I can never see myself going to a dealer and putting money as down payment and driving car that I dont own yet paying extra for it through interest and and with the possibility delaying Payment due to rainy day event and that causing my financial life goal in jeopardy. I have always bought my car with Cash. I have bought 2017 Chevy impala, after a year I sold it and bought 2016 Honda civic touring and now I have recently bought 2015 BMW 328i. My next car that I am aiming for is a white BMW M4 convertible:)
Much easier to negotiate when you don't need anything from the dealer! I get a few year old car with cash and spend the money I'm saving on beer and silly things
Typically we only drive Toyota’s Honda’s and Nissans and purchase a 5 year old model in cash and keep them for 10 years or to 150k miles. That has allowed us to stay car payment free while we max out our 401k. Don’t drive broke.
Newer cars also have higher insurance payments. Although older cars have higher maintenance costs, that's mostly negated by the fact that they've already depreciated most of their value and so depreciate much more slowly than newer cars. Old cars FTW!
So....long story short: if you're going to get a car 1) Pay cash 2) Get a car that's useful 3) Find one that's low maintainence 4) Keep it until the wheels falls of
Say you have a card limit of $5,000. Buy a 10 year old car from a dealer who doesn't charge fees outside of sales tax. Depending on your card you might actually get some cash back!
@@computerscientist5953 I drive a 94 f350 xl. Paid 1500. My annual income was $13500 last year. Pretty close. Not including income outside my daily job. I've spent a lot more on my tractor and implements but they are used constantly and have better resale value.
i bought a prius and it is probably the best investment i could have made. it is nice only having to put gas in when I want to, and not when I have to.
@@510jesus For Dave Ramsey, ignore the ads and his real estate advice maybe, but stick around for his DEBT REDUCTION plans and advice, which is achievable and repeatable; his regular callers who in 2-3 years got out of 200k+ of debt is incredibly inspirational.
I actually gave him another shot considering he showed up repeatedly in my recommendations. I've always been financially cautious and never really financed anything that I couldn't pay off in full within 1 months statement. Anyways, it's fun listening to others debt situations trying to keep up in the rat race
The public schools will never teach the value of a dollar because today everyone gets a trophy. It's taboo to say the truth nowadays especially with ghetto rich!
So true. My neighbors are on public assistance yet the have a new Mustang and an older BMW. They also apparently spent a lot on MJ, but besides the point.
The Poor show their wealth with clothing, the middle class show their wealth with cars/trips/education, the rich show their wealth with boats/houses/expensive cars, & the truly wealthy show their wealth with time/choices/contributions/impact. The education system was created in service for the 'upper bands' of our world today. For what purpose? Well, to supply worker bees for the sake of business & servitude (oligarchy & such.)
I can totally relate. Twenty years ago I was about put 5K down to finance my 35K "dream car". At the last minute I was offered the opportunity to buy a wrecked version of the same car with the 5K cash, which I then parted out and started my specialty auto parts business that has paid me back multiples of my initial investment. It's nothing more complicated than making your money work for you instead of working for your money.
Does you car have plenty of air bags, stability control, traction control, ABS??? I am not even talking about fwd collision, blind spot, etc. You do not need to buy a brand new car necessarily, but 19 years is way too much in my opinion, safety should be first priority!!
@@Larry_Kabberga 10 air bags, yes stability control, yes traction control and yes ABS. It's a Lexus LS430. It also has more features than your average car today thank you very much. Does your car have double glazing, a fridge, massage seats as well as cooling and heated seats? Check and mate.
@@biggerbitcoin5126 I was referring to the 19 year old car the OP drives. It is highly unlikely that a 19 year old car or any car built in the 90's comes with safety features like ESC, which has proven to save lives. But my 2015 Civic does not have a fridge so now I am very upset.
As a car guy, i 100% agree with this video.Most people fail to realise that these luxury cars are a financial black hole. Especially if you can’t afford it. Most of these cars give a terrible fuel economy and super hard to maintain. If you’re not a car guy and aren’t fixing it up yourself, chances are you’re going to your dealers and oh boy do they rip you off. It’s not the dealers fault either,as they also have to maintain their businesses and because there are ,say 10 mercs for every 1000 Civics, the dealer also has to find a way to milk as much money from a merc to sustain his business . And then there’s The Brand. Slap a Ferrari sticker on a goddamn pair of Puma lowers and boom they are now $70. So essentially you’re buying their brand. It’s so weird that we now associate success and happiness to brands. If you’re driving a lambo you’re successful. Ain’t important if you’re depressed or got no savings or just lost a loved one or just plain sad. What other people will see is just a cocky ass guy in a fancy car.
How cars don’t make me broke -Paid $1300 for a high mileage 2007 Ford Focus -Owned it for 2 years now -Gets 34mpg -Spent $400 on parts for repairs so far, and performed them myself -I could sell this car tomorrow and get almost all my money back...
Good man, my father is a mechanic and he says high mileage is a lessened concern if you are proactive about maintenance and repairs. I now know buying a Toyota at 100K miles for 2,500$ is smart IF I still save maybe a hundred dollars a month for future issues.
My B-I-L does that - $3k for a car - put lots of miles on it and then resell it for almost what he paid for it - basically only out oil changes and any minor repairs.
Payed 2K in cash off a private seller knowing it needed some work but the engine and trans where in great shape. Put another 3K into the car new tires new brakes new windshield new control arms and shocks and all new fluids. Kept the car for 10+ years with no issues and my friends 40K dollar car didn’t even last a year before it started having issues. I don’t get why people don’t look at used cars in great shape that may need little fixing up then buying brand new. Old cars will be cheaper to buy and fix parts will be cheaper to purchase more a less then they would be brand new. Plus if you can find a used car with relatively low mileage that’s a plus.
My driver is a 1978 Ford F150. If anything breaks on it, I can fix it myself. Parts are cheap and plentiful and the design is simple. No car payments for 25 years.
I have bicycle commuted for 20years. I haven't owned a car for over a decade. If I were to make a rough guess, in that 10years, I have saved $15K (low-end) & $80K (high-end) My savings account reflects closer to that high-end number.
A $40-50k car is likely still too much car for someone making $100k/yr (gross or net), unless that someone has a nice trust fund waiting, and (s)he lives with her/his parents rent-free (nothing wrong with that). The only way to justify it would be if it's someone's hobby. Then it's a matter of priorities.
@@benzzoy , I cannot understand going, even $20K in debt, just to get from point A to point B. That just pays for the tool, itself, not any of its operating or maintenance costs. It seems like an absurd life-choice to me.
@@xjarheadjohnson bicycles make you fit and save you money and relieve stress. cars cost you money and make you fat ,and cause stress sometimes too if persons had a bad day and they're stuck in traffic. I don't usually see people on bicycles having road rage. Lol
I make a living fixing other peoples broken cars. I drive a 20 year old mustang, wife drives a 20 year old Lexus, and daughter drives a 10 year old Civic. Low maintenance cars. All three. They cost me about 700 a year combined to maintain. I know people with monthly payments that big. Don't buy a new car unless you have money to burn. The depreciation alone in the first year of ownership should scare most people away.
@@TechExploresNYC most every city has garages where you can rent a lift hourly. Just gotta decide whether not having to worry with it yourself is worth the cost of the repair.
@@s4nder86 Not at all. There is a big difference between a 500 dollar phone and a 30000 dollar car. I have a two year old Motorola that works perfectly all day long. Vehicles are more than a purchase, they are an investment. Phones are just pieces of tech that are easily replaced.
Agreed! There is another channel called 2cents on here, and they suggested buying a car already 5-7 years old so the majority of depreciation would have occurred. Being a mechanic is a great skill to have.
I make around 150K a year and in my mid 30s. As much as I agree with this gentlemen, I also believe in enjoying life. However I go about it in a smart way as I recently purchased a 2016 Audi A6 Quattro premium plus, with a fully loaded option to include S line, 20 inch rims, beat & cold package and etc. The brand new would have cost me 59K however I only paid 25K at 35000 miles only. It even had some factory warranty left. The thing I didn’t do was purchasing an extended warranty which is stupid expensive as the dealer tried to charge me almost 4 grand. I love my vehicle and it is truly worth the hard earned money. Needless to say, I have 401K and over 15K in my stock portfolio as well as pension that I will receive when I retire. Why wait until I am over 60 to start driving a nice car? (No offense to older people) life is too short to not enjoy this moment as long as you have a solid plan for the future!
Success of marketing campaigns explained early in the video can be accurately measured by the degree of people gotten to think that they are not enjoying life if they are not driving a nice car.
Licenciado Varela I actually don’t have a cable nor TV at home. By that said, I do not watch any type of marketing. You can truly enjoy life without a nice car. It’s just what makes you happier. It can be traveling, playing sports, and etc. mine is driving my Audi! Many people hate when they see persons with a luxury car. I used to be one of them. But the honest truth is, they are just hating ;). Don’t know that many people who would not drive a nice car if they could more than afford it. My $410/month payment for 48 month (3.04 interest) still allows me to save and invest in various places.
I have a '97 Ford Ranger 2.3l with 225k, had it for 14 years. The engine uses virtually no oil, synthetic is used in the motor, transmission, and differential. Fluid replacement/flushes are important in my opinion, including coolant and brakes (I have yet to do a full flush on my power steering, I never get around to it). I'm going to run it until the frame rots out, it's cheap to maintain, and I love it. Crate engines are cheap for it, anyway. It's not the prettiest girl anymore, I've sideswiped two deer with it, numerous scratches from brush and getting used around the farm, but the paint still glows. If I get rich it'll get a full body restoration. :)
Cars suck you dry. I was lucky enough to go almost 10 years without a car payment. I recently sold my car and decided not to buy a replacement because I live close to work. Now I bike, walk or bus so I’m getting more exercise. I live in the US so this is seen as pretty unusual but I live in a beach city where everything is close. My daughter is bussed to and from school. I also just met and made friends with a family from Stockholm who bike every where because that’s what they’re used to. I may buy a car eventually but for now I’m enjoying not having to pay for one plus I don’t have to go to the gym. I think more people should consider it.
