Why Americans Are Falling Behind On Car Loans

[@TheGooglySmoog]

Nothing screams freedom like not having to pay a car loan.

[@Bonanzaking]

Unless the loan and all associated costs are cheaper than the cost to run an old paid off car. I have a 50 year old mustang. At 8 mpg and needing premium gas with California gas prices it’s been significantly cheaper to take a loan on a new prius with fuel and insurance included than driving my mustang. It’s saved me a decent amount every month.

[@jherc12990]

Depends on situation, I had enough to pay for new car but who wants to waste 20k to the drain. Not me, took a loan with low interest around 5% and will invest the rest. - will make principal payments - Toyota which is reliable - over 5 years can make more from capital gains than interest payments - large down payment Made more sense than buying used

[@tommyc5336]

Or living in a house with no HOA ... 😅

[@_Meng_Lan]

@@Bonanzaking 3 year old hyundai without a loan 8000 to 9000 dollars. (Uk 8000 pounds). You are totally ripped off in the Usa. Just saying.

[@Bonanzaking]

@@_Meng_Lan I already own a fleet of used cars. Prior to my new one I had never spent more than 1500 USD and a few hours of elbow grease on a vehicle. I haven’t sold my stable because I like them and they’ve appreciated well beyond what I picked them up for. On the new Prius yeah it’s expensive being new. But my cost to operate is dirt cheap compared to a 50 and 20 year old gas guzzler if you drive several thousand miles every month. Im not worried about depreciation or interest. Like another guy pointed out, despite having a payment you do better not blowing all your capital and investing the difference. A loan on a vehicle is a win win under certain circumstances. And unfortunately a lot of people are brainwashed into thinking a car is a depreciating asset, the problem is most people don’t keep them 25 years or more. The vintage car market has been a thing for a century, since the ford model t became a classic. Generally they appreciate to above their msrp after a quarter century. Even econo cars, think the old steel Volkswagen bug, or boomer muscle cars.

[@happycurls4086]

Man, i have a coworker that just bought a $75,000 car and is paying $1100 per month. That's insane to me.

[@AmericanTeacher-USA]

Sounds as if he plans on living in it ! 😮

[@kaydublin5164]

😂

[@commiesnzombies]

Manopause

[@davidford3073]

Yo dude will never get tha money back ever, that’s the sad part after the new wears off😮

[@brittany_geneva]

🤯

[@LURLINE_]

i swear some people need a 2k dollar repair on their car but they go out and replace it with a 30k loan instead

[@bang2020]

That’s because they can’t afford the repairs and go finance a new one. It’s a horrid mindset but that’s reality.

[@Oinkiepiggy]

You are 99% wrong. You don't need to spend 2k all at once. It can be done 200-400$ at a time. Just like a car loan. But with interest free maintenance. ​@@bang2020

[@MariW736]

I’m one of those people, and I don’t regret it. I bought a “cheap“ 1-year-old car that I didn’t like because it was supposedly an inexpensive option. Four years later, that car started having transmission problems, no joke, _4000 miles_ after the warranty expired. If I start dumping money into transmissions at 50k miles, I guarantee that car is going to have other problems, and it will end up being a surprise money pit. At least with a new car, I know what my payments are in advance, I have a lifetime new car warranty, And most of all I finally bought the car I actually _wanted_, and the experience of driving makes me so much happier now. Of course this is only my specific situation, but after plenty of experience with the inexpensive option turning out to be expensive in the long run, I’m really happy to finally just have something that feels better quality, and has the right coverage so I won’t have to ever worry about it again. That feeling of relief is worth the financial delta, to me personally.

[@luism7545]

Most ppl can’t cover an emergency over $500. People blame the auto industry and salespeople but it’s the consumer that doesn’t plan for emergencies 🤷🏽‍♂️🤷🏽‍♂️🤷🏽‍♂️

[@LURLINE_]

@luism7545 well I'm not gonna act like i have much of an emergency fund but even in the worst case scenario there's still mechanics that offer financing right

[@csr2120]

The dumbest thing I saw during the car buying frenzy near the end of the pandemic was people taking out EIGHT YEAR, $80k+ loans on SUVs which were priced $20k over msrp after dealer adjustments and lame add ons like nitrogen gas in tires. They were tens of thousands of dollars underwater as soon they signed the contract and that isn't even factoring in depreciation.

[@asdax8311]

And the tragedy about this is that helps stealerships and manufacturers normalize the overall price increase of their vehicles. In other words, continuing to move the goalpost.

[@NazriB]

Lies again? Champions League

[@walterwhite1]

Let’s ban STEALERSHIPS

[@millirabbit4331]

I had to buy a car during that time period. The pricing over msrp is why I bought a cheaper car that met my minimum needs. I remember looking for any car with a 7" ground clearance that was affordable. It just happened to also have good gas mileage and was fairly comfortable.

[@ihmpall]

@@P2B_JClol you’re either scammy car salesman or a sucker who paid over msrp

[@CalmSnivy14]

I graduated from college 4 years ago, and instead of a big trip, my parents helped me buy an 05 Corolla all cash. Easily the best gift of my life. The money that I saved on car notes ended up being saved while I was an entry level worker. I now live in a city with excellent public transportation and don't drive at all. Being debt free, to me, is better freedom than "owning" a car

[@shirtlesslager]

So you own a rapidly depreciating asset with significant fixed costs, yet you "don't drive at all"?

[@CalmSnivy14]

@@shirtlesslager "rapidly depreciating" it was already only worth 3.3k when purchased in 2019, I believe I got great use out of it. insurance ran me about $85/month, yearly registration was a couple hundred dollars like it would be for any other road car, and it got 34mpg. Hardly significant. I live in a city now, and accomplish my tasks with public transit. My name is still on the title but a younger cousin drives it now and pays what it would cost to operate the car

[@ellennewth6305]

@@CalmSnivy14 I did the same thing! After college, I bought my first car (Ford Mustang) from a rental company for $5,000 (cash). Drove it for 3 years. When I bought my second car (new) the dealer gave me $3,000 for it. Good deal all the way around.

[@cjhoward409]

@@ellennewth6305 Bought myself a 15 year old, low miles corvette. It was my fun car. Already had a good small suv. But saved and always wanted a corvette. Drove it for 4 years… sold it for the same price I paid for it 👍🏻

[@tbone8636]

You are debt free because your parents made wise financial decisions on your behalf. Not everyone is gifted a car so congrats on the privileged life!

[@loufher284]

In 2018, I bought a used 2015 Honda Civic with 34,000 miles for $12,500.... I got a loan from my bank at 4%...and paid the car off. Looking at loan prices and car prices today blows my mind at how INSANE it's gotten.

[@andergarcia4953]

Buying a new car unused is basically fiancially stupid nowadays for folks who are working class or middle class

[@KeepRowing247]

That’s a good deal on that car It will last u at least 1.5 decade or more

[@bobfox2733]

Its dealer greed

[@hhjhj393]

I did some quick craigslist searches there are still cheap, good econo cars available. I just think people aren't buying them because of image concerns. Everyone is buying trucks and suvs and not cheap cars. Which is crazy to me because I think these newer corollas, Yaris, civics, Nissans and Mazdas look good.

[@fs5866]

It's only financially stupid if you buy from a brand and car model that loses half value in first year. And also if your finance interest is through the roof. I bought mine at interest of 5.9% with 10k deposit, looking to finish paying it outright next year.

[@x-men69-96]

I sold my car. No more payments, no more accidents, no more theft, no more insurance, no more gasoline, no more inspection, no more oil change, no more fixing car or flat tire, no more registration fee....I feel free.

[@davidshi5539]

Then you shall sell everything and live in woods. And use solar power

[@SerpkoBakotiinii]

How is it possible to live in USA without a car? Accept Ny or maybe Boston

[@joshuahodge8804]

@@SerpkoBakotiiniiyou can in cities like DC, and Chicago as well. Just live in a densely populated area

[@karld1791]

@@SerpkoBakotiiniiyeah I don’t see how. I’m a hard core cyclist and I still have to drive lots of places where I need to go and don’t want to get ran over going there.

[@jakeroper1096]

@@karld1791it’s almost like different cities are different

[@bruinlane]

My parents always told me that they never made enough money to pay for interest on ANYTHING. That lesson has served me very well in life and I have always been far more financially secure because of it.

[@FelipeValdez-og2tg]

loans are a scam to keep people trapped

[@Suku1509]

The thing is, America is becoming more and more unfriendly to people without a car, especially on the west side: less walkable cities, less developed public transport; I've even seen some IT job descriptions requiring the applicants to have a driving license. Basically you are very limited if you don't drive; while the financial illiteracy situation keeps people making bad purchases, including cars. That's truly capitalism at its finest.

[@vik914]

​@@Suku1509buy second hand. Buy an affordable sub 20k. I think you have a lot of options.

[@Potatorq]

@@Suku1509 Ofcourse you need a car but that doesnt mean you need to finance a $50K car. There are plenty of cars that are in the 2000-5000 dollar range in the private market that are great and will last many years. Ive bought a 2007 Ford crown vic for $2000 that gave me many years of reliable service. Was it perfect? No it required some basic maintenance and repair every once in a while that anyone can do. Especially with a source of infinite knowledge called the internet. I currently own 3 vehicles and none of which Ive ever financed or payed a single penny in interest to any bank. Capitalism is great, what isnt great is stupidity and lack of education.

