People do a lot of stupid things. But having a car payment that's over $1000 a month especially when you don't have the income to support it is one that takes the cake in recent history. Amount of people that are signing up for this is pretty alarming and even if you can't afford it, it's still dumb. No wonder we're starting to see the repossessions tick up.
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This is why I drive s POS and don't care what people think.
I drive a 2005 Hyundai sonata lol The sun has ruined my paint job but I don't care.
Me too😀
Vehicles are a depreciating asset. Who would pay for these large SUV’s and pickup trucks if not needed for your trade job or family size?
I drive a sun beaten POS 2003 Mitsubishi Galant SE but it runs real good. Nobody would EVER think of breaking into it.I keep the drivetrain in tip top shape and at times paint it with a shaker can. I like my bucket and most of all there's NO MONTHLY PAYMENTS!!!
2007 mercury milan 188,000 miles Keeping up with fluids and tires. Goes a long way. Trying to get 2 more years out of it 🤙 Got my eyes on 2013 TOYOTA CAMRY 😂🫡
If it wasn't for stupid people, unscrupulous people would starve.
😁
Amen!!!!!
I know a very successful used car dealer. He would say the same. He told me, "There's an ass for every seat."
@@shirtlesslager Lately Two, for every One Seat 😁
lol
Spending money you don’t have to impress people who don’t care with things you don’t need. That is not a life
This is why I am not impressed by people driving around in all these super expensive cars.
It may shock you but they aren’t driving expensive cars to impress you.
@@dondgc2298 they don't do it to impress him specifically, but they do it to convey status to people generally and to the other gender (or sex its the same thing 😂), you cant tell me somebody is taking on 100k in debt because they are bored on the weekends and want to drive around in a fast car 😂😂
@@dondgc2298 Many are doing it to impress people whether you believe it or not.
If they’re older I think maybe one of these days. If they’re young I think 7 months and he’s gonna be on that white trash repo shows getting beat down by a guy with a mullet. 😂
Older person=I say nice car and think maybe one of these days I’ll have one. Younger person=I say nothing but imagine the episode of them on one of those redneck repo shows. 😂
I would be embarrassed to pay $1,600/month for a car. It’s like wearing a sign that says you are stupid to pay that.
Not including insurance. I couldn't do it. Nope nope.
Or an Apple watch.
Right on bro🎉
Just make more money. Work harder and smarter. Or just complain and judge instead.
$1,400 as well.
People desperate to appear wealthy whilst being kept poor by the repayments. Makes total sense 🤔
As a millennial whose smart with my money I often try to tell my generation and gen Z that if they don't start voting based on policy rather then identity that they're going to be in poverty once their bodies start to get old. The problem with my generation is that they don't realize we're at the age where our bodies are starting to break down, they think they're gonna be young forever 😂
Buying things they don't need with money they don't have to impress people they don't know or don't like .. The merican way
And for the purpose of being a functional family hauler, minivans are better, in every way. However, minivans aren't "cool"... so the midlife crisis dad doesn't want one of those.
You can walk through a middle-class neighborhood and see who are in the rears. 2 new cars in the driveway and a neglected home.
Keep believing that. You’re brainwashed.
The funniest thing I see around here is people showing up at food banks driving expensive vehicles.
😂😂😂😂😂
Oh dear.
While the people who actually need it and who its mainly for, don't have the easy means to get there and pick up food. Ironically, people with (nice) vehicles easily can.
i noticed that also. they have designated pick up spots and the cars lined up are better than mine.
@@dee1458 dee i wonder that also, if anyone can get the food free just by showing up, i suspect a lot of people take advantage...
I once bought a Subaru for $500 It had 200,000 miles, but it lasted until 250,000.........$500!!!! I was single
Paid 1200 for a 2001 focus fleet car from auction, got 4 years out of it bought one set of snow tires for $400 and oil changes, sold the tires when it died and got $400 for a junkyard to come and take it off my hands, 4 years for $800
Hard to understand why people go into this kinda debt. Self torture.
I’ve drove the same Jeep Wrangler for 22 years. Originally cost 16k. Still has less than 100k miles. Striving for 40 years. Have only fixed 1 thing that isn’t regular maintenance.
@@ninerknight5351I had no idea Jeeps were that good.
I paid $1000 for a Geo storm. Had it for 8 years. Had to but $3k in it. Sold it for $900!
Those $3,000 car payments don't include the insurance either...
Or gas
Or registration
Or car tags!😊
@@maryclebeau Or the yearly safety inspection (for some states) where they find something expensive that needs fixing before they pass it.
@@michaelsmith5583 ...and those large non hybrid 8 cyl trucks only get less than 10 mpg. Cry me a river about the price of gas.
