I can never see myself going to a dealer and putting money as down payment and driving car that I dont own yet paying extra for it through interest and and with the possibility delaying Payment due to rainy day event and that causing my financial life goal in jeopardy. I have always bought my car with Cash. I have bought 2017 Chevy impala, after a year I sold it and bought 2016 Honda civic touring and now I have recently bought 2015 BMW 328i. My next car that I am aiming for is a white BMW M4 convertible:)
Much easier to negotiate when you don't need anything from the dealer! I get a few year old car with cash and spend the money I'm saving on beer and silly things
Typically we only drive Toyota’s Honda’s and Nissans and purchase a 5 year old model in cash and keep them for 10 years or to 150k miles. That has allowed us to stay car payment free while we max out our 401k. Don’t drive broke.
Newer cars also have higher insurance payments. Although older cars have higher maintenance costs, that's mostly negated by the fact that they've already depreciated most of their value and so depreciate much more slowly than newer cars. Old cars FTW!
So....long story short: if you're going to get a car 1) Pay cash 2) Get a car that's useful 3) Find one that's low maintainence 4) Keep it until the wheels falls of
Say you have a card limit of $5,000. Buy a 10 year old car from a dealer who doesn't charge fees outside of sales tax. Depending on your card you might actually get some cash back!
The public schools will never teach the value of a dollar because today everyone gets a trophy. It's taboo to say the truth nowadays especially with ghetto rich!
So true. My neighbors are on public assistance yet the have a new Mustang and an older BMW. They also apparently spent a lot on MJ, but besides the point.
The Poor show their wealth with clothing, the middle class show their wealth with cars/trips/education, the rich show their wealth with boats/houses/expensive cars, & the truly wealthy show their wealth with time/choices/contributions/impact. The education system was created in service for the 'upper bands' of our world today. For what purpose? Well, to supply worker bees for the sake of business & servitude (oligarchy & such.)
@@computerscientist5953 I drive a 94 f350 xl. Paid 1500. My annual income was $13500 last year. Pretty close. Not including income outside my daily job. I've spent a lot more on my tractor and implements but they are used constantly and have better resale value.
i bought a prius and it is probably the best investment i could have made. it is nice only having to put gas in when I want to, and not when I have to.
Does you car have plenty of air bags, stability control, traction control, ABS??? I am not even talking about fwd collision, blind spot, etc. You do not need to buy a brand new car necessarily, but 19 years is way too much in my opinion, safety should be first priority!!
@@Larry_Kabberga 10 air bags, yes stability control, yes traction control and yes ABS. It's a Lexus LS430. It also has more features than your average car today thank you very much. Does your car have double glazing, a fridge, massage seats as well as cooling and heated seats? Check and mate.
@@biggerbitcoin5126 I was referring to the 19 year old car the OP drives. It is highly unlikely that a 19 year old car or any car built in the 90's comes with safety features like ESC, which has proven to save lives. But my 2015 Civic does not have a fridge so now I am very upset.
I can totally relate. Twenty years ago I was about put 5K down to finance my 35K "dream car". At the last minute I was offered the opportunity to buy a wrecked version of the same car with the 5K cash, which I then parted out and started my specialty auto parts business that has paid me back multiples of my initial investment. It's nothing more complicated than making your money work for you instead of working for your money.
My driver is a 1978 Ford F150. If anything breaks on it, I can fix it myself. Parts are cheap and plentiful and the design is simple. No car payments for 25 years.
I have bicycle commuted for 20years. I haven't owned a car for over a decade. If I were to make a rough guess, in that 10years, I have saved $15K (low-end) & $80K (high-end) My savings account reflects closer to that high-end number.
A $40-50k car is likely still too much car for someone making $100k/yr (gross or net), unless that someone has a nice trust fund waiting, and (s)he lives with her/his parents rent-free (nothing wrong with that). The only way to justify it would be if it's someone's hobby. Then it's a matter of priorities.
@@benzzoy , I cannot understand going, even $20K in debt, just to get from point A to point B. That just pays for the tool, itself, not any of its operating or maintenance costs. It seems like an absurd life-choice to me.
@@xjarheadjohnson bicycles make you fit and save you money and relieve stress. cars cost you money and make you fat ,and cause stress sometimes too if persons had a bad day and they're stuck in traffic. I don't usually see people on bicycles having road rage. Lol
@@510jesus For Dave Ramsey, ignore the ads and his real estate advice maybe, but stick around for his DEBT REDUCTION plans and advice, which is achievable and repeatable; his regular callers who in 2-3 years got out of 200k+ of debt is incredibly inspirational.
I actually gave him another shot considering he showed up repeatedly in my recommendations. I've always been financially cautious and never really financed anything that I couldn't pay off in full within 1 months statement. Anyways, it's fun listening to others debt situations trying to keep up in the rat race
@argh666 LoL 😂. Chevrolet. I never said I didn't buy a car, I said haven't had a payment since '94. In 1991 I bought a used Chevy truck, paid it off in three years and drove it for over 10 years. It was still going strong with over 200k miles before it got stolen. I then bought a used Mercedes 300d and drove it until '05 when I got rear ended. Then I bought a used '03 Chevy Malibu which is still going strong. Paid cash last two vehicles.
How cars don’t make me broke -Paid $1300 for a high mileage 2007 Ford Focus -Owned it for 2 years now -Gets 34mpg -Spent $400 on parts for repairs so far, and performed them myself -I could sell this car tomorrow and get almost all my money back...
Good man, my father is a mechanic and he says high mileage is a lessened concern if you are proactive about maintenance and repairs. I now know buying a Toyota at 100K miles for 2,500$ is smart IF I still save maybe a hundred dollars a month for future issues.
My B-I-L does that - $3k for a car - put lots of miles on it and then resell it for almost what he paid for it - basically only out oil changes and any minor repairs.
Payed 2K in cash off a private seller knowing it needed some work but the engine and trans where in great shape. Put another 3K into the car new tires new brakes new windshield new control arms and shocks and all new fluids. Kept the car for 10+ years with no issues and my friends 40K dollar car didn’t even last a year before it started having issues. I don’t get why people don’t look at used cars in great shape that may need little fixing up then buying brand new. Old cars will be cheaper to buy and fix parts will be cheaper to purchase more a less then they would be brand new. Plus if you can find a used car with relatively low mileage that’s a plus.
I make around 150K a year and in my mid 30s. As much as I agree with this gentlemen, I also believe in enjoying life. However I go about it in a smart way as I recently purchased a 2016 Audi A6 Quattro premium plus, with a fully loaded option to include S line, 20 inch rims, beat & cold package and etc. The brand new would have cost me 59K however I only paid 25K at 35000 miles only. It even had some factory warranty left. The thing I didn’t do was purchasing an extended warranty which is stupid expensive as the dealer tried to charge me almost 4 grand. I love my vehicle and it is truly worth the hard earned money. Needless to say, I have 401K and over 15K in my stock portfolio as well as pension that I will receive when I retire. Why wait until I am over 60 to start driving a nice car? (No offense to older people) life is too short to not enjoy this moment as long as you have a solid plan for the future!
Success of marketing campaigns explained early in the video can be accurately measured by the degree of people gotten to think that they are not enjoying life if they are not driving a nice car.
Licenciado Varela I actually don’t have a cable nor TV at home. By that said, I do not watch any type of marketing. You can truly enjoy life without a nice car. It’s just what makes you happier. It can be traveling, playing sports, and etc. mine is driving my Audi! Many people hate when they see persons with a luxury car. I used to be one of them. But the honest truth is, they are just hating ;). Don’t know that many people who would not drive a nice car if they could more than afford it. My $410/month payment for 48 month (3.04 interest) still allows me to save and invest in various places.
I make a living fixing other peoples broken cars. I drive a 20 year old mustang, wife drives a 20 year old Lexus, and daughter drives a 10 year old Civic. Low maintenance cars. All three. They cost me about 700 a year combined to maintain. I know people with monthly payments that big. Don't buy a new car unless you have money to burn. The depreciation alone in the first year of ownership should scare most people away.
@@TechExploresNYC most every city has garages where you can rent a lift hourly. Just gotta decide whether not having to worry with it yourself is worth the cost of the repair.
@@s4nder86 Not at all. There is a big difference between a 500 dollar phone and a 30000 dollar car. I have a two year old Motorola that works perfectly all day long. Vehicles are more than a purchase, they are an investment. Phones are just pieces of tech that are easily replaced.
Agreed! There is another channel called 2cents on here, and they suggested buying a car already 5-7 years old so the majority of depreciation would have occurred. Being a mechanic is a great skill to have.
As a car guy, i 100% agree with this video.Most people fail to realise that these luxury cars are a financial black hole. Especially if you can’t afford it. Most of these cars give a terrible fuel economy and super hard to maintain. If you’re not a car guy and aren’t fixing it up yourself, chances are you’re going to your dealers and oh boy do they rip you off. It’s not the dealers fault either,as they also have to maintain their businesses and because there are ,say 10 mercs for every 1000 Civics, the dealer also has to find a way to milk as much money from a merc to sustain his business . And then there’s The Brand. Slap a Ferrari sticker on a goddamn pair of Puma lowers and boom they are now $70. So essentially you’re buying their brand. It’s so weird that we now associate success and happiness to brands. If you’re driving a lambo you’re successful. Ain’t important if you’re depressed or got no savings or just lost a loved one or just plain sad. What other people will see is just a cocky ass guy in a fancy car.
Since I am living in Alaska a vehicle is essential, everything is miles apart and walking a -20 is tough. This means SO many more people paying off cars. Despite the average income being higher in Alaska than most other states people are more middle class. Awesome video!