[@Suku1509]

​​@@Potatorqyeah that's why I wrote the second part. There is nowhere near the sufficient amount of financial education in school, so young adults tend to make financial mistakes like buying a car they can't afford, or financing unnecessary things like overpriced phones or laptops.

[@huskiefan06]

This can all be avoided by monthly budgeting, saving up, then purchasing a USED vehicle IN CASH. People love to impress strangers at a stoplight

[@bkb9110]

facts. my girlfriend often expresses her jealousy that I OWN all my cars and she has a payment still. It costs her nearly $500 a month...

[@huskiefan06]

@@bkb9110 Awesome! 👏

[@NazriBuang-w9v]

Lies again? Google Drive Champions League

[@lorinfields5051]

...or neighbors in their driveway.

[@iceyaj3167]

My dad once told me "Son, never buy a vehicle that cost 50 percent or more than your yearly salary" I'm auto loan debt free to this day and afford to buy a decent home. Thanks dad!

[@dannydaw59]

My parents were like that too but the problem is that parents don't always teach that responsibility. This should be taught in high schools since all parents don't teach that.

[@JonathanAkosah]

Very wise advice

[@happyyoggi3894]

The money you save is the money you earn, graduated in 1986 and entered the high tech industry. Sold the Ford Maverich 1975 which bought $500 in 3rd year in university. Bought Toyota pickup 1987 paid cash and keep it until 1995 with another Toyota pickup (fuel injected) with cash, gave the old truck 1987 to brother in law, sold it in 2022, because I no longer need it. And only keep Toyota Prius V 2015 because high miles per gallon of gas because of hybrid technology. Money for investing in houses, stocks, gold, silver, ...

[@Mac-pluto]

I prefer the 3x rule. Don’t think you should be buying a 100K car on 200K income.

[@iceyaj3167]

@@Mac-pluto must be nice to make 200 thousand an year. Majority of us don't make that not even 100 thousand.

[@Jinchuricki27]

Yes, the auto industry is terrible, can we also cover the auto insurance industry. They always seem to escape scrutiny.

[@damonkatos4271]

I think auto insurance industry is mad cause they aren’t raping us for as much as the health insurance industry.

[@jpablo700]

I think you're asking for a critique on capitalism. All of these terrible fill in the blank industries are the result of capitalist practices.

[@hankhill6469]

@@jpablo700 what's your alternative?

[@JunkSock]

@@hankhill6469we can share just trust me bro

[@tmn8547]

Yep! Auto insurance is just as bad!!

[@rsxboss302]

I went to a Nucar Toyota dealer , wanted to buy a Corolla Cross . The price on the website for the car on the lot was $370 a month . Excellent credit . Good trade in . They come back with over $500 a month nowhere near the advertised price . We left , left a bad review . They called me back and said they could do the advertised price , only because we left a bad review and corporate saw it . Dealers are scummy , be careful

[@scottfranco1962]

I had a friend who was studying to become a lawyer, and as part of his studies, agreed to take part in a "sting" operation for car dealers. He was of Mexican descent, and spoke English and Spanish and looked Mexican. He would go to the dealers and pretend to only speak Spanish. They would present him with loan papers, in Spanish, that they then compared to the same paperwork provided by the same dealers in English. As you might guess, the terms given in Spanish were markedly worse than the ones given to English speakers. It got written up in the local newspapers.

[@UpcomingJedi]

But did he agree? Not discrimination if he agreed, knowing the terms offerred. This is why you NEED to learn the countries local language to not be "taken advantage of" then crying.

[@djm2189]

​@@UpcomingJediagree a tiny bit. Have you heard it's illegal to be discriminatory? The dealer should either provide the exact paperwork in Spanish or state sorry they only have it in English. Changing terms due to a language barrier is literally illegal. Past that all driving tests etc should be English only as our signs are only to be in English. Aka why I agreed partly to your comment.

[@scottfranco1962]

@@UpcomingJedi His part was gathering information. Your take on this is flatly offensive. We are done.

[@sprague49]

So the Spanish speakers at the dealership were more crooked than the English speakers??

[@IsraelZavala]

@@UpcomingJedi Maaan shut up....

[@hyphennate]

2 huge lessons to learn here to avoid getting screwed, and they are pretty simple to follow: 1. Don't ever buy a brand new car, unless you are absolutely prepared for what it's going to cost and then some. 2. Get a loan through your bank, not through the dealer.

[@AyeBeeG]

Aka don’t live in USA where public transportation is a joke

[@stevechance150]

Yep, get a loan pre-approved from your bank or credit union. Or save up and buy a reasonable used car and pay cash.

[@agoogleuser9218]

better off paying cash for something with a good track record (Honda, Toyota, etc) if possible. If not possible, finance something that will last you a long long time after you pay it off.

[@error-mc5xw]

@rando7094you cant have a big house and take public transit at the same time. Most Americans prefer living low density suburb

[@DailyRants89]

@@stevechance150 where can you buy a reasonable used car these days? Those prices are high now too.

[@mwolf0259]

Crazy idea: whatever amount you would spend on a monthly payment, save it and pay cash. I decided no more auto loans and bought my last car in cash. People need to be more realistic with their budgets.

[@MAGA4EVA1986]

I just love people like you who say stuff like that, let me ask this: What does that person do in the meantime? A vehicle isn’t a “luxury” for most but a NECESSITY.

[@jonnygraham2372]

The bigger issue is that.. why are cars allowed to be a luxury? Why are we allowing basic necessities and simple luxuries cost us every waking hour of our working life? People needed to stand up years and years ago.

[@Tharvey83]

But the op is right though. Buy what you can afford in cash or at the very very least with cash and a small loan for what you can afford. It may only be a few thousand dollars and a beat up car look wise but it works. Even with repairs it will be cheaper over the course of a year than paying car notes with interest. Take the extra money that you *would have spent on a car note then in two years sell that car, get some of the money back and then put it with the money you saved to buy a nicer more expensive car cash. You keep doing this, getting nicer cars over time and you will be so so much more better off. Stop complaining and try

[@BP_PE90]

Yes a car is a necessity in most places, but a brand new, top trim level, car is a luxury.

[@SneedSeeding]

@@MAGA4EVA1986 Yeah but my man there are people out there who just go out and buy cars at stupid rates with stupid MSRPs. Dudes who buy Chevy Tahoes and F150s for 60k at 12% APR when the Buick Envista is sitting there at $22k MSRP and is still a nice looking car and some Hyundais go for less than that. People aren't buying smart they're buying to look luxurious half the time which is the problem.

[@jasondima1411]

The dealerships don’t want to tell you how much the car is, they want to tell you how much the car payment is 🤦🏾‍♂️

[@roolyfe]

Indeed

[@gregorypaine513]

Stealerships

[@GregElbert-ug9kt]

That's why first thing they ask what are you thinking for a monthly payment I tell them the 00 plan paid for when I leave I don't buy new vehicles

[@carmellabrown3335]

All the issues raised in the video is why I've purchased cars for cash. It may take a little longer to find a "good" , but its worth it!

[@dark12ain]

You hit the nail on the head finding a good car

[@towersofflowers4571]

That's the way to go.

[@thesquad2253]

its not hard in my city they got good old cars coming in every mth for 4000-7000$

[@asdax8311]

If only more people had the restraint to buy a car in cash and work on their walkout skill, stealerships will have less power to overprice their vehicles. In turn, this will be a right step for our dumpster fire of an economy.

[@netogrof]

I worked in auto collections for a bank so I was well aware of the scams that dealerships play. So when I went to buy my car I read over everything. The dealership kept talking to my husband and he would defer to me, ‘she knows more than me and it’s her car’.

[@Kysen10]

Bought all my cars with cash, never had a payment.

[@beach4me2007]

When negotiating the deal I always really grind the sales reps on the price and tell them I'll finance it and they can make their commission on the financing. Most dealerships have several financial products they can sell. I tell them "pick the one that's best for you". Then I pay it off on the 3rd month which is often the first time you can pay off the loan in full without penalty. This strategy is a little better than paying cash because there's always a cash price and a lower, financed price that can get approved by the sales manager. I don't really pay any interest and the lower price is even better because my registration TAX is based on the price of the car.

[@LostMySauce]

Congrats to you.

[@MrSupernova111]

@@beach4me2007 . Pretty smart. That what I was thinking.

[@keithmorgan4883]

How? The average working American doesn’t just have $20-$30,000 lying around.

[@bosorot]

​@@keithmorgan4883 That is a problem for most American. Except for my first car before I have a real job. I always pay cash for the cars. Everything costs more when you are poor .

[@suzym.1830]

In 2021 I bought my first car. Tip #1 I went to a credit union to get pre-approved for an auto loan (lowest instrest was at Schools First) 2. Called my insurance to see how much my insurance would be for a brand new 2021 Toyota Corolla. 3. Saved money for a down-payment. 4. Definitely did not tell the dealer I was paying with a credit union check. 5. Before going to the dealer I knew what car I wanted to buy and was honest with myself about how much car I could afford. 5. I didn't not get any add ons 6. Went to a couple of dealerships especially when they wanted me to pay for add ons or the price of the car was ridiculous

[@lukeclarke267]

The not using th finance at the dealership is a big one. Always shop around. Everyone thinks that car loans are like home loans and you get the same approximate deal everywhere... nope. They'll charge you as much as they can get away with because they make more money. That's why they always ask "what's your budget?"

