*Thanks for watching everybody! What are your thoughts? Do you buy used or new cars?* Don't forget to sign up for the newsletter in the description above! (There's a nice freebie that comes with it)
IKR, and I wish we could do like some people who can't afford rent or mortgage nowadays...can't I get into a financial situation way out of my league and then have the government pay for it once I can't?? :)
I will give my input based off being in the Transportation business most of my life. I sold new and used cars for half my career and then switched to Commercial vehicles, selling cars up to Medium Duty trucks. Also being a mechanic, that has me with with 50 years in this business. I agree mostly with your suggestions and I do NOT buy any vehicle new myself. I bought 4 new cars in my life time and they weren't worth the price. I am almost 70 now, so take my experience and age to heed! As far as a car, I look at a few things up front. The Year, the Mileage, the Condition, those are the parameters. I look to buy a car that is 2 to 3 years old for the most part but don't rule out a 4 year old one. The mileage needs to be in the range of 10K to 24K, nothing with more miles than that. The condition has to be close to "Almost New", allowing for some minors scratches but that's all. The mechanic aspect, I do those checks myself but others need to take the car to an Independent mechanic that they do business with, after all, they will be doing the work, unlike myself. My scenario is that I drive that car about 8K miles a year and I will trade that car back in for another used car. Once I hit about 50 to 70 K miles. So lets say I bought a used car with 15K miles, drove it to 50K, might go a bit longer if I liked the car but otherwise, I am on the hunt for another one. so about 4 to 5 years and I am getting another used car, trading this one in. Why? Because, I avoid all major potential maintenance cost and I only had to perform routine maintenance such as tires, brakes and fluid changes. Where do I find these cars? Can be any where but mostly the are Trade In's on a reputable dealers lot, hardly any from private owners. What car to buy? Hard to say, i do have a preference brand but more so, avoid a Mercedes Benz at all cost! Parts and labor are way to expensive on that car. I prefer U.S. made cars, parts are less and easily obtained. Hope this helps folks. Just my opinion.
Been doing the same. Brand new is just not worth it when I can get a last generation 2-3 years old car from an official dealership, I get warranty so I only have to worry about consumables and it only has 15.000-25.000km on them. And If I am talking about the price, I have been looking at 20-25% off the full price. Atleast in Germany I save a good amount of money on taxes because newer cars have smaller enginea that are less harmful to the environment and also on insurance. Keep the car until it almost drops out of warranty, trade it in and get a newer one for a very good price.
Greetings, I am currently seeking to make a purchase of a new luxury sedan automobile. I would kindly request your guidance in determining the comparative merits of select vehicles, namely those of the Cadillac, BMW, Audi, and potentially the Mercedes-Benz. Specifically, I am interested in evaluating factors such as their liability, maintenance cost, and comfort amenities, among others.
My brother owns a mechanis shop, the luxury car owners are the ones who complain the most over maintenance/repair costs... most of them can barely afford the car, let alone the repairs
Just bought a 2003 BMW Z4 that had been cared for like a baby. Seller bought another Z4 and didn’t need the first one anymore and let me steal it for $4k cash. It’s got another 100k miles left in it and I look like I drive a car that cost 30k. Just gotta be smart and your cars don’t have to be this big scary issue every time you need a new one.
I always remember this joke from a Batman cartoon. Robin saw Batman with a pink Batmobile and asked why it isn't black. Batman - "Painting it black cost an extra $5,000." Robin - "Why do you care? Aren't you rich?" Batman - "Yes, but you don't become rich by SPENDING money..."
I'll always let someone else take that initial depreciation on a new car, I'll pick one up a few years old. When I was a teenager I was too broke to pay a mechanic and ended up learning how to do the jobs on my own, which now 15+ years later is how I've ended up as an aircraft mechanic.
I paint aircrafts after the mechanics do what they need to do. Mechanics are clumsy. Everything is scratched and dented when they bring it to me to paint.
Fair advice if you know how the car has been treated. In my experience, where I live, people don't give a shit about cars. 1 year old cars with low mileage scratched to fuck. At least if I buy a new car I know how well it has been taken care of. And, to be honest. All the scratches on it have been kindly donated by other c*#ts.
I have a 25 year old 1994 LS 400 Lexus. Original engine. Rarely have any maintenance issues with the car. She is made out Valyrian steel from old Valeria.
Well, new cars are more strong. I would recommend a used car, but nothing more than 10 years old. Modern cars more safe because of the crash test norms.
I bought my truck 12 years ago new. I think if you are a person that holds on to it for a long time then buying new is not a big deal. But if you trade out every 5 years or less than go used
roadrunner76b this is a bit of a fallacy. One needs to compare options against each other, not in a vacuum to determine opportunity cost, not just “cost”. For example, if instead you had bought your truck 1 year old, you would have extracted essentially the same value from it at 75-85% of the cost. Then, you can take that couple thousand dollars and invest it. Depending on what you invested in, that “not a big deal” becomes a 10k opportunity cost.
LifeCoach44 can't argue too much against that, but that's true for every dollar you spend. That being said, I just purchased a new truck, it's a year old. It's a $36k truck I got for $21k. Most people are like me and our vehicles are our livelihood. Taking a chance on what essentially turns out to be a money pit and time out of work, is worse than not investing.
Honestly, the depreciation problem is avoided if you just know when to buy. Buy in Nov-Dec of the year. Dealers will often voluntarily knock off the value that the car would depreciate from sticker just to get it off their lot. Case and point: new Accord EX-Ls are selling in my area for as much as $4k less than sticker simply because it is the end of the year and dealers want them gone.
I buy a used car and hang onto it for 10 years. For the last 3 cars its been a German luxury with a competent mechanic. Thanks to Scotty Kilmer and the dealerships, the cost of acquisition is low. I could have bought an independent warranty which could cover major engine components. I stay on top of maintenance and replace certain parts if it is more cost effective to do so while servicing other components. Many OEM German parts can be bought minus the logo of the "manufacturer. I can buy an oil filter from the dealer for $18 or buy it from Mahle for $6. Same with air filters, brakes, vehicle headlights, vehicle tail lights, HID bulbs ($180 for one from the dealer or both for $48 from a manufacturer), clutches, windows and the list goes on.
I don’t know how to describe it, but a car that you own outright just drives different. It feels different. It feels good in a way a financed car can’t.
I always bought used cars and kept my monthly expenses under 300$/month on average for two vehicles in the last 12 years. I really think it is one of the reasons why I was able to invest massively in real estate.
@@RogerPack I always put down my 20% down, then refinance once I have enough to refinance, I use the refinance to buy another property. Once the ball gets rolling, it goes a lot quicker, learning to save and finding out what is important in your life, give you the ability to focus your energy(money) towards your goals. I never did big salaries, but I outsourced a lot, like I rented four rooms in my house, drove second hand cars and never went to the restaurant. Amazing how much money you can save when you 100% committed.
DUUUUUUUUUDEE!!!!!!!!!! Every time I click on one of your videos, you have like 20,000 more subscribers than you did when I was last watching your videos haha. This is great man. You deserve the views, attention and side money you're making from making these vids you're interested/passionate/informed in. I don't come to your videos from the "suggested" or creepy A.I. algorithms of what "I" want to watch. I intentionally type your name in the search bar every few days because I want to know what you're thinking/interested in/making short, informative videos about. Just wanted to say thank you and its great to learn from you. Keep it up!
I own a 1997 4Runner with 242,000 miles which I bought 10 years ago. No issues with it, just regular maintenance. I also bought a 2006 Rav4 about five years ago and is now approaching 200k. The only major problems have been the alternator and a/c compressor, other than that, no issues just regular maintenance.
Back in 2010 I bought a 2000 BMW 528! for 10k. The car had 60k miles. I paid for it cash I said I would drive it until the wheels fell off. Lucky this car is still running never had a major maintenance problems. Right now it has 153k miles and it still drives good. A couple of things are worn out but I began to repair/replace some of those parts. Bmws have a bad reputation for maintenance but I got lucky with mine.
I buy slightly used. 3 years old or so with 30-40k miles on it. That's typically where I try to be. Save money on insurance, depreciation was eaten up by previous owner, etc.
Same here. And with only 40k miles on it, it’s got so much life left on it. Cars these days can last 250,000 miles if taken care of. I only drive less than 12,000 miles a year. If I buy used, I saved ten thousand dollars for a car I could easily keep 10 years
This is actually a very beneficial video. There are a lot of people out there who do not think this way. I started buying all of my cars cash about 15 years ago. And this has saved me thousands of dollars. I only buy cars that are 10 to 15 years old. I do the majority of the maintenance myself.I hope that there are some youngsters out there who grasp this idea because most people buy a car as a item to show their status and make people think that they have more money than they actually do. Great video.
This whole system has been messed up by the outrageous price hikes caused by covid and supply chain issues. Now, slightly-used cars cost even more than brand new cars. Until the market normalizes a little bit, I'd rather buy a brand new car, than a slightly-used car, but if I was on a really tight budget, I'd get a 8+ years old toyota or honda, as you can save like $10k over a new car and they'd still hav very low maintenance
Yeah, this seems like one of those things that could go either way, depending on variables specific to YOUR specific circumstances. For example, my insurance company told me that (generally speaking) insurance is less on a brand new vehicle than even a 2 year old vehicle. Another example is, that I tend to baby my vehicles, and that's why I tend to keep vehicles for 12 to 15 years, and have never had any engine, transmission, or other major component issues. In the winter, I get the undercarriage washed once to twice a week. I don't race the car from stoplight to stoplight, like I see so many driver's do. If the vehicle calls for premium fuel and/or synthetic oil, did the previous owner follow that? Is there a way for a mechanic to check that on a 1 or 2 or 3 year-old vehicle? I don't know. I follow the maintenance schedule to the letter. You don't know how a used vehicle was driven or maintained (or not, unless of course you're buying from someone you know personally). I have had two mechanics tell me that they see a lot of expensive luxury vehicles in their shops, because the owners either can't afford (and/or choose not to) follow the maintenance schedules. No way for me to prove it, however, I suspect that A LOT of the problems people have with CVT transmissions are because the owners' don't get that fluid changed per the maintenance schedules. Nissan dealer charges about $350 to service my CVT. It's 13 years old (I am the original owner) with 155,000 miles and my car runs like a champ. Final example, if you live in a climate where snow/ice is common. With a used (late model) vehicle, you have no way of knowing whether the previous owner ever took care of the undercarriage, or to what degree. So, you buy a 3 year-old vehicle where everything APPEARS great, your mechanic verifies that the car is mechanically sound, HOWEVER, the poorly maintained undercarriage is a ticking time bomb of corrosion that you have no way of knowing about until it's too late. And, while I am not a "car guy", even a 4 or 5 year old vehicle that has rust bubbles on it, looks like shit, and I see them more often than I should. I am a working man, so $40 or $50k for a vehicle is A LOT of money to me, however, the way I see it, if I am buying a super-reliable make/model brand new (or as a model year leftover), maintaining it, and keeping it for 12+ years, my cost per use is very low. A lot to consider.
