The best advice my father ever gave me was to “defer gratification.” I’ve been able to retire before the age of 60 from a job that I never made more than $60,000 a year. I didn’t win the lottery and I did not inherit money. My million dollar home is completely paid off. My friends always made fun of the cars I drove. I currently drive a 12 year old car. I have not had a car payment since 1987 and that was a $3800 ]used Honda, which I paid off in 14 months. My advice when people ask is to “Own your stuff or else your stuff will own you.” I have never layed awake at night worrying about bills and that is WAY more valuable than a fancy car.

@johnstirling6597

9 ай бұрын

I never owned a new car until my house was paid off. then waited till I could pay cash for a new Toyota. I see lots of my friends who drive very flashy cars (on tick) who are looking to retirement with big home loans still to pay off.

@seanfrank4158

9 ай бұрын

Good advice to live by Dave. It's nice to see a 'workin man' able to retire even in these uncertain times. Well done.

@TimKyoutube

9 ай бұрын

I have also seen so many people like this die at 65 and have 2-3 years of "retirement" to enjoy what they worked so hard for. The piece of mind is an advantage though.

@lordfriezachrist6546

9 ай бұрын

🧢 you don't have a million dollar home on 60k salary

@patrickmckeag3215

9 ай бұрын

Excellent advice. I retired at age 55 with more income now than ever in my life, because I did the same things you did. I always drove the cheapest cars I could buy and NEVER had a car loan. Always paid cash and drove them for many years.

I sold cars in a first-tier dealership after I retired from the Army. They taught us that the consumer buys cars on impulse and feelings. We sold them based on the payment they wanted, and they never even knew the prices. They taught us that the entire industry was predicated on the fact that the average American buys and trades a car every 2-3 years. If people kept their cars for the actual lifetime of the car, the auto industry would fold. All modern cars are capable of lasting decades, and hundreds of thousands of miles.

@InvestmentBankr

8 ай бұрын

Yeah, so dont own for 2-3, nothing this guy says matters if you just own a vehicle from NEW to DEAD at 10-15 years. Furthermore the most recent used price jump means anyone buying used right now is a moron when for 3-10 more you get new and factory warrenty. We have a problem with a shit ton of vehicles on the lots are just garbage in an objective sense and people cant stand them after a few years. 4k "burned" in lot depreciation for a car you will love for 15 years means NOTHING. Also, fuck this guys thinking anyone can afford a car for less than 72 months at pmt. 🙄 This dave ramsey no debt BS is straight boomerism - a 4-6k "solid" car in the current climate doesnt exist. That Camry DEFINITELY has shit wheel bearings, no brake pads, needs shocks, dead AC. And finally, he outs himself as an urban elitist shit with his "you only drive 2hr a week" miss me with that total crap. AVG US commute is an hr a day! and anyone is burbs, or rural states is far more.

@jayblack9871

8 ай бұрын

Lmao You had me in the first half, up until you mentioned modern cars will go 300k+ miles. I dont believe anything made for consumers after 2018 will be lasting that long.

@tenmil1

8 ай бұрын

Yeah I agree with the other guy you had me in the beginning. But let me tell you how wrong you are about modern cars. I’m an auto machinist. I fix broken engines and their parts. The majority of the commercial work (work for repair shops) we do is in very modern cars. I haven’t worked on anything current yet, but seen lots of 2021/2022 cars. The fuel mileage the epa is demanding manufacturers get out of these modern engines results in engines that do not last. The direct gasoline injection, the low tension ring packages, the super low weight oil, the extremely extended oil change intervals. None of these lead to longevity.

@triparadox.c

8 ай бұрын

@@jayblack9871For select brands, yes. For most brands, especially American brands, I doubt it as well.

@jakedover5301

8 ай бұрын

Chrysler 200’s can last a couple 100,000 miles? I’m not sure I believe that one…

I worked for many years as a parts manager at a car dealership. The pay was okay, but the greatest thing was I got a vehicle to drive. I didn't have a car payment, or insurance, or even gas for most of my career. I was able to retire early.

@TheRis81

8 ай бұрын

Congratulations

Great information. I drive a 22 year old car, in last 5 years I have put about 5,000 in mechanical fixes, 1,000 a year car payment, I ain't complaining. Young people have been taught to care more about what other people think of them, more than what they need.

@r5t6y7u8

8 ай бұрын

People roll their eyes when I tell them I budget $1,000 every year for car repairs. Then I remind them that's $83 a month. Oh, and my 2003 PT Cruiser (190,000 miles) says hi. Bought it in 2011 for $6,000 cash.

@carolmorgan6734

8 ай бұрын

@@r5t6y7u8 I am spending about 500.00 a year on up keep. That is one month car payment for a lot of people. If I have to make two car payments a year that's ok too. 2001 ford focus, less than 150,000. Most miles spent traveling back and forth from TN to SC for three years. Ran the hell out of it, can't complain. She looks a little ruff but hums.

@fallu2

8 ай бұрын

Still have my first truck from hs, 97 3 door long bed f150, paid $400 for it, plus a couple grand in parts over a few years, didn't decide to park it until it hit 250k, currently have an 04 f150, paid $4k at 115k miles and it's now at 150k, also drive a a 2000 camry, paid $1400 for it, and about $1k in parts, the only payment I have for cars is the parts bill every few months - a year

@carolmorgan6734

8 ай бұрын

@@fallu2 Kindred souls, most people like to brag how much they pay for something, I like to brag how little I paid, seems you too. My uncle a mechanic, lived by, if it ain't broke, don't fix it.

@spencersgarage

8 ай бұрын

Nice. I’m daily driving a 32 year old Honda Civic hatchback with a manual transmission. Works great, 38+ MPG, easy to drive. Paid $2500 for it and I’ve had it for over five years. Great car and no car payment!

I've been in the car biz for 49 years.. We joke out loud !!.. Its NOT a car , its a debt system !! Cars have financed my life all these years. Your advice is 100% right on.

@arlenburgin2392

9 ай бұрын

Shame on you carpetbagging brood of vipers

@Lon1001

8 ай бұрын

yep, most car dealerships, particularly used car lots are actually finance brokerages not really car dealers.

@keithbellair9508

8 ай бұрын

Cars are chump change to what people blow on these mcmansions… the 30 year mortgage is the real scam. Mortgage literally means indebted til death. People need to get over this need to have a big house to show off so they can “entertain” Cars are needed to get to work. Nothing wrong with driving to work in style and comfort.

@fgregerfeaxcwfeffece

8 ай бұрын

Can relate, every time someone tries to scare me with: "But what would you do if no one uses your service anymore?" I respond with: Presumably some wacky science fiction stuff.

@PascualSmith

8 ай бұрын

And thats why Car Dealers bitch SO MUCH when people can pay the price up front. Even tho people don’t know any better and it is their choice, I would never feel comfortable scamming that way lol, same way I cannot work in insurance. Too good for this world I guess

I am from Amsterdam, NL and I just love the phenomenon of seeing old beater cars in the rich areas and new expensive cars in the poor areas. So baffling to me.

@schlookie

9 ай бұрын

New Zealand can be like that too. Rich are = Toyotas, Nissans, Hondas in driveway. Poor area = BMW, Audi, and Merc in driveway.

@thommysides4616

9 ай бұрын

lol

@keithbellair9508

8 ай бұрын

Thats because the rich inherited their money or house and they are bums who dont work anyway… they are too cheap to buy a car then they mighy have to get a job.

@AnnaKrueger809

8 ай бұрын

That is why I work with Samuel Peter Descovich, who introduced me to a better Financial community, a verified agency where I learned how money works and how to create it, as well as free books, courses, and daily lectures. You also get to meet new people, which was the best decision I ever made.

@Seanmirrer

8 ай бұрын

Thank you for sharing your experience. Your coach was simple to discover online. I did my research on him before I wrote to him. He appears knowledgeable based on his online resume.

Buy a Toyota Camry and keep it for 15 years. Smartest move ever!

@AAWagner

Ай бұрын

I bought my ten year old Toyota Scion new but have kept up the dealer service and it has done me right.

@DIAMONDGIRL57

16 сағат бұрын

Bought a 2008 Benz in 2014. Just hit 100k without any problems. Will not buy anymore cars.

As an old man ,I can tell you that owning older cars will help you financially in the long haul. And if you are mechanical or have mechanical friends you can save a ton more money!