Cars suck you dry. I was lucky enough to go almost 10 years without a car payment. I recently sold my car and decided not to buy a replacement because I live close to work. Now I bike, walk or bus so I’m getting more exercise. I live in the US so this is seen as pretty unusual but I live in a beach city where everything is close. My daughter is bussed to and from school. I also just met and made friends with a family from Stockholm who bike every where because that’s what they’re used to. I may buy a car eventually but for now I’m enjoying not having to pay for one plus I don’t have to go to the gym. I think more people should consider it.
Specially when you "rely" on the car to go to work and it takes a dump on you and the Mechanic tells you that he could fix your $1,500 dollar problem and then the very next day your yearly registration fee arrives and next month your sky rocketing premium car insurance bill arrived..Man I recently bought a car like 3 yrs ago and it has delayed by travel plans because surprise maintenance repairs and bills..I think I had more money and was able to travel freely when I didn't have a car and was bus riding or riding my bike everywhere.
Keeping a car is cheaper than trading it in and buying a different one. Even if you have to replace the engine and get it repainted at some point, you're still ahead by keeping your car!
@ATRK i have an '06 Mustang GT. It's pretty basic when it comes to creature comforts compared to new cars and even the newer mustang but that's what i like about it. I do all maintenance myself and it's the most reliable vehicle I've owned yet and so easy to work on especially after owning the VW jetta i turned in for it and parts are cheap. I do a good job replacing things at intervals before they have a chance to break but the only thing in 129,000 miles of driving it that ever really crapped out and threw out a code for the check engine light was a single ignition coil at $79 i changed out in a few minutes the next day...So not bad for the miles I've put on it. The 4.6 liter all aluminum V8 is a dependable engine. It's not going to keep up with the new mustangs but im okay with that. The only downside of this generation GT engine i can think of is the two-piece spark plug design that crack while taking them out of the heads while replace them. I dont know why you say they are expensive for their age cause mustangs don't really hold their value and they are practically everywhere and most are modified with aftermarket parts anyway. Another plus is that you'll always see them in junkyards cause people wreck them. Not a knock on the car itself but the people driving them. So if you're into picking parts to replace yourself then youre saving even more money. It's a love/hate thing with owning a mustang. It's not a race car yet i still get followed by cops on the way home from work when the girl ahead of me is zipping through traffic in her sedan while texting on the phone. It gets old quick. It's just a car with a bigger engine than usual that's good at spinning tires and punching it from one stoplight to the next all while being a much cheaper platform for adding go-fast parts than a foreign sports car that will outperform it in almost all driving conditions. If all of this sounds good for you then i say go for it. I wasn't even in the market for one but mine was out front of the dealership with a sticker price too good to pass up so keep your eye out for a deal. They're out there.
exactly...the transmission in my 92 chevy van blew and i paid 2k to get it rebuilt...friends and family thought i was crazy to fix it because the van was worth nothing....i told them 2k is only about 3 payments on a brand new van and this van has already made me alot of money as i am a contractor...
We’ve been car free for over 3 years now; sold it as soon as the youngest moved to college. We simply ride a bicycle, about 20 miles a day. We no longer have a car payment, nor gas, repair cost, and no more DMV. My license expires in two months and I’m not renewing it! If I really need to go far, I just take an Uber. If further, I take the train or fly.
@@neptunedawn7121 It really depends on where we are. Our home is in a very small town outside a national park. There are a few local stores, but expensive. We also have a small farmers market to pickup fresh food. We use our panniers or a Bob bicycle trailer on our bikes to carry stuff. Most things can just be ordered for delivery. We also have friends and can plan shopping trips together. There has never been a better time to go carless.
I drive a 2002 Honda Accord with 106K miles. The car runs and drives absolutely perfect...and the best thing is? I don't owe a motherfucking dime to anyone on it. New cars and high car payments are for chumps.
@@increase9896 I'm 4 miles to work. I've lucked out with a super short commute over the years, so it's saved a lot of mileage and wear and tear on my cars. 106K miles is a lot for me lol
I have a '97 Ford Ranger 2.3l with 225k, had it for 14 years. The engine uses virtually no oil, synthetic is used in the motor, transmission, and differential. Fluid replacement/flushes are important in my opinion, including coolant and brakes (I have yet to do a full flush on my power steering, I never get around to it). I'm going to run it until the frame rots out, it's cheap to maintain, and I love it. Crate engines are cheap for it, anyway. It's not the prettiest girl anymore, I've sideswiped two deer with it, numerous scratches from brush and getting used around the farm, but the paint still glows. If I get rich it'll get a full body restoration. :)
I love your videos because they are helpful and honest. Thank you for the time you put into making them. I have a 2008 Toyota Camry that was given to me by my oldest brother! When I got it 3 years ago it only had 68,000 miles, now it has 82,000. People keep asking me when am I going to "upgrade" to a new car? I always say: what for? I don't need one. The funny thing is that I actually work 3 blocks away from my house...lol(so I actually walk!). But it's not only for that reason, it's more because I cannot imagine myself working hard just to pay for a car that I don't need! Even my son, who is almost 6 years old asks me: "mommy, why do people buy new cars? Yours is just fine. It takes me to school and brings me back home." 😭
people think a car makes them superior or something when its far from that lol, having the shiniest car doesn't matter, because at the end of the day, cars are simply meant to be tools to take you around, not something to flex, the new cars do the same as the old ones, people are delusional
I would also encourage people to do maintenance by yourself. I am no mechanic but I enjoy working with my hands. It feels great to replace parts and knowing you are saving hundreds of dollars.
I just paid off my car. Only 24,000 miles. I’ve driven it for several years. I plan to keep it for at least another 5 or so years. I notice (in L.A.) that so many people drive luxury vehicles but live in apartment buildings. That “keeping up with the Joneses” mentality is ridiculous and superficial. It would be smarter to invest that money and/or purchase a home.
Playing devils advocate, there's one key point that's getting missed here.... That joy/excitement that comes from driving the car of your dreams. Doesn't that have value? Is it not worth the cost? Why buy that expensive Rolex watch or that Monet painting or go on that luxury cruise? Why not take that money and invest it? In my mind there has to be a balance. You need to value things that bring you joy as long as you don't go overboard. Buy a car that's within your means and don't get carried away by marketing or what your neighbor drives. If riding a bike or taking public transportation gives you joy then by all means do that. This video is certainly on the money and especially eye opening for folks who fall into the latter category of buying beyond their means.
@@sweetnothingsasmr1 Anybody who has ever driven a really nice/really fast car would understand the above comment. Everybody literally wastes money on something in life. simple as that
Its cause youll have a higher chance of getting a used car with secret problems that cost so much and brand new cars get you 3 years of free maintenance and guaranteed quality.(i mean in buying the best budget brand new car)
@@davidlynch7666 thats the only time its worth it if you plan to keep it for the long run but i still think youre better off getting a "used like new" car vs brand new.
My wife and I just traded in both of our cars: 2019 Tahoe Premier and 2021 Silverado LTZ..both fully loaded. We would never buy things we can’t afford, so our reason to trade was easy. We decided we wanted what we want most over what we want now: “freedom”. By throwing ego aside, we eliminated $1400 in car payments per month or $28000 per year. We also eliminated $800 in gas between both vehicles per month. By trading her Tahoe, we bought a car under $30k. The dealership paid off her 16k note and wrote us a 15k check. We walked away with a check and fully paid-off vehicle. Secondly we traded my truck. After trade in, I wrote a $5900 check and walked out with a paid-off used vehicle. We now have an extra surplus each month to put towards investments and retirement. For context, we are both 38 and have full time jobs.
I love this! We have decided to only buy cars cash. We are so close to being financially free. We started our flipping business to help us accomplish this. We don’t care what people think of us.
This is great! I always wondered how people could afford to to pay for cars in cash. I've had my car paid off for 2 years now, and will continue putting away what my payment used to be for when I need my next car. I've really enjoyed watching your videos man, super helpful.
The closest thing to a new car I've bought was 3 years old with 6,700 miles that I paid half the original price for. There aren't many good reasons to buy new.
People that use cars as a status symbol are mostly bullshitters. Today, its hard to convince people that a sweet car means "living large" because anyone can lease a sweet car.
The local car rental place uses a sticker with small numbers on the back window. I rented a van there once for a trip with friends. At the class reunion, I saw at least 5 cars with the rental company sticker, like we are supposed to be impressed with them driving new german car. I felt sorry for them.
Main reason: Not only you calculate your budget for your payment but also you have to include your potential Yearly Maintenance Cost and this play out big time to PreOwned Vehicle specially those out of bumper to bumper warranty!!
a former co-worker would drop upwards of 300 per month for a new vehicle (leased); they didn't want to have to pay for any repairs/maintenance. when i left, they were shelling out about 425 per month, on top of paying for their children's private school and a mortgage; all this on a teacher's salary.
What if you like cars and enjoy driving them and it's your passion? No point driving a good looking car when you are old, you have to enjoy your youth when you are young and have energy.
Another area people get tricked is oil changes. Every 3000 miles hasn't been necessary for YEARS. Some synthetic blends can go 10k miles+, but that little sticker still says "Come back in 3 months." Nope!
People fail to realize how much their car actually costs them. Taking into account opportunity cost on your money and depreciation expense makes it clear how costly a vehicle can be. I’m not against people owning nice vehicles. I’m against people not realizing how much it actually costs, and if they did realize it, they wouldn’t have bought that level of car
@@jmo_30 I do %0 interest for 36 month. I don't see a problem. Not driving to show up but driving a van as a electrician who can't afford to lose a day of work due to repairs.