@@area51reviews Buick Tourx. We like wagons. The room of a SUV and the handling of a car. AND I like driving something different then the sea of compact SUVs.
The last new car we bought was a 95 Saturn SW2, which lasted us almost 20y before kiddo forgot to check the oil and it threw a rod. The last couple of cars have been $1-6K, ranging from a '99 Mercury Mystique w/88K to a '06 BMW 330i/E90 and they've been wonderful, though we do much of our own maintenance. The $500 PT Cruiser, however was a money/time sink. We care more that it runs reliably than looks good; vanity is expensive and no car folks eat in looks good for long. The smartest play is to ensure the maintenance is done, especially if you learn how to do portions of it yourself. RUclips has revolutionized this, teaching you a lot even if you have someone else do the work. It can also teach you a lot about how NOT to drive it. Take care of nice things.
This is a timely video because the wife and I just bought a new car, a Toyota Corolla, and we keep our cars a long time. We paid cash for it and the out the door cost, after all taxes and fees, was less than the sticker price. I'm not saying that is the best decision but it's what the wife and I wanted and agreed on, and we can easily afford it. We have never had a car loan, or any kind of loan, our entire lives, and we're not planning on it either. The funny thing is how the sales people always assume you're going to finance the car and try to run your credit. When he did that with us he looked confused, because our credit reports are frozen and he probably wasn't getting any information. Then we told him we're paying cash and he seemed relieved, which is funny because they want people to finance. The worst thing that people do is buy way more car than they can afford and put it on a loan. Even weirder is people who buy used cars on loans. The whole point of buying used is to save money, so buy a cheaper car rather than borrowing money to buy a used car.
THIS IS GENIUS!!! See everything happens for the reason, the universe brings you to where you need to be for your answers!! I’m looking to purchase a new car soon in cash, like everyone I want the best deal. I am reviewing all of his videos now on the best tactics. Yes, they want us to finance as that’s how they make their money. My credit is not good due to student loans🤦🏽♀️. I know I probably won’t get approved for a loan I want. So THANK YOU! I will freeze my credit and then say, ok I’ll just do cash. For reference I am going to be coming into quite a bit of money where I will be paying off my student loans (my only debt) and I need a new car. I’m trying to financially educate myself as much as I can on how to manage all of this. This is a great tactic! Thank you!
I buy cars with money I would otherwise put into my portfolio so I prefer to finance. I just choose the down payment and finance length that fits my monthly budget. If I put too much on the down payment it's kind of a waste because otherwise it would likely grow much more in the market than I am losing in interest fees
Better to get a loan to buy a used car with little to no depreciation left so your equity loss is minimal once the loan is paid off than a loan for a new car where you're in neg equity immediately. Example 10k 3 year loan for a 5 year old 10k Audi. In 3 years that Audi might be 8k or even 9k so you can buy another 10k car cash debt free. A brand new 50k Audi would be a huge loan with a depreciation in 3 years to about 25k.
I have always bought new since I could afford to do so. I know exactly how they have been driven and maintained. My first new car was 1989 Ford Escort...my grand kid is driving that. Then I bought a 96' Jeep...my kid has that one. I have an 04' Silverado in the back that I use to go to work and chores. My wife is still driving our 07' Accord. My fun vehicle is a 17' Alfa Giulia, and I really want a 2020 Vette. When I didn't have the money or want to go into debt, I bought used. There was always something wrong that showed up after a while and it was never convenient nor cheep to fix. My point is that if you are going to drive a car for 10-20 years, get new. If you want cheep transportation and don't care how it was maintained or driven, buy used.
When you're buying mostly Fords, Chevy's and Jeeps, yeah you might get issues if you buy used that hasn't been maintained. More reliable brands like Toyota and Honda with 18/20 years left on their lives are a good deal considering the value is only say 75% of brand new. 90% lifetime for 75% the price, the math works out.
@@locomoco2012 That doesn't really fit the scope of the video. If you "get an allotment", then you are an employee of a business. This is more about for personal use. Even if you have a business yourself, you still can't compare it to a person who uses their car for personal use only.
This is over simplified. There are many other factors that can affect. From my experience, if you buy and hold the car for many years, new is better. If you change cars a lot then go for used. Also consider why you change cars, maybe because it was old in the first place?.. A car is not a house, good brands makes good cars and has good warranty. Usually no repairs if you take care of your new car for at least few years. Changing a car is a costly process, in money and time. If new car keeps you from 2 changes compered to old, it might be worth the premium. When your old car breaks, and you are stuck in the middle of the road you will think otherwise. Also dealing with repairs and garages is hell - especially when you never really know the car history. Usually time wasted is not counted in these comperisons, and time is actually the most valuable thing we have, more than money.
These are the exact reasons I decided not only to change the current car, but to go for a brand new Toyota. A couple of times the 10 year almost perfect Citroen got engine issues during or just before an important travel. A single missed trip costs more than any repair in money, but more importantly - business reputation.
This is my situation. I drive cars till they die. My 99 toyota is running but, on its way out and getting expensive to keep in the road. Want to get a new car that I can hopefully drive for 10 years and I'll give it to my son and get a new one. Looking at Toyota or Honda :)
I always buy new Toyotas (usually a leftover), and buy during slow times at the end of the month. I will admit though that used cars are almost a better deal financially. The best deals are 5 year old cars with high highway miles. Even as repairs go up, it is more than made up buy lower personal property tax and lower insurance premiums. Once a car goes below 5k in value there is no reason to keep full coverage.
I will disagree. I own a 08 Accord, 4cyl, in excellent condition. The difference between state minimum coverage and a 500k combined single limit, in my case, is $10 per month. My car is worth $3500. I rather pay $10 extra to stay away from lawsuits if I get in a big car accident.
@@villafontananorte Seems like B was talking more along the lines of not needing to keep collision and comprehensive on a car that doesn't have a lot of value. What you're describing is the liability requirements that cover the other person should you cause an accident.
Marko, I've been debating leasing VS buying a used car and your videos are helping me think things through. I appreciate your honest non-biased tips along with your calm and genuine personality. Thank you and keep up the great work!
Your video confirmed what is my take on cars. I normally buy 3 years old Japanese cars with low mileage, possibly a former lease. Nowadays is different; there are used (1-2 years) cars that cost almost like new ones. I am in the market to replace my 2005 Toyota Tundra (bought in 2008 with 15,000 miles and paid $16,600). The truck still goes strong and for its age, the mileage is low (about 140,000 miles), but I wanted something fresher; I got private offers for $11,500, but I cannot find anything within my parameters for a reasonable price. I probably need to wait a few months until the market gets less insane. Thank you for the video!
*GREAT VIDEO MARKO!* We ONLY buy used. We drive a 2004 Mustang and and 2001 Sienna minivan and we own free and clear! Car payments SUCK your investing money right out of your budget! #NewToMECar Great video! 👍🏻😎
It's not really a waste of money cause everything is new on the car including pure new parts and zero miles and it'll last year's , alot more more years than previous generation cars , no point I buying used anymore cause it's just gonna give you problems especially if you buy from unregulated places like people that don't have a business and just selling cars to get rid of them or Craigslist always better to buy from a dealership or a business
Everyone has different reasons. If iam buying new over a 2004 car,i want something safer and . If I have the money to buy new so be it. We only live once.
I buy a new car every time. Hassle-free and care-free. Also I tend to keep them for years so that’s a good thing knowing the full history of the car. I can never have a peace of mind in a used car.
Convince and preference is a big value for me. I love owning cars only when they are under warranty and personally knowing a car's history. I take good care of my vehicles so hey used car buyers, you are welcome : )
When I do my research in S.A I feel like the price difference is the same whether I buy a car brand new or at 2/3 years old... I can't see exactly where I'm saving...
I brought a used in 2013 for 6500 (cash)never had a issue besides one time battery change and one time tires well besides oil change. It has been great for me it’s 2005 Toyota Corolla. I’m the second owner. I have been very fortunate and now I’m looking into buying a SUV.
When you buy a new car, you are paying for reliability, because nothing should go wrong. If something goes wrong, it's under the manifacture warranty, plus you get roadside assistance. You don't buy a used car expecting nothing to go wrong. You buy a used car expecting things to go wrong. That's the exact opposite of buying a brand new car.
bmo shareholder apple shareholder not to mention finance rates are much lower on new cars than used and in some circumstances u can get 0% like I did on a Toyota for 5 years
Thanks. Yeah, this is a tough one. All my cars have been used but the last one was almost new because it was a year old with about 12-17k on it. I just recently broke the 100k mike mark but it runs great and I’ve already paid it off. I do one to buy a new car for once just to know I’m not buying someone else’s throw away. Might or might not happen soon and I’m the type to drive until the car dies so I’m not worried about depreciation. Anyways, what I will say that if I buy used again, it will definitely be low mileage like last time so I can get the best bang for my buck in terms of years and not needing to continuously go to the shop to fix something. Problem is, buying a year old car with low miles isn’t too much cheaper than buying it new.
I checked a lot of your videos. I think all of them? In one video, I really liked when you mentioned about Dave Ramsey strategies. It's hard to listen sometimes, because I personally like using my money how I want and don't like to wait, but he does make some good points. I want to say thank you for this content. I'm learning a lot from you and realizing my own faults in my own finances that I need to fix. Thanks for opening my eyes. P.S. I emailed you about RUclips class or something.
I buy used and the ones I look for are already fairly old. But I’m mechanically inclined, I just replaced the exhaust manifold on my 2000 Honda Civic, the part was $70 and took me about 2 hours to complete. I can do oil changes in 15 minutes. The only time I take my car to the shop is for new tires, alignments, or a recall.
I agree with this video but as a foreigner who came to the US, I was wearing donated clothing and picking up cans and dumpsters diving as a kid. My mom's first car Datsun B210, i think, was 15 years old car. Ever since then, we only purchase new car Honda or Toyota and we alway paid them off after 2 years. This goes for everything that we buy. I wish I could be frugal but the value of enjoying life at current time is valuable to me. Thanks for sharing your knowledge as I do agree with everything you say and I wish school teaches this in school. Retired in June 16, 2019 without AA or BB but I am Google and RUclips certified.😀
I guess it depends on where you live, if people in your country have high average income, then lots of them are buying new cars and getting a used one is a good deal. I've never seen a car go down 40% of its price even after 3 years and ~30k miles on it. it was less than 30% and thats after 3 years
You can always negotiate more for a new car vs used at dealers. I got 8k off MSRP on a new vehicle. A year later=totaled and even w depreciation I got more from the insurance....however, just sharing a thought..I like the video btw.