Specially when you "rely" on the car to go to work and it takes a dump on you and the Mechanic tells you that he could fix your $1,500 dollar problem and then the very next day your yearly registration fee arrives and next month your sky rocketing premium car insurance bill arrived..Man I recently bought a car like 3 yrs ago and it has delayed by travel plans because surprise maintenance repairs and bills..I think I had more money and was able to travel freely when I didn't have a car and was bus riding or riding my bike everywhere.
Keeping a car is cheaper than trading it in and buying a different one. Even if you have to replace the engine and get it repainted at some point, you're still ahead by keeping your car!
@ATRK i have an '06 Mustang GT. It's pretty basic when it comes to creature comforts compared to new cars and even the newer mustang but that's what i like about it. I do all maintenance myself and it's the most reliable vehicle I've owned yet and so easy to work on especially after owning the VW jetta i turned in for it and parts are cheap. I do a good job replacing things at intervals before they have a chance to break but the only thing in 129,000 miles of driving it that ever really crapped out and threw out a code for the check engine light was a single ignition coil at $79 i changed out in a few minutes the next day...So not bad for the miles I've put on it. The 4.6 liter all aluminum V8 is a dependable engine. It's not going to keep up with the new mustangs but im okay with that. The only downside of this generation GT engine i can think of is the two-piece spark plug design that crack while taking them out of the heads while replace them. I dont know why you say they are expensive for their age cause mustangs don't really hold their value and they are practically everywhere and most are modified with aftermarket parts anyway. Another plus is that you'll always see them in junkyards cause people wreck them. Not a knock on the car itself but the people driving them. So if you're into picking parts to replace yourself then youre saving even more money. It's a love/hate thing with owning a mustang. It's not a race car yet i still get followed by cops on the way home from work when the girl ahead of me is zipping through traffic in her sedan while texting on the phone. It gets old quick. It's just a car with a bigger engine than usual that's good at spinning tires and punching it from one stoplight to the next all while being a much cheaper platform for adding go-fast parts than a foreign sports car that will outperform it in almost all driving conditions. If all of this sounds good for you then i say go for it. I wasn't even in the market for one but mine was out front of the dealership with a sticker price too good to pass up so keep your eye out for a deal. They're out there.
exactly...the transmission in my 92 chevy van blew and i paid 2k to get it rebuilt...friends and family thought i was crazy to fix it because the van was worth nothing....i told them 2k is only about 3 payments on a brand new van and this van has already made me alot of money as i am a contractor...
This is great! I always wondered how people could afford to to pay for cars in cash. I've had my car paid off for 2 years now, and will continue putting away what my payment used to be for when I need my next car. I've really enjoyed watching your videos man, super helpful.
I love your videos because they are helpful and honest. Thank you for the time you put into making them. I have a 2008 Toyota Camry that was given to me by my oldest brother! When I got it 3 years ago it only had 68,000 miles, now it has 82,000. People keep asking me when am I going to "upgrade" to a new car? I always say: what for? I don't need one. The funny thing is that I actually work 3 blocks away from my house...lol(so I actually walk!). But it's not only for that reason, it's more because I cannot imagine myself working hard just to pay for a car that I don't need! Even my son, who is almost 6 years old asks me: "mommy, why do people buy new cars? Yours is just fine. It takes me to school and brings me back home." 😭
people think a car makes them superior or something when its far from that lol, having the shiniest car doesn't matter, because at the end of the day, cars are simply meant to be tools to take you around, not something to flex, the new cars do the same as the old ones, people are delusional
I would also encourage people to do maintenance by yourself. I am no mechanic but I enjoy working with my hands. It feels great to replace parts and knowing you are saving hundreds of dollars.
Since I am living in Alaska a vehicle is essential, everything is miles apart and walking a -20 is tough. This means SO many more people paying off cars. Despite the average income being higher in Alaska than most other states people are more middle class. Awesome video!
I drive a 2002 Honda Accord with 106K miles. The car runs and drives absolutely perfect...and the best thing is? I don't owe a motherfucking dime to anyone on it. New cars and high car payments are for chumps.
@@increase9896 I'm 4 miles to work. I've lucked out with a super short commute over the years, so it's saved a lot of mileage and wear and tear on my cars. 106K miles is a lot for me lol
This video is awesome. As a dealer, I completely agree with what you said. This is especially true with subprime, buy-here pay-here style loans. The rate can be as high as 29.99%! and don't forget that if the car is financed you need full coverage insurance too. I sell mainly on a cash basis, under $5,000 and focus on helping people understand that you can affordably own a car. I bought my current daily at an auction for $600 back in November of last year. Anyways great channel 👍
I just paid off my car. Only 24,000 miles. I’ve driven it for several years. I plan to keep it for at least another 5 or so years. I notice (in L.A.) that so many people drive luxury vehicles but live in apartment buildings. That “keeping up with the Joneses” mentality is ridiculous and superficial. It would be smarter to invest that money and/or purchase a home.
I love this! We have decided to only buy cars cash. We are so close to being financially free. We started our flipping business to help us accomplish this. We don’t care what people think of us.
Main reason: Not only you calculate your budget for your payment but also you have to include your potential Yearly Maintenance Cost and this play out big time to PreOwned Vehicle specially those out of bumper to bumper warranty!!
@argh666 LoL 😂. Chevrolet. I never said I didn't buy a car, I said haven't had a payment since '94. In 1991 I bought a used Chevy truck, paid it off in three years and drove it for over 10 years. It was still going strong with over 200k miles before it got stolen. I then bought a used Mercedes 300d and drove it until '05 when I got rear ended. Then I bought a used '03 Chevy Malibu which is still going strong. Paid cash last two vehicles.
Playing devils advocate, there's one key point that's getting missed here.... That joy/excitement that comes from driving the car of your dreams. Doesn't that have value? Is it not worth the cost? Why buy that expensive Rolex watch or that Monet painting or go on that luxury cruise? Why not take that money and invest it? In my mind there has to be a balance. You need to value things that bring you joy as long as you don't go overboard. Buy a car that's within your means and don't get carried away by marketing or what your neighbor drives. If riding a bike or taking public transportation gives you joy then by all means do that. This video is certainly on the money and especially eye opening for folks who fall into the latter category of buying beyond their means.
@@sweetnothingsasmr1 Anybody who has ever driven a really nice/really fast car would understand the above comment. Everybody literally wastes money on something in life. simple as that
We’ve been car free for over 3 years now; sold it as soon as the youngest moved to college. We simply ride a bicycle, about 20 miles a day. We no longer have a car payment, nor gas, repair cost, and no more DMV. My license expires in two months and I’m not renewing it! If I really need to go far, I just take an Uber. If further, I take the train or fly.
@@neptunedawn7121 It really depends on where we are. Our home is in a very small town outside a national park. There are a few local stores, but expensive. We also have a small farmers market to pickup fresh food. We use our panniers or a Bob bicycle trailer on our bikes to carry stuff. Most things can just be ordered for delivery. We also have friends and can plan shopping trips together. There has never been a better time to go carless.
I understand this math as I work in finance world. However I still don't understand why people keep reference buying a car is an "investment"... My take has always been "ownership". If u own the car and drive it for many years, the money paid is worth it by then. Unless u r a person that change car everything 2 years, then this video is applicable to you to consider.
Its cause youll have a higher chance of getting a used car with secret problems that cost so much and brand new cars get you 3 years of free maintenance and guaranteed quality.(i mean in buying the best budget brand new car)
@@davidlynch7666 thats the only time its worth it if you plan to keep it for the long run but i still think youre better off getting a "used like new" car vs brand new.
**YOU HAVE NO IDEA HOW MUCH YOUR VIDEOS ARE HELPING W/ ME IN BUYING A CAR** ******TY 🙏 so very much***** **Please keep the videos COMING I'm learning so much**
People that use cars as a status symbol are mostly bullshitters. Today, its hard to convince people that a sweet car means "living large" because anyone can lease a sweet car.
The local car rental place uses a sticker with small numbers on the back window. I rented a van there once for a trip with friends. At the class reunion, I saw at least 5 cars with the rental company sticker, like we are supposed to be impressed with them driving new german car. I felt sorry for them.
I've watched about 6 of your videos over time and i literally subscribed because you said you'd discount the video lol. That was so funny. Thanks for bringing some personality in it
People fail to realize how much their car actually costs them. Taking into account opportunity cost on your money and depreciation expense makes it clear how costly a vehicle can be. I’m not against people owning nice vehicles. I’m against people not realizing how much it actually costs, and if they did realize it, they wouldn’t have bought that level of car
The closest thing to a new car I've bought was 3 years old with 6,700 miles that I paid half the original price for. There aren't many good reasons to buy new.
Sadly, walking is not a good option in smaller cities. Car drivers will ignore pedestrian signs and shout at you out of their cars. Less and less people walk on the sidewalks each decade.
My wife and I just traded in both of our cars: 2019 Tahoe Premier and 2021 Silverado LTZ..both fully loaded. We would never buy things we can’t afford, so our reason to trade was easy. We decided we wanted what we want most over what we want now: “freedom”. By throwing ego aside, we eliminated $1400 in car payments per month or $28000 per year. We also eliminated $800 in gas between both vehicles per month. By trading her Tahoe, we bought a car under $30k. The dealership paid off her 16k note and wrote us a 15k check. We walked away with a check and fully paid-off vehicle. Secondly we traded my truck. After trade in, I wrote a $5900 check and walked out with a paid-off used vehicle. We now have an extra surplus each month to put towards investments and retirement. For context, we are both 38 and have full time jobs.
I brought $2k Hyundai Sonata 2007 five years ago, and this baby is still running fine with 102k mileages. I changed the oil regularly, every 5k miles, to maintain this baby and I’m happy with it.
The numbers never lie. The problem is that the avg Joe doesn't see the future any further than next week or next month. You are 100% correct but they value that "status" more.
a former co-worker would drop upwards of 300 per month for a new vehicle (leased); they didn't want to have to pay for any repairs/maintenance. when i left, they were shelling out about 425 per month, on top of paying for their children's private school and a mortgage; all this on a teacher's salary.
My whole life since I was 16....40 years......my car purchases have always been an investment. I always buy cheap, sometimes repair, drive, then sell for a profit. My current car I have been driving for 3 years....bought it used for $450 from an elderly lady with only 87K miles. I have been driving it for 3 years and getting ready to sell. With purchase price and repairs, I still only have $750 invested in it and have driven it 22K miles. I will probably sell it for $1500. Yes, I own my own house too! I bought it for cash at the height of the foreclosures in 2009.....for $13,200. It is an acre of commercial land with a house on it. I now work and live at the same location.
