truck long term and really get my monies worth out of it.
I agree with everything you said. Sadly, I don't think I will ever be able to buy the kind of sports car that I dream about. Still, if I can own my own home and have some money in the bank I will be happy. Look forward to your next review!
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.
Hell yea. Can't agree more. I am driving my old 350Z for years , everybody telling me it's old ,it's time to change, blah blah bla.. As someone works for a dealership, buy a car with good deal is really easy for me.. But why I am still keeping my 350z is because of I own it and its old but still running good . And of cause at least it's not boring as a daily drive , So I can save more and more money to own my first 911, lol..
Those cars are awesome. Wish I was in the position to buy one when they were newer & late model, I'd drive it forever. Now they've all probably been beat on with 70,000++++ miles to boot, I'm good lol. My future car, 370Z!!!!! Brand new, or if I could find one under 10,000 miles that'd be wonderful I could dodge that full-force msrp depreciation hit & it'd be damn near new car still
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.
you are exactly correct on all points. Having a paid for house, no debt, I bought a metallic black 911 Carrera S Cabriolet ( used of course ) but top of the line in all aspects and paid cash.Its a rush to drive with 400 HP, rumbling exhaust and 0-60 in less time than any around. FYI - after 10 yrs of using these and other principles to manage money, would place my networth in same category that Chris H & Dave often interview on the show and are highlighted in the upcoming 2019 book. Keep on keeping on !
Awesome video and advice! Always wanted an AMG or 911...had a friend who owns several 911s and drove one, got it out of my system, then bought a used C230 ($20k) to see what the deal was...been paid off for 8 years and glad I didn't sink $80-$100k on a car... priorities changed...
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.
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.
Very good advice! I just finished my total money makeover and am Debt free with a fully funded emergency fund except for my house which we are aggressively paying off now. Man I have the itch to buy a sports car (Used Viper) with cash of course, and I have the cash available, but I am going to wait another 3 years because the cash I have available is in mutual funds to help fund my retirement (not in an IRA). Priorities! Dave Ramsey has changed mine and my wife's life! My kids too, they just don't realize it yet. I am now almost 49 and wish I knew what I do now when I was 25! Great video! I have subscribed!
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 .
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!
Motoman! this was an awesome episode! I recently started listening to Dave Ramsey as well and have also been conflicted because I am a car guy and was fortunate to graduate from college last year debt free, but financed a 20k used car that I enjoy, but have come to the realization that it is really holding me back financially since I out nothing down and agreed to 72 months at a 2.9% APR. I have been in the work force for almost a year now and have been fortunate enough to start saving and investing, but have started to lately seriously thing about how I am gonna knock out this debt. So I as well made a stupid mistake and luckily thanks to Dave and even hearing you talk about this, I'm motivated to cut this debt down. To answer your question, the most leased cars are definitely compact luxury sedans (3 series, c class, Lexus is) and the red hot luxury compact SUV segment (rdx, glc, x, etc) as well as the stars of luxury SUV's (mdx, Lexus rx). I myself aspire to own a 340i msport one day, but it will definitely be many years down the road after I finish grad school and become more established in my career. I have a question for you motoman though, being that I am also a car guy and eye candy is everywhere and cars just keep getting more and more interesting, how do you personally continue to stay humble when it comes to not spending outrageously on a car when financing is so easily available? I ask this because I have thoughts all the time like "O once I pay off my car, I would love to get x,y, and z and I even start trying to justify financing it in my mind". So just wanted to get your opinion.
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
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 for its age looks great with no paint issues or anything really, 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.
My approach to buying a sports car which I consider a luxury item is to use money I gained from investments. I don’t consider this as money earned working but passive income. It’s going to take me a long time to get my dream car so it’s not good for those instant gratification types but for me that dream car will be fully paid for when it comes.
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.
And here I am 19 y/o thinking about buying a 40k sports car brand new, glad I saw this; guess I will stick with my $300/month leased 2017 jetta and do well in school...
OK, I can't resist . . . US$300/month invested - even modestly with a 5% return average return over 46 years - the time until you 'could' retire would be . . . wait for it . . . US$642,717.76. Just sayin' . . .