[@josebelisario6050]

Mooch

[@HelmuthGerka]

Few people do what you, most people are npcs in automatic mode, they need to buy the fancy car that they cant afford to impress people they dont even like, same thing applies to everything else, from groceries and clothed to housing. Car dealers are garbage but people need to educate themselves.

[@carvalhoribeiro]

6. Price of the car was ridiculous. *Do you make previous research online to get a proxy average price to use as a reference?* How to know if the price is too high? Thank you for your comment.

[@Sybaek]

@@carvalhoribeiro I actually work in sales at a new car dealership. You should contact every brand dealer within about 100 miles via email. Many will give you their pricing if you request it for a specific car/trim. Some will just send you the MSRP and insist you come in, but others will actually give you a full breakdown (which will have the dealer mark up worked into it) after tax/title and out the door. If you ask a few dealerships, you'll notice they're all within a few thousand of each other for the same trim levels. It really depends on the demand for the vehicle nowadays. The fact of the matter is, it's hard to find popular models on the lot anymore. They're getting sold before they're ever put on the lot.

[@1yearoldiam]

I was buying a new motorcycle about 2 years ago and I had excellent credit. The dealership was offering a 0% interest for 3 years promotion if your credit was good enough. I applied and they told me I was denied for the promotion and that my rate would be 11%. I literally laughed at them and said I'd be back tomorrow. Went to my credit union where I bank and applied, and got approved at 3.75%. the dealership is never your friend.

[@omgcrisbreezy]

Worked for a VW dealership. The markups we would hit customers with were insane. Left the company after 4 months. A lot of shady stuff.

[@brunoheggli2888]

Markups are importend and great,you make as much money in good times so its easyer to sustain bad times!

[@beach4me2007]

Best post on this thread "My parents always told me that they never made enough money to pay for interest on ANYTHING. That lesson has served me very well in life and I have always been far more financially secure because of it" His parents are very wise.

[@hackman-hackman]

The REAL reason people are falling behind - people that cannot afford a car are still buying one because they have no alternative like public transit or bike infrastructure.

[@OmarRodriguez-fs3jv]

Yup agreed, it’d be nice not having to rely on a vehicle to get to places

[@wastelandking]

It's difficult in the USA to go long distance without a car. It's possible with a motorbike, but it's more hazardous.

[@wastelandking]

@@supplyequalsdemand2739 It's not just the cost of buying a car that's the issue. There's the maintenance cost and insurance to worry about in turn.

[@Lightwillwin]

Keep an older vehicle. Save your money save your money. Budget budget . Pay yourself

[@kcgunesq]

Nonsense. They can't afford the cars they are buying, but that doesn't mean the couldn't find a car they can afford. No one is entitled to a new, $50,000 car.

[@AR-ln7ln]

I cried at the dealership buying a car. The finance guy tried to trick me so many times by telling me monthly payments only. First time he used way higher interest rate than we had just talked about and I qualified for. During 2nd calculation he added a service, I repeatedly declined and had a right to decline, into my payment. It got so bad that they had to get the manager involved. At some point the salesman had to fess up that the finance guy is a crook. So, the manager comes over with paper explaining how the guy had looked at the wrong interest rate. He leaves the paper there and according to the paper, I qualified for even lower rate as I had great credit score. Now I have two crooks and the poor sales guy is about to see me walk out. No more dealerships for me, ever. There is no reason for it going forward.

[@Ryan125y]

They tried to play that game. I pulled out my phone and multiplied by 72 (months) and said no.

[@MrSupernova111]

That's terrible. I have a degree in finance and work in the industry. The simplest way to look at your loan terms is to multiply those monthly payments time the length of the loan. That way you can compare the total cost of loan to whatever price you're prepared to pay. There are websites that have great auto loan calculators as well so you could even get the total price (cost + interest) estimate before you set foot in the dealership. This way they can't pull scams on you because you know what the vehicle should cost including interest. I would also advice to apply for an auto loan elsewhere before going to the dealership so you have an idea what kind of interest rate you quality for. I hope you have a better experience next time.

[@AR-ln7ln]

@@MrSupernova111 Well, me female and me foreigner. I have a finance degree also. I wanted to finance the car and I knew I will get a top rate at the spot (0% wasn't available at that time). He calculate and I calculate and each time his was wrong. I tried to figure out what he is adding to it. Wish I had walked but partner left me there to pick up the kid. Car is fine. Paid it off early and will drive the wheels off of it. Damn, Honda Financials Services.

[@MrSupernova111]

@@AR-ln7ln . I'm sorry to hear that. I think, in the end, crooks will be crooks. As you said, you have to be prepared to walk in those kind of situations. Glad you got your vehicle and paid it off. Cheers!

[@pennmikael]

Try to get a loan prior to walking in dealer next time. You know you’re rates and no pressure.

[@rerebrook5057]

My husband and I have two cars, 1 with a car payment that will be done this year. It’s tempting to get frustrated with the older car and want the newer car, but the luxury of not being tied to an expensive car payment is worth it.

[@wenonahdenbigh9508]

We are in a market right now where the car you have is the car you need to deal with for now. I bought by a new car in 2020 at 0% interest but I don’t love the car because it had manufacturing defects. They all got sorted out but it took the joy away. Anyway while I don’t love it, I am keeping it for now. Inflation and high interest rates are not appealing to me.

[@reubenmorris487]

Sometimes an older car that goes to the shop every 4-6 months for something will cost more than a new/newer vehicle. Newer cars have more safety features and sometimes cost less to insure.

[@beecnul8r]

Drive it until the repairs cost more than the car is worth. I had a brand new 1968 VW and drove it for 22 years with over 225,000 miles on the odo. Finally, the engine quasi-died and I had to replace it. My Honda Accord lasted just as long, and I sold it to a friend of my daughter for $1. She still lives in Hawaii and the car is used daily.

[@rerebrook5057]

@@beecnul8r I work from home thankfully, hopefully I can hold onto it for a long time.

[@fabiohoyos4199]

Smart

[@hardygavin80]

That Toyota VP was dodging questions like Beast Mode 😂

[@SenseyTagava]

Beside scammy dealers, biggest problem is that people are not doing homework and just gullibly going into the dealer's hands. Laziness and desire for comfort cost you moneys. You can fight all the BS fees and high APR. But you have to do you due diligence.

[@rayBARInvest]

Got my car in 2020 and it was definitely a negative experience. I work in finance so they couldn't work me over with their BS in the lending department. Be sure to take the time to negotiate and be willing to walk.

[@MrSupernova111]

I work in finance as well and have a degree in finance. In the end, crooks will be crooks. You have to do your research before going to the dealership and be prepared to walk.

[@rayBARInvest]

@@MrSupernova111 100% it’s sad though how they try and pitch payment amount and not price. That’s where so many people get scammed.

[@MrSupernova111]

@@rayBARInvest . For sure. Its a disgrace.

[@wypgagolf9285]

There are many morons who work in finance that finance everything lol

[@Erin-rg3dw]

I was working in timeshare (not as a salesperson) when I bought my last car. Some car salespeople took that as a challenge, others you could tell relaxed. It also helped I started the shopping process long before my old car gave out so I wasn't stressed. Even still, I came across an old timeshare coworker who worked at a dealership in the process and they still tried to pull the sales tactics on me. Like, c'mon...

[@franciscojaimes4007]

I’m a lender at a credit union, no one ever complaints when they’re asking for money only when circumstances change in their life is where they blame us. No one holds a gun on your head to sign the contract. Most contracts are signed electronically with no pressure. For the True in lending act we disclose everything, Interest, rate etc. if you can’t afford it don’t buy it that simple.

[@MoDan19]

Say it louder for the snowflakes that complain.

[@issacmcgann9918]

Banks r corrupt businesses scamming for the elites. Hope your proud of yourself for turning against your own people. Sell out. Yea I bet u like ruining lives and all the cash that comes with it. May God have mercy on your soulz

[@scotttracy9333]

Exactly 💯 This is no different to the student loan crisis, where they are complaining afterwards how unfair it is

[@solomonshv]

i was going to say this. i bought a total of 5 cars in the last 10 years (2 were for my mom). i negotiated everything over the phone, filled out the forms for credit history checks, credit, spec/option lists (for custom orders), etc and sent them back by e-mail. i didn't see the inside of the dealership until it was pick up day. no one forced me to do anything. why does no one want to take responsibility for their own choices? if your take home pay is $750 a week and you sign a loan that's $500 a month (on top of insurance, gas, oil changes, etc) and default IT'S ON YOU. why would you take out a loan like that?

[@bate01071]

Agreed. There is a toxic victim mentality in which people choose to blame banks and other financial institutions for irresponsible decisions that they made. You can blame car manufacturers, dealers, banks, the economy, your employer or simply blame yourself for spending irresponsibly and over leveraging.

[@DmanDaGr8]

My mother taught me to never sell/trade a paid-off car, and I'm so glad I listened ❤

[@philippevonarx8642]

i never even bought a car with a loan 😂 i even sold my 39 year old vw rabbit mark 1 in 2019 with a gain 😊

[@PeugeotRocket]

At some point you will want to upgrade though and not everyone has the space to store their old cars.