@mikef2811

6 ай бұрын

I am with you. I buy cars that are 8-10 years old cars with 100K miles on them already. And then I drive them for another 100K miles. I mainly buy used Toyota or Lexus.

@chrisdavis3055

3 ай бұрын

I love buying older cars and getting the most miles I can out of them. As a nerd, I track the purchase price, all repairs and maintenance, the sale price, and total miles driven. My goal is to get the total cost of ownership below 10 cents a mile. I've owned cars with a TCO/Mile as low as 3 cents.

I’m a hvac contractor in Arizona. I deal with people all the time. Last weekend we had a service call from a client. His ac unit was 20 years old with a bad compressor and txv. We quoted him a new unit cheapest price we can do but the poor guy didn’t have the money he tried getting a loan but couldn’t. But he had the money for a brand new can am and a fast car. That’s when I realize people don’t have priorities.

@davebennett4087

9 ай бұрын

If you’re gonna be stupid, you’d better be tough! Maybe he can sleep in his fast car…

@cathrynm

9 ай бұрын

No air conditioning in Arizona is hard times.

@theroamingsavage8813

9 ай бұрын

I have zero pity for this type of stupidity

@thanosianthemadtitanic

9 ай бұрын

​​@@davebennett4087he can use the AC in his car or drive fast down the highway😂

@davebennett4087

9 ай бұрын

@@thanosianthemadtitanic gonna have to haul ass to outrun that AZ heat! Faster! Faster!

The hardest decision you will have to make to become financially secure is to say no to yourself.

@jasonleveck8546

9 ай бұрын

That's facts!

@BLACK_MikeHammer

8 ай бұрын

​@@underleft😂😂😂😂

@Jumperman12mac

8 ай бұрын

​@@underleftdoubt it if you have money then

@fnsshehrbvfgyssbvvsmmmdjjd4611

8 ай бұрын

@@underleftso be poor and live check to check, sounds good. Don’t leave a penny to those kids or anything!

@michaelfarfan6186

11 күн бұрын

I can definitely say no to myself, to my kids is a different story😂😂

The other trap is the belief that everyone in the household needs at least one vehicle. Our family has always had just one car, and we've made it work. There are about 5 days a year when it becomes a moderate inconvenience, and that is not enough to justify spending thousands or tens of thousands an a second car, plus the extra insurance and maintenance.

@spencers4121

8 ай бұрын

If everyone works and or goes to school, and no access to public transportation. Then yes in most cases everyone needs a car, now in some rare cases you might be able to make it work. But myself and anyone I know, would never be able to make it work. As we have 0 public transportation here. Now I do agree with him about buying used, or "clutches pearls" a scooter or motorcycle.

@bryanshoemaker6120

8 ай бұрын

You're forgetting that the majority of America does not live in big cities. I have to commute 82 miles a day through blizzards and heat waves that can roast a armadillo alive.

@GingerLess000

8 ай бұрын

In this situation just get a shit box that goes from A to B. Maybe one nice car on payment

@JamieM470

8 ай бұрын

@@spencers4121 You're right. We live in a car-centric country. The way our cities and suburbs are laid out, and as bad as our public transportation sucks, cars are a necessity. I also agree with saving up to pay cash for a used car. I don't understand why so many people feel the need for (mostly giant & dangerous) vehicles that they cannot afford.

@montyspearo

7 ай бұрын

The other interesting calculation to do is measure hours you spend in a car over a year and figure out how much its costing you an hour. Probably App for this.

I regret paying car notes in my 20s (though low). In my 30s, I’ve turned it all around and am SO HAPPY AND THANKFUL to have learned this!

@armandoperezjr

6 ай бұрын

This is me exactly. I spent so much money on new cars in my 20’s. Now I drive a used 2007 frontier with 189k miles at 33 years old. I just fix it using KZread videos. Hopefully it lasts many years.

My grandparents always told me that you never take out loans on depreciating assets like cars. Only take out loans on things that go up in value like real estate.

@seriouscatisserious

9 ай бұрын

Well, your grandparents are half right. When rates are low you can really leverage borrowing cheap money. In 2019 I got a cheap loan for a car, but I had the cash. I put all that money in the market instead and ultimately I am being paid to borrow money.

@krzysztofpoznan5226

9 ай бұрын

cheap money doesn't exist in general @@seriouscatisserious

@Gizziiusa

9 ай бұрын

And let me chime in, when you purchase a vehicle, buy it "for the long game", as in you need to keep it at least 10 years (unless conditions make it good to sell it, trade it in, etc.) In the past, people were bound and determined to upgrade to a newer vehicle every 2 to 4 years.@@seriouscatisserious

@smileyeagle1021

9 ай бұрын

@@seriouscatisserious I'm pretty much in the same situation. I've got a car loan on a car that I could (almost) have afforded to pay cash for, but the interest rate they were offering was so insanely low that it was worth it to take the loan and keep my cash in places where it was still gaining interest. I know that Dave Ramsey would have a stroke hearing that, but not all debt is bad debt, and yes, I keep a very close eye on all my investments, all the money that would have gone towards that car are kept in relatively safe investments, I didn't take that money and put it on the Wall St equivalent of betting it all on black, if and when the rate of return for those investments drops to less than the interest rate on those loans, I'll pull those investments and pay the loan off instead.

@charlesprice7608

9 ай бұрын

@@smileyeagle1021the only new vehicle I ever bought was because I got 0% financing from Ford! Could have paid cash, never would have spent that much! It was the last of the 7.3 power strokes. Drove the truck 13years, 178,000 miles and sold it for $6,000 less than I paid for it!

I took my youngest daughter to buy her first car a few years ago. She had five thousand dollars for a down payment and was hoping to find a good used car for under $15,000. The dealer literally would not sell her a car. Instead they insisted on leasing her a new car. Even when she insisted she was never going to lease a car they insisted. So we walked out. Three weeks later and we found her a car for $2000 that needed $3000 dollars worth of repairs. She just traded that in on a five year old car at a dealership in a different county. Buying a car is not what it used to be.

@thepspman116

9 ай бұрын

Of course a dealer, Salesperson will tell you this they have to make commish!!

@Hardin9

9 ай бұрын

Your daughter should use public transit.

@lot2196

9 ай бұрын

Craigslist from now on.

@heatherskettlecorn

9 ай бұрын

@@Hardin9not everywhere has public transit.

@judge831

9 ай бұрын

@Hardin9 public transit as very dangerous for a young woman, especially if she is attractive.

How can I grow my portfolio to outpace inflation and maintain a successful long-term strategy? I have been reading of investors making about $250k profit within a month during downturns, and I need ideas on how to achieve similar profits.

@alexyoung3126

7 ай бұрын

An obvious way to invest for a recession is to buy shares in businesses that are likely to experience steady demand even in a downturn. Typically, those are consumers staple, utilities and healthcare companies. But of course, such decisions can’t be made by an average joe, a financial advisor is highly recommended in making this decisions..

@jameswood9772

7 ай бұрын

you can be passively involved in the markts and still amass wealth-gains using an investment advisor. I first dabbled in stocks late 2019, just before the pandemic, and that same year gained over 150% with no prior investing experience, basically all I was doing was following directions of my advisor. We are working on a retirement ballpark of $3m and I’m certain my goal isn’t farfetched after subsequent investments and tremendous returns so far.

@lawerencemiller9720

7 ай бұрын

Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.

@jameswood9772

7 ай бұрын

My advisor is Lisa Angelique Abel With the help of google you can book an appointment. She has a wealth of experience in the financial market gained over several years.

@lawerencemiller9720

7 ай бұрын

Thanks, I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a call.

So true. My co-worker just bought a new luxury SUV with a monthly payment of $1200, not including insurance, gas, registration, and maintenance costs. I basically told her you just gave yourself a huge pay cut, just give it a couple of months and when that shiny new car is no longer new and the honeymoon phase ends, you will still be stuck with that monthly bill for a depreciating liability. See how you feel then 😂. I told her that the "best" car is one that is reliable, low cost to maintain and affordable. Too many people now a days buy way too much car......so much that the car owns them instead 😅

Im 46 years old and have purchased exactly 1 new car in my life - and drove it for 232,000 miles. I was fortunate to grow up on a farm and learn to work on stuff. I do all my own maintenance and havent had a car payment in 20 years. Currently teaching my kids to do the same thing!

@jasonleveck8546

9 ай бұрын

Good job, man!