MotoManTV yeah people say to invest my money now but I have no other car. I get cheap 1 yr lease deals from my dad b/c he has connections with VW corporate. I barely make $300 as a college student tho
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.
Dude! Most of the time I can't stand your professions.... But, this one is actually the best one you've done. Best advice I've ever heard presented very well. Thanks
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.
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).
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.
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 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.
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?
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.
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 just bought a 2018 Mercedes S65AMG fully loaded with all my goodie options. Final price 210k. No regrets. I'm going to buy the 2018/19 Audi RS7 next. Thats it. I don't mind spending the money. I want I get. Everything I need is already fulfilled. I do have my daily the 01 Lexus GS300 with 205k miles, had it for 4 years, never letting go.
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 think you made an amazing point in some manufacturers existing solely to draw in certain consumers. I think this is the reason base models exist. As a previous car salesman & car enthusiast, nobody wants a base model. Most get what they could afford & if there's a bit of wiggle room in your available credit, "here! Take this "S" model with automatic seats for an extra $2500." I'm sticking with a new rule of thumb if I buy anymore. I'm simply not buying any car that has an available base model. The GTR is great for that reason(based on its pricing), 911s, Bentley and most exotics use the same rule of thumb. There may be nice "editions" with a few extra visuals but there is no base model. They hold there value better but more importantly the prestige to the brand.
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. ;)
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 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."
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.
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.
Short story... while car shopping last week, the sales guy told me of a guy that recently leased a new M5, with a 600 credit score, and a $2k+/mo car payment. I thought I was ridiculous with my car-decisions, but thats several levels beyond my reasoning.
The 2017 Ford Raptor is the current king of wants for everyone. That truck is selling for $40k Folsom dealer mark up in California making it a $99k vehicle.
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. :)
Love the channel. Great question and advice! I am a financial guy and frugal minded and I'm shopping for a car right now. I'll go pretty general here and say "Any car with 0% financing", it is very hard to refuse "free financing" and can trump "what the car is/what you want". In Canada it is harder to get the "car you want" (that's RWD for me) due to snow and the cars I'd put down cash on a BRZ or Porsche Cayman or (one day) a Lotus. For now, it's FWD and it is hard to choose as I haven't found many FWD models as "fun" as RWD.
Completely agree. Your obviously a forward thinker.. Some might think... well have $18k in the bank, and I can make the extra $30k over the next 5 years so at 0%....
I agree, but that would be "I'm frugal minded" not a new car purchase. If we are talking "new only" then there are some situations where new at 0.9% is better than "new used" at 3.99%. (that is a real-life example of a 2016 Mini Cooper vs 2017 new Cooper). It must be awful to trade in a 1 year old car.
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.
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 recently sold my 370z which was paid off for awhile for a used GTR, I put down almost 40% cash with the sale of my car. It would be outrages to spend 110k new on a GTR, let someone else take that initial hit and then buy it! I also pay 300 to 400 extra a month on payments so I can have it paid off in 3 years vs 5 1/2 years like the loan says. I made that 19 year old new car mistake once and I never made it again, all used cars since! (btw me and my wife have owned this home for 5 years and spent far less than we were approved for!)
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 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 episode of your show to date. Mustangs, STIs, Civic Si's, and probably most BMWs below the 7 series Mercs below E500 likely wouldnt sell in any real volume absent the availability of cheap money. These are all largely status symbol cars and or cars that are leased for 2-3 years and gotten rid of after their warranty. That targa though is a thing of beauty and I'm not even a porsche fan. Wouldn't but a Porsche new though I would rather let some impulsive individual eat the depreciation then profit from it 2-3 years later.
Once I heard Dave Ramsey say to a caller on his radio show something to the effect of "ahh, when it comes to you, & your spouse having kids, you really can't plan, or control that to much. If you're waiting to be financially stable to do that? That's not realistic"..I instantly STOPPED LISTENING TO HIM.. The show was around 6yrs ago, & he was talking to a female caller who was explaining that she, & her husband were barely making enough money to make ends meet, & try to save a little bit of money at the end of the month (basically living paycheck to paycheck)..
