Your Car Loan Is Killing Your Wealth - Dave Ramsey Rant
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- Опубліковано 26 бер 2014
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Every time I get the itch to sell my 04 civic and buy a new car, I watch this video.
+Bojaxs Same here with my 94 SC with 255k miles
+Bojaxs good for you man. I made a huge mistake out of ignorance and wish I could take it back with new cars.
exact reason I'm here right now.
+Bojaxs Where do i find young ladies that are good with their money? haha i'm 22.
+Bojaxs Yeah and mine is a 1998 Honda with 211k
I just come here to get yelled at.
That's funny
lol same
Second that
This is a very great lesson to learn from.
I do well with being yelled at.
"The Rich get richer and the poor do what? 18% on their car!! WHAT!!!
I'll tell you how my parents got rich , didn't buy a supercar
Best line in the video
don't forget cigarettes, lottery tickets, payday loans, dope....
The rich hide their money in offshore banks. Or have it as unrealized gains to shield from taxes.
Like George Carlin use to say, there's a club and you're not invited. What a legend.
And people wonder why I love my old paid off 2000 civic
So true. Got me an 04 grand am and she runs great... Every time i see some one driving a new car (statistically they most likely have a loan on it according to Dave).... Im reminded that i dont want to be another sheep.
+Joseph Ehrmantraut I don't want to be another sheep either!
+Joseph Ehrmantraut Civic put me down a few months ago after 400,000 miles and 14 years :( was going to cost 4 grand to fix and a couple of other issues were popping up with it. I'm a freelance photographer and so I'm traveling a lot more across the southeast so I decided to get another vehicle a Kia Soul that the dealer wanted 18k for I walked in with 10k cash and walked out after tag title fees paying 12k and I'm just about to pay it off in less than a year. CASH IS KING.....OH btw.....it had 14,000 miles and one owner and the 100,000 mile warranty carries over. So basically I got a new car for used car prices..lol
+Matthew Odom................. and Kia Soul is officially paid off :)
Matthew Odom I love my Kia Soul..Im currently saving money to cash buy another one ♡
This guy is 100 percent right.
Just paid my car off with your tips, my wife and I have vowed never buy another car again unless we have the cash in hand
Great job Jon! Keep up the awesome work.
People always ask me what kind of car I want a mustang, skyline, corvette maybe a jag? I tell them I WANT A PAID OFF ONE!
😂amen!
I wanna lock my girl up in a room and play Dave ramsey videos over and over
T money same here . My girl just doesn't understand .
T money maybe you guys need to leave your girls before they drag you down financially.
You have to let her go with out something’s for her to see. My wife was the same way. I had to show her how much of her own money was walking out the door. Now it’s like pulling teeth to get her to buy something on credit. We are paying credit cards and and we are don’t with those!
Lol...I'm a girl and here I was thinking when I get a boyfriend I'll be introducing him to Dave :)
Let her go bro
The rich get richer and the poor pay 15% on their car. Gold.
its true
I just paid my car off. 🙌🏾🙌🏾
Me too.
Keep it as long as you can. To the point where your family has to stage an intervention for you to get a new one.
@@NWOALERT I loved this. 😂 Thank you!!
congrats and do not do it again
You didn’t pay cash for it so it don’t count 👴🏻
Recently, I bought a car for $15,000. I paid one lump sum, drove off and that car is mine. My budget is such, that I could buy a $ 40,000 car the same way. I am retired and live on a fixed income. Thanks, Mom and Dad for instilling frugality into me and my siblings. With most of these $40,000 cars I see go by, is a passenger. The passenger is not " look at me". The passenger is called " crushing debt" . I refuse to play the bank's game.
James Bond i bet the dealer hated you hahaha
For girls, a car is a large purse. LOL!
Mine is just a large diaper bag. Lol.
And a French Fry holder? :D
mwall444
Pretty much a trash can.
BlackWorldTraveler Or more like a Dumpster.