[@TheGooglySmoog]

Yeah, I have traded in junkers and that is about it.

[@DmanDaGr8]

​@PeugeotRocket there's always exceptions but as long as you have at least 1 car paid off you're good 👍🏽

[@rusipathan]

It really depends. My wife recently traded her CRV (bought just before COVID) for a Tesla because the value they offered was almost 82 percent of what she had paid over time as lease payments and subsequent buyout. Teslas recent price cuts and rebates made the deal a no brainier. She went from a 4 year old boring CRV with 60k miles to a brand new Model Y for just $20k.

[@speeddemon0712]

You don't have to have a brand new car. Spend a year or two saving and pay cash for a used one. You'd be surprised how financially freeing it feels not having payments.

[@nsbioy]

But mY NeigBor BuddiEs aLL have NeW Big cARs wiTh TouCh ScreeNs and WiFI!

[@williamparks2203]

Amen to this. I own three vehicles and spent less than $6,000 for all three. My first car was $0, my second $2,100, and my most recent $3,500. No payments on any, and I do a good bit of the maintenance and repair work myself.

[@eligreg99]

@@williamparks2203Not everybody is fortunate enough to be gifted a car as their first car. I bought my first car last year for $8,000 with a $3,500 down payment. I’m almost done paying it off. My note is only $177 but I’ve been paying more than that

[@keska01]

@@nsbioy😅

[@porkypine602]

It’s the smarter choice on average a car depreciates 40 percent after the first 3 years. The high trim car from 3 years ago will have better features than the current base or medium model and cost lest.

[@daphnedevi]

In 2018 I bought a 2018 Kia Soul + with a few thousand miles for $16k. I saved to buy it… no loan. There are plenty of quality vehicles for under $20k, in particular if people buy used. From my view too many people want to live beyond their means and they sucker themselves to do it.

[@0_44_4]

I sold cars in the late 90s early 2000s. There was a couple who came into the dealership one day, they had a older Pontiac Grand Prix that they were $9,000 upside down in. We sold them a new Subaru and tacked the $9000 on the new loan. It's terrifying to think about being upside down $50,000 on a new truck. It's just as bad as the 2008 housing crisis.

[@gregorylyon1004]

OMG. Who does that?? What fools

[@twystedhumour]

@@gregorylyon1004 Friends of mine...

[@chadwaynebradley]

Save your money and buy a car without borrowing money. Problem solved.

[@dannydaw59]

But that makes too much sense.

[@chrismargoni]

You can also save money for a huge down payment. I saved to pay a 60% of cost of nice vehicle that I wanted so I would have a reasonable payment. I pay more than the required payment so I can pay it off early. Rewards are good if you're responsible. I've earned it.

[@SneedSeeding]

@@chrismargoni This also boosts your credit score like nobody's business. It's what I plan on doing when my car dies, and financing through my bank instead of the dealer to boot bc dealer finance departments are scam centers.

[@chrismargoni]

@@SneedSeeding Exactly! Financial planning pays off. 👍

[@mitsucarpentry]

I will drive mine just like in Africa until everything fall apart and then tape and fix and drive more 😂

[@larrykeesee1442]

Duck tape it..

[@RobGee623]

It's too bad that having a car is a requirement to take part in just about all aspects of living the US. The state of the new and used auto market makes it incredibly challenging for consumers to get by

[@justshady]

The car lobbyist are the ones pushing it, and are making money. You shouldn’t need a car to get toilet paper.

[@pinhead35]

Time to change things about the built environment then… it’s harder to lower interest rates and to fix the auto market than it is to build metro lines high speed rail and have better bus service just sayin

[@StLouis-yu9iz]

@@pinhead35💯

[@aztr0k1d]

Another video about public transportation talks about a politician in charge of that stuff and he was asked why don’t we have more available public transportation that’s affordable? & his excuse was ” owning cars is the American way & Americans love their cars “

[@UpcomingJedi]

Thats just what dealers want you to believe before oil runs out and youre stuck with a dead 2 ton paperweight and payments

[@weirdshibainu]

I sold cars for a couple of years (out of necessity) People really have no idea how to buy one of their largest purchases in their lives. Sure there are shady dealers (mine wasn't) but the American public aren't angels either. Some advice-buy on the last day of the month, know your credit score, know what you can afford to pay for a payment, know what you can do for a down, know what interest rate you're paying, best to get pre-approved if you can by your bank or credit union, be prepared to walk away.

[@JBM425]

That last part about being prepared to walk away is the most important. A bad deal is worse than no deal at all.

[@weirdshibainu]

@@JBM425 exactly. Never understood why people don't do that. I did one time years before I sold cars

[@CesarA.Vergara]

2 vehicles and zero car payments. We love the freedom of not having to pay.

[@addicted2baseballrgd21]

These people should be buying used cars. Who the hell pays $700+ a month.

[@kylepaulo8491]

I agree, but right now used car prices are insane.

[@kabysummit5801]

​@@kylepaulo8491 With all due respect, bite the bullet on a good used car, get it paid off asap, and reap the savings. Sacrifice a bit, turn the corner. Next time, you'll be able to buy using cash.

[@Demopans5990]

If it is a used Japanese car, they're practically as good as new. I mean, has anyone ever seen a older model Toyota broken down on the side of the road?

[@kylepaulo8491]

@@kabysummit5801 I'm saying in this climate, depending on how used, it can be a difference of just a few thousand to get the new over used. But yes, overall used is the way to go. My dad just retired a few years ago, was making $150k a year and he has never bought a new car in his life. He could have afforded it but just knows the rate it depreciates is not worth it. His retirement is like 100k a year,no state tax, single guy one child who is well past the age of needing financial support, and he still wouldn't do it. He's become a little more "you only live once" in his way of thinking, but still smart enough to buy used lol.

[@kabysummit5801]

@@kylepaulo8491 Your dad is in great shape! congrats. The envy of many. I have to say, this country is all about being in financial debt. It is totally accepted way of thinking. Yet it is nothing but a vicious cycle. Do whatever it takes to not be in that position. There are so many so-called gurus selling every conceivable toy. Delay the enjoyment a little, makes a big difference. Honest, for many, just stop wasting and the finances will be better.

[@dusty4047]

People need to learn to live within their means. Why we all think that we need or deserve a brand new car is nuts. I bought my car used with 75,000 miles on it, my daughter's car was purchased with 120 thousand on it. By what you can afford

[@kenc2257]

Even if people live within their means, that doesn't mean that large corporations should have free rein to impose predatory lending practices/policies on American consumers.

[@ninabeena83]

People need to learn how to spell, that’s what they need to do

[@Eric_Bassett]

@@kenc2257Brilliant comment! Yes that end of the equation is truly the problematic end, across the board cooperations are taking advantage of the working class and have been for quite some time.

[@SwiftySanders]

Ive bought used cars and ended up spending more money fixing it than just buying a new (or almost new) car with no issues TBQH.

[@juanthompson6634]

I bought a car. It drove perfectly fine. Transmission went out two months later. Yeah buddy buy used good idea. The system is rigged against people do not fool yourself

[@Mr-Clark]

You know what's better than a new car smell? Having ZERO car payments.

[@meatyflappers]

Two vehicles zero payments my 10 year anniversary

[@1mlb704]

As someone who works at a dealership, my best advice is simple: buyer beware. Do your due diligence, research the cars, get pre-approved elsewhere, shop around, know what you're getting into.

[@dannydaw59]

When interest rates were low I saw 0% interest rate offered. Would that be smart to skip the bank and go with 0% interest?

[@Erin-rg3dw]

Also, know your budget before you walk in and don't test drive ANYTHING above that. I feel like may people haven't figured out their budget or stress-tested it before they buy things, and then get hurt by "ooh shiny."

[@1mlb704]

@@Erin-rg3dw yes definitely

[@awesomedez]

That doesn’t sound simple at all....

[@reubenmorris487]

@@awesomedez It isn't simple. Unless you have a guardian angel or somebody holding your hand, you're gonna get scorched and maybe burned by a car lot at least once. You also need to have paperwork about the car you're interested in with you, have your own financing available, and be willing to tell the dealership/sales people to *u(k off!

[@alibaloch885]

Recently bought my first car. Had no idea how lending worked. Let’s just say, if I could go back I would have walked right out of the dealership. The finance lady, who was probably the most stuck up person I have ever met, tried to force me into adding on additional things which I am so glad I didn’t now. I was lied to on so many terms. My advice: go with someone who has experience financing MULTIPLE vehicles.

[@davidford3073]

I bet u she wouldn’t do tha to her daughter/granddaughter/ or her mother I put money on tha.

[@bate01071]

Just a semi financial literate 30 year old man’s take. Go to a credit union to get pre approved. Then take the check they will give you to pay the dealer. The credit union will be more conservative on underwriting which may reduce the potential to fall prey to the extra charges that are thrown at you.

[@e.rivera4251]

The 1st rule when going to buy a car...1. YOU WILL BE SCAMMED. 2. REMEMBER THE 1ST RULE.

[@DutchManticore]

Dont . Finance. A. Car. You should never finance with interest a depreciating vehicle.