It's all about the 'CAR'. Buy a used car that is three years old can be a good deal. But, when that car , depending on the model and make, starts falling apart, will cost you a fortune. BMW are nice, but as they age, the cost of parts and repairs are much higher than the actual value as it gets older. Mercedes, Audi, VW cost lots of money for up keep and repairs as they get older. It is much harder to find a 'USED' car that is older and keep well, low miles and maintence performed on regular basis. It's all personal, if you got the money, nothing wrong with buying new.
I bought a one year old Audi A4 (with 35 miles on the odometer) and that car hardly broke down because I kept up with all the scheduled maintenance, even past the warranty period. I was the first and only owner till I retired it to the junkyard with exactly 467K miles on the odometer. Speaking from experience, if you take care of the car as instructed by the manufacturer, there's no reason why it shouldn't give you many years/miles of worry free driving. Most people skimp on service once the warranty expires and drive till the car breaks down, incurring expensive repairs.
I typically keep my cars for AT LEAST 10 years. So five years of payments, five years of no payments. Always buy if you are going to keep it for awhile. If you get just the right car, you can keep them for 15-20 years. This is the maximum way to save.
Within the four years I’ve seen used car prices have risen. Especially trucks and suvs. I buy used because I hate committing to making payments for three, four or five years. Good video👍🏼
I have always bought used and paid full in cash. The sweet spot for me is 5-7 year old mercedes benz with great service records. I may have gotten lucky, but I never replaced at major components on any vehicle I've owned.
Two years ago I got a preowned Audi A3 for 40% cheaper, I’m about to extend the maintenance for $1700 for five years. It’s literally a deal 💁🏾♀️ at least in South Africa 🇿🇦...
I took your advice and bought a newer used car from a dealer and used your sales tactics against them on line items. The car was already $500 under normal used price. I also showed them the same looking vehicle from Carvana and lowered the price even further. I saved $2,300. Thanks.
Excellent video as always. As for my thoughts: As someone who worked in the industry for a major Japanese Luxury Auto company I'll say unless you're flat out buying a used car with cash, you're better off buying new. Here in Ohio almost 80% of used cars found on lots are sourced from auctions. The used market post 2018 (early 19) is getting hit with a massive amount of flooded vehicles from the hurricane of 2018. Theres no telling what you'll get in a used in these times and that will worsen over time. I'm personally not a fan of new cars because they contain to many parts, parts in which the federal government mandates (which in turn violates federal law because the company sold you equipment which failed and thus had to recall. Lol Airbags!) in order to keep the cost high. Most modern day cars would be at least 10k cheaper if you weren't paying for stuff you didn't need.
I love this guy, I watch alot of his video's and the way he presents his information is very well thought out. But I couldn't help think for a second the wrench was going to be something else! Keep up the good work bro, much love to you!
Literally these videos have saved my life when researching a car. I spent hours just comparing values and now I feel so confident in buying cars and helping others looking into it a newer car along with recommending these videos. This is knowledge everyone needs to go though so they don't get messed up
Please I need your help. I need a car but I don't like to go every time to garage for repair. I have just get my driving licence what do you recommend me a new or a used car. Thank you
Referring to your comment. I know plenty of rich people who buy expensive cars, some cost more than a house. Why? Because they make millions per year... If you want to get richer than your current financial state, or save more money. Then, yes, buy a quality used 3-4 year old vehicle and for a fair price. But you're not going to become a millionaire because you bought a brand new car every 8 years of so. Anyway you look at it, 99%+ of vehicles are purchased to be used, driven for commute to work, school, the grocery store, etc. All get wear and tear, require a fuel source, insurance coverage, plus other expenses. Even if you bought a vehicle and just parked it in your garage. It's going to depreciate. New models come out every year. It's that .01% of vehicles that will go up in value over time. A current classic or some exotic car. For example, a 1969 Mustang Fastback. Either way, buy what you can afford and enjoy yourself. You only live once.
@@mmarmrcz6770 you can buy old enough cars that won't depreciate anymore. i drive a 1997 4runner sr5 4x4. i got it for 5,500 with 165k miles on it. it now has 215k miles on it and i can literally sell it exactly what i purchased it for. granted i'm out the repairs i've done, but the car is done depreciating.
I have bought 3 new cars, drive them for 7 or 8 years. After a year, they are used. I think I’ll start buying 2-3 year old used cars going forward. Thanks for educating me.
In 2016 I bought a 2007 civic for $3500, been driving it for 3 years and 45k miles and could resell it now for $2500.... that’s how it’s done friends. They can have their $40k shiny money pits!
I like to buy used BMW's, Mercedes. Their value depreciates very much since most people don't want the risk of high repair costs. I can fix most things so I'm not afraid to buy such cars. I had over 40 cars so far. They all need to be repaired at some point. Worst vehicle was brand new Chevy Trailblazer by far. 3 recalls and started rusting after 3 years so I got rid of it. I prefer high end German cars because they use quality materials and they don't rust as fast. They age very well compared to anything else. I don't care for Japanese cars. To me they are very boring to look at and to drive. They might be more reliable but to me driving a car has to be satisfying.
In 2015 I bought a 2001 Volkswagen Lupo for €1200. 5 years later she is still going strong and is worth €750. Amazing value, low maintenance cost and very low insurance. Everything together including fuel is €180 per month.
This is some really good info. I bought a new 2013 Kia Optima thinking exactly what you said and I was wrong. No more new cars for me. Thanks for the info.
By the time you spend on buying new vehicle because they become a few years old, like must people do, you can buy a slightly used returned lease car for less that will last many years with proper maintenance. You can own a car payment free for many years while saving to buy your next vehicle for CASH that will save you lots in interest over the years. Vehicles are lasting longer vs the older cars of yester years. With a paid for car and a good emergency fund you’ll be able the afford maintenance and repairs.
I bought used Mercedez GL 4 yrs old from dealership but had it meticulously checked by other company. I bought extended warranty also for peace of mind. Dealership fixed the found problem before paying it, and never had any problem after it is still looks like brand new and my wife loving it and we used it for long drive.
I had a feeling this was how you felt about buying old versus new and I like it. I bought my new car back in 2016 and I was so excited until I saw how much depreciation was going to hit me a few years from then. Thanks again for the video.
So maintain and drive it for 20 years. Depreciation this, depreciation that...are you planning to sell it after a year or two? If not, then enjoy your car and quit worrying about how much you'll lose if you sell it today. Or take you chances that the used car you are buying will have been properly maintained and breakdown free for that 5 year warranty or 50,000 miles.
Used is the way to go. But don't let that stop anyone from buying new. There is an emotional play when buying a car. And if you've achieved a level of success, no reason not to treat yourself to a new car. With that said, if you buy new, hold on to the car for 6 - 7 years (unless again, you can afford a new car every few years). Just under 7 years is the sweet spot (break even point) for buying a new car. If you're buying a 3 year old used car, the sweet spot is at 8.5 years (for the life of the car).
Throughout my whole life I always purchased beautiful used cars, and kept them in mint condition for anywhere from 10 to 15 years... And, I was never sorry. I invested the money that I saved. (Also, like you suggest we do, I always put the maximum into my Roth IRA). I retired at age 55 a multi-millionaire and I finally bought myself a new Jeep Grand Cherokee last year in 2018. I paid cash (The Jeep dealership was NOT happy about that!! They almost wanted to renege on the price they gave me, and tried to push me to take out a partial loan. Anyway, it took me almost a whole year to get used to driving a new car (that I thought I really didn't deserve or need)! Lol. Thanks for all your video, MARCO!! If people listen to your advice, they will all be millionaires, and retire early. Luckily I have a brother, who is very financially Savvy and has guided, just as YOU guide all of us!!
@@reptilesgamers00 Because I had a pre-owned Jeep Grand Cherokee for 12 years prior and I liked it. I also have my parents 9 passenger , 1976 Chevrolet Caprice Estate woodie Wagon in mint condition. I learned to drive on that car when it was one-year-old. Drove it to College everyday for 4 years and I like it best of all cars I've ever driven!!! It's not my daily driver, only comes out on nice days!! Has the 454 - 4 bbl, big block. (Maroon with red interior) Thanks
Khaled....Well it may not be that easy, but you can do it. LIsten to Marco and everyone in life and ask alot of questions, like you did me. Try to learn everything in life by looking at other people's mistakes A lot of it depends on your personality and interests... The only thing I can tell you is my story. I was always satisfied with very little. and saved my money. I never had what my friends had, but have SO much more now. My dad died when I was young. However, I was always a happy person and shrugged problems off, or kindly worked them out by dealing with the source, not the symptoms. My mother was special and phenomenal. I did all the things around the house that a Man or husband would do and became very responsible at an early age while all my friends were out getting drunk or smoking pot, etc.. After college I became an electrical contractor and started my own business. At around the age of 22 my mother gave me $20,000. to put down on a pre-construction condominium that I would rent out and let appreciate. When I finally could make payments to her, she said... "no that's okay you have been a great son, put it towards another house!". I wound up with 5 beautiful rental properties, in nice towns in New Jersey. I kept them in mint condition and cherished my tenants and problems, and gladly fixed anything they did wrong, or things that went wrong for 30 years until they were all paid off. Just the properties alone (all together) appreciated into the Millions. I put the properties before the electrical contracting business in relation to priority. The business also earned a nice living and helped me put the maximum into my Roth IRA and Blue Chip Investments/ funds. I was always a worker bee not a queen bee. I always kept a healthy mind and body, and never clouded it with alcohol or anything that would cause me to lose my peace, motivation and stamina. I also believe in God and thank Him every day for all my blessings. Every week I get the message of the week from the gospel and applied it to my life to make it better.I'm not religious but very spiritual. I was never a troublemaker and followed all the rules. I was always a leader, and followed my soul. This showed me how to live life properly and I did. I'm 59 now and people tell me I look 39. THIS is my story. However, where there's a will there's a way but it takes a lot of motivation, stamina and work. (if you like this). Learn from all your failures, do not avoid them. Give back to others and always be kind. You can get anything in life with proper actions, patients and kindness!!! Ask and you shall receive, Seek and you will find, Knock on the door and it will be opened to you!! Anything is possible if you believe!! Find out your interests. Ask yourself good questions like, How am I going to make this work??? and your mind will come up with good answers. You will have setbacks but don't worry or consume yourself with the past or negativity... and don't ever give up!! Each time you fall when you get up you will be stronger, and will have learned something new. If you fall, get up again.. It gets easy and you'll get good at this stuff and everything you choose to do!! There are so many ways to acquire wealth. You have to work with your personality and what you like (if you don't like Hands-On, do what you're good at!!) Good luck my friend!!!