I brought $2k Hyundai Sonata 2007 five years ago, and this baby is still running fine with 102k mileages. I changed the oil regularly, every 5k miles, to maintain this baby and I’m happy with it.
Only thing missing is that you still need to get around so you have to pay for carbs or transit monthly if you dont own a car. And going on road trips is costly
Student loans are painfully simple. Step 1: choose oversaturated degree Step 2: sign up for debt Step 3: predictably fail to gain employment Step 4: cry on Twitter
Student loans weren't always like this. Mine is at 2% interest and I pay $183 per month. Depending on the financial school of thought you follow, it's not even worth paying off because I can make more directing the extra payments into my investments. But don't tell Dave Ramsey I said that! Those were the kind of terms we got before the government got directly involved.
Sadly, walking is not a good option in smaller cities. Car drivers will ignore pedestrian signs and shout at you out of their cars. Less and less people walk on the sidewalks each decade.
I'm in my 30s now and I've never had a car payment. Every car I've ever purchased was cash. The last personal vehicle that I purchased outside of auction was years ago. It's a long, but rather interesting story if anyone decides to read it. A while back I was looking for a used car, 4 door sedan, V6, naturally aspirated (no turbo), automatic, under 100k miles, and less than $4,000. So I was checking out online ads (this was before craigslist was big and facebook marketplace didn't exist), and I found a car that fit the bill, one state over (it was in Oklahoma, I live in Texas), and oddly, it wasn't from a private party, it was from a dealer. Reason why this was odd was because $4k would be the lower end of a private seller, and dealers sell for more because they're in the business to make a profit. So I didn't call right away, I called a few hours later close to the business closing time that was listed in the ad. So just a few minutes before closing, I call and I get a phone receptionist and I ask about the car and if the price was correct. So she puts me on hold for a few minutes and comes back to confirm that the car was there and that the price was correct. So I leave very early the next morning and arrive BEFORE the dealership opened, and I waited around until a salesman was available to assist me. So I show him a printed copy of the ad, and I'm holding a thick envelope in the other hand to let him know that I'm ready to deal, no haggle, just sign the paperwork and be done. So he disappears for a few minutes and he comes back with about 5 sets of keys and this unnatural grin on his face, almost from a comic book or a cartoon. "Hey John! I've got some bad news, we don't have the car anymore, it's sold. But don't you worry! I've got you covered, you can count on me! I've got some other nice cars that are exactly what you're looking for and with the $4k that you brought with you, that's enough of a down payment that you won't have to worry about getting approved for financing, I'll guarantee it!" So it took it a minute for it to sink in. I've never had a car payment. When I was 16, my first car costed me $850, which I paid for in cash, as well as the cars after that, and that was what I was intending to do today. So I drove hundreds of miles to end up with a car payment? AND HOW IN THE WORLD DID IT SELL? The car was there at closing time yesterday! And I got there BEFORE the dealership opened! Did the car somehow get sold while the business was closed? I didn't bother to look at the cars that he thought would interest me. I just thanked him for his time and left. When I got home, I went back to the "car search engine" and typed in my criteria again and lo and behold in the search results, is still the same listing for the same car that was no longer available at the dealership! At that point I realized that the dealership never intended to sell me or anyone else that car. The ad was just a lure to get people to come to the dealership where they would present customers with a car that can be purchased with a $4k downpayment instead of purchased outright for $4k. This website allowed users to post reviews of their experiences with dealerships. So I posted mine. My review was limited only to my experience and I never outright accused the dealer of using bait and switch tactics ( I found out later that there is actually a term for this practice, "bait and switch"). But I did go into detail how the car was there at closing time and before opening the next day it was sold, and how the car was still listed at the end of the day when I continued my search when I got back home, and that while I was there I was being coaxed into handing over what should have been an outright purchase price to be used as a financial down payment. I was so steamed by my experience that I did not post my experience anonymously, I included my name with the post. Despite not including my phone number in the post, 3 days later the same phone receptionist that answered my initial contact called me and demanded that I remove my post because it was my fault that the car was sold before I got there. Had I left a deposit, they would of held on to the car for me. Her argument made no sense to me because (1) she never offered me a chance to leave a deposit, it was closing time. She, like the rest of her co-workers were in a hurry to close up and go home. (2) I also didn't expect for the car to somehow be sold while the business was closed, so I was expecting the car to be there. (3) She never gave any explaination as to why they were still advertising a car they no longer had more than 24 hours later after it was supposedly sold. I never removed my post.
The numbers never lie. The problem is that the avg Joe doesn't see the future any further than next week or next month. You are 100% correct but they value that "status" more.
This video is awesome. As a dealer, I completely agree with what you said. This is especially true with subprime, buy-here pay-here style loans. The rate can be as high as 29.99%! and don't forget that if the car is financed you need full coverage insurance too. I sell mainly on a cash basis, under $5,000 and focus on helping people understand that you can affordably own a car. I bought my current daily at an auction for $600 back in November of last year. Anyways great channel 👍
For me, my car is used for work and to run my errands. I only buy used cars since it doesn't appreciate in value. I paid it off this past October and I dont want a car payment for a while.
I feel like the underlying theme in this video is for people to not live above their means and yes, more often than not, people will buy cars they really can't afford because they want the "status". there is an argument that if you have excellent credit and can get a car loan for >2% interest, it sometimes doesn't make financial sense to dish out a large sum of money at one time and you can finance the car and make extra payments over time to reduce the total interest paid and still have access to larger liquid assets.
Good point, & more importantly how proficient are you in generating income at the source? Also, do you know where money comes from? Do you understand how it works? Are you aware that it is abundant? Did you know money does not actually exist? Then, financial management is introduced to the system.
I'm sorry but whenever I see a letting agent (real estate agent) pull up in my housing estate in a nice car trying to give impressions they are doing well you can see right through it. For one, you're renting a house in my housing estate, one of the lowest end property areas so there's that. Aside from that, I cycled for my groceries for 5km 3 times a week up hills cos I was too poor for a car. When I started my own business I waited til I had 15k in the bank before buying a 5k Toyota Yaris cos I wanted to ensure i had enough fall back money. It was super weak 69bhp engine that was rubbish on hills. So last year I waited til I had saved 45k before buying a 15k VW Golf. I just always think, before buying anything you should have a minimum of 3 times as much in the bank. If you don't then you can't have it! PCP plans are just the worst and they are the next bubble to burst.
I wish I had that kind of mindset, I grew up poor and as soon as I had a decent paying job I blew money and ran up my credit, I'm now in the process of fixing that and will be getting out from under my car note in 20 months, once I do I'm definitely going to change my ways.
So so so glad I just backed out of paying 40K cash for a 2007 Z06 Corvette. The money pit!!! Buy a car you can't afford to impress people you don't like... DR.
Fast forward to now where used cars are going for the same price and in some cases more than the new models. I wanted a used car, but the 30% price increase has made that a terrible financial decision to make, because once supply meets or exceeds demand, the value is going to drop and cause more financial problems for people. On the flip side, too many people live well beyond their means. They don’t take into account gas, insurance, and wear and tear repairs that have to be made, which just tacks on to the car note. Also when people get a raise they unconsciously spend more.
I understand this math as I work in finance world. However I still don't understand why people keep reference buying a car is an "investment"... My take has always been "ownership". If u own the car and drive it for many years, the money paid is worth it by then. Unless u r a person that change car everything 2 years, then this video is applicable to you to consider.
A 3-5 year old, one owner Toyota averaging 15-20 thousand miles a year is the best car to buy. Someone else has already paid the depreciation and the car is just getting broken in at that point. Plus with the “higher miles” people will be afraid to buy and you can swoop in after it’s sat for a while and offer even less. Edit: we got a six year old sienna for a steal because it had a bunch of highway miles. Three years now with no car payment and the sienna is going strong.
My whole life since I was 16....40 years......my car purchases have always been an investment. I always buy cheap, sometimes repair, drive, then sell for a profit. My current car I have been driving for 3 years....bought it used for $450 from an elderly lady with only 87K miles. I have been driving it for 3 years and getting ready to sell. With purchase price and repairs, I still only have $750 invested in it and have driven it 22K miles. I will probably sell it for $1500. Yes, I own my own house too! I bought it for cash at the height of the foreclosures in 2009.....for $13,200. It is an acre of commercial land with a house on it. I now work and live at the same location.
What I did was a cash out refi on my house and used the cash out to pay off my car loans. Now the interest rate is not only lower, but deductible as well and by spreading out the payments over 30 years it increased my cash flow by $1,200 a month which I use to invest!
We Americans got suckered into this position. An interesting story is how the decision to not invest in passenger trains on a large scale was made by General Motors. It is not even funny.
Wow! That was exactly what I was told some years back (I think Marko was in elementary school at that time) when I bough a new Nissan. Just before I singed the last document, the finance guy said : you know, as soon as you drive this car off the lot, this car will lose 2K.
The problem isn't just buying a car,but the headache of getting surprises when it breaks down or has a serious problem and needs attention right away and worst if you don't know much or at all of auto mechanics that the repairs cost you dearly.Also the hassle of dealing with Car insurance premiums and government fees all around..It does drain your wallet..
I buy a 3-7 year old car with low miles. Keep it over 15 years. Not to exceed $10,000 and change upon purchase. You don't need new cars. You don't need to replace them every 6 years or less. It is silly.