@@blackworldtraveler3711 ...
Dave is right. A car payment is a way to stay broke, I have a car payment he is right. My first and very last"NEVER AGAIN WILL I BORROW MONEY"! :)
+Jill Roberts You need to view a car payment correctly. All people have transportation expenses. Those expenses include such things as the cost of a car, maintenance, repairs, insurance, registration, car rental, bus costs, etc.
All people budget for these expenses, whether they know it or no. How a person structures these expenses can vary. As long as those expenses are within the budget it makes no difference if the majority of the costs are for a car payment or other things.
The key is to stay within your budget.
+Douglas Moran No you can't justify it that way. Just buy a less expensive car if you need payments to buy one. Don't be middleclass and normal.
BMW is an awesome ride and it's great car to drive and obviously superior with a steep price. It seems you are in great financial shape so why bother taking a loan in the first place?
@@scottr2706 Put that car payment in a financial calculator and realize that paying monthly for a car is stupid. DO NOT finance depreciating assets!
$4600 for my 04 grand am. Ive had it for 2 years and ive only put $500 in it outside of basic maintenance (oil and inspections). Living like no one else now so i can live AND GIVE like no one else later!!!
+Joseph Ehrmantraut You got lucky.
@@CallmeDaBreeze1971 How is making a smart financial decision lucky?
💰💵
I live in a city and haven't had a car in the last 4 years. I take the bus to and from work and save the $500 month. Cars are overrated. Its funny everyone asked me things like how do I get my groceries or things I need for my home. I live a block away from the grocery store, and almost anything I need for the house can be ordered on Amazon. But what is most surprising is how much pressure I get from people to "buy a car" I even had someone tell me its time to be a "grown up" get a car. These are the same people who are constantly complaining about money every paycheck. Since I started this lifestyle change I have saved enough that I could live with out a job for a year. I think I will continue this lifestyle to total financial freedom...
Rethink what passes for wisdom.... you can live without a car...
Patricia Ikeda Same here! I bike and take metro. I live in LA and people constantly tell me I can't live here without a car.... Well I do! It's not hard lol
No buses run out in the country...
Patricia Ikeda very true. I can relate to your story and how our culture embraces consumerism so much that people fall to groupthink and join the "car cult" that try to convince you to get a car
Thats smart or you could take the money you saved and throw in and double that money. Sell some stuff. Whatever you are into
Lived without a car for 7 years. Now my wife and I share 1 car between us. A 14 year old Subaru, which sits in the garage most of the time. We both take the bus to work and are able to walk for most of our errands. We use our car 2-3 times a week.
My younger brother told me he wants to finance a car...a new one to make it even worse. We're gonna watch some Dave Ramsey videos today :)
After years of being in debt up to my eyeballs....Ive finally had enough.
Sold rental houses (that the banks owned)...sold harley (that the bank owned)...sold wifes pathfinder (bank owned half of it)...traded in new truck (that the bank owned). ..even sold our large brick home for a smaller older home.
Had 17 credit cards....all cleared and cut up now. NO credit card debt now.
Bought a 2003 honda accord for 3k....paid cash.
Traded brand new truck for a used truck for our renovations business.
Today....debt is 17k on the truck. Will be paid off in 18 months. 12k left on student loan.
Total debt sold off and/or paid down....Over $350,000
Only other debt is our house....total debt, including house, is $138,000. Finally we have began to build some networth.
Already the weight has began to lift from my heart and shoulders. Not done yet...but close.
Justin Russell way to go!
Hey Justin that's awesome! Have a 2019 update?
Momentum is headed in the right direction. Good job man
Nice job man! I know the feeling of being in debt, and I also know how great it feels to be debt free! Keep up the good work, and never give up!
GREAT JOB!!! I hope to be where you are - totally FREE from financial burdens that (BANKS OWN) :) thank you for the encouragement.
I'm so glad I found this man. I was going to trade my car in after 2 years for a car I really wanted, but come to think of it...I'd rather pay my car off and save an extra 279/month.