Worse things can happen when someone buys a problematic model, that has a high maintenance cost and lots of recalls etc, I just know because I have gone through and I know many also did or going through. Basically you buy a car you always wanted, but turns out it has a problem all the time and since you financed it and now you want to get rid of it, but you still owe money on the car, while the value of the car is less what you owe. So you trade it in, and on top of what you still owed, now you got another car's price and you are "upside down" with your financing, because you owe a lot more than the car - even if it's a new one- is worth. The only way to break out of the cycle is that you just have to pay it off, even if the car falls apart and don't trade it, because you will never get the value back, instead the dealer gonna offer you like $1000 dollars, even if the car works fine. Just pay it off and if worse come to worst and the car breaks down for good, just get something cheap you can afford out of pocket and don't get anything until you are done with the financing payoff. Resist the temptation! keep the car until you owe nothing and even beyond, save up enough cash to buy a car out of pocket, lump sum!
Another option if you "must" have new, is to wait out the model year until there is only 5-10 left on the lot and the new year has already come in. I bought a 2013 Ford F150 new (went with the intention to buy used) for approx. $28k with a sticker of $44k. The 2013 used models, of which there were also only a few available, were selling for approx. $25-26k. Keep in mind, your color options, interior upgrades, etc. may be limited using this strategy, but this is an effective way to get a reasonable deal on a new car. The current value of my vehicle after approx. 6 years of ownership is $13k, so I'm still at almost 50% of the price I paid in "good" condition.
Also, love the videos Marko, I work in corporate finance in Memphis, TN and have a finance degree and CPA and still get a lot out of your videos. I appreciate you doing the legwork and research on some products out there (ie. Fundrise). I'm also originally from Ohio, go Browns! Keep it up!
I've done exactly this twice now. I left the dealer paying only about $2k or so more than a private party sale value both times. 2004 F150 for $12500 kept that for 10 years and sold for $6000 then recently a 2017 Focus (stick shift!) for $14800. The Focus is worth about $11500 today private party or about 25% less. Best of all worlds. Beating the depreciation chart, factory warranty, and no prior owner neglect to worry about! Baring no major accident it will become my son's first car when he turns 16.
I know this is going to be hard for some people to believe but cars have advanced significantly in the last 20-30 years. Three was a time when rudimentary skills in mechanics and a decent set of tools was all you needed to get the job done. With an ECU potentially costing thousands to replace, buying a used vehicle and then having to replace it negates any savings. Something as simple as jump starting a vehicle the old way can damage a computer/sensor causing intermittent problems that would be expensive to diagnose and repair again whittling away at any savings. Run the engine with a disconnected battery; damage a computer. Cause a short; damage a computer. Ahhh, and with all the rain people have gotten, flood the car and problems can start appearing a year or more that would be impossible to diagnose. And then you have turbos. Change the oil infrequently, shorten the life of the turbo. Don't allow it to relieve pressure prior to turning off, shorten the life of the turbo. I prefer to know the history.
I've always bought new since I could afford to do so...then I drive them for ever. The first new car I bought (89' Escort) is still in the family and running great, as are all the cars we have purchased in the 30 years. Believe me, I have bought my share of used cars. There are very few people, let alone dealers that I would now consider buying a used car from.
I have a friend who has a net worth of around $200 million. He has always bought used cars. Never new. Here’s the kicker… he owns 7 new car dealerships Nissan, Toyota etc and 5 used car lots that only sell used. That says alot
One advantage of buying a new car that no one mentions is that you can literally customize your own car. You can select your own colors, extras, accessories, seat covers etc... It's hard to find the exact same one used. But again, this depends on personal preference and whether your NEED a car to get to work (I guess you do in the USA but in Europe you can easily get away with not owning one) or you just WANT one and you really enjoy driving as hobby. But regardless, always pay cash, even if it's a new one.
Buy a used 90's Toyota off of Craigslist. NEVER buy new. I bought a 1996 Toyota Avalon with 200 horse power in 2001 and have over 200 thousand miles on it. That car is built like a TANK.
I’ve been buying 3 year old BWW’s and Audi’s for the last 15 years. Still have a year of the factory warranty left. Paying approximately 50% of new price. Haven’t had any maintenance issues but depreciation is still significant. Better than buying new but it is still worth considering
True statement. I paid 36k for my 2011 M3 in 2016, and now in 2019 it's worth 28k and I've only added about 20k miles lol. The depreciation curve on BMWs continues for many years albeit not as sharp as the initial 4 years.
In 2008 I bought a new Toyota Tacoma double cab, It was nice but it was a second car and I was not using all that much. I finished paying for the car in 4 years, and sold it back to a Toyota dealer for 2000 less then I bought it for.
You can save an enormous amount of money if you do the maintenance and repairs yourself and use after-market parts where possible. If you run straight to the dealer with any problems and order genuine parts it will cost you 10x more. Example: Nissan skyline coil pack replacement - 3rd party mechanic with genuine part quoted $900. I did it myself for $100 and 30 minutes of work.
Marko, I love your videos and enjoy watching you empower the public. I am a FA with a major Wall St Firm. Have you thought about how your curriculum can complement a wealth management strategy? Go Browns!
I am 55, house paid off, have land and 401K, dual income, empty nesters in tech and finance - We have NEVER bought a new car in our lives. That first 3-4 years I can't stand to give that money away for almost zero return in my investment. Rich people buy assets that increase in value. Cars are the opposite so the strategy should first and foremost be to mitigate the devaluation of the money you pay for that vehicle. Buy NICE QUALITY cars, well maintained. Here's the deal - TODAYS cars are build soooooo much better than 30 yrs ago - you can make a used car last much much longer and maint is much cheaper than it used to be.
Hey Marko, I'm shocked Yugo didn't make the whiteboard, mine depreciated out in six months! But it keeps me in shape walking when it breaks down, ownership benefits I guess!
I never buy new cars, I bought a fully loaded 2 years old in 2012 a 2010 Acura TL V6 that originally costed $45K, for $32K!! Almost no major maintenance issues. 110K Miles. Waiting for the 2021 model to be two years old in 2023 so I can buy it certified pre-owned for much less and still get my money worth from my current car after putting 140K miles on it and no car payments for 5 years ;)
*Thanks for watching everybody! What are your thoughts? Do you buy used or new cars?*
Don't forget to sign up for the newsletter in the description above! (There's a nice freebie that comes with it)
Used.
Used car every 25 years 😝
Used car. ✋ Down. I got a Dodge 2014 and it has more recalls than ground beef
Why do people still buy dodge's? How are they even in business still lol
Used!
C'mon. We all knew the answer to this question before we even clicked on the video.
Of course you buy the brand new Lambo on a 20k a year salary.
Will do when Bitcoin gets to the moon
😂😂
IKR, and I wish we could do like some people who can't afford rent or mortgage nowadays...can't I get into a financial situation way out of my league and then have the government pay for it once I can't?? :)
Its science
@@LuisSierra42 well, did you buy the lambo??
I will give my input based off being in the Transportation business most of my life. I sold new and used cars for half my career and then switched to Commercial vehicles, selling cars up to Medium Duty trucks. Also being a mechanic, that has me with with 50 years in this business. I agree mostly with your suggestions and I do NOT buy any vehicle new myself. I bought 4 new cars in my life time and they weren't worth the price. I am almost 70 now, so take my experience and age to heed! As far as a car, I look at a few things up front. The Year, the Mileage, the Condition, those are the parameters. I look to buy a car that is 2 to 3 years old for the most part but don't rule out a 4 year old one. The mileage needs to be in the range of 10K to 24K, nothing with more miles than that. The condition has to be close to "Almost New", allowing for some minors scratches but that's all. The mechanic aspect, I do those checks myself but others need to take the car to an Independent mechanic that they do business with, after all, they will be doing the work, unlike myself. My scenario is that I drive that car about 8K miles a year and I will trade that car back in for another used car. Once I hit about 50 to 70 K miles. So lets say I bought a used car with 15K miles, drove it to 50K, might go a bit longer if I liked the car but otherwise, I am on the hunt for another one. so about 4 to 5 years and I am getting another used car, trading this one in. Why? Because, I avoid all major potential maintenance cost and I only had to perform routine maintenance such as tires, brakes and fluid changes. Where do I find these cars? Can be any where but mostly the are Trade In's on a reputable dealers lot, hardly any from private owners. What car to buy? Hard to say, i do have a preference brand but more so, avoid a Mercedes Benz at all cost! Parts and labor are way to expensive on that car. I prefer U.S. made cars, parts are less and easily obtained. Hope this helps folks. Just my opinion.
Been doing the same. Brand new is just not worth it when I can get a last generation 2-3 years old car from an official dealership, I get warranty so I only have to worry about consumables and it only has 15.000-25.000km on them. And If I am talking about the price, I have been looking at 20-25% off the full price.
Atleast in Germany I save a good amount of money on taxes because newer cars have smaller enginea that are less harmful to the environment and also on insurance. Keep the car until it almost drops out of warranty, trade it in and get a newer one for a very good price.
Respect 🫡 ‼️
Greetings, I am currently seeking to make a purchase of a new luxury sedan automobile. I would kindly request your guidance in determining the comparative merits of select vehicles, namely those of the Cadillac, BMW, Audi, and potentially the Mercedes-Benz. Specifically, I am interested in evaluating factors such as their liability, maintenance cost, and comfort amenities, among others.
@@SM4YL-LA Sorry, I have no input on new cars to offer.
Wanna get a glc coupe ur literally talking to me lol I really shouldn't get the benz
Rich people can afford a new BMW
But super rich people can afford a used one
Well said
My brother owns a mechanis shop, the luxury car owners are the ones who complain the most over maintenance/repair costs... most of them can barely afford the car, let alone the repairs
Just bought a 2003 BMW Z4 that had been cared for like a baby. Seller bought another Z4 and didn’t need the first one anymore and let me steal it for $4k cash. It’s got another 100k miles left in it and I look like I drive a car that cost 30k. Just gotta be smart and your cars don’t have to be this big scary issue every time you need a new one.
