Why You Should Pay for Your Car (Free of charge)

LOOK AT THE VEHICLES AND BIDES! https://carsandbids.com Yes, that’s right: you should pay for your next car, not pay for it. .

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Comment (31)

  1. doug’s point at 13:49 is extremely accurate. i was always taught that this was much much better than financing a new car (with advanced safety features) since i was a kid. 4 or 5 years ago, a family friend who we are very close to had been setting up an old honda for hyper mileing and had been driving with it like that for a while. another driver did something stupid and hit him head on. now this guys was in his late 40’s and extremely active…just for background…when the accident occurred he broke both of his legs severely just because of how squishy his 90’s honda was. he was in the hospital for a month. his recovery took 6. it was awesome he was saving all that money but it was absolutely not smart in terms of his life. a couple years later we were i. the market for a new truck and it was pretty easy to convince my wife the safety features were worth the extra $3000. thanks doug for such good advice!

  2. This type of argument typically overlooks the elephant in the room. People are EMOTIONAL with money. What looks logical on paper, rarely works as smoothly in practice. Both sides of the argument are effectively correct.

  3. 1) Because I am debt free, my employer has no leverage to make me take an injection. When you NEED that job because you’ve got loans to service, you’re enslaved to other people. 2) (basically) nobody takes the leftover $70k and puts it in the market. They finance the Land Rover on the DAY they get to $20,000.

  4. Better title for this video: " If you're rich and purchase cars that cost over $50K, don't tie up all of your cash in a depreciating asset."

  5. Well it's almost five minutes into the video and so far he hasn't actually told me anything useful as to whether or not I would use cash or not to purchase a vehicle. And maybe he should slow down just a little bit he's talkin over a hundred miles an hour and I don't see how he's even breathing you need to slow down just a little bit perhaps it's hard to focus when you just won't stop and take a breath

  6. the inflation vs low rates and opportunity cost make it a no.brainer. gettin a safer nicer car is icing in the cake. you pay the price in current days value, over 6 year 72 months, avg 2% inflation per year, $, is worth less by time you are finished financing but you pay same base price. doug covered this very well, and being debt free often means having less money overall because missed opportunities to invest and have $ work for you just like doug said. cars are like a finance redpill for many people

  7. I totally agree with financing and making your money work harder elsewhere. This took a two-step turn for us. We bought Tesla shares in early 2020 so we could buy a Tesla on the share price gains. We now have that equity to buy our preferred Tesla by selling all the shares and making us debt free on the car. Stuff that. We've financed for a LR Model 3 so the Tesla shares can gain even more value whilst paying just 2.99% on the loan. We're predicting another 2x Tesla share value by the end of the loan (it's going to be more, IMHO) and we'll have just paid a fraction of the car value with our hard-earned cash.

  8. If you have the money on hand to put into the market instead of buying the car sure. But most people don’t have the cash on hand. Most Americans don’t even have $1000 in savings. So they finance a car when they aren’t good enough with money to save any in the first place. Most people overextend themselves financially. My cars are paid off so I can have a bigger house for my growing family. Not 90s beaters either lol. Also if you lose your job or something changes you may lose your car if you owe on it.

  9. There’s another reason to finance an expensive car. Let’s say you buy a 70k car. That car will depreciate some amount, I’ll use 30% just for example. In the case of a wreck in the first few years, you are out that 30% because your insurance will assess at the depreciated value. If you finance and get GAAP protection, the bank will eat the cost.

  10. Maybe with new cars, all used cars should be paid in cash! If you don't have enough liquid cash on hand then you can't afford it, look for something cheaper!

  11. you conveniently forgot the mandatory comprehensive insurance your lender will force you to pay for a financed car. That's by no means a negligible expense and it will turn a 1.99% APR into a 15% over a couple of years. I say you should stick to making semi entertaining car reviews

  12. People get Married and divorced within months nowadays and your telling people to devote years to a car that will be junk we it's paid for…wow

  13. 3:45 a car is a liability, NOT an asset. I love Doug’s videos, but taking his advice on car quality makes sense and taking his advice on financial matters does not.

  14. Paying cash makes much more sense than financing if you have the money. By financing you will lose thousands on interest, it makes no sense at all to do.

  15. All sounds good but unfortunately people who finance cars usually have a bunch of other debt interest that they already have that quickly adds to that 1.99%. Also I can bet that most people who finance cars quickly dont run to their nearest broker and put their $50,000 that they saved to work, usually they waste that money on other stupid useless consumer things. You are giving the current consumer mentality way to much credit.

  16. This logic only works if you’re already sitting on a mountain of cash and deciding what to do with it. This strategy doesn’t take into account people with consistent incomes, but low savings. Those people have to focus on money coming in vs. money going out. If money going out is going into a car payment, it CANT go into the stock market that you claim can rescue you from going into debt.

  17. Bought a 2021 Miata RF club. Sticker 34k, got it OTD at 34k after all fees/taxes. Financed at 0.9% for 60 months. The guy said "how much are you putting down today?" … Me: Zero sir, zero! Bought the car and didn't put a penny down… totally agree with you.

  18. I feel like for the younger audiences its also better to finance a car early on so that you can build up some credit history before you ever plan on buying a house because they really look into that if you're looking to buy property. But of course that doesn't mean for the younger audience to buy an overly expensive sports car that depreciates immensely

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