Exactly what I am going to do now.
2005 Buick Lacrosse, still going! No payments.
Yeah, that pretty much summed up my past 6 years of car buying pattern, I bought and traded 4 new cars in this time period and spent about 112,000 between them (ok minus the trade-in value maybe 80,000)... I can't believe how insane I was, and how wasteful my thought process is... Whenever I wanted to change cars I just asked "how much a month" and maxed out my family's budget. Until early this year I read this guy's book and stopped this insanity, paid off my van and started redirecting these car payments into savings...
Yeah, talk about how much I could've invested... talk about opportunity costs...
CobbBy
The amount I spent on my car I could bought a custom grooming trailer and been making over six figures. Stupid!! I hate my car! Like I literally went to buy chipotle one day and came home in a new car.
I almost convinced myself to go ahead and buy a new car, but I watched this video to bring me back to the light lol 😂
Just got out of my high-interest loan, went out and paid cash for a 2012 Mazda. It's not as nice as the car i was paying on... but that feeling of driving a paid-off car. Nothing like it.
I don’t own a car. I just ride bicycles.
I bought my house cash less than a year ago.
I have no debt at all.
I cannot believe how fast my savings is going up.
Three years ago I was a financial train wreck.
I listened to Dave and it was difficult
But oh so worth it.
Amen! Well done!
This should be a Super Bowl half time commercial for all Americans to see. Every year.
I've never had a car loan. And I never will.
***** Good luck! I hope everything goes well!
What interest bearing account? I was under the impression anything with interest that will stand tall through inflation died the way of the dinosaurs. Sure, I can get a "high yeild" CD at a rate of 2.13% for 5 years. How does that help me? And why would I make help someone else make money while I get into debt with an asset that only losses value? So many things wrong with car loans.
Me either!
+Besim Huremovic Ajoj crni ti. Imam za tebe jedan video koji tvrdi da mozes brze da isplatis car loan! Javi ako ti treba da pogledas...
Same here - never had a car loan.
I drive a 2002 Honda Accord Ex coupe. Best car ever! I’m into detailing so my car looks brand new. It turns heads and I’ve even been complimented by people saying it looks better than their ten year old caramel it’s 20 years old. YOU DONT NEED A NEW CAR TO HAVE A NICE CAR!! any car can look nice as long as you take care of it.
I paid 17% once and worked a second job to get out of it. I rather have a 2000-4000 early 2000s honda or toyota camry and be done with it. when you want better save up for a year or get a few years old model.
I’m debt free now but god I wish I would have found this guy when I started working at 18. I’m 25 now.
You are so right. I was at 21% interest. I had a PhD in dumb. I will never ever buy a car again unless it's with cash. Hard lesson.
Got the urge to buy a new truck and had to come back to these videos…Thanks Uncle Dave 🤣🤣
I bought a single cab 2016 Silverado for $20k with only 33k miles. When I pay it off I’m gonna keep it until it’s a classic
Want a Charger RT so bad ..so I come back to this video weekly
If only my parents saw this they would understand why they’re poor.
Lol
Thank you, Dave. I've been contemplating buying a new car, but I have decided my paid off older car is a much better option!
Just when I was about to finish paying off my 10 year old car , I gave up on the constant repairs and traded it in for another vehicle . 4 months later ,I realized I made a mistake and (hated the way the vehicle ran) and went out and got another loan on another car. Now i'm in a 10 year muscle car that i'm not even halfway done paying off and i have a list of $1200 in overdue services and repairs!! Lesson here? Stay with the vehicle your'e paying off / paid off and ignore the feeling of wanting that shiny new car!!
Great point. That seems to be the hardest part for alot of americans. Gratification is a challenge within itself.