If you have to finance a car to 80 months, guess what! You can’t afford that car!
If you have to finance a house for 30 years, guess what, you can't afford it
@@homelessmillionaire1Do 99% of homes depreciate?
Agree
@@jayo5320 Still could not afford it. Many found that out the hard way during Great Recession/housing crash in 2008. I even bought a $560k short sale newly remodeled beach condo on Marco Island for $240k cash in 2008 from a couple who couldn’t afford it.
Makes 0 sense
Dad once told me "son, never buy a vehicle that cost 50 percent or more than your yearly salary" to this day I'm auto loan debt free and afford to buy a decent home. Thanks dad ❤
All my life I paid 100 to 300 more than my annual income
Follow them home. They could lead you to a nice home that will soon be going into foreclosure🤣
We have 2 used cars, no car payments, our house is paid off. I have never, ever bought a new car.
Same here! We pay utilities (power/water) liability insurance for two used cars(it's cheap),two cheap phones for calling/ internet and property tax once a year.🎉
I am in the same boat thank God.
Every financial mistake I ever made had a car attached to it. They were all hard lessons to learn, and they illustrate the fact that I'm a slow learner.
Me too :D
But vroom vroom car go fast
Hahaha. “Every financial mistake I ever made had a WOMAN attached to it!” Sad but true 😢
@@jameyd4155 But hootie hoo ! She was a fast woman..lol
@@juanvaldez7279 _But vroom vroom car go fast_ What? Is that a insecure guy thing? I hate car noises, that is one of the things I like about EVs, if only they were affordable, safe, and practical? Your ugly stupid-mobile is not a _Star Trek_ spaceship, and so why pay so much for a depreciating asset?
I been on this earth 🌎 for 57 years.i never paid over $220.00 a month in car payments ever🤠😁😃
I make a car payment into my savings account, and then I go buy a car for cash. I have three cars I paid cash for. It also helps that you can fix your own cars, even drop a new engine in if needed. Our family has many skills, and it saves us tons of money. This younger generation has no hands on skills, and pay a ton of money to have things fixed for them.
Well youngster my first house I bought was $68.94 a month. It was small two bedroom one bath down close to Little Rock ha ha cheers have a good one.
Same here. 👍🏻
Impossible. 😂
I have never paid ANY payments, ever , on all the cars I've owned, about 10, so it can be done if you are sane !
That couple with the $3000.00 per month truck payments will be eating dog food when they get to 65 yrs of age!!! Let that sink in for a moment!!!
Dave R will yell at them and have them sell it
I dont know about that. Dog food is expensive too!
Crunchy or canned?
Many people make dumb decisions. I’m sitting in the dealership with my sister and there is a lady with for kids who could have gotten a 2021 Toyota van at $387 monthly payments. She decided that an 2022 Infiniti Q50 sedan was the best option for her family because she “needed to look fly, and you can’t look smooth in a van.” Her monthly payment is $592, she was excited and bragging to her friend on the phone about her purchase. 🤦🏽 “There is an ass for every seat.”
@@standground8284 all that looking cool is going to stop when the roots start up again!
A House - gives you shelter, security, storage, utilities for cooking, washing and maybe even a place to work or grow food A Car - gets you to your destination. It blows my mind how anybody would pay $1000's of dollars to go to the store (and then worry about the price of food)
My Dad always viewed a car just as a mode of transport. Nothing more.
Right?! And no one owns a race track.. like what do people do with 'fast" cars!?!? I don't get it!!! I hate cars.
@hallhv01 They drive them fast. If they are good drivers, they usually drive without incident. That said, personally, i like pre 2007 cars the best. Large greenhiuse, decent handling, powerful enough engines. I own two. Paid $13k cash for both. I wouldnt pay $200 a month much less 1k a minth payments for a grocery getter. Why do you hate cars? Im curious.
I guess u can live in your car 😂
Good point 😊
I buy a car and drive it for about 16 years. No reason to get a new one and it saves you alot of money.
During that time, you can put money away in the savings account so when that car gives up the ghost, you can buy a new one with the cash.
@@nogames8982 How can people realistically save? The government is so corrupt and steals our wealth. But yeah, people throw away money on stupid stuff.
Yup. My grandparents would finance a car for 2 years and drive it for 10
Had my previous car for 11years, paid it off in year 1. I gave it to my nephew who was a senior in high. I moved to a location where I didn’t need a car. Then after a year I moved to a new state, more rural area and needed a new car. Thank goodness I got a low interest rate at 5h3 time . This is insane 14%i interest $1600 a month. Wow
@@caroleappling2007 It is ridiculous what cars cost. And many of them are stupidly designed. Is there a shortage of rear doors or what? Cars should have been self-drive by now. But I guess most of the so-called scientists (or fakers is more like it) are busy being shrills for the corrupt government or promoting hokey false theories such as "climate change" and "overpopulation" dogma of rich elitists into racism and eugenics. Not working on useful projects that would benefit humanity, such as Nicolai Tesla's free-energy technology or even thorium nuclear power, neither of which would have any emissions.