Another area people get tricked is oil changes. Every 3000 miles hasn't been necessary for YEARS. Some synthetic blends can go 10k miles+, but that little sticker still says "Come back in 3 months." Nope!
What I did was a cash out refi on my house and used the cash out to pay off my car loans. Now the interest rate is not only lower, but deductible as well and by spreading out the payments over 30 years it increased my cash flow by $1,200 a month which I use to invest!
I've been driving for over 30 years...never had a car loan. Starting out we'd buy used cars with cash, no junk but reasonably priced with 60k-70k miles and bought another after a few years. 13 years ago we switched to buying modestly priced new vehicles with cash and we keep them for about a decade. Currently I'm still loving my 2006 GMC pickup (never buying another truck at these ridiculous prices and poor quality) and our 2015 Subaru Forester. Both we'll keep driving for many years to come as they're in perfect condition and run great, although I'll replace my truck's rear bumper in the next year or two as it's chrome is just starting to flake. Since the money we would have been making payments with (along with a lot of our other savings) has been working for us in the market we can easily afford any vehicle we'd like with cash but we already have the ones we want. This has been a huge money saver for us and works very well.
You're absolutely right. I'm American, so I can only attest to what I see with my coworkers at an elementary school. Many are married and continue to have children. Then, get addicted to upgrading lifestyles and cars. I'm that single dude teacher driving a Corolla XSE and living in a studio apartment lmao. I do still make payments but it's $208 at no interest. I'm planning to eliminate my $13k school debt in one payment right when forbearance ends then do the same with the car. By then I'll have maybe $5k to pay. Then my money is mine to play with with my Roth IRA.
What if you like cars and enjoy driving them and it's your passion? No point driving a good looking car when you are old, you have to enjoy your youth when you are young and have energy.
@@jaypas2359 I do %0 interest for 36 month. I don't see a problem. Not driving to show up but driving a van as a electrician who can't afford to lose a day of work due to repairs.
I'm sorry but whenever I see a letting agent (real estate agent) pull up in my housing estate in a nice car trying to give impressions they are doing well you can see right through it. For one, you're renting a house in my housing estate, one of the lowest end property areas so there's that. Aside from that, I cycled for my groceries for 5km 3 times a week up hills cos I was too poor for a car. When I started my own business I waited til I had 15k in the bank before buying a 5k Toyota Yaris cos I wanted to ensure i had enough fall back money. It was super weak 69bhp engine that was rubbish on hills. So last year I waited til I had saved 45k before buying a 15k VW Golf. I just always think, before buying anything you should have a minimum of 3 times as much in the bank. If you don't then you can't have it! PCP plans are just the worst and they are the next bubble to burst.
I wish I had that kind of mindset, I grew up poor and as soon as I had a decent paying job I blew money and ran up my credit, I'm now in the process of fixing that and will be getting out from under my car note in 20 months, once I do I'm definitely going to change my ways.
Fast forward to now where used cars are going for the same price and in some cases more than the new models. I wanted a used car, but the 30% price increase has made that a terrible financial decision to make, because once supply meets or exceeds demand, the value is going to drop and cause more financial problems for people. On the flip side, too many people live well beyond their means. They don’t take into account gas, insurance, and wear and tear repairs that have to be made, which just tacks on to the car note. Also when people get a raise they unconsciously spend more.
This is why I will probably always own older vehicles. My friends keep trying to convince me to buy something newer. I spend maybe $75 a month on maintenance and insurance, compared to a new car with a payment of $500, $200-400 in insurance and another $50-100 in maintenance. I’m content with owning something older and not as appealing if it’s going to save me thousands over the course of 4-7 years.
I buy a 3-7 year old car with low miles. Keep it over 15 years. Not to exceed $10,000 and change upon purchase. You don't need new cars. You don't need to replace them every 6 years or less. It is silly.
Good point, & more importantly how proficient are you in generating income at the source? Also, do you know where money comes from? Do you understand how it works? Are you aware that it is abundant? Did you know money does not actually exist? Then, financial management is introduced to the system.
Excellent points Marko! I'm the biggest idiot when it comes to buying cars. I bought a used 2006 Honda ridgeline truck back in 2015 for 14,000. Why I didn't buy a newer used version of that truck back then, like a 2014 or 2015 is mainly because they cost more of course. But now I still owe about 5,000 on this truck, and its beginning to brake down on me already, and the extended warranty I bought just ended 😂😂😂 You're videos are very informative, and already made me a smarter car buyer going forward. Keep up the great work Marko!
I'm in my 30s now and I've never had a car payment. Every car I've ever purchased was cash. The last personal vehicle that I purchased outside of auction was years ago. It's a long, but rather interesting story if anyone decides to read it. A while back I was looking for a used car, 4 door sedan, V6, naturally aspirated (no turbo), automatic, under 100k miles, and less than $4,000. So I was checking out online ads (this was before craigslist was big and facebook marketplace didn't exist), and I found a car that fit the bill, one state over (it was in Oklahoma, I live in Texas), and oddly, it wasn't from a private party, it was from a dealer. Reason why this was odd was because $4k would be the lower end of a private seller, and dealers sell for more because they're in the business to make a profit. So I didn't call right away, I called a few hours later close to the business closing time that was listed in the ad. So just a few minutes before closing, I call and I get a phone receptionist and I ask about the car and if the price was correct. So she puts me on hold for a few minutes and comes back to confirm that the car was there and that the price was correct. So I leave very early the next morning and arrive BEFORE the dealership opened, and I waited around until a salesman was available to assist me. So I show him a printed copy of the ad, and I'm holding a thick envelope in the other hand to let him know that I'm ready to deal, no haggle, just sign the paperwork and be done. So he disappears for a few minutes and he comes back with about 5 sets of keys and this unnatural grin on his face, almost from a comic book or a cartoon. "Hey John! I've got some bad news, we don't have the car anymore, it's sold. But don't you worry! I've got you covered, you can count on me! I've got some other nice cars that are exactly what you're looking for and with the $4k that you brought with you, that's enough of a down payment that you won't have to worry about getting approved for financing, I'll guarantee it!" So it took it a minute for it to sink in. I've never had a car payment. When I was 16, my first car costed me $850, which I paid for in cash, as well as the cars after that, and that was what I was intending to do today. So I drove hundreds of miles to end up with a car payment? AND HOW IN THE WORLD DID IT SELL? The car was there at closing time yesterday! And I got there BEFORE the dealership opened! Did the car somehow get sold while the business was closed? I didn't bother to look at the cars that he thought would interest me. I just thanked him for his time and left. When I got home, I went back to the "car search engine" and typed in my criteria again and lo and behold in the search results, is still the same listing for the same car that was no longer available at the dealership! At that point I realized that the dealership never intended to sell me or anyone else that car. The ad was just a lure to get people to come to the dealership where they would present customers with a car that can be purchased with a $4k downpayment instead of purchased outright for $4k. This website allowed users to post reviews of their experiences with dealerships. So I posted mine. My review was limited only to my experience and I never outright accused the dealer of using bait and switch tactics ( I found out later that there is actually a term for this practice, "bait and switch"). But I did go into detail how the car was there at closing time and before opening the next day it was sold, and how the car was still listed at the end of the day when I continued my search when I got back home, and that while I was there I was being coaxed into handing over what should have been an outright purchase price to be used as a financial down payment. I was so steamed by my experience that I did not post my experience anonymously, I included my name with the post. Despite not including my phone number in the post, 3 days later the same phone receptionist that answered my initial contact called me and demanded that I remove my post because it was my fault that the car was sold before I got there. Had I left a deposit, they would of held on to the car for me. Her argument made no sense to me because (1) she never offered me a chance to leave a deposit, it was closing time. She, like the rest of her co-workers were in a hurry to close up and go home. (2) I also didn't expect for the car to somehow be sold while the business was closed, so I was expecting the car to be there. (3) She never gave any explaination as to why they were still advertising a car they no longer had more than 24 hours later after it was supposedly sold. I never removed my post.
Only thing missing is that you still need to get around so you have to pay for carbs or transit monthly if you dont own a car. And going on road trips is costly
A 3-5 year old, one owner Toyota averaging 15-20 thousand miles a year is the best car to buy. Someone else has already paid the depreciation and the car is just getting broken in at that point. Plus with the “higher miles” people will be afraid to buy and you can swoop in after it’s sat for a while and offer even less. Edit: we got a six year old sienna for a steal because it had a bunch of highway miles. Three years now with no car payment and the sienna is going strong.
We Americans got suckered into this position. An interesting story is how the decision to not invest in passenger trains on a large scale was made by General Motors. It is not even funny.
I’ve been driving a 1995 pick up truck for years, just upgraded to a 2007 Jeep. In my case all I need a car to do is get me from A to B. Also I do all the work to my own cars, saves me a ton of money every year.
A slightly better (and slightly riskier) idea: If you plan to buy a car and have the cash, don't. Instead, invest the cash in the stock market (10% annual return, 7% adjusted for inflation), borrow cash to buy a car (excellent credit can currently get rates below 3.5%), then periodically (monthly) pull money out of the investment to pay for the car (Or, stop contributing to the money fund by the amount of the car payment). His other beliefs still fit: buy a reliable used car.
solution: no car/truck. live in walkable neighborhood. own bike. take public transportation. however, i like owning a car/truck b/c i like to camp and fish. to lower the financial impact: get a low rate auto loan (you need a good credit score), buy a truck/car with the least depreciation; do your own maintenance. starting with a used car doesn't hurt either.
I feel like the underlying theme in this video is for people to not live above their means and yes, more often than not, people will buy cars they really can't afford because they want the "status". there is an argument that if you have excellent credit and can get a car loan for >2% interest, it sometimes doesn't make financial sense to dish out a large sum of money at one time and you can finance the car and make extra payments over time to reduce the total interest paid and still have access to larger liquid assets.
Bought 2003 Toyota Corolla for 1500 cash.. driving it for past 6 months just paid 20$ last month for oil chnge.. other then that zero maintenance cost so far.. these Toyota last forever amd doesn't require any major maintenance..