Michael Vuong, to use LOGIC!! If you're fortunate enough to live in America in the 21rst Century , & you can read, write, have good comprehension skills, aren't handicapped, & have access to information/internet, & birth control..for the love of all that is Scrupulous, & decent 👉DO NOT HAVE CHILDREN UNLESS YOU ARE FINANCIALLY, MORALLY, MENTALLY, & PSYCHOLOGICALLY PREPARED, & HEALTHY..if that means you wait until later in your life, then for fuck sakes WAIT!! If you're a rational person, who can think critically, & logically, why on earth would you roll the dice on something so astronomically important as to bring another human being into this world if you're deep in debt, living paycheck to paycheck, & in all HONESTY not emotionally prepared to raise that Child in the most optimal conditions, & environment for him/her to have a good head start to grow into a well balanced, successful young adult? It's a Human Being, not a beloved pet. I SWEAR, I WILL NEVER UNDERSTAND PEOPLE..EVER
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.
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.
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
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
Dave Ramseys Car Princepals
- Buy used if Net Worth less than 1M
- Purchase price < 50% Annual Income
- Purchase price < 10% Net Worth
- Pay Cash
If you can’t buy it twice, you can’t afford it. -JayZ
This video came out at the perfect time. I'm a college student and I've been saving my money up to buy a 05 STI but I just can't seem to justify spending 15k on it at the moment.
Once you see the cash in the bank and the numbers growing in your accounts, it's hard to give all of it up. That's the power of real tangible money! I did something similar while I was in school (except for a Genesis Coupe). Ended up buying a slightly used one with $16,500 cash.... and 6 months later sold it because I decided I would rather invest that money. Don't get me wrong, I miss the car, but I'm positive that later I will thank myself heartily :)
bruh get a spec B instead. they're slightly cheaper than STIs of the same model year in my area
Don’t. Easy.
Dave is all about buying nice things....without credit.
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
love it motoman! to an average Joe like us, it's hard being a car enthusiast AND a financially responsible person. I managed to work it out but I don't think many of my friends did.
I first listed out 3 levels of "dream car" 1) Practical daily driver and also fun (Mazda3), 2) Super fun but relatively affordable sports car (Miata or GT86) 3) A real sports car (911).
And I do the following: get the cheapest car possible -> save up for retirement -> get my level1 dream car -> save up for a house -> get level 2 dream car -> send kids off to college -> get level 3 dream car
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.
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.
The total money makeover is life
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've honestly asked this question on reddit and FB with no good answers. Most of the personal finance advice pertaining to cars is to buy the cheapest thing you can and drive the wheels off of it and if you buy a nice car, you're a fool. As a car enthusiast, I really appreciate this advice and this perspective.
Thank you MotoMan.
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!
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!
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
I would say that luxury pickup trucks, e.g., King Ranch or Platinum in the Ford line, are driven by "easy financing". They probably would not exist without it.
Doesn't hurt that pick up trucks hold high resale value - if they didn't there would be much less "payment buyers" for them.
Actually, the depreciation gap has been narrowing as automakers have flooded the market with trucks.
www.autoremarketing.com/trends/3-reasons-smaller-depreciation-gap-between-trucks-cars
Totally agree. The sticker prices are bonkers on 4 wheel drive, 4 door trucks. Even packaged somewhere in the middle. And they're EVERYWHERE in middle America. I think financing plays a huge role.
Been watching your stuff for years now. As I huge car nerd myself, I enjoy your highly technical, detail oriented slant on your car reviews.
You gave a nice change of subject in this video. Keeping perspective on life is so important. Keep the videos coming and I bet the viewers would like to see content about your house search (and your personal car search) too! :) You bring an earnestness and enthusiasm seen in the far minority of youtube content and I think the people who watch and subscribe can sense that and appreciate it.
Thanks for your hard work!
Will
Thanks for the great feedback, William . . .
I agree with this 100% Can't wait till the episode on leasing comes out.
