im 33 and im $10k away from having saved $200k. i drive a 1999 suburban that cost me $2k to buy and ive owned now for 8 years. dave is correct. cars are a debt trap.
Preach. Nothing wrong with cheap old cars. Keep em clean, take car of them, maintain them, and drive them with respect and they’ll last a good long time. That doesn’t sit well with the consumer/materialistic mindset tho.
My sister-in-law has uttered that phrase, "I work hard and can spend my money how I want" so many times. She's pulling my brother down into the financial gutter with her.
My wife and I decided to go full in on the baby steps and it was the best decision we’ve ever made. My car and my wife’s car are now paid off and we only need $3000 more to finish baby step 3. These steps really work!
Awesome! My wife and I got on it 3 years ago. Can’t believe how different my life feels. After paying off the debt and getting an EF, it feels like an entirely new life. Like most, can’t imagine my life if I had started in my 20s instead of mid-30s but better than some of the callers who’re 70 and broke
Dave, My name is Mike McLean. When I was 15 years old I was given a book written by you that completely changed my life forever. Because of you, I was able to act my wage, (even when I didn’t have one) and was able to make smart decisions that led me to win with money. I am now 29 and I created my first ever RUclips video and I want to inspire others just as you have inspired me. You are like the father I never had. God bless you Dave. -Mike McLean
Yet they wonder why the conman folk is bent over and why can we barely Fkn walk!!! Let’s let them take us for all we got because they get rich while we suffer. Common working man can’t afford a decent car. We are the victims. The slimeball dealerships cleaning up. People want a reliable quality vehicle. 25k for a used 2020 sportage. Yes my credit sucks but the FICO score is a punishment
Jade’s rationalization of folk’s delusion with conspicuous consumption of material goods they can’t afford, but think they are entitled to for validation by others is spot on. Personal accountability is seriously lacking in society.
Yep. Car payments nowadays are the same as rent used to be just a few years ago. I bought a 2004 Crown Victoria (cash) 8 years ago, and I'm still driving it. I'd rather pay an occasional repair bill than pay $800 a month for a new plastic piece of crap. My husband and I have had enough saved for years to pay cash for a new vehicle, but I absolutely REFUSE!!
Jade is bang on sharp. Much better than sleepy out-of-touch Ken Coleman or George who keeps rattling off the same list again and again without turning his brain on. The only thing I have a huge issue with, all Ramsey personalities including Dave have a big problem listening. Way too often they don't let the caller even say the question. But Jade was a great addition for sure.
I'm 35, wife is 30. Paid off half our mortgage in 13 months, no other debt. Going to get it down a bit more then hopefully refinance and start a family. Thank you Dave for giving me the financial education i needed but never got in school
I've been a lawyer for 25 years and I've never had any real reason to complain about my income. How many new cars have my wife and I owned in our lives? None. Not one. We've owned a few 1 or 2 year old cars when we bought them, but we paid cash and kept them forever. I have the money to buy new...and I never will.
@@keithbellair9508 Who is cheap? Buying a product that has a greater value-per-dollar than brand new is smart, not cheap. Leaves more money for other things....like generosity.
My monthly vehicle payment is $900. What kind of vehicle? Mutual/Index Funds! When people talk car payments I don't want them to feel bad so I just tell them mine is $900.
Bought my first and only new car in 1990, once I calculated how much interest I paid when all was said and done -- on a Nissan Sentra for Pete's sake -- I said "NO MORE!" Got 3 hoopties, all paid for. They ain't pretty, but they get me from point A to point B.
In 1996 Jeff Bezos (Amazon) a person interviewed Jeff saying you are worth 10 billion dollars, what is up with this car (it was an old Honda car). Jeff said it was a perfectly good car. It's on youtube, look it up. I get this is a different situation. A lot of those people with brand new cars every few years will be the same people at 65 saying how can you afford to retire.
Yes, but Bezos spent $550 million a minute for a space trip in 2021. I’m not knocking him. I’m just laughing at your post because you’re trying to make Bezos out to be an average guy living an ultra frugal lifestyle. Hardly the case whatsoever. Have you seen the chick he’s marrying? They literally travel the world all the time flying private, luxury planes, staying in the most opulent of places, and wearing the most expensive clothes money can buy.
My sister is a nurse in an area where there is crappy public transport, especially during the times that she works. She is not good with money but she bought a shitty 4k car with cash (that she borrowed from our parents) and I am really proud of her for that. She has a little debt but all from family and she regularly pays it back.
At 17 i was about to buy a car with 49% interest and co-sign with my mom because i everyone else at school was doing it i ended up not taking it. a year later I found a 2008 chevy colbalt for $500 and bought it with the money i saved up, though people laughed at me i was always happy that i didnt have to pay monthly.
I have a 2001 Ford pickup I bought new through a fleet sales manager friend. I am still driving it because it runs fine with almost 200,000 miles on it, and a replacement is over $100,000.
@@gene_takavic57 I mean, seriously. If you calculated how much one car mile really costs you including the payments, repairs and maintenance, gas, insurance etc. I think many people would find out taking a taxi all the time might even be cheaper. It's a bit cray cray what's going on these days.
Yup! Been doing it for years! I buy USED to avoid the initial depreciation, low mileage and dependable brands that I know will last and keep them for 10 years or more!
I had to laugh when Jade started mocking people about "their truth". People will find any terrible excuse to justify what they want by claiming that it's a need.
This year we bought a 2007 Crown Victoria (old detective car) for $1700 and gave it to our car repair shop and they made $3000 of repairs. So for less than $5k we had an essentially new luxury car (if you like black cars). Paid cash for the whole thing, Dave. Win!
Car payments are money pits. Buy a good used vehicle with cash. Never borrow money unless you absolutely MUST! Student loans are money pits too! I’ve seen PHDs who are completely stupid!