[@bobfox2733]

Dealership employees are liars

[@teampyrex420]

627 dollar car payment I had no choice at the time. Worst mistake I’ve ever made. Work 7 days a week, and barely can afford to eat. I’m in college for another year. It seems impossible. All I can do is hold out until I start my new career. I feel for anyone who is in a similar situation. Landlord decided to sell my house that worth around 100k and in need of repairs. He told me 160k. So at least I’ll have my car to sleep in. Land of the free home of the brave. I’d rather live off the land and ride a horse everywhere at this point….

[@DeltaSierra426]

Some of the best advice made on this is: make auto loan payments to yourself for several years, then purchase. You saved the interest, already have the cash (huge down payment!), and like savings in general, you won't miss it if it's gone (or so it appears to be, anyways).

[@arfriedman4577]

Good advice.

[@IReapZz95]

Admittedly buying a car is a cool game for me. Going from one dealer to another one and having them battle against each other, even between the same brand. It's entertaining and fulfilling when one dealer says they are offering the best price and you know they are lying to your face when you already have a better offer from another dealer from the same brand

[@pucie_boi]

This is the way you have to approach it. It works.

[@SHUB281]

Yeah right. You go to multiple dealers who are pulling your credit report. Thus lowering your score

[@pucie_boi]

@@SHUB281 Those are soft inquiries that don't impact your credit score; it's only when you actually apply for the loan after you have agreed on the price that you get a hard inquiry

[@IReapZz95]

@@SHUB281 you don't have to get that far in the conversation. You tell them your credit score and you tell them exactly that by pulling it they are going to lower it and that you don't want to do that until you lowered your options to only a few cars and brands. If they want to sell they will do it

[@6821hominy]

You are the car dealerships worst customer. I don't believe that car dealers are out to cheat people but it's obvious that you do. Why don't you just save up the money and pay cash? Or better yet buy a car that is a few years old. Go find your "entertainment" in a better way.

[@jennifer.martin.48]

My husband is a car salesman at our local Lexus dealership, previously worked at Toyota. He is one of the few non-sleazy salesmen out there and has point blank told customers that they cannot afford the car that they want. He shows them cars that are more in their price range, but they still end up going with what they originally wanted. The low credit scores he’s seen (more so at Toyota) were wild. So many with scores less than 500, he’s told me at that point you have to work extremely hard to get scores that low, several repos and just stacks in collections.

[@SantoineBethel]

When I sold cars, I could tell people they shouldn’t buy something and get fired by the customer. They’d go to another salesman, purchase the vehicle, I’d get a split deal, and see the customer come in six months later trying to work a deal to keep the vehicle from being repossessed. I’ve also seen a lot of fraudulent paycheck and bank statements whenever the pay needed to be “stipped.”

[@AmericanTeacher-USA]

Stipped ??

[@SantoineBethel]

@@AmericanTeacher-USA It’s an industry word meaning legitimately proven.

[@jallapavan]

americans have car loan crisis , student loan crisis, credit card crisis.. if there are these many crisis, its something boils down to careless behavioural crisis .

[@kabysummit5801]

Indeed. We're creating hell for ourselves.

[@Investormillard]

Why to make the elites rich so they can fly private with filet mignon, while you eat bugs?!? You will own nothing & be happy! Schwab. 4th Reich!

[@madmaximus2836]

My car is 9 years old and my wife's 5 years. Both are paid for.. With the current ridiculous interest rates and even more ridiculous car prices we will be holding on to our cars for years to come.

[@samkim6127]

Glad that I wasn't foolish enough to buy a car when my car started to breakdown two years ago. I've been riding public transportation, bicycling, taking Uber. In the mean time, have been saving for a new car to pay all cash. I may not buy a car again since I am used to not having it.

[@jakealexander6046]

It’s great that you don’t need to. I hope there would be more businesses to celebrate/adopt car alternatives. I am hopeful about the new planned trains.

[@tira2145]

Enjoy being trapped in that big city while it goes to crap.

[@jakealexander6046]

@@tira2145 you have a different perspective, what concerns/issues have you faced in big cities? Also, what alternative are you in favor of?

[@tira2145]

@@jakealexander6046 You have every right to not own a car. Yes, it works for you. My concern is that these big cities, not everyone, but most are starting to change rapidly. Not for the better. Essentially you are trapped there. That's what the politicians want. Trapped people are easy to control.

[@jakealexander6046]

@@tira2145 oh for sure, I’m just genuinely curious what concerns you have with city and being involved in society of a big city. Wouldn’t the government also be able to implement better projects that serve more people if we stay in a big city and companies can grow bigger since trade and options will be more abundant. Similar to how those passed by caravans back in the day had more wealthy people. Or your concern is mostly about importance of car ownership. Cause I will not argue since I am a car owner myself.

[@no_name5002]

Public Transit, biking, and pedestrianized infrastructure. Car dependency privatized the cost of mobility.

[@xjarheadjohnson]

I live in Minneapolis, MN. I was CAR-FREE for over a decade. I bicycled & bussed everywhere. I estimate I saved approximately $10K/year. My savings reflect that estimate.

[@nunyabusiness896]

The problem is that cars became rolling status symbols instead of transportation. In Japan, kei cars cost as little as $10k brand new all in and are very cheap and easy to service. At the same time, most newer ones can happily do 70 mph all day which is all anyone really needs. If we'd just minimize cars instead of making them rolling 10,000 lb tanks it would resolve most issues without being so impractical like a bicycle that is absolutely terrible if you need to carry passengers or cargo or need to go somewhere when it's hot/cold/raining/snowing/etc. I hope the credit crisis leads to an increase in affordable cars like we had in the 90's with just basic climate control, radio, and not much else.

[@paulfredrickson2181]

🤣 Try getting anywhere in California with that attitude!

[@xcaret-ns3pb]

@@nunyabusiness896👍👍👏👏💙💙

[@nealp885]

You will own nothing and be happy.

[@michaelqu]

This is why I buy 10+ year old luxury cars for less than half the price of a new Corolla. I recently bought my son a 2007 Audi A4 2.0T for just $3800 so he doesn't have to fall into debt. All paid for, no loans, drives like a dream.

[@frankgissop4800]

I work in management in the auto industry... here are the facts: 1) dealerships need to make money. The auto loan rate a financial institution offers is the risk the dealership takes. to compensate for that risk, the dealership has to charge to compensate for their own risk. 2) Americans aren't buying the cheaper sedans from Japanese automakers. They are buying luxury vehicles, monster sized pickup trucks, and big SUV's. That's why the average price is skyrocketing. Fittingly, these are the highest margin vehicles for these automakers... so you're not getting the best value. honda and toyota make low margins so those are the two best vehicle brands you can buy for value. BMW, Mercedes, etc.,... those auto companies are making a killing selling you a high margin vehicle with lower value. essentially, you are paying for the marketing and branding. The actual vehicle isn't that valuable. That's why as soon as you drive it for one year, you can expect to lose 20-30% off of that vehicle. Imagine buying a $60k BMW and losing $18k in just one year but your income is only $70k... after taxes, you're bringing in $50k so you just lost 40% of your income just on depreciation of your BMW. and that's not even including the interest payments you still have to pay. By the time you finish paying off your car loan with interest, your $60k vehicle is probably worth $20-25k but your interest payments is probably $10k so that $70k payment leads to a vehicle worth only $20-25k after 5 years. 3) so what is the solution if you're looking to retain as much value from your vehicle? buy a used honda or toyota... get a car rep to inspect the vehicle. pay them a few hundred dollars. Once you have the vehicle, pay cash if you can. Because it's a used vehicle, most of the depreciation has already happened by the original buyer who took the huge loss so let's say after five years on a $18k used honda or toyota, the most you will lose is $7-9k. Compare that to the $50k you will lose buying a BMW or luxury vehicle... in short, don't buy cars you can't afford. Just because you were approved for financing doesn't mean you can afford it. Banks and dealerships make money by offering loans... they will want to make as much money as possible so the more credit risk you are, the more you will pay. The higher your credit score, the more these institutions will want to offer you a loan because you are a less risky consumer and free $ to them. and don't forget, BMW and luxury vehicles are prone to more repairs because these buyers are constantly abusing their vehicle causing more parts to wear down quicker and then the average car buyer has no clue how to do maintenance until their car has issues and they have to spend money to fix these issues. Honda and Toyota are efficient well-made vehicles so people are less likely going to ruin a Honda or Toyota by abusing them on the road... hence, why they have fewer repairs and because the parts are easy to replace, it's cheaper.

[@xjarheadjohnson]

I live in Minneapolis, MN. I was CAR-FREE for over a decade. I bicycled & bussed everywhere. I estimate I saved approximately $10K/year. My savings reflect that estimate.

[@MrSupernova111]

. Good stuff! Thanks!

[@EdgeXXI]

Spot on! I also work in management with a dealership and most people, especially younger buyers, have what I call champagne taste on a beer budget. They want the bad ass BMW, Mercedes, what have you, but are not prepared for the extravagant costs associated with maintaining such units, not to mention how they're worth next to nothing when traded in. What customers fail to realize is the reason why their approved rates are through the roof is because of their credit history. People don't want to accept that they're responsible for their dire scores and only want to blame the messenger.

[@JAYY_JAYY]

I have and never will buy a new car I also will never lease a vehicle . I would like your input on leases ? I see people doing this and think it’s worse than even purchasing new

[@80808O]

They dont sell small affordable cars anymore

[@TrainsFerriesFeet]

I work in lending; the problem is that people buy more car than they can afford and then they don't keep them long enough to avoid negative equity.