This makes my $700.00 car repair bill on my 02 Saturn Vue seem like a bargain.
What repair was it?
@@BREEZYM6015 throttle body, plus major tune up.
had a 2K repair on mine, and still...that's apparently only 3 months of car payments these days.... worth it to just fix the car over buying another one.
550.12 for suspension belt repair vs $550.12 monthy car payment
$530 for new front and rear brakes and rotors on my 08 Lexus. Still less than 1 month car payment these folks are paying
High prices for everything have severely affected my plan. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.
It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of investing in the stock market and potentially grow your retirement savings over time.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
That's fascinating. How can I contact your Asset-coach as my portfolio is dwindling?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
If you ever think you are stupid, uninformed, gullible or foolish, don't worry because most of the country is even worse.
It's a lack of self-control fueled by impulsive personalities.
Mhmm. You got that right!
I always buy something while waiting at the checkout line. That's not impulse buying. 😂
Keeping up with the joneses
People live their days on social media, watching other people who have a need to create the impression of having certain things such as a specific expensive vehicle, expensive phone, hair extensions and wigs. It's the craziest thing to see how far people go to one-up each other while at the same time be in a disastrous debt bubble.
We have become a society that wants everything NOW. Nobody wants to prioritize or differentiate between a Necessity and a Want. Compulsive buying is the norm and image is #1.
Bought my car in 2009, paid off the loan 2 years later. I’ve been car payment-free for 12 years. It’s been great.
Next time you walk into a dealership be ready for a shock. Very difficult for most people today to buy a car they can pay off in two years. But you certainly made the right financial move back then.
@@dondgc2298 I’ve done well for myself. It won’t be a problem. I’m just very frugal.
I drive my cars over 200,000 miles easily
I have not had a car payment in 33 years.....I'm very grateful.
Got my wife a left over 2019 Camry in Jan 2020 for $20,900 out the door with tax, title, everything (MSRP was almost 27k). Paid it off in 2 years and it is still going strong. Smart people still can get reliable and comfortable transportation and only fools bury themselves in debt for a depreciating asset like a car.
I recently just paid off 2 vehicles that were costing me $2,400/mo for both. It's ok because I could afford it. But I finally figured that just because I can pay that much doesn't mean I should. My only debt now is my mortgage - and I shall keep it that way from now on.
In the same, however, my paid off car I had for years died, so I invested in a new Toyota that’ll last me for a long time as well!
Yeah whatever you bought you overpaid
I miss my 2000 Corolla 5 speed, hand crank window car😅. Drove it for 24 years while I save to pay cash for a really nice car. Everybody made fun of me for driving an old beat-up car. But it helped me to retire comfortably. Even just an item like a car can make you or break you.
Sounds like the Corolla was the nice car.
@@jeffbalog5161 it was!
Best decision I've ever made - buy a car that I can actually afford, with cash, and I haven't had a car payment since 2018. I started with a 2006 Toyota Matrix for about $6500, sold it 3 years later and bought a 2012 Toyota Tacoma with cash. Since then, my savings account has grown, I paid off my student loans, and I can buy products for my business without thinking too much about it.
Just Common Sense ! You would think !
My car payment is $205 a month. Car payments are only bad when they are higher than your mortgage. You don’t need a 400 foot truck with plasma cannons and energy shields.
I have never financed a new or used vehicle.
Can never go wrong with a Toyota, the older the better quality.
That Toyota Matrix is one of the best built cars out there for economy. Scotty Kilmer has one and swears by it. We own 2 Toyota Corolla's and love them.
If we can't afford to pay cash, we don't buy it!
You're a wise man! 👍
Ditto
No one cares buddy.
@@miketheyunggod2534 U cared enough to comment tho. Make it make sense. 🤣
My husband and I are the same way our last 4 cars we purchased cash. We still have two of them none were over $16,000.
I've had several friends and relatives whom asked me to cosign new vehicles for them. These individuals want vehicles priced 60, 70k, one guy wanted a 90k dually. I'm an engineer making 6 figures and they expect me to help them, well more like they want me to pay for it because they all told me they can't afford those high payments. I told all of them NO!
THAT many friends have asked you? Wow! Glad you said no to all of them. Very irresponsible of them! Time for them to be grownups and pay their own way.
They would not be anymore in my category of Friends. Just people, I heard of......