In 1980, I graduate from a #1 engineering university, Highest median starting salary from a public institution in the USA. It was free, paid by an alumnus. My first job, I went overseas, tropical diseases and light sniper fire. ~$100K/yr. In the 90's, new people were at ~$200K/yr. Why would anyone go back to school, when making +$200K with a BS.
I made a used car salesman really upset with me years ago. I was "looking" at my dream vehicle. He tried selling it to me, wanted me to sign the loan - at something like 20% interest - without letting me see the interest rate. Yes, my credit was bad back then - my fault not his. I asked the wrong questions for him - what was the interest rate. I made a comment or 2 and walked away. It was my dream vehicle, but I was not going to buy it just because... I brought my credit up over the next couple years. The last 2 vehicles I've bought, I paid cash for. I listen to Dave now. I still have a little debt - I acquired the past year. I'm working to pay it off.
I pissed off the car dealer when I bought my truck too. Insisted on nailing down the final price before I'd discuss financing, got it all figured out with a number, and said, alright, now we'll discuss financing. Their eyes lit up, until I pulled out my checkbook.
Interest rates are 13.5% on AVERAGE? People are absolutely NUTS! I guess the good news is some really good deals are headed down the pike real soon as the repo wave crashes over these reckless buyers.
I’m so glad you’re talking about “my truth”. I am so tired of hearing this from the crystal woo woo woke hippies. Keep spreading the REAL truth you guys!
I buy cars with cash… used, but dependable, reliable vehicles that I know will last a long time! I have a car that’s 11 yrs old and will drive it til it dies and then get another used, reliable car to replace it! Too many fools trying to keep up with the Joneses with money they don’t have, buying cars and other things they can’t afford!
I am so thankful that I outgrew the car obsession before 30. Partly due to traffic and road conditions and partly due to the fact that my worth as a man didn't come from the vehicle I drive. Now I view my car which is nearly 14 years old with 185,000+ miles on it as transportation from point a to point b and nothing more. As long as the vehicle meets my transportation needs, I'm set.
Definitely understand where Dave is coming from but there are some states that stay open year round and don’t shut down over a little ice and rain. Having a reliable 4wheel drive vehicle is a must for momma and the kids to be safe
@@heightjack I bought a 3 year old Subaru for $17k. Seven years later it's still handling steep hills, dirt roads, and Arctic winters just fine. Investing in maintenance (oil changes, new windshield, transmission flush) pays off. Plus, you're a safer driver when you know your vehicle. But our mothers didn't have 4wd or studded tires and they managed to stay out of the ditch.
Right?? I hadn’t done the math in our household in 2017 weeks had over $1,000 in payments for cars. Almost as much as our housing. We put our beans and rice on the stove and paid those suckers off! It’s been an amazing last 5-6 years no debts, we finally bought a home not because of the $1000 saved, but because of the switch in mentality
In 2012 I was a single mom with two little boys and my car was a used one that my ex-husband let me keep that he had never taken care of. I literally was in a situation where I had no choice I had to buy some thing. I got what I wanted, but I negotiated the payments, the interest rate, everything to my advantage. Then instead of paying it off in eight years, I paid it off in three years. Saved myself thousands of dollars, and I’m still driving that car because I took the time to pay for it and take care of it.
I totaled my car a year before I was planning on replacing it. I didn't have the cash in the bank to buy a car in cash like my original plan, but I did put as much down on the replacement car as I dared (sorry savings) and managed a decent interest rate with a $213 payment a month. Keeping that payment until I finish school in a year and then attacking that thing with a vengeance when I'm graduated and working full time. Not the way I wanted to do it, but damn it it's better than what I could have done haha
Emergencies happen. If you had a fully funded emergency fund then buying a $3000 car would have been easy. If you had your $1000 emergency fund then you could have gotten by with a really cheap car for a little while. It is easier to borrow but very seldom is the only way out. At least you kept the payment reasonable but there are really cheap cars out there that will get you by if you look hard enough.
@@1967davethewave yeah I had about $800 in the emergency account (recovering from something else, but wasn’t very far past $1k anyways) Found a few cars under a thousand on Facebook Marketplace but my dad (my mechanic) approved. I borrowed a couple thousand from my college savings account (funded by me) and payed it back as i could. I acknowledge there may have been an even cheaper way out than my $12k car (after taxes and stuff), but at the same time i didn't want to buy a car that needed a fortune in repairs to function.
good for you. the next best thing to buying it is having a super low payment and knowing when that'll be done. Years ago i told my coworkers i had a $150 payment and they were shocked and wanted to trade for their newer van for $315 payment.
Crazy. Never ever ever roll negative equity. Always trade in with your car paid off, title in hand, have a large check in hand and if you have to finance then finance the rest. In my household we only finance one vehicle at a time. Finance for 72 months but pay it in 36 months (we typically keep them for 8 to 10 years) That way if we run into an issue we can drop the payment to $300 or whatever. I'm 38 and we do not have a car payment. You do not need a fully loaded brand new car. Mid grade or lower grade is fine. Also never go to "look" at new cars. Once you jump in a brand new one, it is hard to jump in your 5 year old car and drive it home.
You’re absolutely right about “don’t go to look at new cars” because you’ll hate your old one after that, but i’ve gotta say- five years old is super new to me 😂😂 our family car is 16 years old, and we’re like the 5th owners. while its rough around the edges, its still very nice and reliable and cleans up really nice. I work in the automotive industry and i always chuckle inside when folks can’t stomach the idea of driving something older 😂
@@thisoldbelair Right, they would rather be $40k in debt and a $1,000 car payment because that way they don't have to worry about repairs lol. They pay $12k per year on payments, but no car repairs lol. I drive a 2015 colorado 2" front lift and 1.5" rear lift with larger tires and 110k miles. Paid off.