I always remember this joke from a Batman cartoon. Robin saw Batman with a pink Batmobile and asked why it isn't black.
Batman - "Painting it black cost an extra $5,000."
Robin - "Why do you care? Aren't you rich?"
Batman - "Yes, but you don't become rich by SPENDING money..."
@@YPEFFLE lexus... best of both worlds.
I'll always let someone else take that initial depreciation on a new car, I'll pick one up a few years old. When I was a teenager I was too broke to pay a mechanic and ended up learning how to do the jobs on my own, which now 15+ years later is how I've ended up as an aircraft mechanic.
New or used aircraft? 🤣
I paint aircrafts after the mechanics do what they need to do. Mechanics are clumsy. Everything is scratched and dented when they bring it to me to paint.
@@jujubean9063 hey man, I'm 22 years old and trying to see what type of job I should look for.
Do you recommend me becoming an aircraft "painter"?
Fair advice if you know how the car has been treated. In my experience, where I live, people don't give a shit about cars. 1 year old cars with low mileage scratched to fuck. At least if I buy a new car I know how well it has been taken care of. And, to be honest. All the scratches on it have been kindly donated by other c*#ts.
I have a 25 year old 1994 LS 400 Lexus. Original engine. Rarely have any maintenance issues with the car. She is made out Valyrian steel from old Valeria.
Made in Japan
Japanese cars are reliable. And boring lol.
how many miles?
Well, new cars are more strong. I would recommend a used car, but nothing more than 10 years old. Modern cars more safe because of the crash test norms.
@@nickynorka Only 187,000 miles. That's what keeps her going. I don't drive that much.
I bought my truck 12 years ago new. I think if you are a person that holds on to it for a long time then buying new is not a big deal. But if you trade out every 5 years or less than go used
roadrunner76b this is a bit of a fallacy. One needs to compare options against each other, not in a vacuum to determine opportunity cost, not just “cost”. For example, if instead you had bought your truck 1 year old, you would have extracted essentially the same value from it at 75-85% of the cost.
Then, you can take that couple thousand dollars and invest it. Depending on what you invested in, that “not a big deal” becomes a 10k opportunity cost.
LifeCoach44 can't argue too much against that, but that's true for every dollar you spend.
That being said, I just purchased a new truck, it's a year old. It's a $36k truck I got for $21k.
Most people are like me and our vehicles are our livelihood. Taking a chance on what essentially turns out to be a money pit and time out of work, is worse than not investing.
Honestly, the depreciation problem is avoided if you just know when to buy. Buy in Nov-Dec of the year. Dealers will often voluntarily knock off the value that the car would depreciate from sticker just to get it off their lot. Case and point: new Accord EX-Ls are selling in my area for as much as $4k less than sticker simply because it is the end of the year and dealers want them gone.
I buy a used car and hang onto it for 10 years. For the last 3 cars its been a German luxury with a competent mechanic. Thanks to Scotty Kilmer and the dealerships, the cost of acquisition is low. I could have bought an independent warranty which could cover major engine components. I stay on top of maintenance and replace certain parts if it is more cost effective to do so while servicing other components. Many OEM German parts can be bought minus the logo of the "manufacturer. I can buy an oil filter from the dealer for $18 or buy it from Mahle for $6. Same with air filters, brakes, vehicle headlights, vehicle tail lights, HID bulbs ($180 for one from the dealer or both for $48 from a manufacturer), clutches, windows and the list goes on.
Ya
Imagine this being true right now. A 2-3 year old car with 20-30k miles is 10-15% less than msrp for a brand new car.
I don’t know how to describe it, but a car that you own outright just drives different. It feels different. It feels good in a way a financed car can’t.
I always bought used cars and kept my monthly expenses under 300$/month on average for two vehicles in the last 12 years. I really think it is one of the reasons why I was able to invest massively in real estate.
Yeah i do the same it is manageable when u keep the finance around $300/month or less.
Do you have your private parking spot? Or you park on the street?
@@karenzhang1020 I have a house and work remotely from home.
What did you do for getting in real estate? Save up and put down 20% down payments? How much salary, what net worth now? Cheers! :)
@@RogerPack I always put down my 20% down, then refinance once I have enough to refinance, I use the refinance to buy another property. Once the ball gets rolling, it goes a lot quicker, learning to save and finding out what is important in your life, give you the ability to focus your energy(money) towards your goals. I never did big salaries, but I outsourced a lot, like I rented four rooms in my house, drove second hand cars and never went to the restaurant. Amazing how much money you can save when you 100% committed.
DUUUUUUUUUDEE!!!!!!!!!! Every time I click on one of your videos, you have like 20,000 more subscribers than you did when I was last watching your videos haha. This is great man. You deserve the views, attention and side money you're making from making these vids you're interested/passionate/informed in. I don't come to your videos from the "suggested" or creepy A.I. algorithms of what "I" want to watch. I intentionally type your name in the search bar every few days because I want to know what you're thinking/interested in/making short, informative videos about.
Just wanted to say thank you and its great to learn from you. Keep it up!
I own a 1997 4Runner with 242,000 miles which I bought 10 years ago. No issues with it, just regular maintenance. I also bought a 2006 Rav4 about five years ago and is now approaching 200k. The only major problems have been the alternator and a/c compressor, other than that, no issues just regular maintenance.
Buy used and low, drive it til the wheels fall off, rinse and repeat:)
Back in 2010 I bought a 2000 BMW 528! for 10k. The car had 60k miles. I paid for it cash I said I would drive it until the wheels fell off. Lucky this car is still running never had a major maintenance problems. Right now it has 153k miles and it still drives good. A couple of things are worn out but I began to repair/replace some of those parts. Bmws have a bad reputation for maintenance but I got lucky with mine.
I buy slightly used. 3 years old or so with 30-40k miles on it. That's typically where I try to be. Save money on insurance, depreciation was eaten up by previous owner, etc.
Same here. And with only 40k miles on it, it’s got so much life left on it. Cars these days can last 250,000 miles if taken care of. I only drive less than 12,000 miles a year. If I buy used, I saved ten thousand dollars for a car I could easily keep 10 years
Yes sir. Same.
i agree, but do you buy from private seller or dealership?
Exactly, that's why I bought a 4-year old Avalon. You still got some luxury too but at a much better price.
This is actually a very beneficial video. There are a lot of people out there who do not think this way. I started buying all of my cars cash about 15 years ago. And this has saved me thousands of dollars. I only buy cars that are 10 to 15 years old. I do the majority of the maintenance myself.I hope that there are some youngsters out there who grasp this idea because most people buy a car as a item to show their status and make people think that they have more money than they actually do. Great video.
Marko, you should make a 2021 version of this. Used car prices are jacked up right now
This whole system has been messed up by the outrageous price hikes caused by covid and supply chain issues. Now, slightly-used cars cost even more than brand new cars. Until the market normalizes a little bit, I'd rather buy a brand new car, than a slightly-used car, but if I was on a really tight budget, I'd get a 8+ years old toyota or honda, as you can save like $10k over a new car and they'd still hav very low maintenance
Fr lmao smh,was looking at the muscle cars/sports and they were like $20k used with like 80k miles..While a brand new is just about $30k💀
I like how I got an advertisement to buy a new car before watching this.... lol
I have 2010 Lexus ES350 with 89,000 miles. I paid $7,000 cash in 2019. The reason my house is almost paid for and I'm 36
Great!!
You are doing awesome. Keep going.
That is excellent man!
jealous
Yeah, this seems like one of those things that could go either way, depending on variables specific to YOUR specific circumstances. For example, my insurance company told me that (generally speaking) insurance is less on a brand new vehicle than even a 2 year old vehicle.
Another example is, that I tend to baby my vehicles, and that's why I tend to keep vehicles for 12 to 15 years, and have never had any engine, transmission, or other major component issues. In the winter, I get the undercarriage washed once to twice a week. I don't race the car from stoplight to stoplight, like I see so many driver's do. If the vehicle calls for premium fuel and/or synthetic oil, did the previous owner follow that? Is there a way for a mechanic to check that on a 1 or 2 or 3 year-old vehicle? I don't know. I follow the maintenance schedule to the letter. You don't know how a used vehicle was driven or maintained (or not, unless of course you're buying from someone you know personally). I have had two mechanics tell me that they see a lot of expensive luxury vehicles in their shops, because the owners either can't afford (and/or choose not to) follow the maintenance schedules. No way for me to prove it, however, I suspect that A LOT of the problems people have with CVT transmissions are because the owners' don't get that fluid changed per the maintenance schedules. Nissan dealer charges about $350 to service my CVT. It's 13 years old (I am the original owner) with 155,000 miles and my car runs like a champ.
Final example, if you live in a climate where snow/ice is common. With a used (late model) vehicle, you have no way of knowing whether the previous owner ever took care of the undercarriage, or to what degree. So, you buy a 3 year-old vehicle where everything APPEARS great, your mechanic verifies that the car is mechanically sound, HOWEVER, the poorly maintained undercarriage is a ticking time bomb of corrosion that you have no way of knowing about until it's too late. And, while I am not a "car guy", even a 4 or 5 year old vehicle that has rust bubbles on it, looks like shit, and I see them more often than I should.
I am a working man, so $40 or $50k for a vehicle is A LOT of money to me, however, the way I see it, if I am buying a super-reliable make/model brand new (or as a model year leftover), maintaining it, and keeping it for 12+ years, my cost per use is very low.
A lot to consider.
Wow. You ARE a car guy. This is what I needed to see/hear this am as I’m concerned my Honda minivan is on its last legs. Thank you!
We just bought a 1 year old dealer service courtesy car from a dealer. It was 41% off MSRP. We are happy.
Think I'll do that next time.
@@samuelfolk847 Yup, pretty smart letting the dealer eat the depreciation.
@@charleetho yes while you own an undesirable piece of shit for the rest of the time.
Wow , which brand ?
@@area51reviews Buick Tourx. We like wagons. The room of a SUV and the handling of a car. AND I like driving something different then the sea of compact SUVs.
The last new car we bought was a 95 Saturn SW2, which lasted us almost 20y before kiddo forgot to check the oil and it threw a rod. The last couple of cars have been $1-6K, ranging from a '99 Mercury Mystique w/88K to a '06 BMW 330i/E90 and they've been wonderful, though we do much of our own maintenance. The $500 PT Cruiser, however was a money/time sink. We care more that it runs reliably than looks good; vanity is expensive and no car folks eat in looks good for long.
The smartest play is to ensure the maintenance is done, especially if you learn how to do portions of it yourself. RUclips has revolutionized this, teaching you a lot even if you have someone else do the work. It can also teach you a lot about how NOT to drive it. Take care of nice things.