I'll add this... A nice car is a Toyota, a Mazda, a Nissan or a Honda. I advise people who need a car, grasp some knowledge, keep it clean, be on time with the maintenance, drive safely, and buy something no less than 2K and no more than 6K. Look up Scotty Kilmer and look up reviews on the car you want. Learn how to fix things yourself.
I just stopped using a Car for commuting, I only use them for weekend shopping/visiting friends/ carry items or people. Story behind it is: My VPN wasn't set to US, so when I was researching the most sold vehicles worldwide...Instead of pulling up cars, Google showed a whole bunch of Scooters and Motorcycles, which led me to find (and buy) the most sold vehicle in the world: A Honda Supercub!! I get like 170MPG with it. Barely needs any maintenance, heck, the whole thing could explode, and it'd STILL BE cheaper to replace it than buying/fixing even a junk car. Runs like a dream and can go anywhere I need...I'm never putting wear and tear miles on a car ever again!!
This is a great video which will open your eyes to what is obvious but people decide to ignore!! When I bought my car the finance guy offered me to finance the entire car. When I said "Then what do I do with my own money?", he said to put it in the bank and get interest. Now every person with an average IQ knows that banks give max of 2% interest whilst the finance companies will get 7 to 8 percent of interest! But I guess some people accept that kind of crappy offers and go with it. There is no win in getting finance unless you make a higher percentage of profit by owning a financed car (so you have a positive margin). Instead of buying a brand new car it's best to spend some $$$ on doing a major overhaul on your car and make it like brand-new again and use it for another 5 years. That will save you lots of money you can spend on traveling or paying off your mortgage.
I put about 60% down on a car and because I have really good credit, I got it for zero percent interest for 5 years. I do plan to pay it off before then 😀 great video btw.
Another great, easy to understand finance lesson, Marko. We’ve all done it, but the faster a person understands the future wealth-draining effects of committing years of future earnings to debt payments, the better. The monthly payment (and our use of it) is more responsible for the ridiculous price of cars and other items, and the continued financial failure of persons, than we can conceive. I appreciate the efforts of people like you. It won’t change the stupidity of keeping up with the Joneses, but maybe the light will come on for a few folks and their life will be better for it.
This is hard for me. I’m a huge car enthusiast. I don’t buy expensive cars to show off. I love all cars for what they are made for. Now I am driving an old civic from 2013 economical and it’s just to save money!!! I’m earning good money and want to upgrade to an Audi S5 or a Porsche. But I know it’s not a wise choice. So watching vids like this to convince myself not to. I know novelty wears off, but as enthusiast it bloody kills me to go broke.
I followed the Ramsey method for getting my finances in order. This year, I was able to buy a used luxury vehicle from trading from a nice vehicle already and the rest cash. I love the vehicle and felt really proud that I was able to pay outright for it. Even if I didn’t have the trade, I could have paid it in full. That was one of my financial goals. Having said that, my friends stupidly buy new vehicles, with loans, and never own their vehicles. I kept saving, paying cash and trading up. The method works. I also just really like nice cars so…I will for sure keep doing this.
I see so many ppl who pay msrp and get stuck with a high interest loan and when it comes to maintenance, they bring back to the Stealership. 🤣 The only thing that gets me in the door is, 0% interest for 5 years (new car). Then, I work the Out the door price(taxes and registration included)and I’ll go back and forth for weeks, sometimes over a month. Ex: last car I bought, national avg. for car was about 22k, after making the sales guy cry for 3 hours, I got it down to to 17k otd, ran to the other dealer and said can you make it better, long story short, bought the car for 16,200 otd.
@@xaznranmarux one thing you always have to remember is that a salesman is not your friend so dont be afraid to be tough (not an asshole) and don't be afraid to get up and leave at any time. I must have made the gesture more than a dozen times.
Wow! That was exactly what I was told some years back (I think Marko was in elementary school at that time) when I bough a new Nissan. Just before I singed the last document, the finance guy said : you know, as soon as you drive this car off the lot, this car will lose 2K.
I have never had a driver's license , Car Payment or Anything like that
5 лет назад+2
I'm an electrician for Chrysler. I make great money and refuse to buy a new vehicle. I can easily afford whatever we make, but I sure as hell don't want to afford it. I got a 99 Neon that has been awesome to me. 210,000 on it and still runs great. My coworkers give me crap, but I tell them the $500 - $700 you pay per month, goes into my retirement.
Alot of people never pay off their vehicles they just keep rolling it into the next one which is absolutely crazy from a financial perspective especially if they aren't saving investing and paying off other debts first because cars depreciate too quickly and now payments can go as long as 7 yrs.if one has to get a loan for a car they should be able to comfortably pay it off in 3 yrs or less. But for a lot of people cash would be better!
@@krazyj1957 Middle class is the MOST stressful by far. You're not poor enough to get gov't subsidies, and you're not rich enough to live life on your own terms. The best quality friends come at any point in the socio-economic scale.
Let's see, we own our home on a acre of land which is no longer financed. Only thing we have financed is my wife's new car. Enough investments to live comfortable on the rest of our life's unless the bottom falls out then it's not going to help the rich either. Good healthcare which at my age you need because only thing we stress over is our health. I'm retired and can afford to take the boat out and enjoy a nice sunny day, I have a lot a friends who are in the same place and I'm sure they have some stress in their life's but so have I. I worked on cardialgy based and medical management systems for many years traveling to many clinics and hospitals. The most stressed out people I ever saw was the people on the top. You can have it.
@@krazyj1957 Congrats! I wouldn't consider you middle class then. Everyone's case is different. I'd rather have a RUclips channel making me money while I sleep than have to go to work to pay the bills worrying if I'm going to get fired. Im happy to be middle class with minimum time invested in working. I guess I meant I'd rather be rich in time than money. Rich = options.
Keep up these videos Marco I just paid off my car and I'm loving having no car payments yes it's a six year old car but it still runs alright and the money I'm saving is going towards my bank account found your channel and I'm using your knowledge to save me money
Leasing versus buying -- discuss! I've been leasing for decades because a lease payment is cheaper and I spend almost nothing for maintenance (other than tires/oil changes) but that's because after 3 years, the car is returned and I get another car so I don't spend $$$ for big ticket repairs. Yes, I "rent" a car forever, but I stay under $300/month as part of a budged plan.
*Do you buy cars with cash?*
I can never see myself going to a dealer and putting money as down payment and driving car that I dont own yet paying extra for it through interest and and with the possibility delaying Payment due to rainy day event and that causing my financial life goal in jeopardy. I have always bought my car with Cash. I have bought 2017 Chevy impala, after a year I sold it and bought 2016 Honda civic touring and now I have recently bought 2015 BMW 328i. My next car that I am aiming for is a white BMW M4 convertible:)
Much easier to negotiate when you don't need anything from the dealer! I get a few year old car with cash and spend the money I'm saving on beer and silly things
Typically we only drive Toyota’s Honda’s and Nissans and purchase a 5 year old model in cash and keep them for 10 years or to 150k miles. That has allowed us to stay car payment free while we max out our 401k. Don’t drive broke.
Newer cars also have higher insurance payments. Although older cars have higher maintenance costs, that's mostly negated by the fact that they've already depreciated most of their value and so depreciate much more slowly than newer cars. Old cars FTW!
@@husseinali6512 Nice! Glad to see you've jumped to the German side :)
So....long story short: if you're going to get a car
1) Pay cash
2) Get a car that's useful
3) Find one that's low maintainence
4) Keep it until the wheels falls of
could you not pay the full price by card?
@@Reslessmeteor897 Maybe, if your credit limit is high enough, XD!
Yes!
Say you have a card limit of $5,000. Buy a 10 year old car from a dealer who doesn't charge fees outside of sales tax. Depending on your card you might actually get some cash back!
what about those rare zero interest car loans at a credit union?
You missed the major point. Borrowing money to buy a depreciating asset puts you into negative equity‼️💸💸💸
Borrowing money to use vehicle for work and pay 5% of your income for it is just fine
Smart!
Bingo
He does at 5:00 lol
Darren Boman amén
Nobody making $30k to $40k per year should be buying $50k cars/trucks!
Good point. My truck cost me 1% of my annual income.
@@Shredxcam22 liar
Nobody making 100k a year should buy a 50k vehicle, for 6 months every single paycheck will go to that hunk of metal sitting in your driveway
@@computerscientist5953 I drive a 94 f350 xl. Paid 1500. My annual income was $13500 last year. Pretty close. Not including income outside my daily job. I've spent a lot more on my tractor and implements but they are used constantly and have better resale value.
Or a European import that are money pits
The goal is to buy a Toyota or Lexus and hold on to your car for 15-20 years, you’ll really save money!
Hell to the yea
Facts . I have one and no issue.
Shoudday Cha
YES. 👍
i bought a prius and it is probably the best investment i could have made. it is nice only having to put gas in when I want to, and not when I have to.
I just bought a 2015 Lexus is250 f sport and imma keep that baby for 15 years or more.
"The paid off home mortgage has TAKEN the place of the BMW as the status symbol of choice." Dave Ramsey
listened to Dave once, it was a 9 minute ad about his parents realtor business and how we should all buy houses. Anyways it was basically a commercial
@@510jesus For Dave Ramsey, ignore the ads and his real estate advice maybe, but stick around for his DEBT REDUCTION plans and advice, which is achievable and repeatable; his regular callers who in 2-3 years got out of 200k+ of debt is incredibly inspirational.
I actually gave him another shot considering he showed up repeatedly in my recommendations. I've always been financially cautious and never really financed anything that I couldn't pay off in full within 1 months statement. Anyways, it's fun listening to others debt situations trying to keep up in the rat race
He should stick to cooking
@@ohwiseone142 lol I think you're confusing Dave with Gorden. No connection
Poor people show their wealth with car. Rich people show their wealth with bank account. Public schools really need to be teaching this to kids.
The public schools will never teach the value of a dollar because today everyone gets a trophy. It's taboo to say the truth nowadays especially with ghetto rich!
So true. My neighbors are on public assistance yet the have a new Mustang and an older BMW. They also apparently spent a lot on MJ, but besides the point.
Karl S MJ?
wealthy people don't keep cash. they keep revenue generating assets, like rental units, businesses, etc.