@@ehderguyyashootadeerorno2313 real nice! those are great trucks. we have a 2007 Suburban with 200k miles on it. it needs some work but its paid off and does great
Sitting in a 2008Toyota i bought in 2009 for cash. Has some dents (thanks other people) but she still goes. Great place to sit and listen to DR and know that im winning 😊😊
Dave thank you--- I have a 2001 F0rd f150 that I purchased used 15 years ago for 3'800 dollars..I have spent about 2'500 dollars in repairs. s now I am a 80 year old man that tell people " it is paid for " and average all repairs and purchase price drastistic is cheaper than any monthly payment. Set aside some every month for repairs in the future and drive with peace of mind...
I think one of the issues they overlook is how car dependent our infrastructure is. Unfortunately in most of the country you cant survive without a car. Totally agree that some people are buying way more expensive cars than they need but for people with lower incomes even owning a cheap car can be crippling. Car dependency in this country unfortunately keeps the poor people poor.
Not sure about, on big cities where people can very well live without cars they are even worse off than on small cities or rural areas, I think that the problem is more lack of financial education than other factors, I can be wrong of course, evidence however leads me that way.😊
@@righand What about buying a junker and then having to spend thousands of dollars on repairs? Unfortunately, this happens to people as well. With the car shortage the last few years it is not like you have a sea of junkers to choose from.
No big deal. First world issues. People from all walks of life and incomes have been successful at moving from point A to B long before you came along.
I never understood the concept of charging more interest for someone with worse credit. It just doesn’t make sense. If there are a risk in terms of not paying, what difference does charging more interest make? 15.5% x 0 is still 0.
I’ve been working extra to save up for my new car. I picked up a part time job, and I do work for my dad in his business, on top of running my own business.
It's the car salespeople that convince buyers they can afford the payments. The first thing the salesperson asks is how much monthly payment I can afford. I always say, "A lot more than I want to spend." When they break out the 4 square and work on the payment, I redirect them back to the price. I tell them once we have a price, the payment is just math. Of course, this was back in the day. Now, with the internet, I get a price before I step into a dealership.
Years ago, when I was arguing about whose finances were tighter, the opposing party used, "YOU DONT HAVE A BIG CAR PAYMENT" as ammunition. I would then offer my pile of crap to them and they denied it. So, this is all on them.
I just sold a property in Portland and I'm thinking of putting the cash in stocks, I know everyone is saying it's ripe enough,but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.
Yes, a good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in-depth market knowledge.
It all depends on how long you're willing to hold for, stocks might likely tank further, but making serious gains in this downtrend wouldn't be a problem if you're a pro.
The reason I decided to work closely with a brokerage adviser ever since the market got really tense and the pressure became so much(should be retiring in 17months) so I've had a brokerage adviser guide me through the chaos, its been 9months and counting and I've made approx. 650K net from all of my holdings.
My financial advisor, Theresa Anne Cann, is a highly qualified and experienced professional in the financial market. She possesses a broad understanding of portfolio diversification and is recognized as an expert in this field.
I bought a Toyota Camery. I bought it at a yard sale and I paid cash. That was over four years ago. I had to put tie rods and shock towers just on the front and a head gasket. And I drive it daily no drama. 😊
My employer requires that you live within 15 miles and can be at work in 30 minutes. Emergency callouts. A 50% pension at 50 years old and Free lifetime family healthcare. On the line. OH, just quit and lose it? I live a mile away, ride a bicycle or walk/run.
I have bought only 4 cars in my life. 99 Accord $1200, 97 Odyssey $3000, 99 CRV $700, 06 Corolla $500. I have had some rough times in my life, I dont think I would have made it through with a car payment on my back.
If you see you'll need a car in a couple of years, try making the payments now and put in a savings account (or higher interest short term CD). Budget and feel the pain to see if you can pass the stress test...then when you need to get a car, you'll have a down payment and know what you really can afford. It is scary how expensive regular cars are today. Not even taking interest do some simple math. $700/mo is a lot of money to me...that's only $8400/yr. For a $45K car (which is not extreme these days), that's 5 years! Now throw in interest and any additional insurance. I don't see how $100K trucks are a thing.
Yes, this is a great idea. The issue is that it requires sacrifice and diligence and patience BEFORE getting the product. People nowadays want the products NOW, and assume they’ll develop the grit and discipline in the future. Unfortunately, they’re always wrong.
@@mattschmitt9924yeah I bought a used Tundra for $15k in 2021 (a bit high) but it had everything I needed. The New equivalent was around 65k… I was flabbergasted. It’s been an easy 2.5 years NO ISSUES and I’m so happy debt free with my little tundra
I’ve had my used car for almost 3 years never missed a payment…I owe 2,000 and can’t wait to get it paid off ! I plan on getting the little things fixed on it and keep driving it until it completely shuts down 😂
Right in the first minute: 13 to 21% on a car loan! Let's say it's only 15% - on a $20,000 loan that's $3,000 just to keep your head above water and doesn't even touch the principal. And if you're paying 20% total income tax, you have to earn $3,750 just to tread water. Crazy!
I'm offended! And I'm supposed to care 🤣🤣 Ahhh good old Dave, this is a universally applicable line whenever I should get accused of being insensitive, so I'm going to steal it, sorry not sorry 😁
How much down and how much a month is not a bad question if the payments are cheaper. If the amount per month is still too high then you leave it alone. The bad part is they didn't leave it alone.
I've tried both - I drove the $10K car that cost me $4,500 in repairs over three years. I've had the brand new car that I paid $30K for and drove for ten years mostly trouble free. The answer is not always obvious.
@@user-hd8ej8yx9p You are not factoring in that the next five years. On average they are the same cost over six years but one is a total pain in the butt.
Lolz probably you got a vehicle that is way less reliable and has issues on a long run, i got a corolla 2013 never had any issues at all i just do oilchange and regular maintenance
I just got my car paid off last month. Been paying on it since 2016. This will give me a chance to save money in order to pay cash for a used one. I've never bought a brand new one but a used one owner. It feels good not to have a car payment.