I've been driving for over 30 years...never had a car loan. Starting out we'd buy used cars with cash, no junk but reasonably priced with 60k-70k miles and bought another after a few years. 13 years ago we switched to buying modestly priced new vehicles with cash and we keep them for about a decade. Currently I'm still loving my 2006 GMC pickup (never buying another truck at these ridiculous prices and poor quality) and our 2015 Subaru Forester. Both we'll keep driving for many years to come as they're in perfect condition and run great, although I'll replace my truck's rear bumper in the next year or two as it's chrome is just starting to flake. Since the money we would have been making payments with (along with a lot of our other savings) has been working for us in the market we can easily afford any vehicle we'd like with cash but we already have the ones we want. This has been a huge money saver for us and works very well.
This is hard for me. I’m a huge car enthusiast. I don’t buy expensive cars to show off. I love all cars for what they are made for. Now I am driving an old civic from 2013 economical and it’s just to save money!!! I’m earning good money and want to upgrade to an Audi S5 or a Porsche. But I know it’s not a wise choice. So watching vids like this to convince myself not to. I know novelty wears off, but as enthusiast it bloody kills me to go broke.
@@krazyj1957 Middle class is the MOST stressful by far. You're not poor enough to get gov't subsidies, and you're not rich enough to live life on your own terms. The best quality friends come at any point in the socio-economic scale.
Let's see, we own our home on a acre of land which is no longer financed. Only thing we have financed is my wife's new car. Enough investments to live comfortable on the rest of our life's unless the bottom falls out then it's not going to help the rich either. Good healthcare which at my age you need because only thing we stress over is our health. I'm retired and can afford to take the boat out and enjoy a nice sunny day, I have a lot a friends who are in the same place and I'm sure they have some stress in their life's but so have I. I worked on cardialgy based and medical management systems for many years traveling to many clinics and hospitals. The most stressed out people I ever saw was the people on the top. You can have it.
@@krazyj1957 Congrats! I wouldn't consider you middle class then. Everyone's case is different. I'd rather have a UA-cam channel making me money while I sleep than have to go to work to pay the bills worrying if I'm going to get fired. Im happy to be middle class with minimum time invested in working. I guess I meant I'd rather be rich in time than money. Rich = options.
solution: no car/truck. live in walkable neighborhood. own bike. take public transportation. however, i like owning a car/truck b/c i like to camp and fish. to lower the financial impact: get a low rate auto loan (you need a good credit score), buy a truck/car with the least depreciation; do your own maintenance. starting with a used car doesn't hurt either.
I just stopped using a Car for commuting, I only use them for weekend shopping/visiting friends/ carry items or people. Story behind it is: My VPN wasn't set to US, so when I was researching the most sold vehicles worldwide...Instead of pulling up cars, Google showed a whole bunch of Scooters and Motorcycles, which led me to find (and buy) the most sold vehicle in the world: A Honda Supercub!! I get like 170MPG with it. Barely needs any maintenance, heck, the whole thing could explode, and it'd STILL BE cheaper to replace it than buying/fixing even a junk car. Runs like a dream and can go anywhere I need...I'm never putting wear and tear miles on a car ever again!!
**YOU HAVE NO IDEA HOW MUCH YOUR VIDEOS ARE HELPING W/ ME IN BUYING A CAR** ******TY 🙏 so very much***** **Please keep the videos COMING I'm learning so much**
I put about 60% down on a car and because I have really good credit, I got it for zero percent interest for 5 years. I do plan to pay it off before then 😀 great video btw.
I’ve been driving a 1995 pick up truck for years, just upgraded to a 2007 Jeep. In my case all I need a car to do is get me from A to B. Also I do all the work to my own cars, saves me a ton of money every year.
I'll add this... A nice car is a Toyota, a Mazda, a Nissan or a Honda. I advise people who need a car, grasp some knowledge, keep it clean, be on time with the maintenance, drive safely, and buy something no less than 2K and no more than 6K. Look up Scotty Kilmer and look up reviews on the car you want. Learn how to fix things yourself.
A slightly better (and slightly riskier) idea: If you plan to buy a car and have the cash, don't. Instead, invest the cash in the stock market (10% annual return, 7% adjusted for inflation), borrow cash to buy a car (excellent credit can currently get rates below 3.5%), then periodically (monthly) pull money out of the investment to pay for the car (Or, stop contributing to the money fund by the amount of the car payment). His other beliefs still fit: buy a reliable used car.
I regret buying a 43,000 dollar truck with payments of 600 per month but it was a tax write off used as my “business vehicle” for metal roofing and honestly I love the thing lol, it brings me as much happiness as any material item could. I know it’s not necessarily financially sound but my investments make me enough side passive income to justify keeping it..I don’t recommend anyone doing this that doesn’t have an emergency fund plus extra savings and investments but one thing I never hear anyone talk about is what makes them happy. You don’t enjoy things the same as you get older so as much as I’d love to let that extra money grow for retirement I already have a fund set up for that so why not indulge a little bit while I’m young (26), healthy, and can actually truly enjoy it??
I'm an electrician for Chrysler. I make great money and refuse to buy a new vehicle. I can easily afford whatever we make, but I sure as hell don't want to afford it. I got a 99 Neon that has been awesome to me. 210,000 on it and still runs great. My coworkers give me crap, but I tell them the $500 - $700 you pay per month, goes into my retirement.
*Do you buy cars with cash?*
I can never see myself going to a dealer and putting money as down payment and driving car that I dont own yet paying extra for it through interest and and with the possibility delaying Payment due to rainy day event and that causing my financial life goal in jeopardy. I have always bought my car with Cash. I have bought 2017 Chevy impala, after a year I sold it and bought 2016 Honda civic touring and now I have recently bought 2015 BMW 328i. My next car that I am aiming for is a white BMW M4 convertible:)
Much easier to negotiate when you don't need anything from the dealer! I get a few year old car with cash and spend the money I'm saving on beer and silly things
Typically we only drive Toyota’s Honda’s and Nissans and purchase a 5 year old model in cash and keep them for 10 years or to 150k miles. That has allowed us to stay car payment free while we max out our 401k. Don’t drive broke.
Newer cars also have higher insurance payments. Although older cars have higher maintenance costs, that's mostly negated by the fact that they've already depreciated most of their value and so depreciate much more slowly than newer cars. Old cars FTW!
@@husseinali6512 Nice! Glad to see you've jumped to the German side :)
So....long story short: if you're going to get a car
1) Pay cash
2) Get a car that's useful
3) Find one that's low maintainence
4) Keep it until the wheels falls of
could you not pay the full price by card?
@@Reslessmeteor897 Maybe, if your credit limit is high enough, XD!
Yes!
Say you have a card limit of $5,000. Buy a 10 year old car from a dealer who doesn't charge fees outside of sales tax. Depending on your card you might actually get some cash back!
what about those rare zero interest car loans at a credit union?
Poor people show their wealth with car. Rich people show their wealth with bank account. Public schools really need to be teaching this to kids.
The public schools will never teach the value of a dollar because today everyone gets a trophy. It's taboo to say the truth nowadays especially with ghetto rich!
So true. My neighbors are on public assistance yet the have a new Mustang and an older BMW. They also apparently spent a lot on MJ, but besides the point.
Karl S MJ?
wealthy people don't keep cash. they keep revenue generating assets, like rental units, businesses, etc.
The Poor show their wealth with clothing, the middle class show their wealth with cars/trips/education, the rich show their wealth with boats/houses/expensive cars, & the truly wealthy show their wealth with time/choices/contributions/impact.
The education system was created in service for the 'upper bands' of our world today. For what purpose? Well, to supply worker bees for the sake of business & servitude (oligarchy & such.)
Nobody making $30k to $40k per year should be buying $50k cars/trucks!
Good point. My truck cost me 1% of my annual income.
@@Shredxcam22 liar
Nobody making 100k a year should buy a 50k vehicle, for 6 months every single paycheck will go to that hunk of metal sitting in your driveway
@@computerscientist5953 I drive a 94 f350 xl. Paid 1500. My annual income was $13500 last year. Pretty close. Not including income outside my daily job. I've spent a lot more on my tractor and implements but they are used constantly and have better resale value.
Or a European import that are money pits
You missed the major point. Borrowing money to buy a depreciating asset puts you into negative equity‼️💸💸💸
Borrowing money to use vehicle for work and pay 5% of your income for it is just fine
Smart!
Bingo
He does at 5:00 lol
Darren Boman amén
The goal is to buy a Toyota or Lexus and hold on to your car for 15-20 years, you’ll really save money!
Hell to the yea
Facts . I have one and no issue.
Shoudday Cha
YES. 👍
i bought a prius and it is probably the best investment i could have made. it is nice only having to put gas in when I want to, and not when I have to.
I just bought a 2015 Lexus is250 f sport and imma keep that baby for 15 years or more.
My car is 19 years old and it still runs problem free. I'm going to keep it as long as I can. Here's to another 5 years!
Same here
must be Japanese then.
Does you car have plenty of air bags, stability control, traction control, ABS??? I am not even talking about fwd collision, blind spot, etc. You do not need to buy a brand new car necessarily, but 19 years is way too much in my opinion, safety should be first priority!!
@@Larry_Kabberga 10 air bags, yes stability control, yes traction control and yes ABS. It's a Lexus LS430. It also has more features than your average car today thank you very much. Does your car have double glazing, a fridge, massage seats as well as cooling and heated seats? Check and mate.
@@biggerbitcoin5126 I was referring to the 19 year old car the OP drives. It is highly unlikely that a 19 year old car or any car built in the 90's comes with safety features like ESC, which has proven to save lives. But my 2015 Civic does not have a fridge so now I am very upset.
I can totally relate. Twenty years ago I was about put 5K down to finance my 35K "dream car". At the last minute I was offered the opportunity to buy a wrecked version of the same car with the 5K cash, which I then parted out and started my specialty auto parts business that has paid me back multiples of my initial investment. It's nothing more complicated than making your money work for you instead of working for your money.