@@CarlaQuattlebaum I'm native american, many of them have really bad credit, some don't have jobs. Because I make 6 figures they think they're entitled to me helping them.
@@anthonydavis6027 I see. Glad you protected yourself by not getting tangled up in their financial ignorance.
Kudos to you for telling them no.😮
I did not buy my first car until I was 37 yrs old. I took the bus to work, yellow taxis for an evening out (there were no Ubers), and rented cars for trips. No kids at that time. But if you're single, its a great way to save money not to have a car. First car was a used car and I paid cash for it. Bought my first home before I bought my first car, lol.
Iff I Can't afford it in CASH, I Don't Deserve it, and Won't get it !!!! Great Advice Michael !
Absolutely!
Same here! Never had a car payment...and had some nice cars that I keep for years and years.
How many have found once you have enough cash to buy anything you want you really don't care to buy it?
So, in spring 2022,Silly Billy takes out a car loan at 1.9% rather than paying cash. He was able to invest the money that would have been used in a risk-free investment for just over 5%. Billy is now driving a late model vehicle because this is what he wanted. Who's the Silly Billy now?
Absolutely. He did it for a higher ROI. Some people just don’t get it.
Nobody needs these big trucks and SUVs unless they live on a ranch and need to haul hay or lots of people.
Big Truck with oversized wheels all over Texas. Seldom leaves the pavement or hauls anything.
@@carnivalgods4573 yep. And the bed is pristine. And some have mag or chrome wheels and a big diesel engine.
@@carnivalgods4573 We see the (very) odd one in AUS and they are just ridiculous ! If you need a 'truck' buy a Mitsu, Hino or similar. Those big, crazy Utes are pretty stupid to carry anything. Better to have a REAL truck with a tray and forward cab. Much better load carrying capacity, and less depreciation !
fr it's so annoying seeing people drive these huge trucks when they don't need them. They're all clean as a whistle and tow NOTHING while we're over here hauling wood with a honda fit lol. We need a truck badly for our farm and wood boiler but just can't justify the cost right now, so we're making do with our little compact car. idk why people get trucks when they have no need for them.
Growing up as a kid in the 80s, nobody wanted a truck except like construction workers. My dad always had a truck, but he used it as a work sites and construction area. It was bang up dirty ect
What I want to know is where is all of this money coming from in the last 4 years. I mean a $500 per month payment was outrageous in 2020 and now people are forking out $1500 plus all their other bills..
MY CAR PAYMENT IS ZERO. I expect it to last another 5-6 years. Don't buy electric, buy ice !!
...or Toyota/Lexus hybrid!
I have a 2007 Toyota Tacoma with 170,000 miles. It has been paid for since 2007. I don’t need or want a new vehicle.
Just hit 200,000 miles in my 2016 Tacoma that I bought cash in 2018. I plan on taking into at least 300,000.
I have a 1979 El Camino that I'm going to have to get rid of soon. What would be a good used car to get? Something like yours might be an option.
Camry with 280k miles. My corolla went 300 k miles before I gave it away. Giving away camry. It still runs fine
@@BREEZYM6015 Civic hybrid 7-8k
One more chip bustard
the classic "I can afford the payments, so I can afford to buy it" You can afford to buy it if you can write a check for it.
I have 3 vehicles! A 1995, 2002, and a 2004. Zero car debt and a nice savings. I smile as I drive them!
2006, 2008, and 2014 here all paid for, no financing at all. I’m with you, feels good!!!!
My "daily driver" is a pair of LPC's (Leather Personnel Carrier) $250 pair of Danner boots, I hike 4 miles a day round trip from home to work. I don't use gas, I produce it, and the majority of my commute is thru beautiful woods full of deer/crows/squirrels and housewives and their dogs. Monk Mode FTW. Boomsticks/ammo/bushcraft gear and my new rebuild of my PC are what I spend money on. I cook my own food, forage whatever I can find in the forest, and only spend what I can afford to pay for in one lump sum, no credit debt for me. My new neighbor has a shiny new Tesla, and I see it outside the driveway MAYBE twice a month, the rest of t he time it sits in their driveway plugged into the wall.
I am 70 and have never made a car or motorcycle payment. I paid cash for all vehicles, nearly all purchased used. Two things I can say, if you do this, you'll never have the nicest car on the block and you'll have a very secure retirement because of all the money you saved and invested.
Ditto in AUS
Wish I had been smart enough to invest.