For the average-income person, vehicles are the biggest financial mistake people make. It's also important to know a little bit about them so you don't get f$%*ed over at the repair shop, and so you can make informed decisions on what makes and models are cheaper to own. For example, most used BMW's will absolutely bleed you dry. That $10,000 BMW quickly turns into a $30,000 BMW that never stops breaking.
I know a few that make considerable less than my household and have much nicer, newer cars. Then they can’t afford basics and rely on subsidies and government programs. People’s priorities are upside down. I am fine with compromising on driving a new car but not relying on absolutely anyone (including saving for our future). It is upsetting though that we get to pay and pay taxes to subsidy cars and vacations for others.
I have a Ram Promaster I purchased used. The loan is 8% the price was $32k the interest took it to $42K I have close to $100k, but some of that money is in line of credit loans. Should I pay the remaining balance of $29k off for the van or continue to make the payments? The monthly payment is $719/ month
My husband and I are sqeezing our 4yo, 2yo, newborn into our paid off f150. Would be nice to have more room, but boy not having a car payment feels oh so nice. Currently saving for a used minivan/suv. We will get there, God willing
Just bought a Camry. $600/month… for only one month! It’s old, decent condition, decent miles. Good fuel economy, cheap license, cheap insurance. A $600 car is the way to go!
![MISSING: SLIM SHADY [Expanded Mourner’s Edition Trailer]](http://i.ytimg.com/vi/xh8qgHrOO1g/mqdefault.jpg)
im 33 and im $10k away from having saved $200k. i drive a 1999 suburban that cost me $2k to buy and ive owned now for 8 years. dave is correct. cars are a debt trap.
Oww good job
Preach. Nothing wrong with cheap old cars. Keep em clean, take car of them, maintain them, and drive them with respect and they’ll last a good long time. That doesn’t sit well with the consumer/materialistic mindset tho.
@titolovely8237 you drive newer car than me 😂 I drive a 1998 Toyota Avalon I bought 11 years ago ad I love the car coz I do my own maintenance mostly.
In your opinion if a transmission or engine falls should you replace it or get a newer car
You can buy a slightly used "Japanese car" and just drive it for 15 to 20 years. 😂😂😂
Nothing feels better than driving around in something you fully own.
Especially when it's a cts-v 😉
Finally paid my car off. Took me roughly 2 years from when I bought it.
Except living in a home you fully own! (I fully own my car, too).
Yes, if you can a Ford
Have you tried sex yet!?! When you do you’re going to LOVE it!!!
My sister-in-law has uttered that phrase, "I work hard and can spend my money how I want" so many times. She's pulling my brother down into the financial gutter with her.
"There's a reason you don't have any money. It's sitting in your driveway!" - Jade Warshaw
I love it... I'm going to be using that for sure!
Or in your garage so the repo man doesn't take it away lol.
@@ehderguyyashootadeerorno2313 😂
When emotion goes up, intelligence goes down.
Mr. Wonderful has said that many times on Shark Tank. Funerals and Weddings, people lose their minds.
My wife and I decided to go full in on the baby steps and it was the best decision we’ve ever made. My car and my wife’s car are now paid off and we only need $3000 more to finish baby step 3. These steps really work!
Awesome! My wife and I got on it 3 years ago. Can’t believe how different my life feels. After paying off the debt and getting an EF, it feels like an entirely new life. Like most, can’t imagine my life if I had started in my 20s instead of mid-30s but better than some of the callers who’re 70 and broke
It's not that they work--it's that YOU did the work! Congrats!
Dave, My name is Mike McLean. When I was 15 years old I was given a book written by you that completely changed my life forever. Because of you, I was able to act my wage, (even when I didn’t have one) and was able to make smart decisions that led me to win with money. I am now 29 and I created my first ever RUclips video and I want to inspire others just as you have inspired me. You are like the father I never had. God bless you Dave.
-Mike McLean
Hope you become the father you never had 👍
I love this even if there's a plug for your YT channel.
Bankrate is saying the average new car payment is over $700 and the average used car payment is over $500. That's absolutely nuts.
Jade is so right. Nobody forced the buyers to go and get a new car. If more people would take responsibility for their choices!
Yet they wonder why the conman folk is bent over and why can we barely Fkn walk!!! Let’s let them take us for all we got because they get rich while we suffer. Common working man can’t afford a decent car. We are the victims. The slimeball dealerships cleaning up. People want a reliable quality vehicle. 25k for a used 2020 sportage. Yes my credit sucks but the FICO score is a punishment
Jade’s rationalization of folk’s delusion with conspicuous consumption of material goods they can’t afford, but think they are entitled to for validation by others is spot on. Personal accountability is seriously lacking in society.
Well said agreed.
Yep. Car payments nowadays are the same as rent used to be just a few years ago. I bought a 2004 Crown Victoria (cash) 8 years ago, and I'm still driving it. I'd rather pay an occasional repair bill than pay $800 a month for a new plastic piece of crap. My husband and I have had enough saved for years to pay cash for a new vehicle, but I absolutely REFUSE!!
In January, I paid off my used car two years early. It should last 6-7 more years. NO car payment rules!
Thats quite an accomplishment, you must be very proud of yourself
Same! Just mortgage payment. But getting a divorce! Hubby sueing me for more money, he was not able to live on $5k per month
I'll be driving my 2015 Honda CRV until the wheels fall off!
It's a Honda, it'll be a while!
Last year with the K24 engine. Great job. Our K series will outlive us I swear.
My husbands CRV lasted him until over 600,000 km!
I have a 1999 CRV that’s still kicking! You’ll have yours for a while :)
Jade and Dave are a good pair. Jade brings freshness to the discussion, Dave brings his wisdom.