My driver is a 1978 Ford F150. If anything breaks on it, I can fix it myself. Parts are cheap and plentiful and the design is simple. No car payments for 25 years.
If you don’t get rich that way you will be a loser, a loser with an old car
@@sccanj Are you rich? Or are you a loser
Even if you make 100K a year buying a 40-50K car is useless.
I have bicycle commuted for 20years. I haven't owned a car for over a decade.
If I were to make a rough guess, in that 10years, I have saved $15K (low-end) & $80K (high-end)
My savings account reflects closer to that high-end number.
A $40-50k car is likely still too much car for someone making $100k/yr (gross or net), unless that someone has a nice trust fund waiting, and (s)he lives with her/his parents rent-free (nothing wrong with that). The only way to justify it would be if it's someone's hobby. Then it's a matter of priorities.
@@benzzoy True. But why would someone with a trust fund living with their parents be on this thread lol
@@benzzoy ,
I cannot understand going, even $20K in debt, just to get from point A to point B. That just pays for the tool, itself, not any of its operating or maintenance costs.
It seems like an absurd life-choice to me.
@@xjarheadjohnson bicycles make you fit and save you money and relieve stress. cars cost you money and make you fat ,and cause stress sometimes too if persons had a bad day and they're stuck in traffic. I don't usually see people on bicycles having road rage. Lol
"The paid off home mortgage has TAKEN the place of the BMW as the status symbol of choice." Dave Ramsey
listened to Dave once, it was a 9 minute ad about his parents realtor business and how we should all buy houses. Anyways it was basically a commercial
@@510jesus For Dave Ramsey, ignore the ads and his real estate advice maybe, but stick around for his DEBT REDUCTION plans and advice, which is achievable and repeatable; his regular callers who in 2-3 years got out of 200k+ of debt is incredibly inspirational.
I actually gave him another shot considering he showed up repeatedly in my recommendations. I've always been financially cautious and never really financed anything that I couldn't pay off in full within 1 months statement. Anyways, it's fun listening to others debt situations trying to keep up in the rat race
He should stick to cooking
@@ohwiseone142 lol I think you're confusing Dave with Gorden. No connection
Haven't had a car payment since 1994.
Daniel Rojo how many mechanics have you visit tho ?
@@Justificable401 not that many, besides even new cars usually need repairs before they're paid off
@argh666 LoL 😂. Chevrolet. I never said I didn't buy a car, I said haven't had a payment since '94. In 1991 I bought a used Chevy truck, paid it off in three years and drove it for over 10 years. It was still going strong with over 200k miles before it got stolen. I then bought a used Mercedes 300d and drove it until '05 when I got rear ended. Then I bought a used '03 Chevy Malibu which is still going strong. Paid cash last two vehicles.
You must drive a Honda 😆
@@MrEOM41 LoL 😂 Chevrolet
How cars don’t make me broke
-Paid $1300 for a high mileage 2007 Ford Focus
-Owned it for 2 years now
-Gets 34mpg
-Spent $400 on parts for repairs so far, and performed them myself
-I could sell this car tomorrow and get almost all my money back...
If only many people is a smart buyer like you
Good man, my father is a mechanic and he says high mileage is a lessened concern if you are proactive about maintenance and repairs. I now know buying a Toyota at 100K miles for 2,500$ is smart IF I still save maybe a hundred dollars a month for future issues.
The time spent on the car should have been ideally spent making money or learning something to make more money
My B-I-L does that - $3k for a car - put lots of miles on it and then resell it for almost what he paid for it - basically only out oil changes and any minor repairs.
Payed 2K in cash off a private seller knowing it needed some work but the engine and trans where in great shape. Put another 3K into the car new tires new brakes new windshield new control arms and shocks and all new fluids. Kept the car for 10+ years with no issues and my friends 40K dollar car didn’t even last a year before it started having issues. I don’t get why people don’t look at used cars in great shape that may need little fixing up then buying brand new. Old cars will be cheaper to buy and fix parts will be cheaper to purchase more a less then they would be brand new. Plus if you can find a used car with relatively low mileage that’s a plus.
I make around 150K a year and in my mid 30s. As much as I agree with this gentlemen, I also believe in enjoying life. However I go about it in a smart way as I recently purchased a 2016 Audi A6 Quattro premium plus, with a fully loaded option to include S line, 20 inch rims, beat & cold package and etc. The brand new would have cost me 59K however I only paid 25K at 35000 miles only. It even had some factory warranty left. The thing I didn’t do was purchasing an extended warranty which is stupid expensive as the dealer tried to charge me almost 4 grand.
I love my vehicle and it is truly worth the hard earned money. Needless to say, I have 401K and over 15K in my stock portfolio as well as pension that I will receive when I retire.
Why wait until I am over 60 to start driving a nice car? (No offense to older people) life is too short to not enjoy this moment as long as you have a solid plan for the future!
Success of marketing campaigns explained early in the video can be accurately measured by the degree of people gotten to think that they are not enjoying life if they are not driving a nice car.
I agree, enjoy.
Licenciado Varela I actually don’t have a cable nor TV at home. By that said, I do not watch any type of marketing. You can truly enjoy life without a nice car. It’s just what makes you happier. It can be traveling, playing sports, and etc. mine is driving my Audi! Many people hate when they see persons with a luxury car. I used to be one of them. But the honest truth is, they are just hating ;). Don’t know that many people who would not drive a nice car if they could more than afford it. My $410/month payment for 48 month (3.04 interest) still allows me to save and invest in various places.
Same here.,
Well put!!!
I live in New Hampshire, has horrible public transportation no car means you're going to get nowhere
I make a living fixing other peoples broken cars. I drive a 20 year old mustang, wife drives a 20 year old Lexus, and daughter drives a 10 year old Civic. Low maintenance cars. All three. They cost me about 700 a year combined to maintain. I know people with monthly payments that big. Don't buy a new car unless you have money to burn. The depreciation alone in the first year of ownership should scare most people away.
@@TechExploresNYC most every city has garages where you can rent a lift hourly. Just gotta decide whether not having to worry with it yourself is worth the cost of the repair.
Did the depreciation of your phone scare you away?
@@s4nder86 Not at all. There is a big difference between a 500 dollar phone and a 30000 dollar car. I have a two year old Motorola that works perfectly all day long. Vehicles are more than a purchase, they are an investment. Phones are just pieces of tech that are easily replaced.
I only drive used Acura's
Agreed! There is another channel called 2cents on here, and they suggested buying a car already 5-7 years old so the majority of depreciation would have occurred. Being a mechanic is a great skill to have.
As a car guy, i 100% agree with this video.Most people fail to realise that these luxury cars are a financial black hole. Especially if you can’t afford it. Most of these cars give a terrible fuel economy and super hard to maintain. If you’re not a car guy and aren’t fixing it up yourself, chances are you’re going to your dealers and oh boy do they rip you off. It’s not the dealers fault either,as they also have to maintain their businesses and because there are ,say 10 mercs for every 1000 Civics, the dealer also has to find a way to milk as much money from a merc to sustain his business . And then there’s The Brand. Slap a Ferrari sticker on a goddamn pair of Puma lowers and boom they are now $70. So essentially you’re buying their brand. It’s so weird that we now associate success and happiness to brands. If you’re driving a lambo you’re successful. Ain’t important if you’re depressed or got no savings or just lost a loved one or just plain sad. What other people will see is just a cocky ass guy in a fancy car.
Since I am living in Alaska a vehicle is essential, everything is miles apart and walking a -20 is tough. This means SO many more people paying off cars. Despite the average income being higher in Alaska than most other states people are more middle class.
Awesome video!
Damn
Cars suck you dry. I was lucky enough to go almost 10 years without a car payment. I recently sold my car and decided not to buy a replacement because I live close to work. Now I bike, walk or bus so I’m getting more exercise. I live in the US so this is seen as pretty unusual but I live in a beach city where everything is close. My daughter is bussed to and from school. I also just met and made friends with a family from Stockholm who bike every where because that’s what they’re used to. I may buy a car eventually but for now I’m enjoying not having to pay for one plus I don’t have to go to the gym. I think more people should consider it.
Specially when you "rely" on the car to go to work and it takes a dump on you and the Mechanic tells you that he could fix your $1,500 dollar problem and then the very next day your yearly registration fee arrives and next month your sky rocketing premium car insurance bill arrived..Man I recently bought a car like 3 yrs ago and it has delayed by travel plans because surprise maintenance repairs and bills..I think I had more money and was able to travel freely when I didn't have a car and was bus riding or riding my bike everywhere.
how do you get groceries back to your house?
Same here, I bike mostly and work from home
@@eastsideozzy Amazon delivers fresh food, In select cities, within 2 hours.
@LotusLambo take your own advice mate
Keeping a car is cheaper than trading it in and buying a different one. Even if you have to replace the engine and get it repainted at some point, you're still ahead by keeping your car!
Yep. I’m staying in my ‘05 Mustang.
@ATRK i have an '06 Mustang GT. It's pretty basic when it comes to creature comforts compared to new cars and even the newer mustang but that's what i like about it. I do all maintenance myself and it's the most reliable vehicle I've owned yet and so easy to work on especially after owning the VW jetta i turned in for it and parts are cheap. I do a good job replacing things at intervals before they have a chance to break but the only thing in 129,000 miles of driving it that ever really crapped out and threw out a code for the check engine light was a single ignition coil at $79 i changed out in a few minutes the next day...So not bad for the miles I've put on it. The 4.6 liter all aluminum V8 is a dependable engine. It's not going to keep up with the new mustangs but im okay with that. The only downside of this generation GT engine i can think of is the two-piece spark plug design that crack while taking them out of the heads while replace them.