The Poor show their wealth with clothing, the middle class show their wealth with cars/trips/education, the rich show their wealth with boats/houses/expensive cars, & the truly wealthy show their wealth with time/choices/contributions/impact.
The education system was created in service for the 'upper bands' of our world today. For what purpose? Well, to supply worker bees for the sake of business & servitude (oligarchy & such.)
I can totally relate. Twenty years ago I was about put 5K down to finance my 35K "dream car". At the last minute I was offered the opportunity to buy a wrecked version of the same car with the 5K cash, which I then parted out and started my specialty auto parts business that has paid me back multiples of my initial investment. It's nothing more complicated than making your money work for you instead of working for your money.
My car is 19 years old and it still runs problem free. I'm going to keep it as long as I can. Here's to another 5 years!
Same here
must be Japanese then.
Does you car have plenty of air bags, stability control, traction control, ABS??? I am not even talking about fwd collision, blind spot, etc. You do not need to buy a brand new car necessarily, but 19 years is way too much in my opinion, safety should be first priority!!
@@Larry_Kabberga 10 air bags, yes stability control, yes traction control and yes ABS. It's a Lexus LS430. It also has more features than your average car today thank you very much. Does your car have double glazing, a fridge, massage seats as well as cooling and heated seats? Check and mate.
@@biggerbitcoin5126 I was referring to the 19 year old car the OP drives. It is highly unlikely that a 19 year old car or any car built in the 90's comes with safety features like ESC, which has proven to save lives. But my 2015 Civic does not have a fridge so now I am very upset.
As a car guy, i 100% agree with this video.Most people fail to realise that these luxury cars are a financial black hole. Especially if you can’t afford it. Most of these cars give a terrible fuel economy and super hard to maintain. If you’re not a car guy and aren’t fixing it up yourself, chances are you’re going to your dealers and oh boy do they rip you off. It’s not the dealers fault either,as they also have to maintain their businesses and because there are ,say 10 mercs for every 1000 Civics, the dealer also has to find a way to milk as much money from a merc to sustain his business . And then there’s The Brand. Slap a Ferrari sticker on a goddamn pair of Puma lowers and boom they are now $70. So essentially you’re buying their brand. It’s so weird that we now associate success and happiness to brands. If you’re driving a lambo you’re successful. Ain’t important if you’re depressed or got no savings or just lost a loved one or just plain sad. What other people will see is just a cocky ass guy in a fancy car.
How cars don’t make me broke
-Paid $1300 for a high mileage 2007 Ford Focus
-Owned it for 2 years now
-Gets 34mpg
-Spent $400 on parts for repairs so far, and performed them myself
-I could sell this car tomorrow and get almost all my money back...
If only many people is a smart buyer like you
Good man, my father is a mechanic and he says high mileage is a lessened concern if you are proactive about maintenance and repairs. I now know buying a Toyota at 100K miles for 2,500$ is smart IF I still save maybe a hundred dollars a month for future issues.
The time spent on the car should have been ideally spent making money or learning something to make more money
My B-I-L does that - $3k for a car - put lots of miles on it and then resell it for almost what he paid for it - basically only out oil changes and any minor repairs.
Payed 2K in cash off a private seller knowing it needed some work but the engine and trans where in great shape. Put another 3K into the car new tires new brakes new windshield new control arms and shocks and all new fluids. Kept the car for 10+ years with no issues and my friends 40K dollar car didn’t even last a year before it started having issues. I don’t get why people don’t look at used cars in great shape that may need little fixing up then buying brand new. Old cars will be cheaper to buy and fix parts will be cheaper to purchase more a less then they would be brand new. Plus if you can find a used car with relatively low mileage that’s a plus.
My driver is a 1978 Ford F150. If anything breaks on it, I can fix it myself. Parts are cheap and plentiful and the design is simple. No car payments for 25 years.
If you don’t get rich that way you will be a loser, a loser with an old car
@@sccanj Are you rich? Or are you a loser
Even if you make 100K a year buying a 40-50K car is useless.
I have bicycle commuted for 20years. I haven't owned a car for over a decade.
If I were to make a rough guess, in that 10years, I have saved $15K (low-end) & $80K (high-end)
My savings account reflects closer to that high-end number.
A $40-50k car is likely still too much car for someone making $100k/yr (gross or net), unless that someone has a nice trust fund waiting, and (s)he lives with her/his parents rent-free (nothing wrong with that). The only way to justify it would be if it's someone's hobby. Then it's a matter of priorities.
@@benzzoy True. But why would someone with a trust fund living with their parents be on this thread lol
@@benzzoy ,
I cannot understand going, even $20K in debt, just to get from point A to point B. That just pays for the tool, itself, not any of its operating or maintenance costs.
It seems like an absurd life-choice to me.
@@xjarheadjohnson bicycles make you fit and save you money and relieve stress. cars cost you money and make you fat ,and cause stress sometimes too if persons had a bad day and they're stuck in traffic. I don't usually see people on bicycles having road rage. Lol
I make a living fixing other peoples broken cars. I drive a 20 year old mustang, wife drives a 20 year old Lexus, and daughter drives a 10 year old Civic. Low maintenance cars. All three. They cost me about 700 a year combined to maintain. I know people with monthly payments that big. Don't buy a new car unless you have money to burn. The depreciation alone in the first year of ownership should scare most people away.
@@TechExploresNYC most every city has garages where you can rent a lift hourly. Just gotta decide whether not having to worry with it yourself is worth the cost of the repair.
Did the depreciation of your phone scare you away?
@@s4nder86 Not at all. There is a big difference between a 500 dollar phone and a 30000 dollar car. I have a two year old Motorola that works perfectly all day long. Vehicles are more than a purchase, they are an investment. Phones are just pieces of tech that are easily replaced.
I only drive used Acura's
Agreed! There is another channel called 2cents on here, and they suggested buying a car already 5-7 years old so the majority of depreciation would have occurred. Being a mechanic is a great skill to have.
I make around 150K a year and in my mid 30s. As much as I agree with this gentlemen, I also believe in enjoying life. However I go about it in a smart way as I recently purchased a 2016 Audi A6 Quattro premium plus, with a fully loaded option to include S line, 20 inch rims, beat & cold package and etc. The brand new would have cost me 59K however I only paid 25K at 35000 miles only. It even had some factory warranty left. The thing I didn’t do was purchasing an extended warranty which is stupid expensive as the dealer tried to charge me almost 4 grand.
I love my vehicle and it is truly worth the hard earned money. Needless to say, I have 401K and over 15K in my stock portfolio as well as pension that I will receive when I retire.
Why wait until I am over 60 to start driving a nice car? (No offense to older people) life is too short to not enjoy this moment as long as you have a solid plan for the future!
Success of marketing campaigns explained early in the video can be accurately measured by the degree of people gotten to think that they are not enjoying life if they are not driving a nice car.
I agree, enjoy.
Licenciado Varela I actually don’t have a cable nor TV at home. By that said, I do not watch any type of marketing. You can truly enjoy life without a nice car. It’s just what makes you happier. It can be traveling, playing sports, and etc. mine is driving my Audi! Many people hate when they see persons with a luxury car. I used to be one of them. But the honest truth is, they are just hating ;). Don’t know that many people who would not drive a nice car if they could more than afford it. My $410/month payment for 48 month (3.04 interest) still allows me to save and invest in various places.
Same here.,
Well put!!!
I have a '97 Ford Ranger 2.3l with 225k, had it for 14 years. The engine uses virtually no oil, synthetic is used in the motor, transmission, and differential. Fluid replacement/flushes are important in my opinion, including coolant and brakes (I have yet to do a full flush on my power steering, I never get around to it). I'm going to run it until the frame rots out, it's cheap to maintain, and I love it. Crate engines are cheap for it, anyway. It's not the prettiest girl anymore, I've sideswiped two deer with it, numerous scratches from brush and getting used around the farm, but the paint still glows. If I get rich it'll get a full body restoration. :)
Cars suck you dry. I was lucky enough to go almost 10 years without a car payment. I recently sold my car and decided not to buy a replacement because I live close to work. Now I bike, walk or bus so I’m getting more exercise. I live in the US so this is seen as pretty unusual but I live in a beach city where everything is close. My daughter is bussed to and from school. I also just met and made friends with a family from Stockholm who bike every where because that’s what they’re used to. I may buy a car eventually but for now I’m enjoying not having to pay for one plus I don’t have to go to the gym. I think more people should consider it.
Specially when you "rely" on the car to go to work and it takes a dump on you and the Mechanic tells you that he could fix your $1,500 dollar problem and then the very next day your yearly registration fee arrives and next month your sky rocketing premium car insurance bill arrived..Man I recently bought a car like 3 yrs ago and it has delayed by travel plans because surprise maintenance repairs and bills..I think I had more money and was able to travel freely when I didn't have a car and was bus riding or riding my bike everywhere.
how do you get groceries back to your house?
Same here, I bike mostly and work from home
@@eastsideozzy Amazon delivers fresh food, In select cities, within 2 hours.
@LotusLambo take your own advice mate
Keeping a car is cheaper than trading it in and buying a different one. Even if you have to replace the engine and get it repainted at some point, you're still ahead by keeping your car!
Yep. I’m staying in my ‘05 Mustang.
@ATRK i have an '06 Mustang GT. It's pretty basic when it comes to creature comforts compared to new cars and even the newer mustang but that's what i like about it. I do all maintenance myself and it's the most reliable vehicle I've owned yet and so easy to work on especially after owning the VW jetta i turned in for it and parts are cheap. I do a good job replacing things at intervals before they have a chance to break but the only thing in 129,000 miles of driving it that ever really crapped out and threw out a code for the check engine light was a single ignition coil at $79 i changed out in a few minutes the next day...So not bad for the miles I've put on it. The 4.6 liter all aluminum V8 is a dependable engine. It's not going to keep up with the new mustangs but im okay with that. The only downside of this generation GT engine i can think of is the two-piece spark plug design that crack while taking them out of the heads while replace them.
I dont know why you say they are expensive for their age cause mustangs don't really hold their value and they are practically everywhere and most are modified with aftermarket parts anyway. Another plus is that you'll always see them in junkyards cause people wreck them. Not a knock on the car itself but the people driving them. So if you're into picking parts to replace yourself then youre saving even more money.