Jade is bang on sharp. Much better than sleepy out-of-touch Ken Coleman or George who keeps rattling off the same list again and again without turning his brain on. The only thing I have a huge issue with, all Ramsey personalities including Dave have a big problem listening. Way too often they don't let the caller even say the question. But Jade was a great addition for sure.
rock on@@kokoskokso
I'm 35, wife is 30. Paid off half our mortgage in 13 months, no other debt. Going to get it down a bit more then hopefully refinance and start a family. Thank you Dave for giving me the financial education i needed but never got in school
I've been a lawyer for 25 years and I've never had any real reason to complain about my income. How many new cars have my wife and I owned in our lives? None. Not one. We've owned a few 1 or 2 year old cars when we bought them, but we paid cash and kept them forever. I have the money to buy new...and I never will.
Cheapness is not an admiral trait
@@keithbellair9508 When one is a multi-millionaire it is!
@@alinatamashevich3354 nothing more tasteless than people brag about how much money they have but then are too cheap to spend it..
@@keithbellair9508 Who is cheap? Buying a product that has a greater value-per-dollar than brand new is smart, not cheap. Leaves more money for other things....like generosity.
@@James_Hough just like scrooge.
My monthly vehicle payment is $900. What kind of vehicle? Mutual/Index Funds! When people talk car payments I don't want them to feel bad so I just tell them mine is $900.
@@feiturvikingurThanks
You'll have a pretty awesome retirement vehicle! Pun intended 🤣
Oh hahaha that's funny
@@kokoskokso That's the plan! Thanks! Love the pun! 😆 🤣 😂
Good one
Bought my first and only new car in 1990, once I calculated how much interest I paid when all was said and done -- on a Nissan Sentra for Pete's sake -- I said "NO MORE!" Got 3 hoopties, all paid for. They ain't pretty, but they get me from point A to point B.
In 1996 Jeff Bezos (Amazon) a person interviewed Jeff saying you are worth 10 billion dollars, what is up with this car (it was an old Honda car). Jeff said it was a perfectly good car. It's on youtube, look it up. I get this is a different situation. A lot of those people with brand new cars every few years will be the same people at 65 saying how can you afford to retire.
Yes, but Bezos spent $550 million a minute for a space trip in 2021. I’m not knocking him. I’m just laughing at your post because you’re trying to make Bezos out to be an average guy living an ultra frugal lifestyle. Hardly the case whatsoever. Have you seen the chick he’s marrying? They literally travel the world all the time flying private, luxury planes, staying in the most opulent of places, and wearing the most expensive clothes money can buy.
I get your point but that guy has a half billion yacht now and other toys. 😊
Bezos bozo ✡️
@@brianwings6908 Paid for in cash! You cannot compare a billionaires financial situation to Joe Sixpack's.
My sister is a nurse in an area where there is crappy public transport, especially during the times that she works. She is not good with money but she bought a shitty 4k car with cash (that she borrowed from our parents) and I am really proud of her for that. She has a little debt but all from family and she regularly pays it back.
You have to take ownership of your decisions.
This way you learn from your mistakes.
If you blame others you will never learn.
At 17 i was about to buy a car with 49% interest and co-sign with my mom because i everyone else at school was doing it i ended up not taking it. a year later I found a 2008 chevy colbalt for $500 and bought it with the money i saved up, though people laughed at me i was always happy that i didnt have to pay monthly.
Your mom should know better than even contemplating cosigning a loan like that
49 percent interest is absolute insanity. I was super hesitant to even go into debt at 5.8% for 4 years, spent a week doing financial projections
I have a 2001 Ford pickup I bought new through a fleet sales manager friend. I am still driving it because it runs fine with almost 200,000 miles on it, and a replacement is over $100,000.
Buuuut Dave I need a $1,400 car payment to impress strangers. Otherwise it affects my mental health😩😩😩
$1400 car payment is about $350 A WEEK! Most people don't spend that much on food per week (except the ones who eat out every meal).
😂
@@gene_takavic57 I mean, seriously. If you calculated how much one car mile really costs you including the payments, repairs and maintenance, gas, insurance etc. I think many people would find out taking a taxi all the time might even be cheaper. It's a bit cray cray what's going on these days.
I do need self-care, and it usually involves a salt bath and curling up with a library book after. A car as self-care?! Crazy.
My husband and I do not buy cars on credit. Our two cars were bought with cash.
Good for you! Now pat yourself on the back!
Nobody cares
All the brokies get driven out of the wood work with hate and jealousy when you succeed. It's funny to watch. Great job @PeaceStivers.
Yup! Been doing it for years! I buy USED to avoid the initial depreciation, low mileage and dependable brands that I know will last and keep them for 10 years or more!
Excellent 🎉
Had my truck for 17 yrs. I went to check out car prices. It looks like it's going to be 20 yrs.
I have had mine for 13 years and feel the same way.
I had to laugh when Jade started mocking people about "their truth". People will find any terrible excuse to justify what they want by claiming that it's a need.
This year we bought a 2007 Crown Victoria (old detective car) for $1700 and gave it to our car repair shop and they made $3000 of repairs. So for less than $5k we had an essentially new luxury car (if you like black cars). Paid cash for the whole thing, Dave. Win!
I’d like black just fine
mafiaoso
Car payments are money pits. Buy a good used vehicle with cash. Never borrow money unless you absolutely MUST! Student loans are money pits too! I’ve seen PHDs who are completely stupid!
In 1980, I graduate from a #1 engineering university, Highest median starting salary from a public institution in the USA.
It was free, paid by an alumnus.
My first job, I went overseas, tropical diseases and light sniper fire.
~$100K/yr.
In the 90's, new people were at ~$200K/yr.
Why would anyone go back to school, when making +$200K with a BS.
Self-Care - Jade is hilarious. She and Dave together are the dynamic duo!