It was a challenge to discipline myself for months to buy my car last year for $8000 cash. When I gave them the check, I felt empowered! 💪A 2006 Avalon, 65000 miles, and good tires. Thanks Dave for the great advice. Since then, paid off a $5,500 bill and have increased my emergency fund to $1,500 toward emergencies and car maintenance. I am truly living the scripture, I can do all things through Christ.🌹I only wished my family would get it. I've tried to get them to pay off their car note, but they refuse because they say their interest is low.Will share this video as well.
I paid off my car this past jan.
I do find myself looking at other cars but i tell myself, give yourself five years; then that itch will go away. Gonna give my 2015 honda fit all i can.
I have not borrowed for a car in like 12 years. I like the no car payment life.
I paid my truck off in June, I have not missed having a payment, and unless I can pay cash for a different truck, I'm keeping it. It's got just over 102,000 miles on. I save $10.00 each time I change the oil by doing it myself (it's EASY). It's almost 9 years old, and I'll keep it til the guts fall out.
Athrough Z me too. I just started changing my own oil. Now I can afford to put better oil and save money!
Nevermind not having a car payment, I took it step further a few years ago by taking my paid off car and storing it for one year. I got around on public transportation and bicycle. At the end of the year I had 10k in the bank.
I paid 2300 this summer for a 2005 Hyundai Accent hatchback. Then dumped another 700 in it for repairs. The car has hail damage on the roof. I don't give a damn that it looks like a beater - it gets me here to there just fine. Costs $30 to fill it up. Never have had a car payment.
04' Altima. Have had it for 4 years. Routine maintenance only. No car payment rules. Can't tell you how many guys I've known who bought new cars to fit in or think they'll get laid for it. Every one of them can barely afford to eat lunch.
I've never had a car loan or mortgage. Bought the car and condo with cash. It's against my financial religion to pay interest on credit card.
I love that type of religion
" Neither a borrower nor lender be." Shakespeare said that five hundred years ago. It was good advice then, and still is today.
Financing a new car was the worst decision I've ever made. Huge waste of money. After 2 years of making payments I was tired of it and now I'm on track to pay the remaining 3.2 years of car payments off in 7 1/2 months! I have a month and a half to go! Can't wait !!
Subprime loans are interesting. "Hey, we're not sure if you're gonna be able to pay this back so we're gonna make your payment higher. Cool?"
I wish I had seen this video 4 years ago. :(
How’s it going?
You and me both :( hey we have to live and learn right. Are things looking better for you?
@@IntoTheWild361 yes, I'm almost done paying it off, and I'll never lease another car. Lol
@@rhichey I’m in the same boat except I had signed for someone a car. They ended up having to give it back to me. So I was stuck with the note. Lesson learned LOL .
Sell the car
Thank you for this! It’s a wake up call for me! Since 2001, I have bought 4 new cars. A Cadillac, 2 Lexus, and a truck. 4 vehicles at $189,000!!!!! It makes sense!!! Thank you, Dave! I won’t buy another one until I retire!
I love Dave's rants.
I've got a car payment of only $130 but I can't wait until I get that paid off.
Yea that's not much, I think hes talking to the idiots who buy a brand new car and pay $600+ a month for 6 years
Douglas Moran If you have to borrow money for that BMW you couldn't afford it to begin with
Douglas Moran Great you want a cookie?
Douglas Moran Sure and the sky is really pink not blue
not bad at all. my vehicle payments are always under $200. reliable vehicle doesn't cost a bunch in interest. never get stranded. I have my newer vehicle for commutes/longer trips,evenings out. Have an older car I use just to drive to work and back. not throwing pointless miles on my newer car that will make it last longer.
I’m 18 and get my grandparents paid off civic with only 30k miles when I graduate. Watching Dave’s videos makes me realize how lucky I am
His ranting is so hilarious to me! I can watch these all day.