[@Beastw1ck]

That’s why I say if you can’t afford a 36 month loan, you can’t afford the car. You should be able to pay off a car in three years.

[@colinbickford7303]

This all can be summed up with: My Uber Eats drivers pulls up in a Tesla.

[@victoriaespinoza1280]

I’ve had that happen too.

[@genc-ozgur27.27]

This man spends hundreds of thousands of time just to help us. He helps those in need while also helping us. He always puts a smile on our faces and we should appreciate it. Hats off to Him! I love you dude. Crazy I've never payed attention to the Mysticflip on the internet movement when I say ancestral your a gift to our people

[@ferhatselcuk657]

Not going to lie, but we are actually really proud to have an employee like you as part of the team. The job is done so gracefully and neatly. Very well done, dear MYSTICFLIP . First of all. Thank you for making the work environment so friendly and taking your responsibility seriously and completing the work gracefully! You deserve so much.

[@jjmcg9184]

I was making payments on a car a few years ago & maybe about 4 months later, i started falling behind & eventually it got repossessed. After going thru that, i paid for my next car in full & in cash.

[@gregorylyon1004]

People make mistakes. At least now you're paid for

[@Tetsu9701]

I only ever financed a vehicle once. At the age of 20 I got a decent paying sales job & splurged on a BMW. Went to my credit union with the vehicle VIN, asked for 9k for a car loan, they handed me the check & I drove over to the dealership, simple. It was a 10 year old sedan that I purchased for 11k, I put 2k down and financed 9k with my credit union which only allowed me to do so over 2 years. I payed it off early but never again financed a vehicle. My ex-wife did the same around 2016 with at the time a 4 year old Kia. That is the most I would ever finance any vehicle.

[@CO8848_2]

11k for the car, 20k for repairs

[@TheAnig140895]

@@CO8848_2if they got a E36 for that price that's definitely worth every penny in upkeep

[@SubvertTheState]

I put $2600 down on a $5000 car. The financing ended up being $6000, that was the last car I financed.

[@trademisconception9816]

@@CO8848_2haha yeah true.

[@Tetsu9701]

@@CO8848_2 CORRECT! I learned that the hard way and sold it only after 6 years of ownership and 30k put on the odometer. Spent another 10k on repairs in that time. I loved that car but it was a money pit. I wondered at times what was gonna break next time I turned it on. I thought I was gonna be ok because it only had 50k miles on it when I got it, boy was I wrong. Glad I experienced a luxury euro car but I will NEVER buy a European car again! They are only “worth it” if you lease it and let the stealership deal with the repairs. Funny enough, that’s the age old story. Young guy buys a used European luxury because it’s a “steal”, because they depreciate so quickly. Everyone tells you it is a money pit, but you don’t listen. They learn soon enough it’s a money pit and abandon the thing.

[@Enrique-Garcia]

Problem is, it's hard to shop around with dealers because so many of them refuse to give you any numbers. I was car shopping a couple months ago, I went to 4 or 5 of them, talked to the guys, test drove the cars, and when it came time to get numbers, they refused to give me any concrete numbers unless I told them "what kind of payment are you looking to make?" Eventually I found a dealership that surprisingly enough advertised the real out the door price (minus taxes and fees) of a car I wanted and I just went with them because quite frankly I was tired of talking to salesmen and it turned out to be a very good deal. Fortunately I had my own financing arranged through my bank, which beat the dealer by 2 points, so I always had that option in my back pocket.

[@timneufeld2700]

I went from dealer to dealer looking at vehicles and then going inside to ask for pricing before a salesman could even step out the door. At one dealership the second I stepped inside two guys in suits were buy me. Flanked on either side by these two I asked for pricing on what I’d found in there lot. Immediately thy were asking me all the questions. But not the usual questions. Where did I find those vehicles? How did I get the numbers I gave them? Well I said I got them off the windshields. They passed perturbed glances at each other. What are you looking for. Again I mentioned the ones I saw. Just hold on they said and disappeared behind what looked like a one way glass wall in the corner of the showroom. It felt like I was being watched by the FBI. That permanently sealed car dealerships fate’s in my mind. I still go to dealers when I shop. But now I go and deliberately ask all the wrong questions and refuse up selling. After shopping around for good used cars from private owners it like having dessert. My favourite poke is getting a price confirmation from a dealer on a used car over the phone and telling them I’m sending someone over with a signed cheque to pick it up. Watching them try and squirm out of it is educational if not amusing.

[@mh-qx2mk]

It’s hard to break them out of that monthly payment number. The way I handle it is to figure out ahead of time what I want to pay total and interest rate I qualify for, then break that number into what the payment should be before I hit the dealership. Just have to clarify with them the term/number of months.

[@Enrique-Garcia]

@@mh-qx2mk it sounds like you're just caving in and giving them exactly what they want. Plus what if you're buying the car cash?

[@lynnjudd9036]

Yes! You found a rareity in that dealership. Also never buy a car with a loan without GAP insurance.

[@timneufeld2700]

Yup. You have to stand firm and keep it simple. Price, taxes, total. You know you are in for a struggle when they sit you down in an office or cubicle. You don’t have to sit down to purchase any other retail items you ever buy. They just ring it up on the cash register, you pay, you take the product and leave. Next time I will take three or four friends along and have them wander around the cars outside in plain view while I waste the sails guys time inside until he just drops the up selling tactics, adds the taxes and let’s me go.

[@bradleygraves5915]

Love my 2008 F-150 (bought used in 2012 with 35k miles). Regular maintenance and it still looks great!

[@skyscraperfan]

I got my driver's license in 1998 and that was the last year I drove a car. A car does not give me freedom. Good public transport gives me freedom. I can just hop into the train and be in Frankfurt or Berlin in 2.5 hours. Having a car is so inconvenient. You always need a parking spot and care for repairs. Cars are also a privacy problem. Everybody can see your license plate. Why buy a car which you can't afford? To impress other people who also bought cars they can't afford?

[@aerialdarkguy]

Unfortunately in the US, a lot of cities do not have good public transportation that makes having a car a necessity. Especially in the suburbs where it is so inefficiently designed and makes walking impractical. Unfortunately a lot of it is car centric city design but until there is political will to address that, car ownership is practically a requirement for getting to your job.

[@baronvonjo1929]

A car is as important as food, shelter, and clothing for most of us in the US. You can't function in society without one. I love my car but they are expensive.

[@ElectricVehiclesAreGoodF-ti7xd]

I don't buy a car unless I can pay it cash. I have owned about 30 cars. Only 1 financed. All used except the 1

[@kingsgold]

congrats, you are lucky to live in a city where public transportation is available. The US is hosed in that regard. The entire US was designed to make Automakers as rich as possible. A design that was made to make sure that public transportation does not stop americans from buying cars. I hate it, and wish tremendous ill will on the auto industry.

[@skyscraperfan]

@@kingsgold That could change if many people would let their local representatives know that they want public transport to be subsidized as much as roads for cars are.

[@toploadtele]

Never forget that the banking and insurance sectors have some of the highest-paid lobbyists available to write laws in their favor. Since new auto loans are required to have insurance by lenders along with state laws, buyers are sucked into the trap... sometimes for decades. My advice? Buy a house before a car, even if you have to drive a paid for beater for a minuite. Car loans are one of the top deal killers when qualyfing for a mortgage!

[@Thenatureboy801]

As a guy who works in a dealership, I can assure you misinformed Americans are the biggest problem, we get customers with some of the worst income trying to buy cars way out of their league. I’ve seen people buying cars with over 100k miles on them and walk away with payments close to 1,000$ a month. People are just not educated enough on good financial decision making.

[@TommyTomTompkins]

Lol man a car with 100k miles on it and still have 1,000 car note? That's robbery 😆

[@scottfrazer4669]

Sold my car for an electric cargo bike. A small fraction of the cost and a much better experience. Plus it’s way easier to find parking. Even a top of the line e-bike is a small fraction of the cost of a car

[@Thebrothaisback]

If you are in SF or NYC - great idea! Any place else, not good

[@scottfrazer4669]

@@Thebrothaisback I'm in Boston... but your point is still valid. It's unfortunate that so many cities in the US are designed so poorly that owning a car is the only viable way to get around. I grew up in car-dependent suburbia and I absolutely hated it. We need to start re-designing our cities so that people who don't want a car don't have to buy one.

[@ElectricVehiclesAreGoodF-ti7xd]

@@Thebrothaisback City Buses typically have racks for bikes

[@xjarheadjohnson]

I live in Minneapolis, MN. I was CAR-FREE for over a decade. I bicycled & bussed everywhere. I estimate I saved approximately $10K/year. My savings reflect that estimate.

[@dougpage2730]

Public transportation is almost nonexistent where I live. To get to the big city, a 1 1/2 hour drive by car, to go via public transportation takes TWO DAYS. I definitely understand why rural residents feel neglected by our government.

[@danielbarringer8503]

Here is a crazy idea- don’t spend what you don’t have

[@miragexl007]

A more crazy idea... How about the government Make loan interest lower, Credit card interest lower, Or pay for colleges instead of dealing with the actual problem. Now there is an idea. Thanks, Biden.