I made a used car salesman really upset with me years ago. I was "looking" at my dream vehicle. He tried selling it to me, wanted me to sign the loan - at something like 20% interest - without letting me see the interest rate. Yes, my credit was bad back then - my fault not his. I asked the wrong questions for him - what was the interest rate. I made a comment or 2 and walked away. It was my dream vehicle, but I was not going to buy it just because... I brought my credit up over the next couple years. The last 2 vehicles I've bought, I paid cash for. I listen to Dave now. I still have a little debt - I acquired the past year. I'm working to pay it off.
I pissed off the car dealer when I bought my truck too. Insisted on nailing down the final price before I'd discuss financing, got it all figured out with a number, and said, alright, now we'll discuss financing. Their eyes lit up, until I pulled out my checkbook.
@@om617yota7 Money talks, BS walks, he understood that!
The cure for Car Fever ....... more cowbell!
Explore the space BoC!
Interest rates are 13.5% on AVERAGE? People are absolutely NUTS! I guess the good news is some really good deals are headed down the pike real soon as the repo wave crashes over these reckless buyers.
Repo , I am ready with cash in hand
yep if people quit buying things they can't afford, prices would come way down. Not just vehicles, everything
I’m so glad you’re talking about “my truth”. I am so tired of hearing this from the crystal woo woo woke hippies.
Keep spreading the REAL truth you guys!
I buy cars with cash… used, but dependable, reliable vehicles that I know will last a long time! I have a car that’s 11 yrs old and will drive it til it dies and then get another used, reliable car to replace it!
Too many fools trying to keep up with the Joneses with money they don’t have, buying cars and other things they can’t afford!
I am so thankful that I outgrew the car obsession before 30. Partly due to traffic and road conditions and partly due to the fact that my worth as a man didn't come from the vehicle I drive.
Now I view my car which is nearly 14 years old with 185,000+ miles on it as transportation from point a to point b and nothing more. As long as the vehicle meets my transportation needs, I'm set.
Gay
People having a CHAMPAGNE TASTE IN A BEER BUDGET is such an epidemic problem in this country.
Definitely understand where Dave is coming from but there are some states that stay open year round and don’t shut down over a little ice and rain. Having a reliable 4wheel drive vehicle is a must for momma and the kids to be safe
Which unfortunately comes with a high interest loan for most families
@@heightjack I bought a 3 year old Subaru for $17k. Seven years later it's still handling steep hills, dirt roads, and Arctic winters just fine. Investing in maintenance (oil changes, new windshield, transmission flush) pays off.
Plus, you're a safer driver when you know your vehicle.
But our mothers didn't have 4wd or studded tires and they managed to stay out of the ditch.
She looks great with any hairstyle 😊
Havent had a car payment in over a decade and when i did it was $250 a month. These people with $500+ car payments love debt.
You’re right, and when they’re almost done with the payments they decide to trade it in and get something even newer 😂🤦♂️
We paid off both of our cars early a few years ago. The freedom is amazing, and we will NEVER have another auto loan. Thank you Dave!
Right?? I hadn’t done the math in our household in 2017 weeks had over $1,000 in payments for cars. Almost as much as our housing. We put our beans and rice on the stove and paid those suckers off! It’s been an amazing last 5-6 years no debts, we finally bought a home not because of the $1000 saved, but because of the switch in mentality
People don’t care if they are behind on their car payments. They are still going to “fly out” for the holidays!! Airports will be packed! 🌲 🔔 🎅🏾
I bought a 2014 Nissan Versa for $400- gets 40 mpg. Fill it up once a month. Best car I've ever owned! No car payments!
O6 Chevy impala. Bought it a year ago. Best decision ever. Will be able to sell it for nearly the same amount in 3-4 years.
In 2012 I was a single mom with two little boys and my car was a used one that my ex-husband let me keep that he had never taken care of. I literally was in a situation where I had no choice I had to buy some thing. I got what I wanted, but I negotiated the payments, the interest rate, everything to my advantage. Then instead of paying it off in eight years, I paid it off in three years. Saved myself thousands of dollars, and I’m still driving that car because I took the time to pay for it and take care of it.
I totaled my car a year before I was planning on replacing it. I didn't have the cash in the bank to buy a car in cash like my original plan, but I did put as much down on the replacement car as I dared (sorry savings) and managed a decent interest rate with a $213 payment a month. Keeping that payment until I finish school in a year and then attacking that thing with a vengeance when I'm graduated and working full time.
Not the way I wanted to do it, but damn it it's better than what I could have done haha
Emergencies happen. If you had a fully funded emergency fund then buying a $3000 car would have been easy. If you had your $1000 emergency fund then you could have gotten by with a really cheap car for a little while. It is easier to borrow but very seldom is the only way out. At least you kept the payment reasonable but there are really cheap cars out there that will get you by if you look hard enough.
@@1967davethewave yeah I had about $800 in the emergency account (recovering from something else, but wasn’t very far past $1k anyways)
Found a few cars under a thousand on Facebook Marketplace but my dad (my mechanic) approved.
I borrowed a couple thousand from my college savings account (funded by me) and payed it back as i could.
I acknowledge there may have been an even cheaper way out than my $12k car (after taxes and stuff), but at the same time i didn't want to buy a car that needed a fortune in repairs to function.
good for you. the next best thing to buying it is having a super low payment and knowing when that'll be done. Years ago i told my coworkers i had a $150 payment and they were shocked and wanted to trade for their newer van for $315 payment.
Crazy. Never ever ever roll negative equity. Always trade in with your car paid off, title in hand, have a large check in hand and if you have to finance then finance the rest. In my household we only finance one vehicle at a time. Finance for 72 months but pay it in 36 months (we typically keep them for 8 to 10 years) That way if we run into an issue we can drop the payment to $300 or whatever. I'm 38 and we do not have a car payment.
You do not need a fully loaded brand new car. Mid grade or lower grade is fine. Also never go to "look" at new cars. Once you jump in a brand new one, it is hard to jump in your 5 year old car and drive it home.