I wish I had discovered Dave Ramsey sooner. I recently bought a used truck, and while I love it, had I forced myself to pay cash then I never would have paid as much as I did. Easy financing absolutely gets people in trouble, even when they know better. We think a car that costs another 10-15k more will make us happy, and I think it's even worse if you're a true die hard car person. There's always someone financed to their eye balls in the newest corvette, or GT-R, and you tell yourself that if they can make it work then so can you! I'm planning to sell my mustang so I can pay the truck off, but I hope that I'll decide to keep the truck long term and really get my monies worth out of it.
I didn't buy a new car until I paid my college loans off.
I did the same.
smart!
I agree with everything you said. Sadly, I don't think I will ever be able to buy the kind of sports car that I dream about. Still, if I can own my own home and have some money in the bank I will be happy. Look forward to your next review!
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.
Great video! Dave Ramsay fan here as well. Glad to see a car guy with the same principles.
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 . . . '
Hell yea. Can't agree more.
I am driving my old 350Z for years , everybody telling me it's old ,it's time to change, blah blah bla..
As someone works for a dealership, buy a car with good deal is really easy for me..
But why I am still keeping my 350z is because of I own it and its old but still running good .
And of cause at least it's not boring as a daily drive ,
So I can save more and more money to own my first 911, lol..
Those cars are awesome. Wish I was in the position to buy one when they were newer & late model, I'd drive it forever. Now they've all probably been beat on with 70,000++++ miles to boot, I'm good lol. My future car, 370Z!!!!! Brand new, or if I could find one under 10,000 miles that'd be wonderful I could dodge that full-force msrp depreciation hit & it'd be damn near new car still
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 : )
I am a new dave Ramsey fan and a fan of yours for years. This video was honestly refreshing. Thank you for the perspective.
My pleasure . . .
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.
you are exactly correct on all points. Having a paid for house, no debt, I bought a metallic black 911 Carrera S Cabriolet ( used of course ) but top of the line in all aspects and paid cash.Its a rush to drive with 400 HP, rumbling exhaust and 0-60 in less time than any around. FYI - after 10 yrs of using these and other principles to manage money, would place my networth in same category that Chris H & Dave often interview on the show and are highlighted in the upcoming 2019 book. Keep on keeping on !
I watch your stuff on and off. This by far was the best video you have ever done.
WOW - thanks!
Awesome video and advice! Always wanted an AMG or 911...had a friend who owns several 911s and drove one, got it out of my system, then bought a used C230 ($20k) to see what the deal was...been paid off for 8 years and glad I didn't sink $80-$100k on a car... priorities changed...
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.
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.
Very good advice! I just finished my total money makeover and am Debt free with a fully funded emergency fund except for my house which we are aggressively paying off now. Man I have the itch to buy a sports car (Used Viper) with cash of course, and I have the cash available, but I am going to wait another 3 years because the cash I have available is in mutual funds to help fund my retirement (not in an IRA). Priorities! Dave Ramsey has changed mine and my wife's life! My kids too, they just don't realize it yet. I am now almost 49 and wish I knew what I do now when I was 25! Great video! I have subscribed!
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 .
thought I wasn't going to like the video but he was spot on. Flipped my way up to an S2k while on the step2 of the Ramsey plan and own that thing.
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!
Motoman! this was an awesome episode! I recently started listening to Dave Ramsey as well and have also been conflicted because I am a car guy and was fortunate to graduate from college last year debt free, but financed a 20k used car that I enjoy, but have come to the realization that it is really holding me back financially since I out nothing down and agreed to 72 months at a 2.9% APR. I have been in the work force for almost a year now and have been fortunate enough to start saving and investing, but have started to lately seriously thing about how I am gonna knock out this debt. So I as well made a stupid mistake and luckily thanks to Dave and even hearing you talk about this, I'm motivated to cut this debt down.
To answer your question, the most leased cars are definitely compact luxury sedans (3 series, c class, Lexus is) and the red hot luxury compact SUV segment (rdx, glc, x, etc) as well as the stars of luxury SUV's (mdx, Lexus rx).
I myself aspire to own a 340i msport one day, but it will definitely be many years down the road after I finish grad school and become more established in my career.