My next car will be a used Japanese rice cooker.
LOL
Funny
This is a timely video because the wife and I just bought a new car, a Toyota Corolla, and we keep our cars a long time. We paid cash for it and the out the door cost, after all taxes and fees, was less than the sticker price. I'm not saying that is the best decision but it's what the wife and I wanted and agreed on, and we can easily afford it. We have never had a car loan, or any kind of loan, our entire lives, and we're not planning on it either. The funny thing is how the sales people always assume you're going to finance the car and try to run your credit. When he did that with us he looked confused, because our credit reports are frozen and he probably wasn't getting any information. Then we told him we're paying cash and he seemed relieved, which is funny because they want people to finance.
The worst thing that people do is buy way more car than they can afford and put it on a loan. Even weirder is people who buy used cars on loans. The whole point of buying used is to save money, so buy a cheaper car rather than borrowing money to buy a used car.
THIS IS GENIUS!!! See everything happens for the reason, the universe brings you to where you need to be for your answers!!
I’m looking to purchase a new car soon in cash, like everyone I want the best deal. I am reviewing all of his videos now on the best tactics. Yes, they want us to finance as that’s how they make their money. My credit is not good due to student loans🤦🏽♀️.
I know I probably won’t get approved for a loan I want. So THANK YOU! I will freeze my credit and then say, ok I’ll just do cash.
For reference I am going to be coming into quite a bit of money where I will be paying off my student loans (my only debt) and I need a new car. I’m trying to financially educate myself as much as I can on how to manage all of this.
This is a great tactic! Thank you!
They ran your credit without you signing papers to agree to it?
I buy cars with money I would otherwise put into my portfolio so I prefer to finance. I just choose the down payment and finance length that fits my monthly budget. If I put too much on the down payment it's kind of a waste because otherwise it would likely grow much more in the market than I am losing in interest fees
Better to get a loan to buy a used car with little to no depreciation left so your equity loss is minimal once the loan is paid off than a loan for a new car where you're in neg equity immediately.
Example 10k 3 year loan for a 5 year old 10k Audi. In 3 years that Audi might be 8k or even 9k so you can buy another 10k car cash debt free.
A brand new 50k Audi would be a huge loan with a depreciation in 3 years to about 25k.
I have always bought new since I could afford to do so. I know exactly how they have been driven and maintained. My first new car was 1989 Ford Escort...my grand kid is driving that. Then I bought a 96' Jeep...my kid has that one. I have an 04' Silverado in the back that I use to go to work and chores. My wife is still driving our 07' Accord. My fun vehicle is a 17' Alfa Giulia, and I really want a 2020 Vette. When I didn't have the money or want to go into debt, I bought used. There was always something wrong that showed up after a while and it was never convenient nor cheep to fix. My point is that if you are going to drive a car for 10-20 years, get new. If you want cheep transportation and don't care how it was maintained or driven, buy used.
Uncle dave Ramsey would disagree~
@@cancel.lgbtq.6892 People that don't know how to manage their finances call your uncle Dave. I never had to make that call. Good luck.
Unless you buy a Honda or Toyota used and maintain it will easily last 20 years
When you're buying mostly Fords, Chevy's and Jeeps, yeah you might get issues if you buy used that hasn't been maintained. More reliable brands like Toyota and Honda with 18/20 years left on their lives are a good deal considering the value is only say 75% of brand new. 90% lifetime for 75% the price, the math works out.
@@scottrainville8303 Esp ones built in Japan
There's nothing like buying a brand new car 🚗
Including the cost 😂
haha well said
When you drive a brand new right off the lot, it feels like you are on a one float parade.
Depend if you work requires you to be on the road and you get an allotment you go and get a lease.
@@locomoco2012 That doesn't really fit the scope of the video. If you "get an allotment", then you are an employee of a business. This is more about for personal use. Even if you have a business yourself, you still can't compare it to a person who uses their car for personal use only.
@@Todd.T yes, true!
This is over simplified. There are many other factors that can affect. From my experience, if you buy and hold the car for many years, new is better. If you change cars a lot then go for used. Also consider why you change cars, maybe because it was old in the first place?..
A car is not a house, good brands makes good cars and has good warranty. Usually no repairs if you take care of your new car for at least few years.
Changing a car is a costly process, in money and time. If new car keeps you from 2 changes compered to old, it might be worth the premium.
When your old car breaks, and you are stuck in the middle of the road you will think otherwise. Also dealing with repairs and garages is hell - especially when you never really know the car history. Usually time wasted is not counted in these comperisons, and time is actually the most valuable thing we have, more than money.
These are the exact reasons I decided not only to change the current car, but to go for a brand new Toyota. A couple of times the 10 year almost perfect Citroen got engine issues during or just before an important travel. A single missed trip costs more than any repair in money, but more importantly - business reputation.
This is my situation. I drive cars till they die. My 99 toyota is running but, on its way out and getting expensive to keep in the road. Want to get a new car that I can hopefully drive for 10 years and I'll give it to my son and get a new one. Looking at Toyota or Honda :)
I always buy new Toyotas (usually a leftover), and buy during slow times at the end of the month. I will admit though that used cars are almost a better deal financially. The best deals are 5 year old cars with high highway miles. Even as repairs go up, it is more than made up buy lower personal property tax and lower insurance premiums. Once a car goes below 5k in value there is no reason to keep full coverage.
I will disagree. I own a 08 Accord, 4cyl, in excellent condition. The difference between state minimum coverage and a 500k combined single limit, in my case, is $10 per month. My car is worth $3500. I rather pay $10 extra to stay away from lawsuits if I get in a big car accident.
@@villafontananorte Seems like B was talking more along the lines of not needing to keep collision and comprehensive on a car that doesn't have a lot of value. What you're describing is the liability requirements that cover the other person should you cause an accident.
Marko, I've been debating leasing VS buying a used car and your videos are helping me think things through. I appreciate your honest non-biased tips along with your calm and genuine personality. Thank you and keep up the great work!
Your video confirmed what is my take on cars. I normally buy 3 years old Japanese cars with low mileage, possibly a former lease. Nowadays is different; there are used (1-2 years) cars that cost almost like new ones. I am in the market to replace my 2005 Toyota Tundra (bought in 2008 with 15,000 miles and paid $16,600). The truck still goes strong and for its age, the mileage is low (about 140,000 miles), but I wanted something fresher; I got private offers for $11,500, but I cannot find anything within my parameters for a reasonable price. I probably need to wait a few months until the market gets less insane. Thank you for the video!
*GREAT VIDEO MARKO!* We ONLY buy used. We drive a 2004 Mustang and and 2001 Sienna minivan and we own free and clear! Car payments SUCK your investing money right out of your budget! #NewToMECar Great video! 👍🏻😎
I'd love to see a revised video in today's used car market. I don't know how much of this applies in 2023.
Buying new is a waste of money. I usually let someone else pay for the depreciation.
same!
100% agree.
Olu Toyin yes buying a new car for cash is dumb.
Getting a good deal on leasing can be very interesting especially when you can deduct it from taxes
It's not really a waste of money cause everything is new on the car including pure new parts and zero miles and it'll last year's , alot more more years than previous generation cars , no point I buying used anymore cause it's just gonna give you problems especially if you buy from unregulated places like people that don't have a business and just selling cars to get rid of them or Craigslist always better to buy from a dealership or a business
Everyone has different reasons. If iam buying new over a 2004 car,i want something safer and . If I have the money to buy new so be it. We only live once.
I buy a new car every time. Hassle-free and care-free. Also I tend to keep them for years so that’s a good thing knowing the full history of the car. I can never have a peace of mind in a used car.
*A used car is a new car for you* 😜😜
RealLife Money - Weekly Financial Videos That’s true
🤣🤣best comment
Ok Boch
🤣🤣🤣🤣
😆 🤣
Convince and preference is a big value for me. I love owning cars only when they are under warranty and personally knowing a car's history. I take good care of my vehicles so hey used car buyers, you are welcome : )
haha
When I do my research in S.A I feel like the price difference is the same whether I buy a car brand new or at 2/3 years old... I can't see exactly where I'm saving...
I brought a used in 2013 for 6500 (cash)never had a issue besides one time battery change and one time tires well besides oil change. It has been great for me it’s 2005 Toyota Corolla. I’m the second owner. I have been very fortunate and now I’m looking into buying a SUV.
A used car or a few bullish stocks which is better for a better birthday gift?
Are stocks really that profitable? Heard so much about the volatile market. I might be wrong anyway.
Living off Nasda stocks currently. It's fun!🤣🤣🤣🤣
This video needs to be updated for post pandemic. Used cars are the same price as new cars right now
When you buy a new car, you are paying for reliability, because nothing should go wrong. If something goes wrong, it's under the manifacture warranty, plus you get roadside assistance. You don't buy a used car expecting nothing to go wrong. You buy a used car expecting things to go wrong. That's the exact opposite of buying a brand new car.
bmo shareholder apple shareholder not to mention finance rates are much lower on new cars than used and in some circumstances u can get 0% like I did on a Toyota for 5 years
Thanks. Yeah, this is a tough one. All my cars have been used but the last one was almost new because it was a year old with about 12-17k on it. I just recently broke the 100k mike mark but it runs great and I’ve already paid it off. I do one to buy a new car for once just to know I’m not buying someone else’s throw away. Might or might not happen soon and I’m the type to drive until the car dies so I’m not worried about depreciation. Anyways, what I will say that if I buy used again, it will definitely be low mileage like last time so I can get the best bang for my buck in terms of years and not needing to continuously go to the shop to fix something. Problem is, buying a year old car with low miles isn’t too much cheaper than buying it new.
But used honestly. Not worth paying for a new vehicle. The feeling goes away real fast when you can't save up for a house
agreed martin
I checked a lot of your videos. I think all of them? In one video, I really liked when you mentioned about Dave Ramsey strategies. It's hard to listen sometimes, because I personally like using my money how I want and don't like to wait, but he does make some good points.
I want to say thank you for this content. I'm learning a lot from you and realizing my own faults in my own finances that I need to fix. Thanks for opening my eyes.
P.S. I emailed you about RUclips class or something.
Sorry, I don't agree with you. I get a brand new Mercedes-Benz every three years. It feels so good every time.
Why would you buy new and be unable to save for a house? These two only correlate to each other if you are over leveraging yourself.
@@bmoshareholderappleshareho855 Nice you dump it before maintenance costs arise
I buy used and the ones I look for are already fairly old. But I’m mechanically inclined, I just replaced the exhaust manifold on my 2000 Honda Civic, the part was $70 and took me about 2 hours to complete. I can do oil changes in 15 minutes. The only time I take my car to the shop is for new tires, alignments, or a recall.