It's a love/hate thing with owning a mustang. It's not a race car yet i still get followed by cops on the way home from work when the girl ahead of me is zipping through traffic in her sedan while texting on the phone. It gets old quick. It's just a car with a bigger engine than usual that's good at spinning tires and punching it from one stoplight to the next all while being a much cheaper platform for adding go-fast parts than a foreign sports car that will outperform it in almost all driving conditions. If all of this sounds good for you then i say go for it. I wasn't even in the market for one but mine was out front of the dealership with a sticker price too good to pass up so keep your eye out for a deal. They're out there.
exactly...the transmission in my 92 chevy van blew and i paid 2k to get it rebuilt...friends and family thought i was crazy to fix it because the van was worth nothing....i told them 2k is only about 3 payments on a brand new van and this van has already made me alot of money as i am a contractor...
This is great! I always wondered how people could afford to to pay for cars in cash. I've had my car paid off for 2 years now, and will continue putting away what my payment used to be for when I need my next car. I've really enjoyed watching your videos man, super helpful.
I love your videos because they are helpful and honest. Thank you for the time you put into making them.
I have a 2008 Toyota Camry that was given to me by my oldest brother! When I got it 3 years ago it only had 68,000 miles, now it has 82,000. People keep asking me when am I going to "upgrade" to a new car? I always say: what for? I don't need one. The funny thing is that I actually work 3 blocks away from my house...lol(so I actually walk!). But it's not only for that reason, it's more because I cannot imagine myself working hard just to pay for a car that I don't need! Even my son, who is almost 6 years old asks me: "mommy, why do people buy new cars? Yours is just fine. It takes me to school and brings me back home." 😭
Thanks Vanessa I appreciate the kind words :)
That's a smart young fellow right there who thinks things through for himself 💖
people think a car makes them superior or something when its far from that lol, having the shiniest car doesn't matter, because at the end of the day, cars are simply meant to be tools to take you around, not something to flex, the new cars do the same as the old ones, people are delusional
I would also encourage people to do maintenance by yourself. I am no mechanic but I enjoy working with my hands. It feels great to replace parts and knowing you are saving hundreds of dollars.
Since I am living in Alaska a vehicle is essential, everything is miles apart and walking a -20 is tough. This means SO many more people paying off cars. Despite the average income being higher in Alaska than most other states people are more middle class.
Awesome video!
Damn
This man and Dave Ramsey keep me financially sane. Thanks for your work.
I drive a 2002 Honda Accord with 106K miles. The car runs and drives absolutely perfect...and the best thing is? I don't owe a motherfucking dime to anyone on it.
New cars and high car payments are for chumps.
Hell yeah
I’m rocking a 99 Accord for the same reason!!
I drive a 98 E430 Benz, 115k miles on it - love it - Heres a pic: i.imgur.Com/M8k0cu5.jpg
damn bro do you ever drive it? i have a 2001 accord with about 180k on it lol
@@increase9896 I'm 4 miles to work. I've lucked out with a super short commute over the years, so it's saved a lot of mileage and wear and tear on my cars. 106K miles is a lot for me lol
This video is awesome. As a dealer, I completely agree with what you said. This is especially true with subprime, buy-here pay-here style loans. The rate can be as high as 29.99%! and don't forget that if the car is financed you need full coverage insurance too. I sell mainly on a cash basis, under $5,000 and focus on helping people understand that you can affordably own a car. I bought my current daily at an auction for $600 back in November of last year. Anyways great channel 👍
I just paid off my car. Only 24,000 miles. I’ve driven it for several years. I plan to keep it for at least another 5 or so years. I notice (in L.A.) that so many people drive luxury vehicles but live in apartment buildings. That “keeping up with the Joneses” mentality is ridiculous and superficial. It would be smarter to invest that money and/or purchase a home.
I love this! We have decided to only buy cars cash. We are so close to being financially free. We started our flipping business to help us accomplish this. We don’t care what people think of us.
Respect! Keep it up
Smart. You’ll be the ones enjoying retirement.
Main reason: Not only you calculate your budget for your payment but also you have to include your potential Yearly Maintenance Cost and this play out big time to PreOwned Vehicle specially those out of bumper to bumper warranty!!
Haven't had a car payment since 1994.
Daniel Rojo how many mechanics have you visit tho ?
@@Justificable401 not that many, besides even new cars usually need repairs before they're paid off
@argh666 LoL 😂. Chevrolet. I never said I didn't buy a car, I said haven't had a payment since '94. In 1991 I bought a used Chevy truck, paid it off in three years and drove it for over 10 years. It was still going strong with over 200k miles before it got stolen. I then bought a used Mercedes 300d and drove it until '05 when I got rear ended. Then I bought a used '03 Chevy Malibu which is still going strong. Paid cash last two vehicles.
You must drive a Honda 😆
@@MrEOM41 LoL 😂 Chevrolet
Playing devils advocate, there's one key point that's getting missed here.... That joy/excitement that comes from driving the car of your dreams. Doesn't that have value? Is it not worth the cost? Why buy that expensive Rolex watch or that Monet painting or go on that luxury cruise? Why not take that money and invest it? In my mind there has to be a balance. You need to value things that bring you joy as long as you don't go overboard. Buy a car that's within your means and don't get carried away by marketing or what your neighbor drives. If riding a bike or taking public transportation gives you joy then by all means do that.
This video is certainly on the money and especially eye opening for folks who fall into the latter category of buying beyond their means.
It does, agreed
@Shorty but the point is that emotional value is also important in life and sometimes its maybe more important than financial value
Find joy/excitement from cupcakes, not cars
@@sweetnothingsasmr1 Haha! Sounds sensible especially a freshly baked one! 😘
@@sweetnothingsasmr1 Anybody who has ever driven a really nice/really fast car would understand the above comment. Everybody literally wastes money on something in life. simple as that
We’ve been car free for over 3 years now; sold it as soon as the youngest moved to college. We simply ride a bicycle, about 20 miles a day. We no longer have a car payment, nor gas, repair cost, and no more DMV. My license expires in two months and I’m not renewing it! If I really need to go far, I just take an Uber. If further, I take the train or fly.
Very cool!
Who cares!
What do you do about shopping and transporting groceries?
@@neptunedawn7121 It really depends on where we are. Our home is in a very small town outside a national park. There are a few local stores, but expensive. We also have a small farmers market to pickup fresh food. We use our panniers or a Bob bicycle trailer on our bikes to carry stuff. Most things can just be ordered for delivery. We also have friends and can plan shopping trips together. There has never been a better time to go carless.
@@dang75790 😂
Spot on man! People wanting to look rich rather than being rich!
The best way I’ve seen it put! Look rich or be rich? Hmmm.....
Delay gratification. That's really the key to success and it's always good to hear someone remind you of it. Thanks for the educational videos.
Thanks for watching
I understand this math as I work in finance world.
However I still don't understand why people keep reference buying a car is an "investment"... My take has always been "ownership".
If u own the car and drive it for many years, the money paid is worth it by then. Unless u r a person that change car everything 2 years, then this video is applicable to you to consider.
Not always. Buying a car with poor reliability will discourage you from keeping the car for long
I dont know why people buy brand new. Buy one 1-3yrs old and save a lot of money. Then keep it forever.
Its cause youll have a higher chance of getting a used car with secret problems that cost so much and brand new cars get you 3 years of free maintenance and guaranteed quality.(i mean in buying the best budget brand new car)
I bought new in 2006 and my truck is still running strong. The longer I have it, the longer I don’t have payments lol
@@davidlynch7666 thats the only time its worth it if you plan to keep it for the long run but i still think youre better off getting a "used like new" car vs brand new.
As a car enthusiast I could never keep it forever. Weakness of mine. But I agree on not buying brand new.
Unless you are a mechanic a car probably won’t last you forever
**YOU HAVE NO IDEA HOW MUCH YOUR VIDEOS ARE HELPING W/ ME IN BUYING A CAR**
******TY 🙏 so very much*****
**Please keep the videos COMING I'm learning so much**
People that use cars as a status symbol are mostly bullshitters. Today, its hard to convince people that a sweet car means "living large" because anyone can lease a sweet car.
@LotusLambo the only stupid one here is you. It's much easier to lease a high end car then buy it. You're so stupid you don't even know it..lol
The local car rental place uses a sticker with small numbers on the back window. I rented a van there once for a trip with friends. At the class reunion, I saw at least 5 cars with the rental company sticker, like we are supposed to be impressed with them driving new german car. I felt sorry for them.
@@barbmelle3136 coming to class reunions with a fancy car is just sad. same as paying a hot woman to pretend to be your girlfriend.
You need to go to all High schools and teach this to young people that are just about to buy there first vehicle!
Read a blog about how young people "hate america" because they're riding the rail vs buying a car. Smartest way to go if you can get away with it.
I've watched about 6 of your videos over time and i literally subscribed because you said you'd discount the video lol. That was so funny. Thanks for bringing some personality in it
It's not cars that keep people broke. It's being impatient and uninformed that keep people broke. This can be applied to many things in life.
People fail to realize how much their car actually costs them. Taking into account opportunity cost on your money and depreciation expense makes it clear how costly a vehicle can be. I’m not against people owning nice vehicles. I’m against people not realizing how much it actually costs, and if they did realize it, they wouldn’t have bought that level of car
This video has motivated me to keep my new-to-me used mercedes with no finance. Great vid - subscribed!
The closest thing to a new car I've bought was 3 years old with 6,700 miles that I paid half the original price for. There aren't many good reasons to buy new.
Sadly, walking is not a good option in smaller cities. Car drivers will ignore pedestrian signs and shout at you out of their cars. Less and less people walk on the sidewalks each decade.
My wife and I just traded in both of our cars: 2019 Tahoe Premier and 2021 Silverado LTZ..both fully loaded. We would never buy things we can’t afford, so our reason to trade was easy. We decided we wanted what we want most over what we want now: “freedom”. By throwing ego aside, we eliminated $1400 in car payments per month or $28000 per year. We also eliminated $800 in gas between both vehicles per month. By trading her Tahoe, we bought a car under $30k. The dealership paid off her 16k note and wrote us a 15k check. We walked away with a check and fully paid-off vehicle. Secondly we traded my truck. After trade in, I wrote a $5900 check and walked out with a paid-off used vehicle.