@mylifethaidiy7045

9 ай бұрын

Yep. With youtube a person can repair anything themselves these days. :)

@jamiemcgill67

9 ай бұрын

@@mylifethaidiy7045 I know. It’s amazing! Someone has posted a video on how to replace every part on every car or truck by now.

@codgamefreak602

9 ай бұрын

What did you buy brother?

@erichansen2571

9 ай бұрын

@@codgamefreak602 it was a 2004 Infiniti G35 with a 6 speed manual and it was a great car! No major problems ever...

Pro tip, never mention a trade in. Always negotiate the absolute best price you can and, once you have that fixed price locked in you're happy with, you hit em with your trade in value. Cash is king when it comes to buying a car but, never mention you will be paying in cash either. Dealers make money off loans. Let them THINK you are getting a loan, they'll happily give you discounts thinking they have the upper hand.

@earthring

9 ай бұрын

They make a lot of $$$ from financing. Sometimes even more than the car itself

@donaldcodes

9 ай бұрын

Cuz they can stuff the extras that actually make them money in the monthly payment, and just extend your loan. We're talking nitrogen in tires (which is stupid), wheel insurance, hood insurance, etc.

@jayc4715

9 ай бұрын

If they don't like the deal..they won't make the deal. Period

@dougf9900

9 ай бұрын

Nothing is "locked in." When you spring a trade of declare you are paying cash, the dealer can change their offer. Makes no sense to be a sneak. Do your research in advance, so you know what numbers you'll accept before you walk in.

@mrplayafication

9 ай бұрын

Dumb tip. Don't listen to this person. As someone who sold cars for a couple years I can tell you that your trade in is your best leverage for negotiating your payments/price. The used car department will use the trade-in to absorb the discount and maintain gross in the new vehicle.

Your video reminded me of how the dealership acted after we told them we were paying cash for a used car- price had already be negotiated. The salesman actually looked sad! My advice for anyone buying a car-be vague when they ask you 1) how much you want to spend 2) how much you want to pay monthly/ or put down. There really is too much information online about ANY car/buying process for anyone to go purchasing blind!

@r5t6y7u8

8 ай бұрын

"price had already be negotiated" - That's the key. At some places the price *assumes* financing, and they'll charge *more* if you pay cash. Solution? Leave.

@RICHUNCLEPENNYBAGS77

8 ай бұрын

Finance is a major profit center they rely on since the internet made it easy to find information about what a good price is.

@spencers4121

8 ай бұрын

A lot of places want even deal with you, unless they get your info and run financing before they talk price.

@SL-pg4dh

7 ай бұрын

Yeah they make more in interest if you finance

I've never owned a new vehicle of any kind in my entire life... I'm 54... I've never had a car payment, I've never had a car loan... I save & pay cash for good used vehicles... I paid $4K for my current truck, & $2,500 for the one before that...still nowhere near rich, wealthy, or even well off...but I don't have any debt either... I've always been of the opinion that if I couldn't pay for what I wanted outright, then I couldn't afford it, or just didn't need it...

When I used to live in an apartment complex, I was always amazed at the amount of new cars people drove. Rather then pay $500/mo for transportation, I always drove older vehicles, saved that money, and now I own a house.

@dillonh321

9 ай бұрын

I live in a smallish agricultural town with a couple of apartment complexes. And these are not very nice apartments. One of the complexes has a brand new Range Rover parked and they both have new luxurious trucks parked in front of them.

@ralphholiman7401

9 ай бұрын

You can drive through the lowest income neighborhood in your town, and see new luxury cars parked in front of trailers and Section 8 housing. I often think the car is their escape from their real life. When they are driving around in their financed to the hilt (or even upside down) luxury car, no one knows what their life is really like, and people see them, as they wish they could be seen all the time.

@tommyjones1357

9 ай бұрын

While living in an apartment, it upset me how much we were paying in rent that could have been equity in a house. We now own a house and now have equity. Really needed a car as I got into my career. Once this dang thing is paid off, I am NEVER buying another one! Actually, I’ll save my money and buy an old Wrangler and fix it up myself. But back then, money was tight and options were few. No time to shop around when you need to grow up fast.

@outhere8690

9 ай бұрын

​@@ralphholiman7401- that is a great explanation for it. However, it isn't just the people in low income housing who try to play "escape & pretend".

@ralphholiman7401

9 ай бұрын

@@outhere8690 , for sure, it's just easy to tell when they do it in the projects or trailer parks. But, you're right.

My wife and I retired and went sailing for two years on our sailboat in our fifties. None of our friends, all driving $70,000 pickups and SUV's could understand how the two ten year old used cars we both drove at the time figured into being able to do that.

@henryjohnson-ville3834

9 ай бұрын

Yep. My bought my used 2011 Camry in summer 2022 while my cousins and coworker have auto loans. My coworker I do not understand. He is a chill guy but bought himself a $50K Ford F150 (forgot the year) and it now making payments for whatever months. He never goes camping, boating, RVing, off-roading so why on Earth get a truck?! I hate having that big weight on my shoulders - no credit card debt, no student loan, no phone loan, no car payment. It is nice. 😊

@richardmyers7847

9 ай бұрын

Sailboat is a depreciating asset

@richardmyers7847

9 ай бұрын

​@@henryjohnson-ville3834you spend money on hooker's and cocaine but your friend can't buy a truck?

@angelvelez139

9 ай бұрын

@@richardmyers7847someone’s jelly, I see

@ralphholiman7401

9 ай бұрын

@@richardmyers7847 , yeah, but they sure take you to some fun places.

I’ve been driving my 2008 Jetta for roughly 6 years now. I couldn’t care less about what I drive and what people think. I paid $5,000 for it, and have probably spent 5 ish grand on issues. The car is actually worth roughly $4,500 right now. My wife and I have never had a car payment, and it seriously feels incredible!

Definitely a very baffling and frustrating part of modern society. I had colleagues at the same paygrade as me financing new acuras and audis that ate up more than 30%of their monthly income and had me scratching my head. For those struggling to “downgrade” its helpful to know that an entry level luxury car usually has way less features than a mid or top end economy car. Entry level “luxury” is the worst scam of a segment in the whole market.

@peterwilson8039

7 ай бұрын

I’m too lazy to bother with learning all the new tech. I’d rather have a basic car with a manual.

@griprep3506

4 ай бұрын

Entry level luxory is a 3000$ Lexus and they’re beautiful. Just don’t spend 20-30k on a Lexus when you make 25-40k a year

I was talking to someone a year ago who complained they didn't have the money to buy a house. They were driving a Tesla. There I was with a house and a 10 year old car with no payments for 5 years.

@valdivia1234567

9 ай бұрын

Same. I'm fortunate and could buy a new car without much problem. But, I drive a 2012 Outback and haven't had a car payment for 8 years.

@stachowi

9 ай бұрын

Don’t forget they didn’t have to be making their student loan payments

@jeretso

9 ай бұрын

It's not just Tesla people are trading in their cars for SUVs and Trucks. People are brainwashed into thinking super sizing is a must have now. Then the manufacturers and dealerships jack up the prices.

@mypronouniswtf5559

9 ай бұрын

But 10 years ago you had car payments and were in the tesla peoples situation.

@JayandSarah

9 ай бұрын

Exactly. People are stupid.

Before I'd ever heard of Dave Ramsey I bought a new care in 1985, paid it off in 1990, and drove it for five more years, sold it in 1995. In those years I got married and had three children. We got our money's worth out of that car and it was one of the best I ever had. It is not wrong to buy a new car if you plan to keep it for a long time. If you like to change cars every two or three years, then yes, buy used.

@user-mv9tt4st9k

9 ай бұрын

When I was single, I financed a new car. It was a 2001 and was paid off within months of my marrying. It was our commuter vehicle, and safe transportation for our son. I had that car for 16 or 17 years and most definitely got my money out of it. Would I finance another new car? Not a chance.

@johnwilburn

9 ай бұрын

The guy who bought it 1995 is probably still driving it and a millionaire, LOL.

@choreomaniac

9 ай бұрын

The problem with buying new is you get used to new, lifestyle creep. It’s hard for most people to have a 5 year old car when they are used to a new car. People start to think of any excuse to get a new one, like safety, reliability, etc. so you get in a cycle of buying a new car every 3 years.