Agreed. I do all my oil and most maintenance if possible. It's fun and gives you pride in ownership.
I bought a 2007 Ford Escape in 2010. I still drive it. It's in excellent condition. I bought it with 50,000 miles on it. Now it has 150,000 miles.
i got an 85 c10 I love it,no payments I cruise it,and I have a 2001 civic that cost me 1,500 its great on gas and I sleep very well at night
I agree with this video but as a foreigner who came to the US, I was wearing donated clothing and picking up cans and dumpsters diving as a kid. My mom's first car Datsun B210, i think, was 15 years old car. Ever since then, we only purchase new car Honda or Toyota and we alway paid them off after 2 years. This goes for everything that we buy. I wish I could be frugal but the value of enjoying life at current time is valuable to me. Thanks for sharing your knowledge as I do agree with everything you say and I wish school teaches this in school. Retired in June 16, 2019 without AA or BB but I am Google and RUclips certified.😀
Buy a '94 Celica (just beware of the door handles).
Scottie...
Rev up your engines
TheNorthwood20 yea cuz being self made millionaire as a damn mechanic and only wasting like 10k in cars in his lifetime means he’s trash
I totally agree with you! I recently bought a year old car with 19600 miles for $25K. The same car if bought brand new would cost about $45K.
I guess it depends on where you live, if people in your country have high average income, then lots of them are buying new cars and getting a used one is a good deal. I've never seen a car go down 40% of its price even after 3 years and ~30k miles on it. it was less than 30% and thats after 3 years
Personally I can get a car for the same price with less mileage
@@renveras841 hi. where can i buy cars like that? ur help is much appreciated.
You can always negotiate more for a new car vs used at dealers. I got 8k off MSRP on a new vehicle. A year later=totaled and even w depreciation I got more from the insurance....however, just sharing a thought..I like the video btw.
My father always told me that when you buy a used car, you're just buying someone else's problems.
It's all about the 'CAR'. Buy a used car that is three years old can be a good deal. But, when that car , depending on the model and make, starts falling apart, will cost you a fortune. BMW are nice, but as they age, the cost of parts and repairs are much higher than the actual value as it gets older. Mercedes, Audi, VW cost lots of money for up keep and repairs as they get older. It is much harder to find a 'USED' car that is older and keep well, low miles and maintence performed on regular basis. It's all personal, if you got the money, nothing wrong with buying new.
I bought a one year old Audi A4 (with 35 miles on the odometer) and that car hardly broke down because I kept up with all the scheduled maintenance, even past the warranty period. I was the first and only owner till I retired it to the junkyard with exactly 467K miles on the odometer. Speaking from experience, if you take care of the car as instructed by the manufacturer, there's no reason why it shouldn't give you many years/miles of worry free driving. Most people skimp on service once the warranty expires and drive till the car breaks down, incurring expensive repairs.
Japanese
I typically keep my cars for AT LEAST 10 years. So five years of payments, five years of no payments. Always buy if you are going to keep it for awhile. If you get just the right car, you can keep them for 15-20 years. This is the maximum way to save.
Within the four years I’ve seen used car prices have risen. Especially trucks and suvs. I buy used because I hate committing to making payments for three, four or five years. Good video👍🏼
I have always bought used and paid full in cash. The sweet spot for me is 5-7 year old mercedes benz with great service records. I may have gotten lucky, but I never replaced at major components on any vehicle I've owned.
Two years ago I got a preowned Audi A3 for 40% cheaper, I’m about to extend the maintenance for $1700 for five years. It’s literally a deal 💁🏾♀️ at least in South Africa 🇿🇦...
I took your advice and bought a newer used car from a dealer and used your sales tactics against them on line items. The car was already $500 under normal used price. I also showed them the same looking vehicle from Carvana and lowered the price even further. I saved $2,300. Thanks.
Thanks Linda. You can send me my commission check later :)
Excellent video as always. As for my thoughts: As someone who worked in the industry for a major Japanese Luxury Auto company I'll say unless you're flat out buying a used car with cash, you're better off buying new. Here in Ohio almost 80% of used cars found on lots are sourced from auctions. The used market post 2018 (early 19) is getting hit with a massive amount of flooded vehicles from the hurricane of 2018. Theres no telling what you'll get in a used in these times and that will worsen over time. I'm personally not a fan of new cars because they contain to many parts, parts in which the federal government mandates (which in turn violates federal law because the company sold you equipment which failed and thus had to recall. Lol Airbags!) in order to keep the cost high. Most modern day cars would be at least 10k cheaper if you weren't paying for stuff you didn't need.
Great points.
I'm buying a 2017 Mazda 6 for 13k. Essentially 50% off and it still so so beautiful.
I love this guy, I watch alot of his video's and the way he presents his information is very well thought out.
But I couldn't help think for a second the wrench was going to be something else!
Keep up the good work bro, much love to you!
LOL
Keep Up The Good Work man i’ll definitely watch more of your videos & share it with friends !
Literally these videos have saved my life when researching a car. I spent hours just comparing values and now I feel so confident in buying cars and helping others looking into it a newer car along with recommending these videos. This is knowledge everyone needs to go though so they don't get messed up
Please I need your help. I need a car but I don't like to go every time to garage for repair. I have just get my driving licence what do you recommend me a new or a used car. Thank you
Poor people buy expensive new cars to look rich.
Rich people buy old used cars because they're rich for a reason...
Silidons nice speech
@@canwang4619 Nice wang
Referring to your comment. I know plenty of rich people who buy expensive cars, some cost more than a house. Why? Because they make millions per year... If you want to get richer than your current financial state, or save more money. Then, yes, buy a quality used 3-4 year old vehicle and for a fair price. But you're not going to become a millionaire because you bought a brand new car every 8 years of so. Anyway you look at it, 99%+ of vehicles are purchased to be used, driven for commute to work, school, the grocery store, etc. All get wear and tear, require a fuel source, insurance coverage, plus other expenses. Even if you bought a vehicle and just parked it in your garage. It's going to depreciate. New models come out every year. It's that .01% of vehicles that will go up in value over time. A current classic or some exotic car. For example, a 1969 Mustang Fastback. Either way, buy what you can afford and enjoy yourself. You only live once.
@@mmarmrcz6770 you can buy old enough cars that won't depreciate anymore. i drive a 1997 4runner sr5 4x4. i got it for 5,500 with 165k miles on it. it now has 215k miles on it and i can literally sell it exactly what i purchased it for. granted i'm out the repairs i've done, but the car is done depreciating.
Rich people buy new cars im a car salesman
I have bought 3 new cars, drive them for 7 or 8 years. After a year, they are used. I think I’ll start buying 2-3 year old used cars going forward. Thanks for educating me.
In 2016 I bought a 2007 civic for $3500, been driving it for 3 years and 45k miles and could resell it now for $2500.... that’s how it’s done friends. They can have their $40k shiny money pits!
smart!
Nice
I like to buy used BMW's, Mercedes. Their value depreciates very much since most people don't want the risk of high repair costs. I can fix most things so I'm not afraid to buy such cars. I had over 40 cars so far. They all need to be repaired at some point. Worst vehicle was brand new Chevy Trailblazer by far. 3 recalls and started rusting after 3 years so I got rid of it. I prefer high end German cars because they use quality materials and they don't rust as fast. They age very well compared to anything else. I don't care for Japanese cars. To me they are very boring to look at and to drive. They might be more reliable but to me driving a car has to be satisfying.
Agreed 👍
In 2015 I bought a 2001 Volkswagen Lupo for €1200. 5 years later she is still going strong and is worth €750. Amazing value, low maintenance cost and very low insurance.
Everything together including fuel is €180 per month.
You've got one of the last models of reliable VW :)
But who sells a car only after 2 years? Most likely it has a high mileage or it was involved in a crash.
Maybe, but many people bore of a vehicle in 2 years or just want something new again.
This is some really good info. I bought a new 2013 Kia Optima thinking exactly what you said and I was wrong. No more new cars for me. Thanks for the info.
my pleasure please share :)
Look for a 1-2 year old certified car with a 100k mile warranty! I recently got a hell of a deal on one and the car still smelled like new.
By the time you spend on buying new vehicle because they become a few years old, like must people do, you can buy a slightly used returned lease car for less that will last many years with proper maintenance. You can own a car payment free for many years while saving to buy your next vehicle for CASH that will save you lots in interest over the years. Vehicles are lasting longer vs the older cars of yester years. With a paid for car and a good emergency fund you’ll be able the afford maintenance and repairs.
I bought used Mercedez GL 4 yrs old from dealership but had it meticulously checked by other company. I bought extended warranty also for peace of mind. Dealership fixed the found problem before paying it, and never had any problem after it is still looks like brand new and my wife loving it and we used it for long drive.
I had a feeling this was how you felt about buying old versus new and I like it. I bought my new car back in 2016 and I was so excited until I saw how much depreciation was going to hit me a few years from then. Thanks again for the video.
So maintain and drive it for 20 years. Depreciation this, depreciation that...are you planning to sell it after a year or two? If not, then enjoy your car and quit worrying about how much you'll lose if you sell it today. Or take you chances that the used car you are buying will have been properly maintained and breakdown free for that 5 year warranty or 50,000 miles.
Used is the way to go. But don't let that stop anyone from buying new. There is an emotional play when buying a car. And if you've achieved a level of success, no reason not to treat yourself to a new car. With that said, if you buy new, hold on to the car for 6 - 7 years (unless again, you can afford a new car every few years). Just under 7 years is the sweet spot (break even point) for buying a new car. If you're buying a 3 year old used car, the sweet spot is at 8.5 years (for the life of the car).
Throughout my whole life I always purchased beautiful used cars, and kept them in mint condition for anywhere from 10 to 15 years... And, I was never sorry. I invested the money that I saved. (Also, like you suggest we do, I always put the maximum into my Roth IRA). I retired at age 55 a multi-millionaire and I finally bought myself a new Jeep Grand Cherokee last year in 2018. I paid cash (The Jeep dealership was NOT happy about that!! They almost wanted to renege on the price they gave me, and tried to push me to take out a partial loan.
Anyway, it took me almost a whole year to get used to driving a new car (that I thought I really didn't deserve or need)! Lol. Thanks for all your video, MARCO!! If people listen to your advice, they will all be millionaires, and retire early. Luckily I have a brother, who is very financially Savvy and has guided, just as YOU guide all of us!!
Yes town crier, I agree with everything you say and it all makes good sense. Thanks.