I dont know why you say they are expensive for their age cause mustangs don't really hold their value and they are practically everywhere and most are modified with aftermarket parts anyway. Another plus is that you'll always see them in junkyards cause people wreck them. Not a knock on the car itself but the people driving them. So if you're into picking parts to replace yourself then youre saving even more money.
It's a love/hate thing with owning a mustang. It's not a race car yet i still get followed by cops on the way home from work when the girl ahead of me is zipping through traffic in her sedan while texting on the phone. It gets old quick. It's just a car with a bigger engine than usual that's good at spinning tires and punching it from one stoplight to the next all while being a much cheaper platform for adding go-fast parts than a foreign sports car that will outperform it in almost all driving conditions. If all of this sounds good for you then i say go for it. I wasn't even in the market for one but mine was out front of the dealership with a sticker price too good to pass up so keep your eye out for a deal. They're out there.
exactly...the transmission in my 92 chevy van blew and i paid 2k to get it rebuilt...friends and family thought i was crazy to fix it because the van was worth nothing....i told them 2k is only about 3 payments on a brand new van and this van has already made me alot of money as i am a contractor...
We’ve been car free for over 3 years now; sold it as soon as the youngest moved to college. We simply ride a bicycle, about 20 miles a day. We no longer have a car payment, nor gas, repair cost, and no more DMV. My license expires in two months and I’m not renewing it! If I really need to go far, I just take an Uber. If further, I take the train or fly.
Very cool!
Who cares!
What do you do about shopping and transporting groceries?
@@neptunedawn7121 It really depends on where we are. Our home is in a very small town outside a national park. There are a few local stores, but expensive. We also have a small farmers market to pickup fresh food. We use our panniers or a Bob bicycle trailer on our bikes to carry stuff. Most things can just be ordered for delivery. We also have friends and can plan shopping trips together. There has never been a better time to go carless.
@@dang75790 😂
I drive a 2002 Honda Accord with 106K miles. The car runs and drives absolutely perfect...and the best thing is? I don't owe a motherfucking dime to anyone on it.
New cars and high car payments are for chumps.
Hell yeah
I’m rocking a 99 Accord for the same reason!!
I drive a 98 E430 Benz, 115k miles on it - love it - Heres a pic: i.imgur.Com/M8k0cu5.jpg
damn bro do you ever drive it? i have a 2001 accord with about 180k on it lol
@@increase9896 I'm 4 miles to work. I've lucked out with a super short commute over the years, so it's saved a lot of mileage and wear and tear on my cars. 106K miles is a lot for me lol
I have a '97 Ford Ranger 2.3l with 225k, had it for 14 years. The engine uses virtually no oil, synthetic is used in the motor, transmission, and differential. Fluid replacement/flushes are important in my opinion, including coolant and brakes (I have yet to do a full flush on my power steering, I never get around to it). I'm going to run it until the frame rots out, it's cheap to maintain, and I love it. Crate engines are cheap for it, anyway. It's not the prettiest girl anymore, I've sideswiped two deer with it, numerous scratches from brush and getting used around the farm, but the paint still glows. If I get rich it'll get a full body restoration. :)
I love your videos because they are helpful and honest. Thank you for the time you put into making them.
I have a 2008 Toyota Camry that was given to me by my oldest brother! When I got it 3 years ago it only had 68,000 miles, now it has 82,000. People keep asking me when am I going to "upgrade" to a new car? I always say: what for? I don't need one. The funny thing is that I actually work 3 blocks away from my house...lol(so I actually walk!). But it's not only for that reason, it's more because I cannot imagine myself working hard just to pay for a car that I don't need! Even my son, who is almost 6 years old asks me: "mommy, why do people buy new cars? Yours is just fine. It takes me to school and brings me back home." 😭
Thanks Vanessa I appreciate the kind words :)
That's a smart young fellow right there who thinks things through for himself 💖
people think a car makes them superior or something when its far from that lol, having the shiniest car doesn't matter, because at the end of the day, cars are simply meant to be tools to take you around, not something to flex, the new cars do the same as the old ones, people are delusional
I would also encourage people to do maintenance by yourself. I am no mechanic but I enjoy working with my hands. It feels great to replace parts and knowing you are saving hundreds of dollars.
I just paid off my car. Only 24,000 miles. I’ve driven it for several years. I plan to keep it for at least another 5 or so years. I notice (in L.A.) that so many people drive luxury vehicles but live in apartment buildings. That “keeping up with the Joneses” mentality is ridiculous and superficial. It would be smarter to invest that money and/or purchase a home.
Playing devils advocate, there's one key point that's getting missed here.... That joy/excitement that comes from driving the car of your dreams. Doesn't that have value? Is it not worth the cost? Why buy that expensive Rolex watch or that Monet painting or go on that luxury cruise? Why not take that money and invest it? In my mind there has to be a balance. You need to value things that bring you joy as long as you don't go overboard. Buy a car that's within your means and don't get carried away by marketing or what your neighbor drives. If riding a bike or taking public transportation gives you joy then by all means do that.
This video is certainly on the money and especially eye opening for folks who fall into the latter category of buying beyond their means.
It does, agreed
@Shorty but the point is that emotional value is also important in life and sometimes its maybe more important than financial value
Find joy/excitement from cupcakes, not cars
@@sweetnothingsasmr1 Haha! Sounds sensible especially a freshly baked one! 😘
@@sweetnothingsasmr1 Anybody who has ever driven a really nice/really fast car would understand the above comment. Everybody literally wastes money on something in life. simple as that
It's not cars that keep people broke. It's being impatient and uninformed that keep people broke. This can be applied to many things in life.
I dont know why people buy brand new. Buy one 1-3yrs old and save a lot of money. Then keep it forever.
Its cause youll have a higher chance of getting a used car with secret problems that cost so much and brand new cars get you 3 years of free maintenance and guaranteed quality.(i mean in buying the best budget brand new car)
I bought new in 2006 and my truck is still running strong. The longer I have it, the longer I don’t have payments lol
@@davidlynch7666 thats the only time its worth it if you plan to keep it for the long run but i still think youre better off getting a "used like new" car vs brand new.
As a car enthusiast I could never keep it forever. Weakness of mine. But I agree on not buying brand new.
Unless you are a mechanic a car probably won’t last you forever
My wife and I just traded in both of our cars: 2019 Tahoe Premier and 2021 Silverado LTZ..both fully loaded. We would never buy things we can’t afford, so our reason to trade was easy. We decided we wanted what we want most over what we want now: “freedom”. By throwing ego aside, we eliminated $1400 in car payments per month or $28000 per year. We also eliminated $800 in gas between both vehicles per month. By trading her Tahoe, we bought a car under $30k. The dealership paid off her 16k note and wrote us a 15k check. We walked away with a check and fully paid-off vehicle. Secondly we traded my truck. After trade in, I wrote a $5900 check and walked out with a paid-off used vehicle.
We now have an extra surplus each month to put towards investments and retirement.
For context, we are both 38 and have full time jobs.
This man and Dave Ramsey keep me financially sane. Thanks for your work.
I love this! We have decided to only buy cars cash. We are so close to being financially free. We started our flipping business to help us accomplish this. We don’t care what people think of us.
Respect! Keep it up
Smart. You’ll be the ones enjoying retirement.
Spot on man! People wanting to look rich rather than being rich!
The best way I’ve seen it put! Look rich or be rich? Hmmm.....
You need to go to all High schools and teach this to young people that are just about to buy there first vehicle!
Read a blog about how young people "hate america" because they're riding the rail vs buying a car. Smartest way to go if you can get away with it.
This is great! I always wondered how people could afford to to pay for cars in cash. I've had my car paid off for 2 years now, and will continue putting away what my payment used to be for when I need my next car. I've really enjoyed watching your videos man, super helpful.
The closest thing to a new car I've bought was 3 years old with 6,700 miles that I paid half the original price for. There aren't many good reasons to buy new.
People that use cars as a status symbol are mostly bullshitters. Today, its hard to convince people that a sweet car means "living large" because anyone can lease a sweet car.
@LotusLambo the only stupid one here is you. It's much easier to lease a high end car then buy it. You're so stupid you don't even know it..lol
The local car rental place uses a sticker with small numbers on the back window. I rented a van there once for a trip with friends. At the class reunion, I saw at least 5 cars with the rental company sticker, like we are supposed to be impressed with them driving new german car. I felt sorry for them.
@@barbmelle3136 coming to class reunions with a fancy car is just sad. same as paying a hot woman to pretend to be your girlfriend.
Main reason: Not only you calculate your budget for your payment but also you have to include your potential Yearly Maintenance Cost and this play out big time to PreOwned Vehicle specially those out of bumper to bumper warranty!!
a former co-worker would drop upwards of 300 per month for a new vehicle (leased); they didn't want to have to pay for any repairs/maintenance. when i left, they were shelling out about 425 per month, on top of paying for their children's private school and a mortgage; all this on a teacher's salary.
Oof!
What if you like cars and enjoy driving them and it's your passion?
No point driving a good looking car when you are old, you have to enjoy your youth when you are young and have energy.
My kids in my exes new car.... “mom doesn’t let us eat ice cream in her car”
My kids in my 20 year old Tahoe.... “dad do you have any napkins”
That's why the seat cushions are there
Another area people get tricked is oil changes. Every 3000 miles hasn't been necessary for YEARS. Some synthetic blends can go 10k miles+, but that little sticker still says "Come back in 3 months." Nope!
Actually if you have a 4 banger then yes oil changes every 3000 miles to prevent the engine from sludging out.