@rickbackous1041

9 ай бұрын

Kudos to you for being able to keep a car built in the 80's on the road for 10 years. I had trouble making those pieces of $hit last 2 years. Ohh the money I was forced to waste back then. I still managed to invest properly and got to retire early, no thanks to the automotive industry.

@billmcmeekin7909

9 ай бұрын

I agree. We buy/bought new often over thirty years. But we research our vehicles thoroughly, for purposes we need, and keep them for 10 years. I do 98% of the maintenance myself, and we have great success, and savings. After our first decade we've always saved and paid cash, and always in drivers seat on price. I've bought two barely used, as new muscle cars, but again outright. Never have a lender/bank holding you hostage if at all possible. What yours is yours then, and drama/stress is minimal in life. Live within your means, not like the Jones'.

Investing in alternative income streams that are independent of the government should be the top priority for everyone right now. especially given the global economic crisis we are currently experiencing. Stocks, gold, silver, and virtual currencies are still attractive investments at the moment.

@trane85

7 ай бұрын

It is recommended to seek the assistance of a financial advisor or broker to diversify your investment portfolio through the inclusion of commodities, inflation-indexed bonds, and stocks of financially stable companies, rather than relying solely on growth stocks with uncertain future earnings.

@PhilipDunk

7 ай бұрын

Such market uncertainties are the reason I don’t base my market judgements and decisions on rumours and here-says, got the best of me 2020 and had me holding worthless position in the market, I had to revamp my entire portfolio through the aid of an advisor, before I started seeing any significant results happens in my portfolio, been using the same advisor and I’ve scaled up 950k within a year, whether a bullish or down market, both makes for good profit, it all depends on where you’re looking.

@sattler96

7 ай бұрын

@@PhilipDunk I’ve been down a ton, I’m only holding on so I can recoup, I really need help, who is this investment-adviser that guides you?

@PhilipDunk

7 ай бұрын

My financial advisor is “Vivian Carol Gioia” I found her on an interview where she was featured Afterwards I reached out to her on her webpage. she has since then provided me with entry and exit points in securities I focus on.

@sattler96

7 ай бұрын

@@PhilipDunk I just looked her up on the internet and found her webpage with her credentials. I wrote her outlining my financial objectives and planned a call with her.

Auto loan payments are about the same as what I used to pay in mortgage payments. Holy cow!

My dad told me that the worst debt is a car loan payment. That's always stuck in my mind. All those potential car payments we instead put in my IRAs, 401k and dividend paying investments. I've turned what would have been debt into early retirement.

@jamescurnutt1628

9 ай бұрын

401ks are a terrible money suck too.

@jamiemcgill67

9 ай бұрын

Well many of us need a car or truck to work out of. Drive an old used car and you miss a lot of work while it’s having repairs.

@jamescurnutt1628

9 ай бұрын

@@jamiemcgill67 I agree! My daughter was trying to finish college and her old Nissan Sentra needed $10,000+ in repairs for a new engine and transmission, and it was still going to a 14-year old car. The warranty Nissan was offering was just a year. She was lucky and got a new Kia for 1.9%. She had to have a reliable car to finish college and work. You buy someone else's used car, you are also buying their problems with it. No matter how you slice, cars are a terrible investment.

@M5_Sonu

9 ай бұрын

You're leaving $$$ on the table if you throw money at 401K. Much better financial instruments to invest with higher gains.

@astropythagorean

9 ай бұрын

I think the exception to this rule is when the loan interest is lower than your investment earnings. For example, if you can take out a loan at 0.9% but invest the cash at 3.5%. This is usually only possible with new cars. If you are going to pay cash, don't tell them this until after you've finalized a sale price. They make a lot of money on financing.

I’m a finance manager at a car dealership, and you are spot on. I see people making payments that are 40 or 50% of their paycheck just for status. I drive a Nissan kicks that I paid 20k for even though I can afford much more.

@babblesp1367

9 ай бұрын

I always look at the total cost of the car. I decide how much I want my payment to be, and the terms. I also look at NADA to see what my trade in will be and to see what the value of the new car I’m buying is. I also go to Edmund’s and KBB. I will bring print outs with me to the dealership. I’m not afraid to walk away and I know cars well e😢to know exactly what I want and how much I can, and will, spend before I even get there.

@Wok_Agenda

9 ай бұрын

20K is not cheap

@mikemiller659

9 ай бұрын

U got Stung on the nissan

@bradleyboyer9979

9 ай бұрын

​@@Wok_AgendaYou cannot currently buy a single new car on the market for under $20K. There is no model on the market for less than that.

@geoffoutdoors

9 ай бұрын

Yep!! I Will never do that. I drive an old 12 year old pickup and i have a rule i will never pay more than $15,000 for a vehicle. I will fix it up til its last leg

You are 100% correct on everything. I have three cars and the newest one is a 2010. They are all fine. You just have to buy the right one. Also, I have never had a payment on any of them. My money goes into MY bank, not a huge corporation's bank. It seems like a better plan for me. Good video.

I've been living this advice for the last 40 years. I've dumped all my free cash into a 401 k and now I'm retired at 59 and ALL , my friends wishing they could retire. Difference is I learned to turn wrenches and drove jalopies ( currently driving a 2002 trailblazer) and they chose to invest their futures with the bankers and stealerships

@zachwrench

7 ай бұрын

That is one thing he does not mention maintenance and repairs they can add up most people can not do there own repairs or even basic maintenance.

@Comm0ut

7 ай бұрын

@@zachwrench They could certainly choose to learn. I've trained many aircraft and other mechanics. All it takes is determination.

@zachwrench

7 ай бұрын

@@Comm0ut True there is definitely a shortage of mechanics unfortunately not many schools promote learning a trade

Bro that car had 355,000 miles on it and still cost $4,000. God help us.

@donjohnson1416

9 ай бұрын

But "bro" I thought the saying goes "Toyotas last forever"? So. No I wouldnt pay $4k for a car with that many miles on it, there are cars for that money with less miles on them

@lonefgc4508

9 ай бұрын

I’m glad someone mentioned this and I wish the Ramsey team would touch on this element more. In 2015 I bought a 2005 EX Civic for $6,000 out the door, It had 97,000 miles. Paying two grand less for a 1999 Camry with 255,000 miles more is ridiculous. What’s the cost analysis look like here? Toyotas are reliable but you’re definitely expecting maintenance and repairs on a higher mileage vehicle. At which point do they recommended junking it? When you need a transmission rebuild for $1,500-$2,000 for example? And what’s the future course of action, cycle in “cheap”(in context of modern markets) beaters if you experience colossal repair quotes? Imagine someone having a 100 mile round trip commute for work not counting side hustles. Spending $2,000-$4000 every year for a beater could be a likely scenario I guess but that seems counter productive if it’s this old end this high mileage.

@westbccoast

9 ай бұрын

lol I saw that as well, you asking for a maintenance nightmare. When does it make sense to get another car when you drowning in maintenance costs.

@pklemm1

9 ай бұрын

@@lonefgc4508355,000 miles

@TheBrothersRise

9 ай бұрын

Lmao 🤣 facts he’s wild for showing that

Needs to be taught in schools and seen everywhere. That business ruins so many lives. Great video!!!

@emilyfeagin2673

8 ай бұрын

I do remember seeing videos about car buying in high school. But that was during the dark ages

@keithpanco

8 ай бұрын

This will never be taught in public school. The lobbyists are in bed with the government to keep the economic illiteracy alive.

Savagely rocking my 19 year old Camry. Just did the suspension myself, she’s good to go for another 100k

I was stuck in this never-ending car loan revolving door for 10 years. It felt soo good to pay off my current car and be done. It's a 2012 Fusion with almost 200k miles but I meticulously maintain it so it still runs/drives like new. Stop giving a shit what people think about you and drive an old car... nobody NEEDS a new car. I also felt the "mental shift" comment because it took a while, but I'm finally in the mindset that if I can't afford it, I'm not getting it. There are SO MANY avenues to take to find good, cheap, cars. Just a lot of people don't want to put in the effort.

@GrzegorzDurda

8 ай бұрын

Agreed. I always drove 10 year old cars i bough used with low mileage and i do most all the work myself.

@Duke_of_Prunes

7 ай бұрын

I just bought a 2010 Toyota corolla for my daughter. 67K miles, in good condition. She is moving into a dorm, so the car sits all week. That thing may last her 20 years or more. She probably doesn't drive 2,000 miles in a year.