You’re absolutely right about “don’t go to look at new cars” because you’ll hate your old one after that, but i’ve gotta say- five years old is super new to me 😂😂 our family car is 16 years old, and we’re like the 5th owners. while its rough around the edges, its still very nice and reliable and cleans up really nice. I work in the automotive industry and i always chuckle inside when folks can’t stomach the idea of driving something older 😂
@@thisoldbelair Right, they would rather be $40k in debt and a $1,000 car payment because that way they don't have to worry about repairs lol. They pay $12k per year on payments, but no car repairs lol. I drive a 2015 colorado 2" front lift and 1.5" rear lift with larger tires and 110k miles. Paid off.
20/3/8
-20% down
-
@@ehderguyyashootadeerorno2313 real nice! those are great trucks. we have a 2007 Suburban with 200k miles on it. it needs some work but its paid off and does great
I am so glad I used all those stimulus checks to pay off my car early. I love the no car payment life. ❤
good ol fashioned accountability
Zero on a car lot
Sitting in a 2008Toyota i bought in 2009 for cash. Has some dents (thanks other people) but she still goes. Great place to sit and listen to DR and know that im winning 😊😊
Just remember, the truth will set you free but first it’s really gonna piss somebody off
Who da hell is paying that much on 1 CAR!?!? I pay $700 on 3 cars!
Dave thank you--- I have a 2001 F0rd f150 that I purchased used 15 years ago for 3'800 dollars..I have spent about 2'500 dollars in repairs. s
now I am a 80 year old man that tell people " it is paid for " and average all repairs and purchase price drastistic is cheaper than any monthly payment. Set aside some every month for repairs in the future and drive with peace of mind...
I think one of the issues they overlook is how car dependent our infrastructure is. Unfortunately in most of the country you cant survive without a car. Totally agree that some people are buying way more expensive cars than they need but for people with lower incomes even owning a cheap car can be crippling. Car dependency in this country unfortunately keeps the poor people poor.
Not sure about, on big cities where people can very well live without cars they are even worse off than on small cities or rural areas, I think that the problem is more lack of financial education than other factors, I can be wrong of course, evidence however leads me that way.😊
This is false and an excuse. A liberal, victim mindset really. No one said you can’t go out and buy a car you can afford.
Never heard of the bus huh?
@@righand What about buying a junker and then having to spend thousands of dollars on repairs? Unfortunately, this happens to people as well. With the car shortage the last few years it is not like you have a sea of junkers to choose from.
No big deal. First world issues.
People from all walks of life and incomes have been successful at moving from point A to B long before you came along.
Left-handed puppetry ( My favorite 🤣🤣🤣🤣)
Tuba, Tuba, Tuba
Imagine not being able to afford something and being charged extra through something called interest and still thinking it's a good idea to buy.
Beats driving a POS
I never understood the concept of charging more interest for someone with worse credit. It just doesn’t make sense. If there are a risk in terms of not paying, what difference does charging more interest make? 15.5% x 0 is still 0.
Other famous last words: “Hey guys watch this!” 😂😂
Hold my beer, comes to mind, followed by a ER visit.
The people who go make excuses what they can’t do something are the same people who makes excuses why you can.
I’ve been working extra to save up for my new car. I picked up a part time job, and I do work for my dad in his business, on top of running my own business.
It's the car salespeople that convince buyers they can afford the payments. The first thing the salesperson asks is how much monthly payment I can afford. I always say, "A lot more than I want to spend." When they break out the 4 square and work on the payment, I redirect them back to the price. I tell them once we have a price, the payment is just math. Of course, this was back in the day. Now, with the internet, I get a price before I step into a dealership.
Watching this video and when the ad popped up it was for the Infiniti QX60, a $60K-$70K vehicle. 🤣🤣🤣
Years ago, when I was arguing about whose finances were tighter, the opposing party used, "YOU DONT HAVE A BIG CAR PAYMENT" as ammunition. I would then offer my pile of crap to them and they denied it. So, this is all on them.
Exactly. A big car payment is a choice.
I just sold a property in Portland and I'm thinking of putting the cash in stocks, I know everyone is saying it's ripe enough,but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.
Yes, a good number of folks are raking in huge 6 figure
gains in this downtrend, but such strategies are mostly
successfully executed by folks with in-depth market
knowledge.
It all depends on how long you're willing to hold for, stocks might likely tank further, but making serious gains in this downtrend wouldn't be a problem if you're a pro.
The reason I decided to work closely with a brokerage adviser ever since the market got really tense and the pressure became so much(should be retiring in 17months) so I've had a brokerage adviser guide me through the chaos, its been 9months and counting and I've made approx. 650K net from all of my holdings.
@@Anacleta-titaroblesHi, please who is the expert assisting you and how do I reach out to them?
My financial advisor, Theresa Anne Cann, is a highly qualified and experienced professional in the financial market. She possesses a broad understanding of portfolio diversification and is recognized as an expert in this field.
I like watching how Jade starts talking so that she can find out what she wants to say.
This makes my head hurt - that I may never see another new car payment under $400.
If all your buying Is cars with little down then sure I guess. Buy used and cash.
Car just drives different when its paid for
I bought a Toyota Camery. I bought it at a yard sale and I paid cash. That was over four years ago. I had to put tie rods and shock towers just on the front and a head gasket. And I drive it daily no drama. 😊
Wait you can do that?
Buy a car at a garage sale? damn wish I thought of that haha
@@victoriachristie7026 Yes, I saw one today, older Nissan Rouge. Basic transportation , done!
I’m from the uk and love watching Dave but always find it funny how he says veHicle 😅
My employer requires that you live within 15 miles and can be at work in 30 minutes.
Emergency callouts.
A 50% pension at 50 years old and Free lifetime family healthcare.
On the line.
OH, just quit and lose it?
I live a mile away, ride a bicycle or walk/run.