I have a question for you motoman though, being that I am also a car guy and eye candy is everywhere and cars just keep getting more and more interesting, how do you personally continue to stay humble when it comes to not spending outrageously on a car when financing is so easily available?
I ask this because I have thoughts all the time like "O once I pay off my car, I would love to get x,y, and z and I even start trying to justify financing it in my mind". So just wanted to get your opinion.
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
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 for its age looks great with no paint issues or anything really, 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.
My approach to buying a sports car which I consider a luxury item is to use money I gained from investments. I don’t consider this as money earned working but passive income. It’s going to take me a long time to get my dream car so it’s not good for those instant gratification types but for me that dream car will be fully paid for when it comes.
Your last point is absolutely spot on. Best car buying advice EVER !!!
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.
And here I am 19 y/o thinking about buying a 40k sports car brand new, glad I saw this; guess I will stick with my $300/month leased 2017 jetta and do well in school...
OK, I can't resist . . . US$300/month invested - even modestly with a 5% return average return over 46 years - the time until you 'could' retire would be . . . wait for it . . . US$642,717.76. Just sayin' . . .
you're assuming that past performance is indication of future results... and MotoMan, you should know you NEVER follow that financial advice.
MotoManTV yeah people say to invest my money now but I have no other car. I get cheap 1 yr lease deals from my dad b/c he has connections with VW corporate. I barely make $300 as a college student tho
Buffett recommends the average person to buy a S&P 500 index and hold for decades.
Buffett also recommends buying land, one of the most guaranteed long term investments.
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.
Best commentary I have ever heard! You are right, priorities what you make of them.
This was great advice.
Dude! Most of the time I can't stand your professions.... But, this one is actually the best one you've done. Best advice I've ever heard presented very well.
Thanks
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.
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).
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.
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 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.
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?
Your last comment about financing nails it. Never thought about it that way but you're dead right.
MotoMan, you are THE man. Thank you for sharing your private story. Sage advise.
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.
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 just bought a 2018 Mercedes S65AMG fully loaded with all my goodie options. Final price 210k. No regrets. I'm going to buy the 2018/19 Audi RS7 next. Thats it. I don't mind spending the money. I want I get. Everything I need is already fulfilled. I do have my daily the 01 Lexus GS300 with 205k miles, had it for 4 years, never letting go.
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.
With your style, charisma and knowledge, im sure you could make a 2 hour film about watching a newly painted wall dry interesting.
Thanks for sharing, and for the pictures of your past cars. Excellent video.
I agree with you that most car companies exist today because of easy financing. However, that is one of many bubbles ready to burst.
Some of the best advice I’ve heard thank you
I think you made an amazing point in some manufacturers existing solely to draw in certain consumers. I think this is the reason base models exist. As a previous car salesman & car enthusiast, nobody wants a base model. Most get what they could afford & if there's a bit of wiggle room in your available credit, "here! Take this "S" model with automatic seats for an extra $2500."
I'm sticking with a new rule of thumb if I buy anymore. I'm simply not buying any car that has an available base model. The GTR is great for that reason(based on its pricing), 911s, Bentley and most exotics use the same rule of thumb. There may be nice "editions" with a few extra visuals but there is no base model. They hold there value better but more importantly the prestige to the brand.
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. ;)
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.
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.
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' . . . :)
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.
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.
Short story... while car shopping last week, the sales guy told me of a guy that recently leased a new M5, with a 600 credit score, and a $2k+/mo car payment. I thought I was ridiculous with my car-decisions, but thats several levels beyond my reasoning.
The 2017 Ford Raptor is the current king of wants for everyone. That truck is selling for $40k Folsom dealer mark up in California making it a $99k vehicle.
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. :)
Tomorrow is never promised so if there's something out there in life you want just work hard and go get it.
Thanks, I have been fighting with myself about buying an E92 M3. I need to wait and own the car.