I retired at 53 always paid cash for cars and motorcycle when I was younger, if you don't have debt life is much easier. Keep an eye on banks they're going to be in big trouble repossessing all these cars and commercial properties. I think it will start with the stock markets imploding starting in August.. Sept.. or Oct when most stock selloff happens. If you can hold more cash and patiently wait into 2025 and see what happens. Our political governance is sad , they're only making things worse
I used to drive a 1947 Austin Devon when it wasn't a classic.... Loads of them advertised for a few quid... Cheap as an old motorbike
Michael is one of the most natural conversationalists on KZhead. Great content creator.
I was just thinking about that. He’s literally talking to himself to a camera, but being able to elaborate his thoughts and keep a flow of topics and opinions, is a talent in itself. I’d be bumbling and ranting if I tried to do it.
I drive a 2005 Accord and my wife has a 2006 Saturn Vue. Paid cash on both. I despise having monthly payments. I now make $22/hour as a supervisor now. My rent is $1240/month for a 2 bedroom apt. And the fact that I can pay my credit cards down every month (moving expenses) and still have money left over to save amazes me. When I see supposedly smart educated people with good jobs just wast money like this I am shocked. I am dumbfounded why they would just throw away money like this. They also probably complain about not having money. Their parents failed teaching them about life.
You're wasting money by renting.
@@michaelray1412 I just moved thousands of miles. Been driving around looking at different houses and neighborhoods getting to know the city. I am going to watch the market. 6 months on the lease left. I don’t have much of a budget since it’s on my own income.
I'm in my 50s. I've owned TWO automobiles in my entire life, and I paid cash for BOTH of them. These people have paid far more in interest on one of their vehicles than I paid total for both of my automobiles combined!! Crazy!!
# 1 Rule in business, do not finance a liability!
Your thoughts are spot on ,does it include signing a marriage contract, the potential for a extremely high liability is over 56percent
Yes sir. Marriage is a HUGE liability. Invest in yourselves, fellas!!!
Most women simply aren't worth it.@@goodoljackburton9211
@@goodoljackburton9211 And a Huge asset for women..
never finance anything with a motor...
A new welder at work has 1200 dollar truck payment and his insurance is 400. His only 18 and I tried to talk him out of it.
I'll add it was a 2017 f250 with 60k miles, his interest rate is 14%
@@andyholder6039hopefully he’s sleeping in it 😂😂😂
Wow, that is sad… I guess he’ll be the next one learning the hard way
The cost of making bank at a young age.
@@andyholder6039dang not even a new vehicle and/or very low miles.🤦
Getting a used car you can keep running by doing your own basic maintenance is like a financial superpower. My favorite type of car is paid for and Japanese.
I bought an electric golf cart on sale and 0% financing for 36 months , and no money down. in fort lauderdale , i love it.
After I paid off my truck I kept contributing that 600+ dollars into a brokerage acct and have it invested in S&P 500 funds. Out of sight out mind. Up to 12k now tucked away.
A $600 car note was not smart, so you are not ahead.
That’s awesome
@@danettewelborn5577 why? I can easily afford it and it’s paid off already. I’m debt free other than my mortgage.
Common sense has left the building 🤦🏻♀️ my 18 yr old mini gave up last yr.😢 I bought a used Honda civic 2021, 14k mi. $24k with all the fees and taxes. I put down 13k my mo. Payment /$215/mo. 🤷🏻♀️ I don’t understand these people …how the heck did these people get these loans? The system is set up for clueless people to fail for sure
They love to get people into debt. That's why there's no Finance classes in high school.
Yep 👍
The American dream becoming a American nightmare. We are going through the same here in the uk
American is the last to feel the hurts going on in the UK.
Fact: When people pay with their own saved up cash - they spend it more wisely.
How ironic is it that I just came out of Walmart, where the cashier told me that her husband's Toyota truck is costing him $1200/month. Then I come home and Michael is talking about the same subject. Keep up the great work, Michael 👍🏽
How ironic it is that probably the only reason she's working at WalMart is to pay for her husband's truck as that is more than likely where her whole monthly paycheck is going either directly or indirectly.
Damn thats a mortage payment 😵
Half the Country is just sticking their empty heads in the ground and pretending everything is just the greatest “evar”!
That's because they are battling the mental crap that they allow themselves to get vaccinated three times
Even ostriches do not do that in reality, they just lower their heads so they can kick the shit out of you.
Soo true
Yeah we're effed
Well the reality is that the Democrats are traitors and stole the election, and yet people are afraid to use words such as "high treason" and to start up the military tribunals? Why can't people deal with reality? The government monopoly schools and the liar TV, will they tell us the real source of the problems not getting solved? Conspiracy theorists have a far better track record than journalists.
I watched the TikTok; the wife is laughing at her husband for a higher payment!!! What kind of world is this??? 🤦🏾♂️
Don’t forget the cost of gas ⛽️ here in Commiefornia it cost $5 everytime you accelerate from a stop.