@GrzegorzDurda

7 ай бұрын

@@Duke_of_Prunes That thing will run forever. 👍

@Duke_of_Prunes

7 ай бұрын

@@GrzegorzDurda Yes, Toyota builds a good motor!

It is always good to have a financial plan. I work with a portfolio manager and fixed income planner in the USA. The fixed income portion of your portfolio won’t simply serve as a buffer to the volatility of the equity portion of your portfolio, but will provide legitimate income.

@louisstapleton1889

9 ай бұрын

Very true, people downplay planners role, until burnt by their mistakes. I remember just after my layoff 3 years ago amidst covid outbreak. I needed to stay afloat, hence researched for licensed fiduciary advisors. Thankfully, I came across someone of practical knowledge and decades of experience. I liquidated 200k of my 340k from my 401(k) it has yielded nearly 1M usd after subsequent investments so far.

@louisstapleton1889

9 ай бұрын

I’ve shuffled through a few financial experts in the past but settled with Mr. CHRIS RYAN STEWART.

@louisstapleton1889

9 ай бұрын

His strategy is recession proof, more specifically profit-oriented and most likely you’ll find his basic information on the net. He’s a very well known advisor.

@StellaAlmiron

9 ай бұрын

I’m well inclined with Chris’s platform. I have turned over more than half a million working with him on a wide array of options and finally sticking to a few that have been favorable in the past 2 years.

@demetriussullivan4088

9 ай бұрын

who is the Chris Ryan Stewart you speak of? Can I get a contact?

Even more amazing is the garage is full of junk so they can't even park the very expensive car inside.

Yup, I learned my lesson this year, I was able to get rid of my Ram after 3 years and just getting past the equity line, went from paying 700 a month between car and insurance to only paying 60 dollars for insurance after getting a clunker. Next time I'm saving up and just paying cash.

@tylerhumpfer2493

8 ай бұрын

you can take that money you save up and keep it invested while getting a decent loan % from a factory/dealer incentive on the loan. we bought the wife's vehicle because of this, same as my previous truck I bought new and then traded on the wife's SUV (sold/traded my Ram bought new for the SUV).

@me-myself-i787

4 ай бұрын

​@@tylerhumpfer2493You can't finance a used car very easily. And it's not worth it to spend the extra money on a new car just to get better financing options.

George, you’re so right! I sold my 2021 Jeep that cost me $57,000 and bought a beater car for $6,000! No car payments! Thank goodness Jeros don’t depreciate as fast as most cars! I only lost $3,000 when I sold it!

As car/truck enthusiast, this has always been a struggle. There are plenty of ways to kill wealth Too many vacations drinking alcohol Not working to your full potential etc The list goes on.

@danp7463

9 ай бұрын

I'm a car guy myself. I don't drink, smoke, gamble or use drugs. I rarely eat out since food at restaurants has gotten way out of hand. I won't finance a vehicle. It's cheaper to fix a car than spend $20K+. Another thing if you need to finance a vehicle longer than 5 year's IT'S OUT OF YOUR MEANS!!

@denilemieux6157

9 ай бұрын

​@@danp7463im with you 100%. I own 3 cars and fix them myself. My fun car is a Mazda rx8 that I bought for 3k and tuned up for under 9k. My daily driver is a honda accord that I bought for 6k. Both paid in cash. The rest of my money goes to assets that appreciate. Financing anything that depreciates is just unsound.

@OtisFlint

9 ай бұрын

Exactly. I love my depreciating assets, they're very good fun. What's the point of living if you don't have some fun? Die with a pile of cash? Why? I'm not saying be financially irresponsible but saving every penny is stupid too.

@postmodgent1499

9 ай бұрын

A vehicle is one of the few purchases that costs you way more than the initial purchase price. A $50K vehicle can cost you $250K over say 10 years. If you earn $50K/year you spent half your earnings over 10 years on a vehicle. When you buy consumables your financial loss is basically limited to what you paid at the time of purchase.

@dr.ticklebum2385

9 ай бұрын

Agreed, I love cars and enjoy experiencing all different kinds of vehicles. Financed a car recently that I enjoy so much that just considering selling it hurts, but then so do the payments. So in the end I'll be selling the car back and taking a hit financially but less than if I pay it the next five or six years. There are many older cars you can buy outright and clean up/mod. I think I'll be sticking to that route instead.

We have not had a car payment in over 30 years ! I bought a new car once and will never do it again ! It’s not just the payment… IT’S THE CAR INSURANCE ALSO !

I paid less than 2% of my annual income on a used car 10yrs ago. It’s now 23yo. It’s simple enough I can work on it myself. I’ve got basic third party insurance. I love it. I keep it well maintained and neat and tidy. Freedom is the real prize.

I have never heard of your channel before, but I am in love with your humorous candor and wit. *Subscribed*

After I paid off my first car years ago, I followed my dad's advice to keep paying the loan payment into a savings account for your next car. I also used that account for the car's costs like oil changes, brakes, but not gas. I had a problem with it turning a bit into a slush fund, but I kept enough allocated to future car that when I wanted to buy my current car it didn't take too long to save up.

Car loans are actually insane. All my friends who have $400-700 / month loans on brand new cars have so many issues and recalls. I’ve never had an issue with my $5,000 Honda I got years ago!

@user-mv9tt4st9k

9 ай бұрын

A friend of mine finances new cars every few years. Her last Honda was a lemon that she was able to return under local lemon laws. She turned it in for a Hyndai. I never ask what she pays for her cars, we drove beaters growing up and she drives nearly 40 miles to work so she justifies the money she spends.

@ensignmjs7058

9 ай бұрын

​@@user-mv9tt4st9k, maybe she wanted new for the warranty? Something dependable for the commute?

@NCrdwlf

9 ай бұрын

Same I have a 2004 mazda . It's been incredible .

Ive never understood how people finance so much stuff. Im so glad i never fell into that trap.

Great advice I also have older cars. An acquaintance said to me he couldn't have older cars because his job required him to transport clients I was able to relay that someone else I knew arranged the local rental car company to rent for the week at a substantial $$$ reduction As long as the car was back for the busy weekend He was getting a new car no maintenance costs. Using his existing insurance for under $130 a week on the 4-6 weeks a year he needed

I still drive my Toyota from 2007 and haven't even broken 100k miles yet. Aesthetically it looks like I bought it off a sketchy dealer on Craigslist, but it runs just fine and gets me from point A to point B safely. Furthermore, I paid it off completely in 2010, and haven't made a payment since. It also has sentimental value to me, because it was the first and only car my father purchased for me as a graduation gift from college, shortly before he passed away. As much as I would love to own a luxury car, the debt is just not worth it.

@myopiniongoodyouropinionbad

8 ай бұрын

If you maintain a Toyota you'll have a car for life

@goldenalbatross9462

8 ай бұрын

Have a Hyundai from the same year

@Dee7nine

8 ай бұрын

Your numbers say you only drive 6000 miles per year.

Finally a ramsey personality admits a price went up somewhere, the days of a $1,000 car are gone...

@user-mv9tt4st9k

9 ай бұрын

We explained that to our teenager. He is looking for a first job in the neighborhood so he can walk to work. 😉

@brianasamuels

9 ай бұрын

not true. easy $1000 maybe but I still find them

@johnlibonati7807

9 ай бұрын

Not true. I picked up a 2005 Lexus RX330 for $1,000 about 6 months ago. 325,000 miles but runs like a top. If you’re looking at dealers, you’ll never find one. You’ll pay top dollar and get ripped off.

@BruceLee-xn3nn

9 ай бұрын

BS..buy from an individual and buy close to Christmas. They'll go down on the price.

@johnlibonati7807

9 ай бұрын

@@BruceLee-xn3nn good advice. Got mine from a guy I know.

I bought a 2001 model in 2003 for $20K cash. Still have it. I have repainted it since, and with repairs it has cost me a total of $12K in 20 years. If I kept updating for the latest model, I would have probably spent at least $100K on cars. Money in my hand is better than money in the loan companies' hands.

I love the sources at the bottom. Well done.

I paid cash for my 2016 chevy colorado (bought new) and felt physically ill for about a week after writing that check. Will be keeping it till the wheels fall off!!!