We now have an extra surplus each month to put towards investments and retirement.
For context, we are both 38 and have full time jobs.
I brought $2k Hyundai Sonata 2007 five years ago, and this baby is still running fine with 102k mileages. I changed the oil regularly, every 5k miles, to maintain this baby and I’m happy with it.
The numbers never lie. The problem is that the avg Joe doesn't see the future any further than next week or next month. You are 100% correct but they value that "status" more.
Made 160K in 2019 working in sales driving a car that’s worth less than
a former co-worker would drop upwards of 300 per month for a new vehicle (leased); they didn't want to have to pay for any repairs/maintenance. when i left, they were shelling out about 425 per month, on top of paying for their children's private school and a mortgage; all this on a teacher's salary.
Oof!
I live in New Hampshire, has horrible public transportation no car means you're going to get nowhere
My whole life since I was 16....40 years......my car purchases have always been an investment. I always buy cheap, sometimes repair, drive, then sell for a profit. My current car I have been driving for 3 years....bought it used for $450 from an elderly lady with only 87K miles. I have been driving it for 3 years and getting ready to sell. With purchase price and repairs, I still only have $750 invested in it and have driven it 22K miles. I will probably sell it for $1500. Yes, I own my own house too! I bought it for cash at the height of the foreclosures in 2009.....for $13,200. It is an acre of commercial land with a house on it. I now work and live at the same location.
Cars also expose you more to law enforcement and crazy/bad civilian drivers.
I had multiple motorcycles as well as cars. Ppl texting and driving is super dangerous
No shit, cost of doing business... there are inherent risks in all things.
Another area people get tricked is oil changes. Every 3000 miles hasn't been necessary for YEARS. Some synthetic blends can go 10k miles+, but that little sticker still says "Come back in 3 months." Nope!
Actually if you have a 4 banger then yes oil changes every 3000 miles to prevent the engine from sludging out.
I always buy the cheapest cars to buy and run. I much prefer to spend my money on travelling. Cars just eat money!!
What I did was a cash out refi on my house and used the cash out to pay off my car loans. Now the interest rate is not only lower, but deductible as well and by spreading out the payments over 30 years it increased my cash flow by $1,200 a month which I use to invest!
I've been driving for over 30 years...never had a car loan. Starting out we'd buy used cars with cash, no junk but reasonably priced with 60k-70k miles and bought another after a few years. 13 years ago we switched to buying modestly priced new vehicles with cash and we keep them for about a decade. Currently I'm still loving my 2006 GMC pickup (never buying another truck at these ridiculous prices and poor quality) and our 2015 Subaru Forester. Both we'll keep driving for many years to come as they're in perfect condition and run great, although I'll replace my truck's rear bumper in the next year or two as it's chrome is just starting to flake. Since the money we would have been making payments with (along with a lot of our other savings) has been working for us in the market we can easily afford any vehicle we'd like with cash but we already have the ones we want. This has been a huge money saver for us and works very well.
My kids in my exes new car.... “mom doesn’t let us eat ice cream in her car”
My kids in my 20 year old Tahoe.... “dad do you have any napkins”
That's why the seat cushions are there
You're absolutely right. I'm American, so I can only attest to what I see with my coworkers at an elementary school. Many are married and continue to have children. Then, get addicted to upgrading lifestyles and cars. I'm that single dude teacher driving a Corolla XSE and living in a studio apartment lmao. I do still make payments but it's $208 at no interest. I'm planning to eliminate my $13k school debt in one payment right when forbearance ends then do the same with the car. By then I'll have maybe $5k to pay. Then my money is mine to play with with my Roth IRA.
I prefer old beater cars cause I love fixing them.
YO Marko your awesome bro! keep it up with the vids, very informative.
What if you like cars and enjoy driving them and it's your passion?
No point driving a good looking car when you are old, you have to enjoy your youth when you are young and have energy.
Just discovered you... now I'm binge watching!!! Subscribed... and hit the bell
These videos are awesome!!!
Drive a beater, save $500 a month for a year and you can buy a car cash for $6000. 2yrs 12,000 etc.
yup
Not smart
Mile Pavlovic financing is?
@@jaypas2359 I do %0 interest for 36 month. I don't see a problem. Not driving to show up but driving a van as a electrician who can't afford to lose a day of work due to repairs.
I'm sorry but whenever I see a letting agent (real estate agent) pull up in my housing estate in a nice car trying to give impressions they are doing well you can see right through it. For one, you're renting a house in my housing estate, one of the lowest end property areas so there's that. Aside from that, I cycled for my groceries for 5km 3 times a week up hills cos I was too poor for a car. When I started my own business I waited til I had 15k in the bank before buying a 5k Toyota Yaris cos I wanted to ensure i had enough fall back money. It was super weak 69bhp engine that was rubbish on hills. So last year I waited til I had saved 45k before buying a 15k VW Golf. I just always think, before buying anything you should have a minimum of 3 times as much in the bank. If you don't then you can't have it! PCP plans are just the worst and they are the next bubble to burst.
I wish I had that kind of mindset, I grew up poor and as soon as I had a decent paying job I blew money and ran up my credit, I'm now in the process of fixing that and will be getting out from under my car note in 20 months, once I do I'm definitely going to change my ways.
For some people is all about appearances, they believe you are the car you drive, pretending they are what they are really not.
Fast forward to now where used cars are going for the same price and in some cases more than the new models. I wanted a used car, but the 30% price increase has made that a terrible financial decision to make, because once supply meets or exceeds demand, the value is going to drop and cause more financial problems for people.
On the flip side, too many people live well beyond their means. They don’t take into account gas, insurance, and wear and tear repairs that have to be made, which just tacks on to the car note.
Also when people get a raise they unconsciously spend more.
This is why I will probably always own older vehicles. My friends keep trying to convince me to buy something newer. I spend maybe $75 a month on maintenance and insurance, compared to a new car with a payment of $500, $200-400 in insurance and another $50-100 in maintenance. I’m content with owning something older and not as appealing if it’s going to save me thousands over the course of 4-7 years.
I buy a 3-7 year old car with low miles. Keep it over 15 years. Not to exceed $10,000 and change upon purchase. You don't need new cars. You don't need to replace them every 6 years or less. It is silly.
But if nobody buys a new car, where will we get used ones? Dun dun duuuuuuh
Let the Shmuck do that ;)
I agree in principle but buying a car isn't the issue. Managing one's finances is.
Buying a car on credit, with the risk of owning more than the vehicle is worth is mismanagement.
Good point, & more importantly how proficient are you in generating income at the source? Also, do you know where money comes from? Do you understand how it works? Are you aware that it is abundant? Did you know money does not actually exist?
Then, financial management is introduced to the system.
Excellent points Marko! I'm the biggest idiot when it comes to buying cars. I bought a used 2006 Honda ridgeline truck back in 2015 for 14,000. Why I didn't buy a newer used version of that truck back then, like a 2014 or 2015 is mainly because they cost more of course. But now I still owe about 5,000 on this truck, and its beginning to brake down on me already, and the extended warranty I bought just ended 😂😂😂
You're videos are very informative, and already made me a smarter car buyer going forward. Keep up the great work Marko!
I'm in my 30s now and I've never had a car payment. Every car I've ever purchased was cash. The last personal vehicle that I purchased outside of auction was years ago. It's a long, but rather interesting story if anyone decides to read it. A while back I was looking for a used car, 4 door sedan, V6, naturally aspirated (no turbo), automatic, under 100k miles, and less than $4,000. So I was checking out online ads (this was before craigslist was big and facebook marketplace didn't exist), and I found a car that fit the bill, one state over (it was in Oklahoma, I live in Texas), and oddly, it wasn't from a private party, it was from a dealer. Reason why this was odd was because $4k would be the lower end of a private seller, and dealers sell for more because they're in the business to make a profit. So I didn't call right away, I called a few hours later close to the business closing time that was listed in the ad. So just a few minutes before closing, I call and I get a phone receptionist and I ask about the car and if the price was correct. So she puts me on hold for a few minutes and comes back to confirm that the car was there and that the price was correct.
So I leave very early the next morning and arrive BEFORE the dealership opened, and I waited around until a salesman was available to assist me. So I show him a printed copy of the ad, and I'm holding a thick envelope in the other hand to let him know that I'm ready to deal, no haggle, just sign the paperwork and be done. So he disappears for a few minutes and he comes back with about 5 sets of keys and this unnatural grin on his face, almost from a comic book or a cartoon. "Hey John! I've got some bad news, we don't have the car anymore, it's sold. But don't you worry! I've got you covered, you can count on me! I've got some other nice cars that are exactly what you're looking for and with the $4k that you brought with you, that's enough of a down payment that you won't have to worry about getting approved for financing, I'll guarantee it!"
So it took it a minute for it to sink in. I've never had a car payment. When I was 16, my first car costed me $850, which I paid for in cash, as well as the cars after that, and that was what I was intending to do today. So I drove hundreds of miles to end up with a car payment? AND HOW IN THE WORLD DID IT SELL? The car was there at closing time yesterday! And I got there BEFORE the dealership opened! Did the car somehow get sold while the business was closed? I didn't bother to look at the cars that he thought would interest me. I just thanked him for his time and left. When I got home, I went back to the "car search engine" and typed in my criteria again and lo and behold in the search results, is still the same listing for the same car that was no longer available at the dealership! At that point I realized that the dealership never intended to sell me or anyone else that car. The ad was just a lure to get people to come to the dealership where they would present customers with a car that can be purchased with a $4k downpayment instead of purchased outright for $4k.
This website allowed users to post reviews of their experiences with dealerships. So I posted mine. My review was limited only to my experience and I never outright accused the dealer of using bait and switch tactics ( I found out later that there is actually a term for this practice, "bait and switch"). But I did go into detail how the car was there at closing time and before opening the next day it was sold, and how the car was still listed at the end of the day when I continued my search when I got back home, and that while I was there I was being coaxed into handing over what should have been an outright purchase price to be used as a financial down payment. I was so steamed by my experience that I did not post my experience anonymously, I included my name with the post.