People fail to realize how much their car actually costs them. Taking into account opportunity cost on your money and depreciation expense makes it clear how costly a vehicle can be. I’m not against people owning nice vehicles. I’m against people not realizing how much it actually costs, and if they did realize it, they wouldn’t have bought that level of car
Drive a beater, save $500 a month for a year and you can buy a car cash for $6000. 2yrs 12,000 etc.
yup
Not smart
Mile Pavlovic financing is?
@@jmo_30 I do %0 interest for 36 month. I don't see a problem. Not driving to show up but driving a van as a electrician who can't afford to lose a day of work due to repairs.
I have never had a driver's license , Car Payment or Anything like that
I brought $2k Hyundai Sonata 2007 five years ago, and this baby is still running fine with 102k mileages. I changed the oil regularly, every 5k miles, to maintain this baby and I’m happy with it.
I prefer old beater cars cause I love fixing them.
Delay gratification. That's really the key to success and it's always good to hear someone remind you of it. Thanks for the educational videos.
Thanks for watching
Only thing missing is that you still need to get around so you have to pay for carbs or transit monthly if you dont own a car. And going on road trips is costly
For some people is all about appearances, they believe you are the car you drive, pretending they are what they are really not.
Roth IRA is $6k max per year. Don’t make that $500 car payment instead make that $500 Roth payment.
Heck yea! That compound interest is crazy
where do you have your roth ira at? mine at my bank only gets .05 percent interest rate =[
James Ngo Fidelity in a total market index fund
@@jamesngo1097 vanguard! The rates are down right now because of covid but definitely still worth it, itll be turning around soon
Bro can you do a video on the student loan epidemic ?
It's next on my list. Student loans will be the biggest black eye in this country's history looking back 20-30 years from now.
Student loans are painfully simple.
Step 1: choose oversaturated degree
Step 2: sign up for debt
Step 3: predictably fail to gain employment
Step 4: cry on Twitter
@@WhiteBoardFinance I'd like to understand what economic impact we'd see if a serious amnesty program was initiated.
Student loans weren't always like this. Mine is at 2% interest and I pay $183 per month. Depending on the financial school of thought you follow, it's not even worth paying off because I can make more directing the extra payments into my investments. But don't tell Dave Ramsey I said that! Those were the kind of terms we got before the government got directly involved.
@@jdshisler3842 I'm paying off my mortgage before student loans. Lenders can take my house, but they can never take my education.
Sadly, walking is not a good option in smaller cities. Car drivers will ignore pedestrian signs and shout at you out of their cars. Less and less people walk on the sidewalks each decade.
this is why I drive a 1993 Mercedes W124 400E ( which I bought for $3000 in 2016...now 2022 at the time of my comment) ;) :)
I'm in my 30s now and I've never had a car payment. Every car I've ever purchased was cash. The last personal vehicle that I purchased outside of auction was years ago. It's a long, but rather interesting story if anyone decides to read it. A while back I was looking for a used car, 4 door sedan, V6, naturally aspirated (no turbo), automatic, under 100k miles, and less than $4,000. So I was checking out online ads (this was before craigslist was big and facebook marketplace didn't exist), and I found a car that fit the bill, one state over (it was in Oklahoma, I live in Texas), and oddly, it wasn't from a private party, it was from a dealer. Reason why this was odd was because $4k would be the lower end of a private seller, and dealers sell for more because they're in the business to make a profit. So I didn't call right away, I called a few hours later close to the business closing time that was listed in the ad. So just a few minutes before closing, I call and I get a phone receptionist and I ask about the car and if the price was correct. So she puts me on hold for a few minutes and comes back to confirm that the car was there and that the price was correct.
So I leave very early the next morning and arrive BEFORE the dealership opened, and I waited around until a salesman was available to assist me. So I show him a printed copy of the ad, and I'm holding a thick envelope in the other hand to let him know that I'm ready to deal, no haggle, just sign the paperwork and be done. So he disappears for a few minutes and he comes back with about 5 sets of keys and this unnatural grin on his face, almost from a comic book or a cartoon. "Hey John! I've got some bad news, we don't have the car anymore, it's sold. But don't you worry! I've got you covered, you can count on me! I've got some other nice cars that are exactly what you're looking for and with the $4k that you brought with you, that's enough of a down payment that you won't have to worry about getting approved for financing, I'll guarantee it!"
So it took it a minute for it to sink in. I've never had a car payment. When I was 16, my first car costed me $850, which I paid for in cash, as well as the cars after that, and that was what I was intending to do today. So I drove hundreds of miles to end up with a car payment? AND HOW IN THE WORLD DID IT SELL? The car was there at closing time yesterday! And I got there BEFORE the dealership opened! Did the car somehow get sold while the business was closed? I didn't bother to look at the cars that he thought would interest me. I just thanked him for his time and left. When I got home, I went back to the "car search engine" and typed in my criteria again and lo and behold in the search results, is still the same listing for the same car that was no longer available at the dealership! At that point I realized that the dealership never intended to sell me or anyone else that car. The ad was just a lure to get people to come to the dealership where they would present customers with a car that can be purchased with a $4k downpayment instead of purchased outright for $4k.
This website allowed users to post reviews of their experiences with dealerships. So I posted mine. My review was limited only to my experience and I never outright accused the dealer of using bait and switch tactics ( I found out later that there is actually a term for this practice, "bait and switch"). But I did go into detail how the car was there at closing time and before opening the next day it was sold, and how the car was still listed at the end of the day when I continued my search when I got back home, and that while I was there I was being coaxed into handing over what should have been an outright purchase price to be used as a financial down payment. I was so steamed by my experience that I did not post my experience anonymously, I included my name with the post.
Despite not including my phone number in the post, 3 days later the same phone receptionist that answered my initial contact called me and demanded that I remove my post because it was my fault that the car was sold before I got there. Had I left a deposit, they would of held on to the car for me. Her argument made no sense to me because (1) she never offered me a chance to leave a deposit, it was closing time. She, like the rest of her co-workers were in a hurry to close up and go home. (2) I also didn't expect for the car to somehow be sold while the business was closed, so I was expecting the car to be there. (3) She never gave any explaination as to why they were still advertising a car they no longer had more than 24 hours later after it was supposedly sold. I never removed my post.
There is a special place in hell for people who work at car dealerships.
Cars also expose you more to law enforcement and crazy/bad civilian drivers.
I had multiple motorcycles as well as cars. Ppl texting and driving is super dangerous
No shit, cost of doing business... there are inherent risks in all things.
The numbers never lie. The problem is that the avg Joe doesn't see the future any further than next week or next month. You are 100% correct but they value that "status" more.
This video is awesome. As a dealer, I completely agree with what you said. This is especially true with subprime, buy-here pay-here style loans. The rate can be as high as 29.99%! and don't forget that if the car is financed you need full coverage insurance too. I sell mainly on a cash basis, under $5,000 and focus on helping people understand that you can affordably own a car. I bought my current daily at an auction for $600 back in November of last year. Anyways great channel 👍
For me, my car is used for work and to run my errands. I only buy used cars since it doesn't appreciate in value. I paid it off this past October and I dont want a car payment for a while.
I feel like the underlying theme in this video is for people to not live above their means and yes, more often than not, people will buy cars they really can't afford because they want the "status".
there is an argument that if you have excellent credit and can get a car loan for >2% interest, it sometimes doesn't make financial sense to dish out a large sum of money at one time and you can finance the car and make extra payments over time to reduce the total interest paid and still have access to larger liquid assets.
I learned my lesson the hard way by buying new cars. Never again. Just bought an 06 Jetta GLI for $4500 cash and couldn't be happier
I agree in principle but buying a car isn't the issue. Managing one's finances is.
Buying a car on credit, with the risk of owning more than the vehicle is worth is mismanagement.
Good point, & more importantly how proficient are you in generating income at the source? Also, do you know where money comes from? Do you understand how it works? Are you aware that it is abundant? Did you know money does not actually exist?
Then, financial management is introduced to the system.
I'm sorry but whenever I see a letting agent (real estate agent) pull up in my housing estate in a nice car trying to give impressions they are doing well you can see right through it. For one, you're renting a house in my housing estate, one of the lowest end property areas so there's that. Aside from that, I cycled for my groceries for 5km 3 times a week up hills cos I was too poor for a car. When I started my own business I waited til I had 15k in the bank before buying a 5k Toyota Yaris cos I wanted to ensure i had enough fall back money. It was super weak 69bhp engine that was rubbish on hills. So last year I waited til I had saved 45k before buying a 15k VW Golf. I just always think, before buying anything you should have a minimum of 3 times as much in the bank. If you don't then you can't have it! PCP plans are just the worst and they are the next bubble to burst.
I wish I had that kind of mindset, I grew up poor and as soon as I had a decent paying job I blew money and ran up my credit, I'm now in the process of fixing that and will be getting out from under my car note in 20 months, once I do I'm definitely going to change my ways.
So so so glad I just backed out of paying 40K cash for a 2007 Z06 Corvette. The money pit!!!
Buy a car you can't afford to impress people you don't like... DR.
Fast forward to now where used cars are going for the same price and in some cases more than the new models. I wanted a used car, but the 30% price increase has made that a terrible financial decision to make, because once supply meets or exceeds demand, the value is going to drop and cause more financial problems for people.
On the flip side, too many people live well beyond their means. They don’t take into account gas, insurance, and wear and tear repairs that have to be made, which just tacks on to the car note.
Also when people get a raise they unconsciously spend more.
I understand this math as I work in finance world.
However I still don't understand why people keep reference buying a car is an "investment"... My take has always been "ownership".
If u own the car and drive it for many years, the money paid is worth it by then. Unless u r a person that change car everything 2 years, then this video is applicable to you to consider.