My wife and I haven't had a car payment in 30+ years. We financed our first 2 cars we bought together, paid them off in 3 years and then ran those cars into the ground, all the while putting the car payment amounts in savings. When the time came for the next car, we paid cash, and had money left over. Been working that "system" for 30+ years. Everyone "can" do it that way. Most people "won't", offering up a variety of excuses, some legit, while most are just rationalizations.

@mike6l6

9 ай бұрын

I have been doing the same thing .

@fuffthebucks7266

9 ай бұрын

Well you don't have to pay cash if you get a good interest rate and put enough down.

@Hardin9

9 ай бұрын

But why even own a personal vehicle at all, public transit is far more economical than owning a personal vehicle. That's why I'm very disappointed with the host of this channel, and can't take him serious, because not once did he mention public transit which is by far the MOST economical way of commuting. ANY motor vehicle or bicycle is a financial liability, ANY MOTOR VEHICLE, OR BICYCLE! Both motor vehicles and bicycles break down frequently, require frequent maintenance, frequent repairs, repairs on both are expensive, BOTH take up outrageous a mounts of land to park the stupid things but that's another topic, motor vehicles use outrageous amounts of fuel (EVs are better but more expensive to acquire), license plates, registration fees, liability insurance, etc. There is NOTHING economical about owning a motor vehicle or bicycle, NOTHING! With public transit you get a monthly pass every month, no financial burdens beyond that monthly pass, and none of the hassles of owning a motor vehicle or bicycle, take the train or bus to the closest stop to your destination, exit, and keep going.

@zariaeda007

9 ай бұрын

​@@Hardin9A lot of places don't have public transportation. There is a good chunk of America that will have to have some sort of vehicle.

@gullrockgeorge9057

9 ай бұрын

Public transit is a terrific solution when you have access to it. I live in a small city without public transit. In the U.S. a significant portion of the population lives in places without that option. That is reality.@@Hardin9

Excellent, excellent advice! I’ve had no car payment for a long time, and because of that, no longer have a mortgage!

@timmcquerry6068

8 ай бұрын

Me Too!!😊

Here it's more like 50% value after 10 years, but the interest on car loans is also going to be in the region of 15%. The current trend is to have lower monthly payments and a balloon payment at the end which actually makes it even more expensive overall. I drive a 20 year old car that I bought when it was 5 years old. I did spend a bit much on motorcycles when I was younger, but even then I only ever bought used. I did also sacrifice some savings when I was younger to do other fun things. The sort of activities I could never do at my age now in spite of being able to afford to do so. Some people criticised me for that, but you're only young once.

Every time I hear a coworker complain about car payments, my eyes just glaze over. I can't even comprehend how someone who makes almost the same as me can be financially crippled

@missironmouse

9 ай бұрын

Anyone ever tell you that you look like Jeff Goldbloom!?

@Thurgor_Supreme

9 ай бұрын

@@missironmouse Actually, I think I look a lot more like Lucas Hedges (wink wink)

@C1K450

9 ай бұрын

A lot of people just buy cars now just to show off, no sense of financial literacy.

@imowgrass

9 ай бұрын

Kids. Kids are the real wealth killer.

@carbunkle9902

9 ай бұрын

@@imowgrass And death pledges.

This should be required watching for every college freshman

😂😂😂😂Just found your channel. Look forward to learning more and laughing while learning. Thanks

Appreciate the content it’s really better then some of the rest

I still have my 18 year old Prius that I paid cash for when it was 5 years old. I will never have a car payment! I just save every month for another one. This way, I'M the one earning the interest and not the bank.

@MrOiram46

9 ай бұрын

If you keep it for at least 2 more years, it’ll be considered a classic car and you can apply it for classic car insurance, which have lower car insurance rates

"Cars will make you broke.". ....A very wise man once said.

When I was 20, I traded in my used car for a $13K Saturn. I ended up with a four year loan that I paid that off in 2004 but continued to pay myself a car payment toward the next car as mentioned in this video. I bought a three year old Toyota in 2012 for $17K that I still drive today. I have paid $30K for cars in 24 years and haven't had a car payment in two decades. Not having a car payment has allowed me to save up quite a bit as I progressed through my career. Needless to say, I'm setting myself up nicely for retirement.

I buy, fix and maintain Hondas. Currently driving an 05 Acura TSX I got for $300. All it needed was an ECM from a scrap yard, tires, brakes, headlights and oil/tranny flush. $1.2K into the build. The last one was a 1998 CRV. That build was $550. 30,000 miles before it got vandalized beyond repair. I buy a little bit of gold and bury it for my retirement. My income has been rising in the last 2 years, so I plan on getting a Roth next year. Hondas are incredible and quite easy to work on. I'm a carpenter that learned how to work on them by taking them apart in scrap yards. KZread helped me put them back together. Haven't made a car payment since 2006.

The $700 a month stat is crazy. I can't imagine most budgets can handle that kind of hit every month

@joseCalderon1976

9 ай бұрын

I know for sure that I couldn't afford that payment with my $71k base pay. That would be financial suicide for me personally. 😱

@RyChOr2005

9 ай бұрын

Can't be overbudget if one doesn't budget

@natersalad889

9 ай бұрын

They can't handle it, that's why most of America is broke.......

@Calypso-rb9sf

9 ай бұрын

$700 is pretty standard nowadays thanks to the BS prices of cars. I know people with $900-1200/month payments. It's nuts.

@joseCalderon1976

9 ай бұрын

@@Calypso-rb9sf For sure. My friend bought each of teenage daughters a vehicle. A Toyota corolla and a Honda civic. Each was $30k plus. 😱

C’mon Texas!! I know we love our trucks but $1,000 payment is cray cray!

@woxyroxme

9 ай бұрын

And most of them are all hat no cattle people living in suburbs

@tylerhumpfer2493

8 ай бұрын

I have 2 vehicle payments that add up to less than $1000, couldn't imagine paying that much for a single vehicle. Though if it's only a 2-3 year payment maybe.

@TheRonnieaj

8 ай бұрын

@@tylerhumpfer2493They’re not. I’m a family law attorney so I deal with client budgets all day. $600 is the average I see, but $1000/month for a 7-year loan is not uncommon. ESPECIALLY with low credit.

Too many people will rather pay $4,000 a month to live in a tiny one bedroom apartment they will never own in a dense urban city with high crime then buy a car and move out to buy a cheap home that will appreciate in value over time. I will never regret buying a car. I love driving so it suits me and its giving me the opportunity to finally move out of the city back in 2012 to buy a house. Ive never looked back and my wealth has grown substantially even though i only make 40k a year on average.

Another great option is to buy a motorcycle. You can do your necessary grocery shopping with the right bike w/ some storage on the back and sides. Less people in cars also means less pedestrians being splattered on the road

I've been done with car payments for the past few years. I then realized how much the payments were harming my wealth building ability. In fact, I rolled my car payment into my house payment and eventually paid my house off.

@FIRED13

8 ай бұрын

I don't get what you are trying to say. So, you make one payment that includes a mortgage and two car payments? What's the difference between this and making three separate payments? Are you saying you consolidated the car payments in with your mortgage payment at a lower interest rate to save money?

@PyroPandaDeitis

8 ай бұрын

​@@FIRED13he paid the extra money he was saving by not having a car payment against his house loan, paying down the principal til it was paid off.

No car payment No credit card No house payment Let's go!

@Kingswood7189

9 ай бұрын

Lucky s.o.b. 👍 My family's fortunate enough we don't have a car payment :)

I've known that auto loans are crap ever since I was 18. My mother bought a new car every 3 yrs. Saying that you will always have a car payment so why not. I said I saved my money and bought my car no car payment. Used pos of course. When I explained the amount of interest was money wasted. Of course in her mind I'm stupid. I'm a millionaire now and drive a 2013 truck.

The fact that me and the wife’s cars are paid off is the reason we were able to buy a house. It’s helps that when our older cars need maintenance I have the know how to do the work myself, keeps our costs down further.

@mikeyost3672

8 ай бұрын

Older cars can be much easier to DIY service.

@stevensaid2200

8 ай бұрын

@@mikeyost3672 Great point! Mines a ‘02 WRX and hers is a ‘10 RAV4. I imagine they are easier to work on and have less issues because less crap to fail.

I rent a F-250 from Home Depot when I need a truck maybe twice a year

@GeorgeKamel

9 ай бұрын

You are wise and practical 👏🏻👏🏻

@MrNiceGuy500

9 ай бұрын

@@GeorgeKameland now I’m excited that I got a comment from George!