Same boat. :(
Love the channel. Great question and advice! I am a financial guy and frugal minded and I'm shopping for a car right now. I'll go pretty general here and say "Any car with 0% financing", it is very hard to refuse "free financing" and can trump "what the car is/what you want". In Canada it is harder to get the "car you want" (that's RWD for me) due to snow and the cars I'd put down cash on a BRZ or Porsche Cayman or (one day) a Lotus. For now, it's FWD and it is hard to choose as I haven't found many FWD models as "fun" as RWD.
Completely agree. Your obviously a forward thinker.. Some might think... well have $18k in the bank, and I can make the extra $30k over the next 5 years so at 0%....
Mike Le Pard I wouldn't call financing a car frugal-minded. Quite the opposite, 0% or not
I agree, but that would be "I'm frugal minded" not a new car purchase. If we are talking "new only" then there are some situations where new at 0.9% is better than "new used" at 3.99%. (that is a real-life example of a 2016 Mini Cooper vs 2017 new Cooper). It must be awful to trade in a 1 year old car.
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.
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 recently sold my 370z which was paid off for awhile for a used GTR, I put down almost 40% cash with the sale of my car. It would be outrages to spend 110k new on a GTR, let someone else take that initial hit and then buy it! I also pay 300 to 400 extra a month on payments so I can have it paid off in 3 years vs 5 1/2 years like the loan says. I made that 19 year old new car mistake once and I never made it again, all used cars since! (btw me and my wife have owned this home for 5 years and spent far less than we were approved for!)
absolutely right, came to this realization this year
This was very informative
Hey! Not sure if I'm the one but happy you came up with this episode!
You are indeed the one that posed the question . . . My apologies, but I could not pronounce your username:)
MotoManTV No worries. There is no need for any recognition, glad to have influenced an awesome episode.
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 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!
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 . . .
Best episode of your show to date.
Mustangs, STIs, Civic Si's, and probably most BMWs below the 7 series Mercs below E500 likely wouldnt sell in any real volume absent the availability of cheap money. These are all largely status symbol cars and or cars that are leased for 2-3 years and gotten rid of after their warranty. That targa though is a thing of beauty and I'm not even a porsche fan. Wouldn't but a Porsche new though I would rather let some impulsive individual eat the depreciation then profit from it 2-3 years later.
Ford F Series, Escalade, Suburban, Yukon, Tahoes have to be on that list of easy money vehicles.
I like the message that you where providing in this video. It really impacted me.
Good points. Words to live by for sure.
I subscribed because of this video. Thanks for the advice, hope to continue learning from you!
Once I heard Dave Ramsey say to a caller on his radio show something to the effect of "ahh, when it comes to you, & your spouse having kids, you really can't plan, or control that to much. If you're waiting to be financially stable to do that? That's not realistic"..I instantly STOPPED LISTENING TO HIM..
The show was around 6yrs ago, & he was talking to a female caller who was explaining that she, & her husband were barely making enough money to make ends meet, & try to save a little bit of money at the end of the month (basically living paycheck to paycheck)..
Soon2Be Fulfilled What's your realistic solution?
Michael Vuong, to use LOGIC!! If you're fortunate enough to live in America in the 21rst Century , & you can read, write, have good comprehension skills, aren't handicapped, & have access to information/internet, & birth control..for the love of all that is Scrupulous, & decent 👉DO NOT HAVE CHILDREN UNLESS YOU ARE FINANCIALLY, MORALLY, MENTALLY, & PSYCHOLOGICALLY PREPARED, & HEALTHY..if that means you wait until later in your life, then for fuck sakes WAIT!!
If you're a rational person, who can think critically, & logically, why on earth would you roll the dice on something so astronomically important as to bring another human being into this world if you're deep in debt, living paycheck to paycheck, & in all HONESTY not emotionally prepared to raise that Child in the most optimal conditions, & environment for him/her to have a good head start to grow into a well balanced, successful young adult? It's a Human Being, not a beloved pet.
I SWEAR, I WILL NEVER UNDERSTAND PEOPLE..EVER
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.
I subscribed because of this video!! This was great information!!
Should have put all that money into a Low Fee Vanguard Index Fund. You’d be driving a 2019 Porsche 911 GT3 R S
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.
This is really great advice!
I really liked that question. Cars that are only selling because of easy financing
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