I have bought only 4 cars in my life. 99 Accord $1200, 97 Odyssey $3000, 99 CRV $700, 06 Corolla $500. I have had some rough times in my life, I dont think I would have made it through with a car payment on my back.
More and more people want “appliance cars”. An cheap reliable car to go from point A to point B. It’s great to see
Now that I can easily pay cash for any car I want, I want nothing more than something that’s reliable and gets the job done.
Buy a Subaru. They are reliable even after 200k miles and they also hold value
Find a toyota that's MADE IN JAPAN. Ive been to most states and canada in mine
Lame
@@jcherestallame., my mustang gt will smoke it
@@keithbellair9508 you had 2 chances to write an intelligent comment and failed 😅
If you see you'll need a car in a couple of years, try making the payments now and put in a savings account (or higher interest short term CD). Budget and feel the pain to see if you can pass the stress test...then when you need to get a car, you'll have a down payment and know what you really can afford.
It is scary how expensive regular cars are today. Not even taking interest do some simple math. $700/mo is a lot of money to me...that's only $8400/yr. For a $45K car (which is not extreme these days), that's 5 years! Now throw in interest and any additional insurance. I don't see how $100K trucks are a thing.
I drive a beater truck for work. Paid 8k cash. Same thing brand new is at least 80k. I feel I got more than 10 percent of the truck for sure.
Yes, this is a great idea. The issue is that it requires sacrifice and diligence and patience BEFORE getting the product. People nowadays want the products NOW, and assume they’ll develop the grit and discipline in the future. Unfortunately, they’re always wrong.
@@mattschmitt9924yeah I bought a used Tundra for $15k in 2021 (a bit high) but it had everything I needed.
The New equivalent was around 65k… I was flabbergasted. It’s been an easy 2.5 years NO ISSUES and I’m so happy debt free with my little tundra
I’ve had my used car for almost 3 years never missed a payment…I owe 2,000 and can’t wait to get it paid off ! I plan on getting the little things fixed on it and keep driving it until it completely shuts down 😂
Jade is the star of this show now! I love when she is on.
I am glad I was always thaught to save up before you buy something.
I was debt free to vehicles since I was 25. Learned my lesson long ago. Paid off the house by 46. Never going back.
Right in the first minute: 13 to 21% on a car loan! Let's say it's only 15% - on a $20,000 loan that's $3,000 just to keep your head above water and doesn't even touch the principal. And if you're paying 20% total income tax, you have to earn $3,750 just to tread water. Crazy!
PLEASE give her an offering for 5:12-5:25. She nailed it:
Closed eyes.
Grabbing air.
Pseudo passion.
Every trigger word.
hehehe she's good 😁 both of them ranting is gold
I'm offended!
And I'm supposed to care 🤣🤣
Ahhh good old Dave, this is a universally applicable line whenever I should get accused of being insensitive, so I'm going to steal it, sorry not sorry 😁
Not me! Paid that moderately priced baby off quick once I learned more about the baby steps.
How much down and how much a month is not a bad question if the payments are cheaper. If the amount per month is still too high then you leave it alone. The bad part is they didn't leave it alone.
My Dad paid $2807 for his first new car (a Plymouth) in 1968. Fifty-five years later, I haven't spent that much for a car yet.
I've tried both - I drove the $10K car that cost me $4,500 in repairs over three years. I've had the brand new car that I paid $30K for and drove for ten years mostly trouble free. The answer is not always obvious.
What kind of car? My 12k Toyota has given me no issue after 5 years. Most people can buy a reliable 10K car
Last time I checked, 14.5k is still less than half of 30k
Both were Mazda@@dearestdarling9467
@@user-hd8ej8yx9p You are not factoring in that the next five years. On average they are the same cost over six years but one is a total pain in the butt.
Lolz probably you got a vehicle that is way less reliable and has issues on a long run, i got a corolla 2013 never had any issues at all i just do oilchange and regular maintenance
I just got my car paid off last month. Been paying on it since 2016. This will give me a chance to save money in order to pay cash for a used one. I've never bought a brand new one but a used one owner. It feels good not to have a car payment.
Most people don’t have a driveway and unfortunately if they do, they should put it in their garage
My house is 650 a month. This boggles my mind
I'm so glad that I'm not materialistic and that I'm content to drive a small, reliable second-hand car.
Haven't had a car payment in 4 years since I paid off my car
For the average-income person, vehicles are the biggest financial mistake people make. It's also important to know a little bit about them so you don't get f$%*ed over at the repair shop, and so you can make informed decisions on what makes and models are cheaper to own. For example, most used BMW's will absolutely bleed you dry. That $10,000 BMW quickly turns into a $30,000 BMW that never stops breaking.
Thank you for existing guys ❤
I know a few that make considerable less than my household and have much nicer, newer cars. Then they can’t afford basics and rely on subsidies and government programs. People’s priorities are upside down. I am fine with compromising on driving a new car but not relying on absolutely anyone (including saving for our future). It is upsetting though that we get to pay and pay taxes to subsidy cars and vacations for others.
I have a Ram Promaster I purchased used. The loan is 8% the price was $32k the interest took it to $42K I have close to $100k, but some of that money is in line of credit loans. Should I pay the remaining balance of $29k off for the van or continue to make the payments? The monthly payment is $719/ month
My husband and I are sqeezing our 4yo, 2yo, newborn into our paid off f150. Would be nice to have more room, but boy not having a car payment feels oh so nice. Currently saving for a used minivan/suv. We will get there, God willing
They signed on the dotted line for student loans. Now they was their debts forgiven
Just bought a Camry. $600/month… for only one month! It’s old, decent condition, decent miles. Good fuel economy, cheap license, cheap insurance. A $600 car is the way to go!
100% Dave!
The "system" is keeping me down man! 😂
ze mAtRIx 🤡🤪
Learn to stick it to the "man"