This and credit card debt are the main reason why I was broke most of my life. I had great credit and interest rates but still. I’m paying off a 2018 Santa Fe in 2 months. My 2016 Z06 Corvette car payment was, I’m embarrassed, Dave Ramsey is going to come find me, $1314.32 a months for 84 months. I’m paying that loan off in 8 months. I’m down to my mortgage payment. I’ve finally at 55 have decided to become responsible. I’m a retired Army Officer and with my part time legal assistant job net over 10k a month. My life is changing by the second. As for the corvette, I’m single, waited my whole life to get one and can’t wait to say it’s paid off. I also paid off 35k in credit card debt which is what transformed me and my spending. Thank you Mr. Ramsey.
Almost had a heart attack at your car payment! Well done for changing! It's never too late!
I’ll admit a Z06 is a sleek sleek car. But not worth slowing your process to build wealth. You could buy it used for cheaper down the road. However you see it so I’m not poke at you anymore. I too bought a new car and love it. But it wasn’t financially smart tbh
I love this guy and his sayings... especially "I love cars, hey I'm a boy". Well, I'm a girl and I love cars too. He is absolutely right when he laughs about people that think only new (or newer) cars are reliable. I live in the middle of nowhere, and if I would get stranded it would be really bad (especially because there are several holes in cell phone coverage as well around here).
My car is a 2007 model, that I take good care of. You do the maintenance (or in my case have it done, generally), you drive responsibly. Here in North Texas, it is blisteringly hot - so you make sure that your battery is fresh and you check your tires for dry-rot cracks. But hey, my car has a bit more than 90000 miles on it, I bought it with 55000 miles nearly three years ago, and I know its going to start and get me where I'm going (which is mainly down very long, deserted roads) All my girlfriends have cars way newer than mine, but my little Tacoma truck is just as reliable as theirs. The best thing, just as Mr. Ramsey says, "it's paid for". I have the title, not some bank or leasing company.
AgentPepsi1 true & you have a Toyota most reliable brand out there
To me an 07 IS AN NEW CAR haha
Your Toyota still doing okay?
Yes I don't get another car unless I can pay cash for it! If it runs great that's alright with me as long as there are no car payments! Having no car payments to think about and knowing that car is MINE is the best feeling!!
Amen Dave. You changed my life! Currently getting gazelle like to pay off my car. Never again will I put myself in the position where I’m not in control.
Thanks for the classics. They're still so helpful when it comes to keeping my head on right.
Cars are a waste of money. Give me a new Civic every 12-15 years and Im done. Depreciation breaks down to like $1200/yr since a Civic that old still goes for about $3-4k. No used car worries and I know the car's complete history. Unless you have a major life changing event getting rid of a car that runs prefectly is just financially stupid.
Honda ain't what it used to be:(
@@electronpusher604 sadly they are even worse now
I can afford a Chevy spark and I'm cool with that.
The car will depreciate waaayyy before you pay it off!
I wish I could have listened to Dave before I made my stupid decision.
Same
We all make mistakes
Thank you for this
I was going to buy a new car not too long ago, for 30K...as a 22 year old with about 6k of credit card debt. My excuse was that I drive about an hour to work and an hour back every day and my car is getting old. I needed a more reliable car and I also wanted a new car. I was about to sign up for $460 a month for 72 months, but I told myself while sitting at the desk that it wasn't the smartest decision I could make financially at the time, and that i would save up a huge down payment and get it later. Then I found Dave. Now I'm almost debt free mainly thanks to my girlfriend but Dave too, and I cant imagine buying a new car. NEVER will I buy a new car unless I have over a million net worth. I'll stick to buying used cars for cash.
Such wonderful logic and great advice. Every new, young, military recruit should watch this as part of mandatory training. Thanks Dave.
Paying off my car today. Thank you for all your help Dave.
That's why I love my 2002 Honda Civic
I almost leased a 2017 M3 $760 a month. I graduated high school couple months ago, going into a 4 year public college paid in cash. Making 560 a week, I almost screwed myself over.
Jesus!!