Despite not including my phone number in the post, 3 days later the same phone receptionist that answered my initial contact called me and demanded that I remove my post because it was my fault that the car was sold before I got there. Had I left a deposit, they would of held on to the car for me. Her argument made no sense to me because (1) she never offered me a chance to leave a deposit, it was closing time. She, like the rest of her co-workers were in a hurry to close up and go home. (2) I also didn't expect for the car to somehow be sold while the business was closed, so I was expecting the car to be there. (3) She never gave any explaination as to why they were still advertising a car they no longer had more than 24 hours later after it was supposedly sold. I never removed my post.
There is a special place in hell for people who work at car dealerships.
Only thing missing is that you still need to get around so you have to pay for carbs or transit monthly if you dont own a car. And going on road trips is costly
A 3-5 year old, one owner Toyota averaging 15-20 thousand miles a year is the best car to buy. Someone else has already paid the depreciation and the car is just getting broken in at that point. Plus with the “higher miles” people will be afraid to buy and you can swoop in after it’s sat for a while and offer even less.
Edit: we got a six year old sienna for a steal because it had a bunch of highway miles. Three years now with no car payment and the sienna is going strong.
We Americans got suckered into this position. An interesting story is how the decision to not invest in passenger trains on a large scale was made by General Motors. It is not even funny.
I’ve been driving a 1995 pick up truck for years, just upgraded to a 2007 Jeep. In my case all I need a car to do is get me from A to B. Also I do all the work to my own cars, saves me a ton of money every year.
this is why I drive a 1993 Mercedes W124 400E ( which I bought for $3000 in 2016...now 2022 at the time of my comment) ;) :)
A slightly better (and slightly riskier) idea: If you plan to buy a car and have the cash, don't. Instead, invest the cash in the stock market (10% annual return, 7% adjusted for inflation), borrow cash to buy a car (excellent credit can currently get rates below 3.5%), then periodically (monthly) pull money out of the investment to pay for the car (Or, stop contributing to the money fund by the amount of the car payment). His other beliefs still fit: buy a reliable used car.
I learned my lesson the hard way by buying new cars. Never again. Just bought an 06 Jetta GLI for $4500 cash and couldn't be happier
solution: no car/truck. live in walkable neighborhood. own bike. take public transportation. however, i like owning a car/truck b/c i like to camp and fish. to lower the financial impact: get a low rate auto loan (you need a good credit score), buy a truck/car with the least depreciation; do your own maintenance. starting with a used car doesn't hurt either.
Or just don't get an auto loan.
I feel like the underlying theme in this video is for people to not live above their means and yes, more often than not, people will buy cars they really can't afford because they want the "status".
there is an argument that if you have excellent credit and can get a car loan for >2% interest, it sometimes doesn't make financial sense to dish out a large sum of money at one time and you can finance the car and make extra payments over time to reduce the total interest paid and still have access to larger liquid assets.
Bought 2003 Toyota Corolla for 1500 cash.. driving it for past 6 months just paid 20$ last month for oil chnge.. other then that zero maintenance cost so far.. these Toyota last forever amd doesn't require any major maintenance..
I'll add this... A nice car is a Toyota, a Mazda, a Nissan or a Honda.
I advise people who need a car, grasp some knowledge, keep it clean, be on time with the maintenance, drive safely, and buy something no less than 2K and no more than 6K.
Look up Scotty Kilmer and look up reviews on the car you want. Learn how to fix things yourself.
so true ! so true . I am a mechanic and I have seen how bad it is to maintain and keep a car , etc etc etc .
Do not buy car, clothes, jewelry, etc for the sole purpose to impress people you don't know or thinking you will attract a mate.
Don't even try to attract a mate. Live like you are an ox, and do without mating. Women and children are a huge financial liability.
I just stopped using a Car for commuting, I only use them for weekend shopping/visiting friends/ carry items or people. Story behind it is: My VPN wasn't set to US, so when I was researching the most sold vehicles worldwide...Instead of pulling up cars, Google showed a whole bunch of Scooters and Motorcycles, which led me to find (and buy) the most sold vehicle in the world: A Honda Supercub!! I get like 170MPG with it. Barely needs any maintenance, heck, the whole thing could explode, and it'd STILL BE cheaper to replace it than buying/fixing even a junk car.
Runs like a dream and can go anywhere I need...I'm never putting wear and tear miles on a car ever again!!
Cars are the worst investment ever. No matter how much you pay for a car, you paid too much.
Roth IRA is $6k max per year. Don’t make that $500 car payment instead make that $500 Roth payment.
Heck yea! That compound interest is crazy
where do you have your roth ira at? mine at my bank only gets .05 percent interest rate =[
James Ngo Fidelity in a total market index fund
@@jamesngo1097 vanguard! The rates are down right now because of covid but definitely still worth it, itll be turning around soon
This is a great video which will open your eyes to what is obvious but people decide to ignore!! When I bought my car the finance guy offered me to finance the entire car. When I said "Then what do I do with my own money?", he said to put it in the bank and get interest. Now every person with an average IQ knows that banks give max of 2% interest whilst the finance companies will get 7 to 8 percent of interest! But I guess some people accept that kind of crappy offers and go with it. There is no win in getting finance unless you make a higher percentage of profit by owning a financed car (so you have a positive margin). Instead of buying a brand new car it's best to spend some $$$ on doing a major overhaul on your car and make it like brand-new again and use it for another 5 years. That will save you lots of money you can spend on traveling or paying off your mortgage.
I put about 60% down on a car and because I have really good credit, I got it for zero percent interest for 5 years. I do plan to pay it off before then 😀 great video btw.
What was your credit score during that time, if you don't mind me asking
Andrea Canessa i want to say it was around 750 🙂
Another great, easy to understand finance lesson, Marko. We’ve all done it, but the faster a person understands the future wealth-draining effects of committing years of future earnings to debt payments, the better. The monthly payment (and our use of it) is more responsible for the ridiculous price of cars and other items, and the continued financial failure of persons, than we can conceive. I appreciate the efforts of people like you. It won’t change the stupidity of keeping up with the Joneses, but maybe the light will come on for a few folks and their life will be better for it.
This is hard for me. I’m a huge car enthusiast. I don’t buy expensive cars to show off. I love all cars for what they are made for. Now I am driving an old civic from 2013 economical and it’s just to save money!!! I’m earning good money and want to upgrade to an Audi S5 or a Porsche. But I know it’s not a wise choice. So watching vids like this to convince myself not to. I know novelty wears off, but as enthusiast it bloody kills me to go broke.
I followed the Ramsey method for getting my finances in order. This year, I was able to buy a used luxury vehicle from trading from a nice vehicle already and the rest cash. I love the vehicle and felt really proud that I was able to pay outright for it. Even if I didn’t have the trade, I could have paid it in full. That was one of my financial goals. Having said that, my friends stupidly buy new vehicles, with loans, and never own their vehicles. I kept saving, paying cash and trading up. The method works. I also just really like nice cars so…I will for sure keep doing this.
Great Job.
I see so many ppl who pay msrp and get stuck with a high interest loan and when it comes to maintenance, they bring back to the Stealership. 🤣
The only thing that gets me in the door is, 0% interest for 5 years (new car).
Then, I work the Out the door price(taxes and registration included)and I’ll go back and forth for weeks, sometimes over a month.
Ex: last car I bought, national avg. for car was about 22k, after making the sales guy cry for 3 hours, I got it down to to 17k otd, ran to the other dealer and said can you make it better, long story short, bought the car for 16,200 otd.
zerotec nickalskillz damn lol. How’d you negotiate him down so hard?
@@xaznranmarux one thing you always have to remember is that a salesman is not your friend so dont be afraid to be tough (not an asshole) and don't be afraid to get up and leave at any time. I must have made the gesture more than a dozen times.
Wow! That was exactly what I was told some years back (I think Marko was in elementary school at that time) when I bough a new Nissan. Just before I singed the last document, the finance guy said : you know, as soon as you drive this car off the lot, this car will lose 2K.
I don't know anyone who wants to sell car after driving off the dealership.
I have never had a driver's license , Car Payment or Anything like that
I'm an electrician for Chrysler. I make great money and refuse to buy a new vehicle. I can easily afford whatever we make, but I sure as hell don't want to afford it. I got a 99 Neon that has been awesome to me. 210,000 on it and still runs great. My coworkers give me crap, but I tell them the $500 - $700 you pay per month, goes into my retirement.
lol exactly good stuff Chris
Alot of people never pay off their vehicles they just keep rolling it into the next one which is absolutely crazy from a financial perspective especially if they aren't saving investing and paying off other debts first because cars depreciate too quickly and now payments can go as long as 7 yrs.if one has to get a loan for a car they should be able to comfortably pay it off in 3 yrs or less. But for a lot of people cash would be better!
Well done. Car payments guarantees you will remain middle class.
100%. Thanks for watching
I like being middle class. Less stress and a better quality of friends.
@@krazyj1957 Middle class is the MOST stressful by far. You're not poor enough to get gov't subsidies, and you're not rich enough to live life on your own terms. The best quality friends come at any point in the socio-economic scale.
Let's see, we own our home on a acre of land which is no longer financed. Only thing we have financed is my wife's new car. Enough investments to live comfortable on the rest of our life's unless the bottom falls out then it's not going to help the rich either. Good healthcare which at my age you need because only thing we stress over is our health. I'm retired and can afford to take the boat out and enjoy a nice sunny day, I have a lot a friends who are in the same place and I'm sure they have some stress in their life's but so have I. I worked on cardialgy based and medical management systems for many years traveling to many clinics and hospitals. The most stressed out people I ever saw was the people on the top. You can have it.
@@krazyj1957 Congrats! I wouldn't consider you middle class then. Everyone's case is different. I'd rather have a RUclips channel making me money while I sleep than have to go to work to pay the bills worrying if I'm going to get fired. Im happy to be middle class with minimum time invested in working. I guess I meant I'd rather be rich in time than money. Rich = options.
Keep up these videos Marco I just paid off my car and I'm loving having no car payments yes it's a six year old car but it still runs alright and the money I'm saving is going towards my bank account found your channel and I'm using your knowledge to save me money
Leasing versus buying -- discuss! I've been leasing for decades because a lease payment is cheaper and I spend almost nothing for maintenance (other than tires/oil changes) but that's because after 3 years, the car is returned and I get another car so I don't spend $$$ for big ticket repairs. Yes, I "rent" a car forever, but I stay under $300/month as part of a budged plan.