Nice story.
Hate to throw shade yet... A jeep grand cherokee? Why? lol
@@reptilesgamers00 Because I had a pre-owned Jeep Grand Cherokee for 12 years prior and I liked it.
I also have my parents 9 passenger , 1976 Chevrolet Caprice Estate woodie Wagon in mint condition. I learned to drive on that car when it was one-year-old. Drove it to College everyday for 4 years and I like it best of all cars I've ever driven!!! It's not my daily driver, only comes out on nice days!! Has the 454 - 4 bbl, big block. (Maroon with red interior) Thanks
Kevin what would u advise to retire early? I'm 35 now
Khaled....Well it may not be that easy, but you can do it. LIsten to Marco and everyone in life and ask alot of questions, like you did me. Try to learn everything in life by looking at other people's mistakes A lot of it depends on your personality and interests... The only thing I can tell you is my story. I was always satisfied with very little. and saved my money. I never had what my friends had, but have SO much more now. My dad died when I was young. However, I was always a happy person and shrugged problems off, or kindly worked them out by dealing with the source, not the symptoms.
My mother was special and phenomenal. I did all the things around the house that a Man or husband would do and became very responsible at an early age while all my friends were out getting drunk or smoking pot, etc.. After college I became an electrical contractor and started my own business. At around the age of 22 my mother gave me $20,000. to put down on a pre-construction condominium that I would rent out and let appreciate. When I finally could make payments to her, she said... "no that's okay you have been a great son, put it towards another house!". I wound up with 5 beautiful rental properties, in nice towns in New Jersey. I kept them in mint condition and cherished my tenants and problems, and gladly fixed anything they did wrong, or things that went wrong for 30 years until they were all paid off. Just the properties alone (all together) appreciated into the Millions. I put the properties before the electrical contracting business in relation to priority. The business also earned a nice living and helped me put the maximum into my Roth IRA and Blue Chip Investments/ funds. I was always a worker bee not a queen bee. I always kept a healthy mind and body, and never clouded it with alcohol or anything that would cause me to lose my peace, motivation and stamina.
I also believe in God and thank Him every day for all my blessings. Every week I get the message of the week from the gospel and applied it to my life to make it better.I'm not religious but very spiritual. I was never a troublemaker and followed all the rules. I was always a leader, and followed my soul. This showed me how to live life properly and I did.
I'm 59 now and people tell me I look 39. THIS is my story. However, where there's a will there's a way but it takes a lot of motivation, stamina and work. (if you like this).
Learn from all your failures, do not avoid them. Give back to others and always be kind. You can get anything in life with proper actions, patients and kindness!!! Ask and you shall receive, Seek and you will find, Knock on the door and it will be opened to you!! Anything is possible if you believe!! Find out your interests. Ask yourself good questions like, How am I going to make this work??? and your mind will come up with good answers. You will have setbacks but don't worry or consume yourself with the past or negativity... and don't ever give up!! Each time you fall when you get up you will be stronger, and will have learned something new. If you fall, get up again.. It gets easy and you'll get good at this stuff and everything you choose to do!! There are so many ways to acquire wealth. You have to work with your personality and what you like (if you don't like Hands-On, do what you're good at!!)
Good luck my friend!!!
Worse things can happen when someone buys a problematic model, that has a high maintenance cost and lots of recalls etc, I just know because I have gone through and I know many also did or going through. Basically you buy a car you always wanted, but turns out it has a problem all the time and since you financed it and now you want to get rid of it, but you still owe money on the car, while the value of the car is less what you owe. So you trade it in, and on top of what you still owed, now you got another car's price and you are "upside down" with your financing, because you owe a lot more than the car - even if it's a new one- is worth. The only way to break out of the cycle is that you just have to pay it off, even if the car falls apart and don't trade it, because you will never get the value back, instead the dealer gonna offer you like $1000 dollars, even if the car works fine.
Just pay it off and if worse come to worst and the car breaks down for good, just get something cheap you can afford out of pocket and don't get anything until you are done with the financing payoff.
Resist the temptation! keep the car until you owe nothing and even beyond, save up enough cash to buy a car out of pocket, lump sum!
Another option if you "must" have new, is to wait out the model year until there is only 5-10 left on the lot and the new year has already come in. I bought a 2013 Ford F150 new (went with the intention to buy used) for approx. $28k with a sticker of $44k. The 2013 used models, of which there were also only a few available, were selling for approx. $25-26k. Keep in mind, your color options, interior upgrades, etc. may be limited using this strategy, but this is an effective way to get a reasonable deal on a new car. The current value of my vehicle after approx. 6 years of ownership is $13k, so I'm still at almost 50% of the price I paid in "good" condition.
Also, love the videos Marko, I work in corporate finance in Memphis, TN and have a finance degree and CPA and still get a lot out of your videos. I appreciate you doing the legwork and research on some products out there (ie. Fundrise). I'm also originally from Ohio, go Browns! Keep it up!
thanks Nick
I've done exactly this twice now. I left the dealer paying only about $2k or so more than a private party sale value both times. 2004 F150 for $12500 kept that for 10 years and sold for $6000 then recently a 2017 Focus (stick shift!) for $14800. The Focus is worth about $11500 today private party or about 25% less. Best of all worlds. Beating the depreciation chart, factory warranty, and no prior owner neglect to worry about! Baring no major accident it will become my son's first car when he turns 16.
I know this is going to be hard for some people to believe but cars have advanced significantly in the last 20-30 years. Three was a time when rudimentary skills in mechanics and a decent set of tools was all you needed to get the job done. With an ECU potentially costing thousands to replace, buying a used vehicle and then having to replace it negates any savings. Something as simple as jump starting a vehicle the old way can damage a computer/sensor causing intermittent problems that would be expensive to diagnose and repair again whittling away at any savings. Run the engine with a disconnected battery; damage a computer. Cause a short; damage a computer. Ahhh, and with all the rain people have gotten, flood the car and problems can start appearing a year or more that would be impossible to diagnose. And then you have turbos. Change the oil infrequently, shorten the life of the turbo. Don't allow it to relieve pressure prior to turning off, shorten the life of the turbo. I prefer to know the history.
Ive always bought used and then i worked at a auto auction and that REALLY opened my eyes
I've always bought new since I could afford to do so...then I drive them for ever. The first new car I bought (89' Escort) is still in the family and running great, as are all the cars we have purchased in the 30 years. Believe me, I have bought my share of used cars. There are very few people, let alone dealers that I would now consider buying a used car from.
Nutn wrong with what u do maybe a yr old car but thats as new as ill get
What’d you learn from the auto auction? I’m really interested
@@adajmahal2671 u learn wat dealers pay for autos, you learn wat brands are good n wat are bad
Ralph Williams ah I see thx
I have a friend who has a net worth of around $200 million. He has always bought used cars. Never new. Here’s the kicker… he owns 7 new car dealerships Nissan, Toyota etc and 5 used car lots that only sell used. That says alot
Things depreciate so fast that I end up buying everything used, including underwears.
SL I get used girlfriends 🤓
LOL!
Everything can be used one except girlfriend😂
Hahahaha😂😂😂
LOL!!!!! :) Thanks for the laughs! I almost spit my coffee out.
One advantage of buying a new car that no one mentions is that you can literally customize your own car. You can select your own colors, extras, accessories, seat covers etc... It's hard to find the exact same one used. But again, this depends on personal preference and whether your NEED a car to get to work (I guess you do in the USA but in Europe you can easily get away with not owning one) or you just WANT one and you really enjoy driving as hobby.
But regardless, always pay cash, even if it's a new one.
Buy a used 90's Toyota off of Craigslist. NEVER buy new. I bought a 1996 Toyota Avalon with 200 horse power in 2001 and have over 200 thousand miles on it. That car is built like a TANK.
I’ve been buying 3 year old BWW’s and Audi’s for the last 15 years. Still have a year of the factory warranty left. Paying approximately 50% of new price. Haven’t had any maintenance issues but depreciation is still significant. Better than buying new but it is still worth considering
True statement. I paid 36k for my 2011 M3 in 2016, and now in 2019 it's worth 28k and I've only added about 20k miles lol. The depreciation curve on BMWs continues for many years albeit not as sharp as the initial 4 years.
In 2008 I bought a new Toyota Tacoma double cab, It was nice but it was a second car and I was not using all that much. I finished paying for the car in 4 years, and sold it back to a Toyota dealer for 2000 less then I bought it for.
Valuable information in a very easily understood format. Thank you. A little curious in what cars you buy and drive? Thanks..
Cars have a massive depreciation in the first three years. Always buy used. 2 to 3 old is better value
This is great! Shared with 4 others immediately
You can save an enormous amount of money if you do the maintenance and repairs yourself and use after-market parts where possible. If you run straight to the dealer with any problems and order genuine parts it will cost you 10x more. Example: Nissan skyline coil pack replacement - 3rd party mechanic with genuine part quoted $900. I did it myself for $100 and 30 minutes of work.
Exactly
This is Excellent!!! Thank you and yes, I'm now subscribed.
Buy new now. Uses prices too high!
I don’t want a brand new car but I really do want a 2017-2018 car though.
Marko, I love your videos and enjoy watching you empower the public. I am a FA with a major Wall St Firm. Have you thought about how your curriculum can complement a wealth management strategy? Go Browns!
I am 55, house paid off, have land and 401K, dual income, empty nesters in tech and finance - We have NEVER bought a new car in our lives. That first 3-4 years I can't stand to give that money away for almost zero return in my investment. Rich people buy assets that increase in value. Cars are the opposite so the strategy should first and foremost be to mitigate the devaluation of the money you pay for that vehicle. Buy NICE QUALITY cars, well maintained. Here's the deal - TODAYS cars are build soooooo much better than 30 yrs ago - you can make a used car last much much longer and maint is much cheaper than it used to be.
Hey Marko, I'm shocked Yugo didn't make the whiteboard, mine depreciated out in six months! But it keeps me in shape walking when it breaks down, ownership benefits I guess!
People that dislike this are those making $50,000 or less each year and buying new or used BMW.
Great video Marko. It’s safe to say he knows what he is talking everyone!
Glad you do an even comparison not like other people you gotta only buy old beaters cars and that’s it
I never buy new cars, I bought a fully loaded 2 years old in 2012 a 2010 Acura TL V6 that originally costed $45K, for $32K!!
Almost no major maintenance issues. 110K Miles. Waiting for the 2021 model to be two years old in 2023 so I can buy it certified pre-owned for much less and still get my money worth from my current car after putting 140K miles on it and no car payments for 5 years ;)
Smart
Great video on buying a used car.