[@gphysco]

Mines at 20%😭 but I needed a car that would take me 1600 miles without falling apart. But willing I’ll make extra payments and lower it over time

[@jercasgav]

I am 38yrs old and am not into showing off with cars. My dad taught me how to work on cars as well growing up (I am a female). I have been driving since I was 16yrs old, and have never had a car loan and have owned just two cars: a 1993 Acura Integra from 16-33yrs old, and a 2012 Honda Fit from 33yrs old to the present. Thanks to not having a car payment my husband and I have: bought a home, paid off massive student loans, paid off medical debt, and invested. They have shown that you can become a millionaire by investing instead of having a car payment. Car debt is NOT worth it! A Toyota or Honda that is bought used and is well maintained will love you until its wheels fall off and then some. Gotta love the engineering of Toyota/Honda.

[@masonalvarado6589]

Having owned 4 new vehicles in my young life, my advice is to never look at financing a new car unless you know its resale value will hold or if you plan to keep it for beyond the duration of your loan terms. Always get preapproved before setting foot in a dealership. You have 30 days to roll as many hard inquiries into your credit report as you can; they'll only come up as one. That's been a law for over 20 years. Call around and shop pricing on vehicles. Ask for the out the door price; finance, cash, or lease should not impact the sale price of the vehicle unless there are incentives (like tax rebates on the sale). Get paper quotes and send them to dealerships across town. Make them compete for your business. I shop at least 6 dealerships in my town and 2 hours away in a big city. I only ever physically visit for a test drive. My newest car was delivered to me at my door for no additional charge because I asked.

[@nerdaterp]

Better yet, but a 2 year old vehicle. A new car depreciates as soon as you drive it off the lot. A 2 year old car has been driven enough to find any bugs or defective parts, and you're less likely to buy a lemon. Check repair history and look for recalls.

[@asoggyburger479]

This sounds all too familiar. I used to play this game and I too have purchased 5 new vehicles. However, I’ve now realized how stupid having a car payment truly is. Financing a depreciating asset is one of the most counter productive things you can do. My advice is now, buy a car with cash.

[@bn9161]

@@nerdaterp Who would get rid of a well-running 2 year old vehicle?

[@jeraldb2868]

Thankfully I paid cash for both my cars when I bought them new. No car payments.

[@Houman7]

There is crazy obsession with cars in the US in general. Most of my friends live paycheck to paycheck with zero security just to drive their desired Benz or BMW paying sometimes over 1000$ monthly payments. And guess what when they try to sell their car 3-4 years later they can’t even get half of what they paid for it. I totally avoided this madness in my life so far by just driving an old used Toyota Prius and now I’m ready to buy my first home while others now thinking to get their Cybertruck

[@stevenyia2778]

Lifestyle inflation at its finest

[@jsebby2284]

Exactly. Thank you.

[@2tooful]

Cybertruck for their cyberpunk life, high tech low life

[@carlgharis7948]

​@@jsebby2284ya it's disturbing and it would be comical it it weren't the case. I have never owned a car. Too many people are car poor

[@jsebby2284]

@@carlgharis7948 it's crazy man. Americans completely blur the line of needs and wants when it comes to cars. Like sure - you most likely need a car. But you don't need a 50K+ car with $1000/monthly payment lol

[@Cbrmansc77]

I have no idea why people find it the best idea that buying a 80000 car when you have to save for retirement, buy a home, and finance daycare

[@stargazer3828]

A car is a depreciation asset first and foremost. There is no need to buy a new car every year, but that is exactly what many people do just to have the latest and greatest and own something nobody else has previously owned. Cars spend on average most of their time parked or occupied by one person yet the best selling vehicles in America are Trucks and SUV's. If people don't want to pay ridiculous loan rates and high payments buy older vehicles and keep them longer. When the market is not buying new cars prices will retract and become more affordable it is simply supply and demand.

[@Money_bagz]

@@fishmarketer Yeah I always thought if you can afford to pay for the vehicle then you cant complain about gas, maintenance, or anything else that goes with it. It's what you signed up for.

[@beach4me2007]

You're spot on! I'm driving a 13 year old SUV. My previous car I had for 11 years. My "Sunday" sports car is 21 years old, I bought it new. I do maintenance according to the manufacturers SCHEDULE not when something breaks so my vehicles tend to last. Poor people buy a new car ever 2 or three years and don't do maintenance according to the manufactures schedule.

[@djm2189]

Im 28, earn $115k, no debt and 110k in net worth and growing. I could easily buy an expensive car. Guess what, i have a used paid for 2016 Nissan Altima. Friends make fun of me who make less than me with their Tesla's.... People love to live above their means. 72 months! Lets be honest a good chunk of the blame is also on the consumer. They get what they cant afford keeping the market hot thus leading the industry to add in extra profit makers. How about this miller dude. Did he need that 48k car?! Were those 10k he dropped part of his emergency savings?! He even stated he doesnt really need that car. Bunch of idiots. Sorry, not sorry.

[@MrSupernova111]

@@djm2189 . That's awesome! $110k may seem like a lot to some but if someone were to take half of that savings and dump it in car and buy another car in a few years people would quickly realize money spends easy no matter how much of it you have. That savings will build on compound interest while a car is just an expense. Keep saving and turn it into $1 million. Best of luck!

[@djm2189]

@@MrSupernova111 thank you so much! And yes I grew up very poor and know the value of a dollar. Save on most things. Mostly eat at home, OfferUp good quality furniture the rich don't want etc. I actually put 30k into a CD giving me 4.2%! Cash I didn't need. Love my used car and not having a payment is amazing. Definitely looking forward to having my first million. Thanks again!

[@Qwsgwx]

I work as a car salesman and I’m personally appalled at the experience this gentleman had. I work hard to provide a transparent and well explained explanation on why where and how a vehicle is priced or why am interest loan is the way it is. I even provide take home paper copies of everything I can get my hands on. Transparency is everything, and I don’t think you should be in the business if that isn’t a concept at your dealership. Here’s a tip to get an advantage in negotiation, do market research and inform your dealer.

[@Ccrippie]

Do you believe that car finance charges customers more based on the their race?

[@vexx12343]

You are most likely a very success salesman because of it

[@Qwsgwx]

@@Ccrippie whilst understanding historical prejudice and said consequences I sadly cannot comment at this time. I apologize.

[@OtisFlint]

@@Ccrippie Of course not, that's the dumbest thing i've ever heard. I used to work for a dealer, race is not even reported to the bank and the markup on interest rate is regulated so it's not even possible. If blacks are paying more, it's because blacks are higher risk. The black person with good credit is most definitely paying less than the white person with poor credit. All lending rates are risk based.

[@MrSupernova111]

Which are the worse dealers when it comes to financing in your opinion? Can they legally turn you away if you have a pre-approved loan from elsewhere?

[@Lori-yo1yd]

E bike all the way and public transportation....Im living the dream

[@Lori-yo1yd]

I have a e bike loving it

[@birvansi0]

This man spends hundreds of thousands of time just to help us. He helps those in need while also helping us. He always puts a smile on our faces and we should appreciate it. Hats off to Him! I love you dude. Crazy I've never payed attention to the MYSTICFLIP on the internet movement when I say ancestral your a gift to our people

[@ecognitio9605]

America is creating a massive underclass, the American dream becoming the American nightmare 😢

[@ijchua]

It has been an American nightmare for a long time now, just that Americans choose not to see it

[@individual116]

If you’re buying a 48k car it’s your own fault if you can’t afford it.

[@leedaniels7196]

@@individual116Exactly!.👍

[@bwofficial1776]

But that dream is still there. Anyone can move up if they want to. There are opportunities, take them. You hear all the time about kids from the hood who decided they wanted to get out and now are CEOs and business owners.

[@1JewelOfTheNile]

“Minority borrowers pay 70 basis points higher interest rates, but default less” This describes living in the U.S. perfectly!

[@miragexl007]

Lol. Leaving out a few variables... Trying to make a point

[@1JewelOfTheNile]

@@miragexl007 You know why you didn’t write out any “variables” in your reply (rhetorical), because there aren’t any!!

[@speedingAtI94]

if you can't buy a car in cash, don't buy it.

[@xjarheadjohnson]

I live in Minneapolis, MN. I was CAR-FREE for over a decade. I bicycled & bussed everywhere. I estimate I saved approximately $10K/year. My savings reflect that estimate.

[@speedingAtI94]

@@xjarheadjohnson I really admire car free people and I do know one personally as well. However, it is not for everybody. I would rather keep maintaining my old car, my old refrigerator, my washer/dryer etc. it is costly effective and reduce pollution.

[@felixpope6073]

Don't spend the money you don't have

[@iluvrunning9310]

So true! I know someone that bought a Porsche and lives in a 2 bed room apartment,which he had to rent out a room to 3 individuals, since he was not able to make payments for his car!

[@xjarheadjohnson]

I live in Minneapolis, MN. I was CAR-FREE for over a decade. I bicycled & bussed everywhere. I estimate I saved approximately $10K/year. My savings reflect that estimate.

[@dillonbacon4818]

i’m sitting in my 1997 Toyota lemon that I bought off marketplace about a month ago and one of my friends rolled up on me at the gas station and when I told him that I bought it, he was like oh my God you’re so smart because I’ve got a car payment on this fancy car and if I missed one month, they’re gonna take it.

[@matthewcaldwell8100]

CNBC has one of these videos for almost every aspect of the American economy. Real comforting stuff.