That would've been 40%+ of your take home going towards a car😂 I'm so glad you didn't do something that stupid
Car finance is bad thing to do, been there done it when I was 23. I`m now 36 my current car I paid £5,000 via cheque 4 years ago. My car was 3 years old very low miles & a small engine (economical but fun). I maintain it properly, I love driving it & it`s been a pleasure to own it out right no stress or regret!
I highly recommend saving for dream your machine, via driving older disposable cars to build up the funds. I did for 7 years but it was worth it.
4:57 😂😂😂😂😂 I needed this slap in the face. My payments aren't quite that much but i vow to never do payments again!
$14k cash for my 06 Accord.. Basic maintenance and it runs like a top....
Andrew Esposito I bought an 06 VW Passat for 14K in cash back in 2010. Never had a problem with it.
Thank you I watch this every time i see a new car and need to talk myself out of it
I graduated from college debt free!! And I’m completely debt free and people are already asking me when I am going to get a new car?💀💀 a new car for what? My baby drives fine
Great and very knowledgeable ! thanks for advice
I'm more impressed when I see a clean, well cared for older vehicle. It tells so much more about the person driving it. I have two of them. I'm convinced when I drive by and checking em out, the driver is doing the same to me and we give a subtle nod to each other- it's rare to find another person who understands how to own a vehicle- aka the worst asset someone can acquire.
I enjoy driving my reliable 93 Acura Legend
Well I did replaced the engine with a JDM type II low mileage engine due to a blown head gasket.
Keep driving the legend, and it wont be your last blown head gasket.
+patriley2 to prevent blown head gaskets you have to clean out the EGR system pipie
That is still a nice car, I got a 00' Lexus ES300 drive it everyday to work no problems with it
noway2009 I enjoy driving my '95 Taurus wagon with 50k miles. I also enjoy my '89 Town Car Signature Series.
I paid my 2010 honda civic last november and this past may, i was about to lease a new car because i felt i "deserved" it. The day before signing the papers, i came across Dave's channel while researching leasing vs. buying and I am so glad I did. My 2010 honda civic stays till it runs. Thank you Dave.
Your the only one that makes sense thank you!
Awesome Dave rant!
love dave.
I pay $343/mo car payment and $388 for insurance but since I need full coverage its going up to $700 and this is where Im considering giving up the car. I make $400/wk while trying to find another job. I cant afford this car anymore and I've had it for 4 years.YES, I WAS STUPID AND IT WAS THE STUPIDEST DECISION I COULD HAVE EVER TIED MYSELF INTO.
Did you say paying $388 car insurance on full coverage ?
388 insurance monthly? Holy Buddha , what kind of car u drive? It’s insanely high
I bought my 08 Lexus IS 350 brand new when I started my first and only job.....80 k still going strong and it's been paid off 3 years ago. No credit card debt anymore just the mortgage! I just started a 529 for my 14 month old daughter
Love this video!
I have one year left on an idiotic lease. When it’s over, hello Craigslist! Goodbye car payment!
I will never finance a car. I will always pay fully cash for a car.
I had to hear this. 😥 This is helpful.
your exactly right, im a car guy i always owned used cars my entire life and i also have project car i work on and mod (which i own). i moved to a city and i wanted a newer car that would be reliable (which it is) so i wouldn't have to worry about major repairing. i went to the dealership and got a car; worst decision in my life. Especially when i can fix almost anything on a vehicle, i shouldve bought an old truck. a couple years pass and im trying to figure out why my finances are stressed, its the car payments, it will throw a wrench in your operation. lesson learned. time to pay this thing off early.
I am 37 and have NEVER had a car loan!
I'm with you on this, I'm 38 and I never had one either
I'm 29, I had one. Paid it off. Never again.
I'm proud of you guys
The point is, an older car bought with cash can do the same things a new car on credit can do without shackling your budget so that you are unable to invest money elsewhere, such as paying off your house or saving for retirement.
Even if it fits into your budget, 'no car payment' still trumps 'affordable car payment' but 'new car' does not necessarily trump 'used car'.