Tell em. I'd love to pay under 5 dollars
That state is 1 big prison camp
@@mikesmith6461 lol and extremely wealthy who don’t need to rub elbows with the poor and criminals
Many don’t realize that they are paying thousands of dollars in payments, insurance,and taxes for something that is parked more than 20 hours a day doing nothing. Over 22 hours a day in my case when I was working.
...and depreciating in value...
Drizzle Drizzle
Lol my neighbor (and childhood friend) laughed at me a couple years ago when I bought a 2009 Civic right after he just bought a year old truck with a $650 a month payment. Made some (halfway joking) comment like “polishing that terd??” When he saw me outside washing it. I just laughed it off. Fast forward to just the other day…. We are outside talking about money and how expensive everything is, and he starts complaining about his truck payment and how his truck has a bunch of issues he has to get fixed. I could’ve really been mean, but I just said “yeah.. it’s hard right now.. get that thing fixed up and paid off and just keep it..” The point I’m making is that he NEVER uses that truck except to commute to work. I’ve never seen him load anything into it, use it for work, ANYTHING. You’re exactly right. Sorry for the rambling story, but you reminded me of this lol!
I hope the couple who purchased (and kept) the brand new vehicle have secure jobs. I was living large in ’92, bought a brand new vehicle, renting a nice townhouse, and then came a corporate layoff in ’93 that I didn’t see coming. Things like this can happen to anyone. It happened to me and it’s something I never forgot.
That terrifies me 😮. I have a halfway decent job, but I worry that it could all be taken away in an instant!
I doubt it’ll happen to you. My situation was different. I was in the aerospace industry.
Same thing happened to my friend, she bought a brand new Jeep in the early 90's then got laid off for the first time in her life. She sold her new Jeep right away, and was lucky to get what she paid for.
So that means we're still sitting right on the edge,people are still really in denial.
My 11 yro truck has been paid off several years. These people paying over $1000 a month now regret having made bad financial decisions.
The kids these days think nothing of $800-$1000 car payments 😳 Excellent video again Michael! Happy Friday to you and Lisi 🩷
The same cars were $800-1000 5 years ago. Nothing has changed. They always existed.
@@Saki630 that's not my point. Any reasonable person would never buy a car with that high of a car payment. The young folks don't think it through about such a high car payment. That doesn't include the full coverage insurance also.
I know people in the 40+ age range doing it too.
That’s funny I bought a 350 Honda motorcycle back in 1972 cost me $850 out the 0:34 door. Yeah I know inflation but it only took me a month to save for it.
@@geraldcroft9020 dang man, that's awesome! Bring back 1972 prices lol
Michael, I agree. I'm an old guy now, and I am from the "old school" mentality, being raised by parents who were only seven when The Great Depression hit. The biggest car payment I ever had was still tough on my budget, but I just couldn't imagine having one as big as a mortgage. Again, and YES, I'm not the "average" type who watches your stuff. Another great offering man. Keep them coming.
It’s crazy what these people are signing up for. I’ll keep them coming.✌️
@@MichaelBordenaro not me honey. My highest car payment was $220 and that was 15 years ago lol
@@MichaelBordenaroUnemployment still under 4 % 😂
I love your sleepy Biden photo 😂!
@@jbar_85 are you serious? chump keeps falling asleep in court lol
In the downturn of 2008, people couldn't give away those big SUVs and trucks. Everyone wanted to get rid of them. My parents had a Honda Fit that a dealership was offering them more than what they paid for it even though it was a few years old at that point. As I've watched gas prices increase and economic storm clouds gather, people are not trying to get rid of these large, expensive vehicles. They are now more popular. I see the prices that people are asking for this stuff and just shake my head.
cash for clunkers.. i remember when they were destroying nice trucks/suvs intentionally.. a lot of those vehicles would still be operating today.
@@zachlafond2652 Yes. That is how they got the Honda fit. My dad traded in a decent truck for it. He said, "I hate to do it because it's still a good truck, but it will never be worth more than what they are giving me." What a fucking scam.
Yeah I remember those gas prices approaching or reaching $4.00 a gallon back then. The big vehicles were pretty unpopular.
@@zachlafond2652 Cash for Clunkers was cluster!
If you have to pay 14% interest on a vehicle loan, you can’t afford that either. The credit company just told you that by charging 14%
I bought a perfect 2007 ES 350 lexus in 2019 with 90k miles for 6900...i have driven that car all the way out to 220k miles now and it still runs like a jet powered cloud.
I bought a clean 2007 scion tc with 120k. I got to 170k and an uninsured driver totaled it. Now I have a new subaru that I bought for 25k and I also bought the service pack and extended warranty for another 10k. It sounds expensive but I'll end up saving 40% on PM and repairs over the next 10 years
Keeping my $1000 car forever
Wishful thinking, but unlikely.