[@MAchannel2024]

It’s so sad how little financial education we give our kids. No wonder so many people have so much debt. I drilled it in my kids heads, no CC debt and no loans unless you pay cash or if low financing like 0-3%, no more and if you have to.

[@bvswtwolves21]

What about mortgages

[@equarg]

I avoid credit card debt like the plague. I use my credit card 3-4 times a year to keep a good credit score. Things like a small (rare) online Amazon purchase (in case of scam, I will not use my debit card) a car repair, and emergencies. Apparently despite having slightly mild autism I have a 800’s credit score…… Almost have my car paid off too. I pay more then the minimum per month, and when I owe less then 3k I plan to just pay it off and keep the car for a decade or so. The repairs are cheaper the the monthly payments!

[@TheAb9211]

Very relevant topic and a lot of things mentioned were very true. Recently (2months back), i was shopping around for a new car. In one dealership (Toyota) I asked them to give me the numbers including markups, they were transparent and told me everything. Infact the dealer said he will try to remove the markup from the non-hybrid model. On the other hand, when I went to a Honda dealer, I asked for the numbers, they would not give me the numbers. I spend 1.5hrs there and also did a test drive. I kept saying to give me the numbers and they kept asking if I would buy the car the same day. Thats the fishy part. Why do u want the customer to buy the same day? Its a huge investment, let the customer think! Behaving that way was a big red flag. After the research, I realized I should keep driving my old car and wait for the market to cool down. I think studying the market and getting the numbers is very important.

[@Cordycep1]

That is normal for Honda, I ask give me a number for LX, EX, EX-L so I can compare, they refuse so they kick me out.

[@MrSupernova111]

@@Cordycep1 . Jerks.

[@pennmikael]

I asked Kia via email for pricing. They wouldn’t provide so I didn’t even have to leave the house. Idiots

[@MrHammer2088]

The wholesaal price the dealer pay to the manufacturer, the MSRP and the sticker price are all different #s.. ask the dealer to show you what they pay- a honest dealer will show - walk away if they're unwilling to show.. Once they show you add $500 -$3000(depending on total value of vehicle) and that should be the fair price you should pay for that vehicle .. that final price you pay should be between the MSRP and sticker price - more closer to the MSRP... all dealers pay less than the MSRP from the manufacturer..

[@MitchellEdelman]

Would of been nice to see a section on changes in interest rates and new car prices recently. Both are up nearly 30% in 2-3 years.

[@jdtalks8023]

Insurance prices are ridiculous

[@godfathaofyo]

higher interest "should" have a result of lowering the purchase price of a vehicle

[@barbarailarpenter6815]

12:27

[@spicychad55]

Would've*

[@ItHappens473]

I voluntarily repo’d my car that I owed 26k on & settled the loan for 3k. No car at the moment, but have been looking at decent cash cars. I figured if it doesn’t have an updated radio/backup camera, I can have it installed and get comprehensive insurance & a warranty on that bad boy & call it a day. 🤷🏿‍♀️

[@kevinpang9270]

Personally, this is what I did and I think it helped me get my first house. 1) asked myself what I needed in a car . Personally something sporty look + great sound system. 2) I bought a 2008 used Subaru hatchback for 4k. Paint is a little off otherwise everything is running fine. 3) I spent 500 on headlights, 1.5k on sound proofing the car. Change my infotainment system with Apple car play it was $200. Installed new sound system around 1k. 3) gave it a super deep clean myself. In total, I spent around 8-9k on a car that I see it running for another 3-4 years. Fyi I only installed everything when I saved enough.

[@StLouis-yu9iz]

Cars are the biggest problem in modern society in EVERY aspect! Thanks for highlighting some of the personal finance problems they’re causing. We need to start rebuilding our lost rail transit here in the U.S.!

[@btrplay]

Cars are the best, especially if you pay cash and buy from a reputable manufacturer. I got my car for $8600 for 2018 and it’s still running great. 180,000mi with plenty of life left!

[@trademisconception9816]

@@btrplayautomobile dependency is terrible. I can think of a multitude of things I would rather do with my time rather than sitting in a car.

[@bwofficial1776]

There are far bigger problems than cars. Cars are freedom. My car can take me anywhere I want to go when I want to with who and what I want. I can go places that have never had a rail or bus line. I don't have to share space with strangers. I can set the temperature and radio to what I want. If I go somewhere, I don't have to rent a car because I already have it with me. Trains had their day but once cars became affordable we chose cars because of their convenience.

[@SwiftySanders]

@@btrplay Cars aren't the best for many situations. We need balance. One size doesn't fit all use cases...and we shouldn't want a once size fits all approach to the design of our cities.

[@NealIRC]

What about houses??

[@baronvonjo1929]

I like cars. But with the way things are going I wouldn't be suprised if a complete break down of the car market happens. From what I can tell less and less young people find cars desirable and cant even afford it. Plus a huge online movement seems to be happening for a push for alternatives of the car. That will take decades of work, billions of dollars, and constant public and poltical will. But cars just are becoming such a headache for people.

[@DeltaSierra426]

American car culture it still pretty strong. Of course, it has already peaked and is slowly dissipating, but will take decades for significant decline, not years. New long-range passenger train systems are being built but will take years before they come online and still serve only a small portion of the U.S. market.

[@baronvonjo1929]

@@DeltaSierra426 Yeah I can't imagine them connecting major cities in my state. But not many people have jobs in a city 2 hours away by car to justify the need for high speed rail. Then all those people would need a car to even leave a train station. I'm not saying it won't change. But it really is decades away if not over a century.

[@kamilareeder1493]

Its a huge burden to have a car. Like if there's no busses in your city, its just huge mandatory expense

[@baronvonjo1929]

@@kamilareeder1493 Fr fr. I like my car but it's a financial drain.

[@PURAHOUSEDERESTREPO]

Expand public transportation and save people money.

[@mugumyapaultheafricannomad9488]

Bold of you to assume the government cares about citizens doing well financially. Their goal is rather the opposite, to drain the citizens and keep them slaves until they drop Dead

[@xjarheadjohnson]

I live in Minneapolis, MN. I was CAR-FREE for over a decade. I bicycled & bussed everywhere. I estimate I saved approximately $10K/year. My savings reflect that estimate.

[@jalifritz8033]

The fact is having only built car centric infrastructure since the end of world war 2 and destroying and underfunding all other infrastructure from train,bicycles or trams it’s basically impossible to avoid getting a car.

[@berto8232]

I know of someone that buys (not leases) a car every 3-4 years. They apparently have to have the latest and greatest. However, they are broke af and it made sense to me once they revealed that pattern to me. Heck, when I asked them how much was their interest rate, they didn’t even know. I then asked, why not just lease then. They didn’t even know what a lease was!!

[@vijayanchomatil8413]

Wow! Here i was thinking, this person is so progressive, when they were just ignorant.

[@nsbioy]

Lease might have been even more expensive, depending on timing and how much they drive per year. Either way leasing and trading in new cars every 3-4 years are two very bad ways to pay for a car.

[@thewavehunter]

U folks at CNBC do a great job on these auto-related “series” stories - topical and informative. Please produce more.

[@eh567]

Not really. They completely skipped out on how most of the blame is with the consumer. They fail to educate themselves and don't even bother with basic arithmetic to check affordability and cost. I'm guessing that a video that included that wouldn't get as many views and people would cut out early if it did. This is 'feel-good' America where everyone is a 'winner' and nobody can stomach being told they made a mistake and to learn from it.

[@dingfeldersmurfalot4560]

Tip: Buy last year's model around July/August when all the new models are coming in. That model year suddenly plunges in consumer interest while the dealer is still paying money to the dealer to have it on his lot, and is still taking up lot space with it. It could take weeks or months in a "normal" market to sell last year's model, the dealer losing money on it every day. He is or should be wise enough to want to get rid of it ASAP. Come in letting him know you have no interest in buying last year's model, worth thousands less, for more or less the same price as this year's model worth thousands more. Work it out from there. Some dealers are hostile to their customers getting a fair deal, but others will come around and be happy to get a money-losing problem off their hands. For you, it's essentially the same car and still brand new, but for thousands less.

[@RatTerminator]

But a yr less on warranty That's important

[@fringelunatic]

My coworker is paying $900 month for a Rav 4 hybrid. I told him he's crazy.

[@naomidga]

😮

[@Raegoul]

A car you can afford is a car you can pay cash for.

[@henrryfermin5033]

I've never had a car payment in my life, I have purchased cars using cash forever. I've gotten big discounts for buying out the car in cash. AND you get the title. Can't beat that.

[@Beastw1ck]

Yeah except cash discounts don’t happen anymore. Dealerships don’t like it because they get kickbacks for selling the loans.

[@redlegion19]

What was said previously the cash discount is no longer a thing sadly but also the vast majority of ppl can't even afford that

[@Zulonix]

The last time I borrowed money for a car was in 1983. I then compared interest paid on a loan against interest earned on savings and decided I would save money for my next car in perpetuity. Saving beats borrowing hands down.

[@gbenay]

The year I was born 😀🙂

[@scottr2706]

Today there are many car loans at 3.9 percent or less. Today there are many high interest savings accounts paying 5 percent. Why would you pay cash when you can earn money taking out the loan and leaving the cash in a high interest savings account? If those savings accounts start paying less interest, you can always pay off the car loan with the cash in the savings account.