@4Cumbersome

9 ай бұрын

It was great, only 25$ for the first hour and that is all i needed it for. I really dont understand the attraction of driving a monster truck around hauling nothing but air.

@-MakeItGood-

9 ай бұрын

Or enterprise. I drive an 8 year old payed off Nissan Sentra. Saves tons of money

@Swish36

9 ай бұрын

Get in line buddy, first come first serve.

The key is not necessarily to buy in cash but to buy something affordable. I was able to get a car loan with a 4% interest rate. My investments at the time were pulling in roughly 10% per year, so it was in my best interest to pay with a loan and continue investing rather than buy in cash. I bought a car that was a slightly used and very fuel efficient. Paid it off in 3 years and am still driving it 10 years later. Runs great and costs me next to nothing. Just be smart with the car you buy and you can save tens of thousands of dollars.

@buffuniballer

9 ай бұрын

That was my approach on my 2012 Mazda3 that I purchased used in 2017. Think of the market from 2017 - 2022 and most years, the S&P500 was up 20% with 2022 being the lone exception IIRC. The car was $10k OTD, and I was able to get a USED car loan of less than 4% I'd be a fool to pay cash. Of course, if my circumstance changed and I needed to pay off the car, I had the money in the market. Today, I've had the car for 6 years and have put just over112k miles on it since Labor Day 2017. (Just ticked over 180k yesterday when I did the 6month/6k mile Oil Change and tire rotation.) I figure it's good for another 70k miles or about 3 years. My wife's 2017 RAV4 has 140k miles on it. We own that outright as well. But a new car is probably in the cards for us as we are both getting close to retirement and will not each be putting close to 20k/year on a car. Related issue. I use my car for my job and get $0.655/mile. My all in costs for my car are $0.21/mile and total spend over the past 6 years for everything but car insurance as that's variable for people is $23,504. That's purchase, fuel, maintenance / repairs, and taxes-title-tags. Since about 75% of my driving is work related, I've actually received more in reimbursements over the past 6 years than it costs me to drive the car. I figure on average about $500/month in mileage reimbursements. While my monthly costs are $320. So I COULD drive something "nicer" or just have an "extra" $500/month to put into my 401(k) or similar. (Or in the new car fund as we are currently doing. The expense reimbursements go into savings for a replacement car in the next couple of years.)

@zablonskys1

9 ай бұрын

That’s the habit we all should have !

@afterstars

9 ай бұрын

I got zero percent from my new Camry in 2019. Paid off in 2.5 years. No repair bills. Just regular maintenance. Payment free for 3 years now.

@elitechampion

9 ай бұрын

Everyone needs to live within their means. So if you earn $500k/year then buying a $100k Porsche in cash is no big deal. However, if you earn $50k/year then you should be looking at a second hand car worth $10k and buy it in cash. Affordable is relative to your income.

@davidrosenthal5795

9 ай бұрын

@@afterstarsso they just added the interest to the cost of the car. It’s just a trick.

I'm 40 now but my parents taught me this when I was 15 years old. I currently drive a 2011 acura MDX fhat I didnt buy new. Someone else paid over 50000 canadian dollars for it. I paid 19000 for it in cash in perfect condition with low kms. Have had it ever since and hasn't given me a single issue in many years of ownership. I try and give this advice to my coworkers who are 20 years old and just starting their careers. Their answer is... yeah but I like shiny things. They have no clue how much money they will actually spend being stuck in this habit of a new car every couple of years and just paying a car payment seemingly for life.

@haku6506

7 ай бұрын

My issue was I didn't have a way to work and I was going to lose my only good paying job I've had as well as likely my relationship. I had already fucked myself over with a shitty old Chevy Imapla pouring 1/4 of what I paid for it in like 4 months to have it constantly give me problems to the point the last time I drove it I felt like I was in serious danger. I ubered to a Toyota dealership and intend on keeping my 2023 Camry for the rest of my life as a daily then replacing the engine or transmission later on instead of getting something else I have to worry about. I'm now wondering if I'm better off using my taxes back to invest to try to outpace what I would have saved in interest by putting it on the principle (I have a 4.6% APR)

Thanks George for this interesting informative episode finally somebody talking about the expensive cars people buying who can't afford them keep dropping the gems

I haven’t had a car payment for five years and I love every second of not having to pay a car note.

@jeretso

9 ай бұрын

15 years for me. Toyotas going strong.

@coloradomark2159

9 ай бұрын

I agree. Not having a car payment is really nice. I had two really bad experiences with my previous two cars so 6 years ago I made a purchase on my 2017 Subaru Outback @ 0% financing. A smart purchase I think. Getting hosed on a used car totally sux.

@itsallminor6133

9 ай бұрын

I guess you prolly don't want to pay mine then. It's $1800 a month

@coloradomark2159

9 ай бұрын

@@itsallminor6133 Ouch!! $1800 mo.??

@itsallminor6133

9 ай бұрын

@@coloradomark2159 3 year loan. I'm actually sending more i want this thing paid off asap. Sending more like $2500 a month. Edit: with interest rates being higher shorter term is a lower rate. I'm still in under 4% apr. Combined with the down payment, paying out taxes and fees out of pocket (not included in the loan) then add on principle only payments.. I should have it paid off with paying 2k or less in interest. Which in this market is about the best i can do short of outright cash for the vehicle. Hopefully in 2 years, probably less.

It’s been 14 years since I’ve had a car payment. I reached financial freedom at the age of 40. I am eligible to retire at the age of 49. I am able to save and invest about 50% of my monthly income. The key to my success has been living below my means every single month. it is not difficult but does require discipline. Good luck, everyone.

@christopherhendricks4369

9 ай бұрын

That's awesome. I wish I had learned how to save and invest when I was in high school. I finally learned in my late 30s. I'm nearly debt free now and trying to save and invest what I can.

@one100billneoone4

9 ай бұрын

@Joe-no7gs I actually don’t make a lot of money but am 100% debt free. Bought brand new condo outright. The secret you may ask? Live below your means and don’t buy into consumerism. Only purchase essentials and spend with intention. Only buy things that bring value.

Owned my Mustang 5 years now, bought it in cash. Best decision ever made

This is great advice! I make really good income and my car cost approximately 1 weeks before tax wages. I bought it full of trash but all it needed was a good cleaning and new shocks.

I'm forty years old, have a graduate degree, and my wife and I have never financed a vehicle. At first I held back since I knew it would get in the way of my dreams, now I can afford it, but I just can't stomach the cost of new cars or the years of making payments. 💸💸💸 Every time we go to work parties, we have the oldest cars, but at least I own my car - it doesn't own me!

My wife and I (19, just married) took out a 13k loan for our car at the beginning of this year. After fully commiting to getting debt free, we are pushing to pay it off by Christmas

@simplybirdie6481

9 ай бұрын

Very reasonable!

@chaselesser3191

9 ай бұрын

I’m not sure how your finances are. But you seem so be doing great. I will say, make sure you have your finances in order before the kids come. Take a vacation or a Cruise. Once they come your responsibilities increase dramatically. Also Animals. The bigger they are, the harder it is to move them or pawn them off on a friend or family. What I’m saying is, Enjoy your youth.

@MGTOWmademeMillionaire777

9 ай бұрын

Is not your wife,.is property of the state. Naive What does a 19 yo married? Don't you ever listened to tom leykis?

@philipgerry5228

9 ай бұрын

You need some credit when you start out married life young. You will be fine.

@crashtestdummy1972

9 ай бұрын

Good! Get it paid off and start investing! Keep it up

I’ve always hit my car payments really really hard. Put a ton down. And I usually stretch the loan out as long as I can go get the minimum payment down as low as possible and then do triple payments or more if possible. Usually gets the thing paid for in a year or so.

I totally agree! Make the payments you would normally make to your savings account first. It will only take a couple years to get up enough cash for a decent ride.

Those monthly car payments are mind blowing. I can’t believe people agree to it. I haven’t had a car payment for a long time, when I did I thought $400per month was a lot.

@KevinNordstrom

9 ай бұрын

I agree. I thought 600/month was alot for a mortgage. I have no clue how folks can take out a $1,500-$3,000 monthly loan.

Not just the payment but nowadays the maintenance costs are outrageous

@frankfitz3421

8 ай бұрын

I've always done my own repairs, save tons!

