कारों और बोलियों की जाँच करें! हां, यह सच है: आपको शायद अपनी अगली कार के लिए फाइनेंस करना चाहिए, न कि नकद भुगतान करना चाहिए। आज मैं समझा रहा हूं कि क्यों अक्सर आपकी कार को वित्तपोषित करने, और नकद भुगतान न करने के लिए अधिक समझ में आता है – और मैं उन परिदृश्यों की व्याख्या करूंगा जहां मुझे लगता है कि कार का वित्तपोषण पूर्ण भुगतान करने से बेहतर है। वेबसाइट और मर्च! मेरे पीछे आओ! ट्विटर – इंस्टाग्राम – फेसबुक – डॉगस्कोर चार्ट: .
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Why You Should Finance Your Car (And Not Pay Cash)
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Why You Should Finance Your Car (And Not Pay Cash)
finance car
आप अधिक उपयोगी जानकारी यहां देख सकते हैं यहाँ और देखें
आप अधिक उपयोगी जानकारी यहां देख सकते हैं यहाँ और देखें
Hi is $250 an month for 6 years an good deal 8% interest rate. I do need to build my credit score its very low
With a new car no smelly fart cushions no snots spit or who knows what else among a bunch of issues of how the vehicle was driven. I will always go new and drive it until it stops and becomes a money pit and then buy new again. I don't care about how much the value goes down off the lot because i know exactly how the vehicle will be driven and i do all the mechanical work when needed. No thanks to fart snot vehicles and who knows what else.
as long as the interest is less than 3.x% its a good option
video starts at 4:55
Dave Ramsey is an idiot, take his advice with a grain of salt.
If it is for a reliable car to get to work, someone not mechanically savvy may save money financing something a little more expensive but more reliable, like a $15000 Corolla instead of a $5000 one.
All you need is an old reliable truck. Now thats an investment. Trucks last forever. More reliable than all these non-american cars that are as reliable as a McDonalds soft serve machine
– Never buy something financed-
– Oh, so you don't understand opportunity cost. I am sorry-
It's easy to give this kind of advice when you can look back at market returns rather than predict what the market will do over the life of the loan. I like Doug when he's talking about cars. Not so much when he's advising on finances. So many assumptions he's making here as well as suggesting that an investor's "piece of mind" has no value? Nope…
I admit that financing motor vehicles is smart in some cases but when it comes to backup cameras I have driven modern vehicles that have had them and those that haven't. It may have been only in the last several years that backup cameras haven't just been in the luxury types.
Honestly a decent take. A new perspective for me
Seriously, stick to car reviews mate.
Per usual, Doug drones on way too long about this. I put a hard line at 5% on a car loan. If you can’t qualify for a rate below this level, you should be paying cash for a used car. Regardless of opportunity cost, someone with bad credit doesn’t have any business levering themselves up if they can’t even pay their bills on time. When Doug mentions 6-7% being the cut off, he’s being laughably ignorant given anyone paying that high of a rate likely has a history of collections or not paying bills on time, for example. They’re not going to be invested and even if they did borrow to invest, by the time taxes were figured in, this hypothetical borrower/investor would not even come out ahead (using historical spx returns as a guide) – so there would likely be no advantage but yet market risk that would not have otherwise existed which has a cost in itself, especially tail risk. Stay in your lane Doug.
Actual decent advice given the current climate would be this: If you own your car but have a high interest credit card or other loan, a risk-less way to come out ahead would be to cash-out refinance your car. You’d take a loan out on your car at some low rate (likely 2-5%) with a long term and use the proceeds to pay down higher interest and/or shorter term debt. Instead of making those large interest and/or principal payments, you simply make car payments on a long term vehicle loan which doesn’t charge much interest given its secured nature so it doesn’t bleed you dry every month. Rates are typically affordable out to 84 months…
You put down $20,000…you make money off the stock market…you have a ton of money already bro. Banks dont give poor people like me 1.0% APR, they give us 5-12 % APR on a 7 year lease…that can be an extra 10-15k on top of the msrp on something new over 30k. You dont have the problems that poor people have. We buy $2,000 cars and fix them to last as long as possible. I love your content but you sound like a delusional rich person in this video lmao play the market! play the market! What part of we dont have money to "play" with don't you understand? Lmao…wow….
Damn $50k at 1.99% is $9,950 in interest! 👀
It's definitely smart to invest but that's more than I paid for my last car lol. I bought a old honda, rebuilt or replaced everything that needed it and its been running for 12 years now.
I can't swing $1,248 a month for just a car, that plus insurance is my rent lol.
Doug talking big money moves but it's decent advice.
understood, i'm gonna pay cash for a 1985 Ferrari with no airbags so i can save money and own it myself 😉
Doug thanks for the info. But i still have an issue. Again, like all these money savvy ghurus… all!! Is in every single one off these money savvy advices only work for the guys/ladies that do have the money. Here in SA, we will never see 2%, we dropped to like 6%, for a few months, here not even the middle class have can save up enough just to buy a decent vehicle, not even talking about the exotics and supercars, not even mentioning fuel and insane tax brackets we live with. Thats why we work towards paying cash as the majority cant even get through the month. Whats your advice for the middle class and lower?
I do agree yet I have a 1993 Nissan Sentra I bought for $200 clean title straight body runs with no issues and it’s had service it’s an entire 300k mile life and I got in a 70 mph accident into a concrete barrier on the freeway cause people can’t drive and I was left with a scratch on my fender
I disagree! Credit is overrated and cash is still king! Yes it does help to exercise your credit but at age 59(me) less debt is more!