My homeowners insurance is up 140% and now I get a 2% discount... I am truly grateful and appreciative... Thanks Jerks
My car insurance did the same thing. Haven't had a ding on my driving record at all in over 12 years and this year for no reason they raised my premiums $300 and as soon as I paid the annual bill they sent me a check for $57.00 for "good driver bonus". That's a first as they've never sent out good driver checks before as I've been with them for years. So I'm a good driver and you give me pennies while you pad your pocket with the difference with my good driver skills. Like you my homeowners insurance is way also, probably more than yours and I've never filed a claim in the 17 years I've lived here. Insurance is such a scam.
Most of the people who buy expensive stuff, live to impress while struggling to survive.
How about these damn insurance costs….
Oh yeah, it’s out of control
@@MichaelBordenaro It never was, in control. I used to work in that 'industry' (racket) !
@@MichaelBordenaroI just bought a certified preowned 2022 Corolla… my rates were 2k - 3k for 6months! Like what!?!?
If you have even a low damage car accident, the insurance company raised my premium to double what I was paying. And that’s with no tickets. Creeps. Home insurance is equally outrageous, and they only cover fire, theft and vandalism. And I have an alarm system. Doesn’t get me any reductions. I hate insurance companies.
Financing cars are foundational to keeping the middle class in the middle class.
Keeping the middle class in the lower class. Waste
What middle class?
@@nattypatty3667 100% facts
Financing a depreciating asset is the stupidest thing you can possibly do.
@@thetapheonix now you tell us lol Where were you when all the people were buying cars lol
That is correct. These people will continue to purchase these expensive things, and complain about being broke. They will get their tax return, or have a little extra money somehow, then just go out and waste it on stupid things again. Just because it feels good for a little while.
I drive a POS. Engine works well that's all i care. I park anywhere and worry free.
They need to sell booth cars and get a old beater that's paid off.
This is why I shopped carefully 5 years ago. Bought a 2009 Honda 2dr Accord V6 with all the bells and whistles. Had 177,000 miles paid $5K for it. Here we are 6 years later and at 204K it still runs perfectly. According to the tax people, it’s only worth $1,634. Hoping nothing happens to it and it outlives me.
So You paid $90 Dollars a Month for a Car that has lasted You 5 Years so far.. Plus you probably did not have to have Full Coverage insurance.. That is a lot Smarter then the person paying $1400 Dollars per month...
27k miles in 6 years.. You're not driving the vehicle, but commuting down the street from home. That's not practical for most working people.
You are better off with an E-Bike
@@marcellusedwards8300 Naah, I live in a 4 season climate city for now. My wife and I enjoy the comfort of our car.
Paying $80K to ride around in technology designed in the 1800s ( except for the electronics) is hilarious. Leaf springs, body on frame, etc. Slow acceleration, awful handling, rough riding, low MPG for $1500/mo 😂
Had my Honda for 30 years Jeep for 20 years still daily runners, Both bought with cash.
It’s sad that most people don’t understand the financial trap of credit.
You mean 'debt' ; yes but we get it !
Add in $4500 per month rent on a hipster condo.
I was finance manager at Vista BMW here in Pompano for many years. I arranged these loans for clients that I knew they couldn't afford. Yet the banks approve them and off they went in their new 5 series or X5 at $1600 a month. All so they can show their friends family and neighbors they drive a BMW now. It's just ridiculous. Then, when the High wears off in a month and the first or 2nd bill comes, they come back trying to trade it in for something cheaper and they're 20k upside down on the vehicle in Negative Equity. I'm so happy I'm out of the car business. Great Video Bro
If you want to get ahead financially there are 3 things you have to avoid, manage and minimise your exposure to. Taxation, interest and rent. You can't avoid tax but you can minimise it. Rent and interest are dead money, so limit your exposure to them as much as possible. Difficult sometimes I know but you can only do your best.
That's insane considering a car doesn't hold equity like real estate. These people are insane. Hold out and the prices will come down.
@@OldRoute66 Your chances are still better to gain appreciation. Have to just buy real estate at the right time.
Equity bubbles burst too! 💡
@@empress_me ok don't have anything then live in a cardboard box
Yeah, financing an inherently depreciating asset is insane. Quickest way to throw away cash!
One step at a time. eventually people will see real estate shouldn't hold it's equity either
I see people online asking advice on how to get out of their high car payment. Probably is - they are under water on them.
Great video as always! Michael Bordenaro for President in 2024!
Some people don't want to see it!