@lsswappedcessna

8 ай бұрын

An oil change on a 20-ish year old vehicle at a shop is around $60 and that's if you use full synthetic oil and a decent filter. Modern cars are easily double that for some reason, and it's not the oil. I work at a parts store, 0w20 is a bit more expensive but it ain't that much more expensive than 5w or 10w30. A basic Wix filter, not even an XP, for a 2004 vs a 2018 isn't that much higher either. I suppose it does add up, but I think labor is what gets you.

@MMA-mh9uv

8 ай бұрын

labor, newer vehicles are harder to work on and many have a bunch of panels on the underside of the car for aerodynamic purposes. just takes more time@@lsswappedcessna

@anthonymolina7416

8 ай бұрын

BMW headlights can cost up to 8 grand

Keep what you have in good shape.

My husband is still driving a 1999 Lexus GS 300 with over 275k miles on it. Our Toyota went so we bought a 2012 Honda Odyssey cash. Still no car payments here and no ashamed. The cars get us were we need to go and are new to us haha

This is good and seems to be something we really do need to talk about more. Been listening to Ramsey for a couple months and it’s like a broken record. Biggest debt downfalls are house, cars, and student loans. Do a pride check people: if you can’t pay cash for that $70,000 SUV, you shouldn’t be driving it.

@illyasporysh9719

9 ай бұрын

Focus should be on increasing income when we live in a subscription-based economy, in order to afford those pleasures.

@quesohusker

9 ай бұрын

I live in a upper middle class neighborhood in South Texas. Median home price is around $600K in my neighborhood. A lot of folks have cars and trucks that approach $100K, but the dirty secret is that many, if not most of them are partially or fully funded by their employer. If you're like me and have to pay for you own wheels...that's ludicrous. So I'm happy with my 2 2018 Hyundai SUVs.

@junyaiwase

9 ай бұрын

@@quesohusker2018 is not too shabby either

Good points, my car inventory, 93 Chevy S-10, 99 Dodge Durango, 08 Subaru Legacy, 13 Subaru XV Crosstrek, and 17 Yamaha FZ09 (motorcycle). All bought in cash, all vehicles below 165,000 miles. My monthly service on all vehicles is less than a one (1) new car payment!

Very informative! Thanks man!

I put money down on a new car for my birthday in 2022 & paid it off completely this year. My first car was gifted to me & survived from 2001 until the end of 2021. I think 20 years is a good retirement age for a vehicle that survived 2 floods, multi-state drives, & many hand-me-downs later. 😂

@Xerfing

9 ай бұрын

Look at this, bots talking to each other 😅

@MrOiram46

9 ай бұрын

If you kept it for 5 more years, it would be considered a classic car

I pulled my 2019 paid off accord in to a spot yesterday surrounded by new massive pick up trucks , this is exactly what went through my head. I’ve always kept it simple and drove paid off cars all my life. I can’t imagine paying 1000.00 plus a month for a truck. It’s like an arms race or something.

@jeretso

9 ай бұрын

My coworker bought a 800 hp pickup. Then other coworkers bought similar trucks. Now they block the handicap sidewalk with their long beds. Soon half the vehicles will be trucks and parking spaces will have to be redesigned.

@Golfing422

9 ай бұрын

@@jeretso I went to Rome a few months back for a week and I was shocked at the size of the cars and just how practical Italians are compared to the gluttony here in America. Seems here they can never stop talking about emissions and climate change, yet nobody looks at themselves and just how wasteful it is to drive a massive truck that never hauls anything besides just one occupant. I’d prefer a smaller car world that’s for sure. I see why other countries see us as ugly Americans. We’re first to bitch about something like climate change, but nobody is willing to be practical. I’m not saying I believe that man can control the weather, but I do believe there is a limited supply of oil and between shipping everything from China and riding around in massive pick up trucks that only haul one individual, we are well on our way to exhaustion of the supply of oil. I’m 49 and this is the most wasteful version of this country I’ve ever seen.

@jeretso

9 ай бұрын

@@Golfing422 I went to Puerto Rico and Philippines and noticed that personal trucks are selling like hotcakes. Even small islands with zero parking are getting swarmed.

@dozerboyd8784

9 ай бұрын

I can't imagine spending a $1000 a month on an electric vehicle. Or anything on an economy car for that matter.

@luisavila6567

9 ай бұрын

But they’re tax deductible

I absolutely LOVE my 2008 F-150. Bought used of course back in 2012.

Great Video George! You are the best man!

I'm still driving my 04 f150. Paid cash for it in 2011. I recently had to have the transmission rebuilt and the number of people that told me it was time to get a new one was insane. A $3,000 rebuild is much cheaper than a $50,000 truck

@modarkthemauler

8 ай бұрын

It's insane how people justify buying a car for ten times the amount that would keep their old one on the road for the next 10 years.

@jameselliott216

8 ай бұрын

🤔 3 < 50 🤨 YOU'RE FRIGGIN RIGHT! 🤯

@TC-fx5zu

8 ай бұрын

You probably couldn’t get a new one for $50,000. Some of the sales ads I’ve seen for trucks are around $70,000. It’s ridiculous. I’ve got an older Toyota SUV that runs like a new one and I plan on driving it til the wheels fall off lol

@petahe01

8 ай бұрын

I rather rebuild my engine too and buy new upholstery, with a new radio. I rather save $50k in a savings account with a decent apy.

@pontiacw7

8 ай бұрын

The way i see it, if it's not wrecked or rusted, then its cheaper to fix than buy something else. The money I would use to make payments on a new truck, can get used on upgrades to the truck I've already paid for.

I got married in 1980 My wife said her mom is a financial genius. I had no reason to doubt her. Then I noticed her family goes out to eat a lot. I figured not my business. Years go by and we got divorced. Now 43yrs later and I asked my daughter how is grandma doing. She said she is broke because of a second mortgage, so her monthly payment is $2500. I was shocked. So I did some math in my head. Going out to eat four times a week for 40yrs equals about $200k. Not counting the gains on investments. Also she leased a new car every four years for most of her life.

@stachowi

9 ай бұрын

People doing mental gymnastics to YOLO, same goes with people eating like shit and not exercising

@Chris_at_Home

9 ай бұрын

Eating out is expensive. I know people that do it all the time and they complain they never have money. We actually grow our own produce about 7 months a year, eat salmon we caught once a week.

@Ody-up6kg

9 ай бұрын

I wonder if the Ex still thinks her mom is a financial genius?

@PInk77W1

9 ай бұрын

@@Ody-up6kg LoL. I wonder if she even remembers telling me that. Her mom was a VP of a bank when we first met. So loans are her way of life. She’s 28y older than me and deep in debt. Me my home is paid off and I have no debt at all. Money in the bank and $4100. A month take home pension.

@garzdiva

9 ай бұрын

Eh, everyone has a money pit. Obviously you shouldn't blow your money on everything like your ex MIL, but I find the "omg everything can be an investment so don't spend a dime" crowd a little too extreme. Pick your expensive activity/hobby and hunker down on the rest. Tomorrow isn't guaranteed.

I never paid more than 2k for a car. On the other hand, i spent 5 figures on tools and schooling to learn how to work on a car. Skills to pay the non existent bills.

Yes, on so many fronts here. We saved and scraped to buy a low-mileage 1996 Jeep Grand Cherokee. We immediately had shocks and tires replaced and later spent $ 600 over the next 12 months on routine maintenance items. It must be noted that I have done all that work myself; everything from replacing wipers to repacking CV joints and replacing the components of the cooling system. We now have a fully reliable Jeep which we can jump into an go most anywhere ...................... literally. This year, our monthly maintenance is costing us just under $ 50 per month. We're so thankful for the transportation and that it is all ours.

I love it when people say, "a car is your second biggest investment". It is not an investment, even if you do pay cash. Unfortunately it is a necessity because of the way the US is laid out. No rail, busses are an afterthought. But there is a way. My wife and I are retired now. Cut down to one car that doesn't move but a couple times a week and we ride our bikes a lot.

@dreamer6508

9 ай бұрын

That’s why you live in a city with reliable public transportation

@skimanfree1073

9 ай бұрын

Good move!

@pmscalisi

9 ай бұрын

@@dreamer6508which usually have shit politics and societal structures

@orion7873

9 ай бұрын

If I had to guess, you are not an American. I'm I right ?

@johnmitchell8925

9 ай бұрын

🤣🤣😂@@orion7873