Not always. Buying a car with poor reliability will discourage you from keeping the car for long
discount $500? sold, subscribed! lol
lol thanks :)
A 3-5 year old, one owner Toyota averaging 15-20 thousand miles a year is the best car to buy. Someone else has already paid the depreciation and the car is just getting broken in at that point. Plus with the “higher miles” people will be afraid to buy and you can swoop in after it’s sat for a while and offer even less.
Edit: we got a six year old sienna for a steal because it had a bunch of highway miles. Three years now with no car payment and the sienna is going strong.
My whole life since I was 16....40 years......my car purchases have always been an investment. I always buy cheap, sometimes repair, drive, then sell for a profit. My current car I have been driving for 3 years....bought it used for $450 from an elderly lady with only 87K miles. I have been driving it for 3 years and getting ready to sell. With purchase price and repairs, I still only have $750 invested in it and have driven it 22K miles. I will probably sell it for $1500. Yes, I own my own house too! I bought it for cash at the height of the foreclosures in 2009.....for $13,200. It is an acre of commercial land with a house on it. I now work and live at the same location.
What I did was a cash out refi on my house and used the cash out to pay off my car loans. Now the interest rate is not only lower, but deductible as well and by spreading out the payments over 30 years it increased my cash flow by $1,200 a month which I use to invest!
We Americans got suckered into this position. An interesting story is how the decision to not invest in passenger trains on a large scale was made by General Motors. It is not even funny.
This video has motivated me to keep my new-to-me used mercedes with no finance. Great vid - subscribed!
Wow! That was exactly what I was told some years back (I think Marko was in elementary school at that time) when I bough a new Nissan. Just before I singed the last document, the finance guy said : you know, as soon as you drive this car off the lot, this car will lose 2K.
I don't know anyone who wants to sell car after driving off the dealership.
Cars are the worst investment ever. No matter how much you pay for a car, you paid too much.
The problem isn't just buying a car,but the headache of getting surprises when it breaks down or has a serious problem and needs attention right away and worst if you don't know much or at all of auto mechanics that the repairs cost you dearly.Also the hassle of dealing with Car insurance premiums and government fees all around..It does drain your wallet..
so true ! so true . I am a mechanic and I have seen how bad it is to maintain and keep a car , etc etc etc .
I buy a 3-7 year old car with low miles. Keep it over 15 years. Not to exceed $10,000 and change upon purchase. You don't need new cars. You don't need to replace them every 6 years or less. It is silly.
But if nobody buys a new car, where will we get used ones? Dun dun duuuuuuh
Let the Shmuck do that ;)
My car payment is $0.0 lol I also save a lot by working on my own car
I've been driving for over 30 years...never had a car loan. Starting out we'd buy used cars with cash, no junk but reasonably priced with 60k-70k miles and bought another after a few years. 13 years ago we switched to buying modestly priced new vehicles with cash and we keep them for about a decade. Currently I'm still loving my 2006 GMC pickup (never buying another truck at these ridiculous prices and poor quality) and our 2015 Subaru Forester. Both we'll keep driving for many years to come as they're in perfect condition and run great, although I'll replace my truck's rear bumper in the next year or two as it's chrome is just starting to flake. Since the money we would have been making payments with (along with a lot of our other savings) has been working for us in the market we can easily afford any vehicle we'd like with cash but we already have the ones we want. This has been a huge money saver for us and works very well.
This is hard for me. I’m a huge car enthusiast. I don’t buy expensive cars to show off. I love all cars for what they are made for. Now I am driving an old civic from 2013 economical and it’s just to save money!!! I’m earning good money and want to upgrade to an Audi S5 or a Porsche. But I know it’s not a wise choice. So watching vids like this to convince myself not to. I know novelty wears off, but as enthusiast it bloody kills me to go broke.
Well done. Car payments guarantees you will remain middle class.
100%. Thanks for watching
I like being middle class. Less stress and a better quality of friends.
@@krazyj1957 Middle class is the MOST stressful by far. You're not poor enough to get gov't subsidies, and you're not rich enough to live life on your own terms. The best quality friends come at any point in the socio-economic scale.
Let's see, we own our home on a acre of land which is no longer financed. Only thing we have financed is my wife's new car. Enough investments to live comfortable on the rest of our life's unless the bottom falls out then it's not going to help the rich either. Good healthcare which at my age you need because only thing we stress over is our health. I'm retired and can afford to take the boat out and enjoy a nice sunny day, I have a lot a friends who are in the same place and I'm sure they have some stress in their life's but so have I. I worked on cardialgy based and medical management systems for many years traveling to many clinics and hospitals. The most stressed out people I ever saw was the people on the top. You can have it.
@@krazyj1957 Congrats! I wouldn't consider you middle class then. Everyone's case is different. I'd rather have a UA-cam channel making me money while I sleep than have to go to work to pay the bills worrying if I'm going to get fired. Im happy to be middle class with minimum time invested in working. I guess I meant I'd rather be rich in time than money. Rich = options.
Do not buy car, clothes, jewelry, etc for the sole purpose to impress people you don't know or thinking you will attract a mate.
Don't even try to attract a mate. Live like you are an ox, and do without mating. Women and children are a huge financial liability.
solution: no car/truck. live in walkable neighborhood. own bike. take public transportation. however, i like owning a car/truck b/c i like to camp and fish. to lower the financial impact: get a low rate auto loan (you need a good credit score), buy a truck/car with the least depreciation; do your own maintenance. starting with a used car doesn't hurt either.
Or just don't get an auto loan.
Going to get me a 2020 Crosstrek and drive that sucker till the wheels fall off.
I just stopped using a Car for commuting, I only use them for weekend shopping/visiting friends/ carry items or people. Story behind it is: My VPN wasn't set to US, so when I was researching the most sold vehicles worldwide...Instead of pulling up cars, Google showed a whole bunch of Scooters and Motorcycles, which led me to find (and buy) the most sold vehicle in the world: A Honda Supercub!! I get like 170MPG with it. Barely needs any maintenance, heck, the whole thing could explode, and it'd STILL BE cheaper to replace it than buying/fixing even a junk car.
Runs like a dream and can go anywhere I need...I'm never putting wear and tear miles on a car ever again!!
**YOU HAVE NO IDEA HOW MUCH YOUR VIDEOS ARE HELPING W/ ME IN BUYING A CAR**
******TY 🙏 so very much*****
**Please keep the videos COMING I'm learning so much**
Its ok I’ll live with my parents till i finish paying off my 60k truck
😂
Lol haha well thats a financial strategy in itself!
@@JR-jz7mt yet wouldn't getting a 30k car plus living alone be better? haha
@@FranciscoMartinez-wk1yp even better, an old beater plus living with parents
@@FranciscoMartinez-wk1yp I guess you couldn’t tell that he was being sarcastic hahaha
I put about 60% down on a car and because I have really good credit, I got it for zero percent interest for 5 years. I do plan to pay it off before then 😀 great video btw.
What was your credit score during that time, if you don't mind me asking
Andrea Canessa i want to say it was around 750 🙂
I’ve been driving a 1995 pick up truck for years, just upgraded to a 2007 Jeep. In my case all I need a car to do is get me from A to B. Also I do all the work to my own cars, saves me a ton of money every year.
Once you pay off your car loan, keep making the payment ..... into your savings account. Next time, you can pay cash for your car.
I'll add this... A nice car is a Toyota, a Mazda, a Nissan or a Honda.
I advise people who need a car, grasp some knowledge, keep it clean, be on time with the maintenance, drive safely, and buy something no less than 2K and no more than 6K.
Look up Scotty Kilmer and look up reviews on the car you want. Learn how to fix things yourself.
A slightly better (and slightly riskier) idea: If you plan to buy a car and have the cash, don't. Instead, invest the cash in the stock market (10% annual return, 7% adjusted for inflation), borrow cash to buy a car (excellent credit can currently get rates below 3.5%), then periodically (monthly) pull money out of the investment to pay for the car (Or, stop contributing to the money fund by the amount of the car payment). His other beliefs still fit: buy a reliable used car.
Marko, What if cars are the things I love? Drifting is expensive
lol
Man your knowledge is gold. But your delivery reminds me of being in a classroom sadly, its very uninteresting and had to force myself to get focus
Homies would rather have a nice car but still live with their parents.
Please do the video on opportunity cost - this is so important. Time value of Money - looking forward to it.
will do
I regret buying a 43,000 dollar truck with payments of 600 per month but it was a tax write off used as my “business vehicle” for metal roofing and honestly I love the thing lol, it brings me as much happiness as any material item could. I know it’s not necessarily financially sound but my investments make me enough side passive income to justify keeping it..I don’t recommend anyone doing this that doesn’t have an emergency fund plus extra savings and investments but one thing I never hear anyone talk about is what makes them happy. You don’t enjoy things the same as you get older so as much as I’d love to let that extra money grow for retirement I already have a fund set up for that so why not indulge a little bit while I’m young (26), healthy, and can actually truly enjoy it??
You are earning a living with your truck, so, in your case, it’s justifiable and you can write off the depreciation too!
I always buy the cheapest cars to buy and run. I much prefer to spend my money on travelling. Cars just eat money!!
I'm an electrician for Chrysler. I make great money and refuse to buy a new vehicle. I can easily afford whatever we make, but I sure as hell don't want to afford it. I got a 99 Neon that has been awesome to me. 210,000 on it and still runs great. My coworkers give me crap, but I tell them the $500 - $700 you pay per month, goes into my retirement.
lol exactly good stuff Chris
Bought an old truck for 1k this past fall. Its mpg is abominable, so Ive payed for the purchase price in gas almost three times over since then 😬😆