I was forced to buy a new small truck for cash. Otherwise, Ford Credit wanted to charge me 12%. And I have a credit score well over 800. They're nuts. Cheers!
31 and never owned a car. Prefer to invest and I walk to work.
To be fair, being able to walk to work is a luxury thing to dream for.
@kenchu5900 I guess but it's still 3 miles each way in all weather's. Some days luxury is not quite the word!
One who does not own a vehicle can retire earlier then most that's for shure
How much do you spend in uber and taxi per month?
I must agree buying a new car is absolutely insane at any price. If I drove I'd buy a used car and pay cash for it. I don't drive due to disabilities. Credit Cards are instruments of modern day slavery. If you are paying only the suggested payment on a credit card your life is not your own. I have exactly TWO Credit Cards. One sits rarely used at a ZERO Balance. The other I use constantly for safety but I ZERO the credit card balance every month. I have a home but no mortgage and I live debt free. I'm old, ugly, retired and loving it. I'm not rich. I struggle in comfort on $6K per month. I never have to touch my investments so my money works for me so I can relax. I paid more to live in a safe walkable community but it's so worth it to me!
The best option is to go For base model trim level vehicles , no leather , no sunroof , no navigation. Then you save money.
The problem with most people these days is that they have too much pride to be embarrassed to be seen in a base model trim level car , especially with the hubcaps instead of alloy or steel wheels.
Buy a car that doesn't need high octane gas.
Even Red Lobster is closing their doors. smh.
I haven't been there in 20 years. So it is my fault they are shutting down.
Their clientele did them in. Read between those lines.
@@JBoy340a Yeah! Happy now?? 😄
Didn’t know they were still around.
Crackel Barrel maybe to
I have a 2009 Nissan versa bought new...love her to pieces. Coming up on 250k miles😊
I’ve seen so many ppl talk themselves into a high car payment and how they can afford it. They lie to themselves. Then 2-3 months later they realize they lied to themself and regret kicks in. Why ppl do that…no clue. Especially a vehicle that depreciates.
So true. They need a new shiny vehicle that they cant afford to keep up with the neighbors.
You're confirming something I've observed for the past couple of years. I see these huge Suburbans, Tahoes, and Ram trucks everywhere. It has boggled my mind that people are buying larger when gas prices are skyrocketing.
Broke as a joke, so poor can’t pay attention
Some folks are so poor that can’t even spell poor. They po!
Im so broke my bank is the sofa cushions. I'm so broke I go to KFC to lick other people's fingers.
I'm so poor I have to fart to have a (s)cent in my pocket.
KMFDM
@@jimb3093😂😅
It's really irritating that it's taken most of my life to get to a place where I could "afford" a fancy car. But now that I'm more rational, I realize that to be truly worthy of $100K+ luxury cars you should have enough money to pay cash for it and destroy it the next day and go buy another one. That's the level of money you really need to justify a huge expense like that. Being able to afford a $2k+ car payment is a totally different scenario. If you have to sacrifice a bunch of your income every month to it, just buy something sensible and use the extra money to build more wealth. $2K a month will buy you a property somewhere that pays for itself and increases in value over the long term
The best part is that no one really cares about your fancy car anyways. A lot of people buy them to impress people that could care less.
I’m with you on that one
@@TeKnoVKNG23 That Is the funny thing. If everyone is driving a huge expensive pickup, all of a sudden they aren't that special anymore.
@@davids.9834 yep reality sucks it right out of the picture at that point. People are funny creatures.
Who in the hell paying that much a month for a vehicle you can’t even live in?
What amazes me is people still paying $20k over MSRP to get an "in demand" car.
A friend of mine, bought a new car, instead of buying a used car to get around town. She retired last year, and unfortunately her car was involved in a hit and run, so instead replacing it with something more economical, especially since she is no longer working and on a fixed income. No, she goes out and buys a new car, and then complains about the payments that she has to deal with.
Driving my 13 year old pickup until it dies… whenever that happens I’ll repair it.
These are the same people that complaint about gas prices.
Why do so many people compare interest rates to the 80s? Houses did not cost 400k+. Cars didn't cost 80k. Buying power was much stronger on a per dollar basis. Interest rates matter to regular people when we lose 2% of buying power each year.
My daily driver is a 2001 Honda Accord with 270,880 miles on it. Paid $700 for the car 2 years ago. Runs like a top
Consequences of an eroding currency, will only worsen
Still the best.
@@linmal2242 the best of the dying currencies, okay 👌😆
Glad my 1999 and 2000 Toyotas are still running fine.
When I was in High School there was a class called Economics. My financial decisions are based on that class and my dad's advice. If you can't pay cash you can't afford it. Lone exception is a home. I haven't paid interest on anything except a house in my 65 year life.