What's more is that even if an older car breaks down, you can potentially get more miles out of multiple used cars and still pay much less than one new car.
I have never given Dave a cent, ironically in spite of your remarks it was I who profited. People who REALLY understand credit, know not to use credit. It gives you no real advantage.
But to each his own.
My truck is newer than these comments
Just paid off my car early!
Worth listening.
Good point!
I found this just in time 😅
Consider yourself lucky! I wish I would have watched this before I purchased a new car a few years ago!
Less than a trillion when this aired, now approaching $1.5 trillion
When will America learn? Why aren't more people listening to Dave Ramsey (and his team)? (We have the same stupidity here in Britain, but it seems worse on your side.)
Yes, this is so true. Exactly why we committed to paying our 20K car note off in 10 months!
I love this man!
I need to watch this once every 4 months lolll
I can agree and disagree with this video. Personally, I'm not going to live miserably by either driving around a piece of junk that I got for four grand paid off cash, all because I saved and then have it give me problems and not function properly due to the fact I'm not a mechanic, nor am I going to ride a bike. Many things can't be done aside get you to point one to point two on a bike. I got a loan, bought a reliable, not brand spanking new, but nice looking and very well functioning car, with plans of paying it off and keeping the rest of the money for myself. I have no shame getting a loan, because at least I have something that moves me around, looks good, is reliable and makes me happy without giving me financial hardship. I would however feel shameful buying a new car every year. That's just an unreasonable way of living.
+Brian Ross or do what rich people do and don't borrow at all. Dave mentions the average millionaire buys a 2 year old or older car with cash. Most people I hear who justify payments are ones who pretend they are rich when they are really middle class or broke.
+westener83 true ! My friends example living at home
+Brian Ross No, paying upfront is not ALWAYS BEST.
No, putting 50 percent down rather than 3 percent down does not mean I can afford it less.
With great credit, putting anything down is not better than putting nothing down. One of the benefits of good credit is great interest rates, cheap money. Smart people know how to use cheap money.
For example, for a zero percent car loan what difference does it make if I put down $20,000 or I put nothing down and keep the money in my account. I can still pay the $20,000 at any time, which is the same as putting it down in the first place. With the $20,000 in my account, I earn interest.
Borrowing nothing may feel good but it is not always the best.
I agree.
average car payment is 400-500$ a month..no way are you spending that much in repairs on a DECENT used vehicle. if you are buying 500$ junkers that cant even pass inspection that is different... i paid 2k for my 2001 dodge ram truck..it booked for almost 5k in the condition it was in.. the guy was moving and just wanted to get rid of it and i talked him down with cash...even if i do have to replace transmission down the road its still worth it cause a new one is 40k ..that is at least 500$ a month.
I love your show,,,,, this is a slap in the face!!!!it a wake up call
Respected Dave
Lots of respect to you for what you are doing. I am from India I know the figures here are different from that in USA but the strategy is similar and really insightful.
I love it. I am still driving my 2007 Honda Element. No car payments are nice.
This video is way too generalized. I just bought a 2016 Honda and financed it. 0.9% interest rate. I could have paid cash for it, but why? My investments earn much more than 0.9% on average. Paying cash would have been an opportunity cost loss compared to financing it and keeping the money working for me.
You know, you can negotiate your interest rate. Most people don't try because they don't know.
I've posted my story on another of Dave's videos: last month I had to get rid of my 15 year-old car after it had served its purpose. I then found a 5 year-old used car with low mileage and in very good shape (which I still had inspected by my mechanic). Taxes in, it came to $11,500. The car dealership tried to convince me to put $7k down and pay the rest in monthly installments (with interest, of course). I ended up paying the full amount cash because I had saved up. My advice is 1) buy SECOND HAND, and 2) pay the FULL AMOUNT CASH. Don't give in to these dealerships. They don't care about your pocket. They care about theirs.
Just what I needed to hear. Decision. Made.