This is not a good argument. If I have $70K to use for a vehicle, and I buy the vehicle I have spent $70K. If I spend $20K on the down payment and invest the other $50K, then I still have to spend $50K plus interest over the next 4 years to buy the vehicle meaning I have overall spent $120+K. Yes, overall I may offset the depreciation on the car with gain from my investment, but you need more money to do that. Most people don’t have the budget to do that. They have the budget to do one or the other. Which gets more to the argument that you should have spent $20K on the car in cash and invest the other $50K.
I don't have 20,000 to down on a car. I'm torn between saving to buy a car or finance.
Doug – the general public is not smart enough to consume this guidance and deploy this strategy. the average joe makes $45k per year and leases a Mercedes E class for a 10 year lease with $500 down.
Ya finance a car so you have monthly payments, if you mortgage free, no student debt, medical bills, expenses etc ya finance a car otherwise you’re a fool
Djia is only at 35k today, 5 months later
Have a depreciating liability or have an asset… Hm…
Finance realty… Not vehicles… If you can help it.
There is a funny juxtaposition in the video. Early on, the argument is that you should finance the car and then invest in the stock market. In that scenario, the buyer takes on market risk, or the chances that they might lose money — especially in the short term. Then, later on, there is an argument that you may not want to buy a cheap old car because they are not as safe. In that scenario, the buyer is recommended to avoid a safety risk. Two different takes on risk, with two different conclusions. What are the odds that the stock market will go down, vs. the odds of being in a crash that threatens the passengers' safety? I'd say the former is more likely, although it really does depend on time you can commit the funds into the investment. Doug is not being inconsistent, but he is reflecting his feelings of these two risks and how he weighs them. And I think that's really the takeaway here. It's not about the best decision, or the perfect option, it's about balancing probability. Ultimately, that will vary from person to person based on your tolerance for different risks. In any event, a good video with solid points to consider.
The only thing matters is weather if you can AFFORD it, not the you pay.
Car sales only keep talking about monthly payment to make it sounds reasonable, but it make no sense at all.
Unfortunately the majority of people don't have a clue.
And it is more unfortunate that the people who are paying 20% APR actually don't have the choice of paying with cash.
The people who are driving 1990s corollas probably have more debt than the worth of their lives.
Doug, your advice here is pretty short-sighted. We are in a period where finance rates are historically low and we are in a prolonged bull market. That won't last forever and you are not considering the risk of putting money in the stock market. Your example of earning your finance cost back in a month will not always be the case, so you are cherry picking data to make your point. You could just as easily have lost money during that 1 month period. You only have to look back to the beginning of 2020, and all of 2008 to see how easy it is to get burned by applying your financial advice. The good times don't last forever.
Doug the goat. Thank you for this
LOVE the dog in the shot! Thanks for including that here 🙂
Skip to https://youtu.be/LDRlc4EIB2o?t=292 for start.
I love your dog waiting patiently for the car ride
What about a used lower value car purchase with less room to depreciate? EX:$5,000-$10,000 range (NOT A 94 Accord, 2010 or newer.)
Doug, you are giving clearly self conflicting advice. I think you fail to realize that you are actually making a strong argument in support of not buying a car that cost more than a few thousand dollars and investing your money instead into the stock market or whatever. This is EXACTLY the message that Dave Ramsey and the others pitch. Stick to encouraging people to enjoy themselves and buying interesting cars for the sake of fun, leave the financial advice to the snake oil sales people of the world.
DEBT WILL SET YOU FREE.
– Quagmire
Putting $20,000 down is the same as paying cash for a car.
He missed a huge reason not to pay in cash: financing is one of the few ways a dealer makes money. If you take away financing, the dealer must make that profit elsewhere. If you finance the car, the dealer can be flexible on other terms of the deal. Finance the car, negotiate like crazy on everything else, and remember that you can always pay off the loan early.
After his video I’m still buying the M3, thanks though
Always buy car in cash otherwise you are paying way too much interest. If car originally cost $18,000 you will likely pay an interest of $10,000 depends of how long you paying. Here in australia, car interest rates is much more than house rates.
💯 on the modern safety features. Antilock brakes are a game changer
As someone working in a business office for the nations largest used dealer. I can tell you the amount of people getting 1/2/3/5% loans from outside financing aka CU/Banks is rare. It happens but that isn't the norm at all, nor are people putting substantial down payments. You're speaking to a niche and very slim % of buyers. While it may be a different case at a New dealership I'm willing to bet its not.
The amount of deals I've signed with 0 down/$2k down and a 10%+ rate up to get this 21% scares the hell out of me. I almost want to ask people are you sure you want to do this lol. The amount of high end cars I've appraised and bought since the pandemic is mind-blowing. Everyone is jumping ship to get out of financing for "peace of mind". As with everything its all subjective.
I’m not rich like you and unfortunately I think I’ll follow Scotty and stick with my 96 Honda
If you have to finance you can't afford it…. Unless you need a work vehicle.
Man, 2% interest is crazy! Here in South Africa I jumped on a car deal beginning of the year at like 7% because of how low that was compared to the usual levels previously. Pre-2020 most people I know had only ever received offers of 12% or higher from all institutions (banks and dedicated vehicle finance houses)
So basically stonks
Hey, I love your T shirt. It is from Thailand where I live…..LOL.