“Families Are Going To Feel This!" - The Scary Math Behind Car Payments

In this short clip, Patrick Bet-David, Adam Sosnick, Vincent Oshana and Tom Ellsworth react to nationwide car dealership woes.
FaceTime or Ask Patrick any questions on minnect.com/
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[@webbie1891]

A wise man once told me, "if you can't afford it, don't buy it" the biggest relief is not having a car payment

[@stefan6412]

And if you maintain your old but reliable car you save big. I am happily driving my 2015 Camry with 105.000 Miles and no issues. I will only buy a new Camry if the 2015 model had a catastrophic engine failure. With proper care i expect another 100.000 Miles out of the Camry at least.

[@albundy7623]

The months go by quick. Don’t take on to much

[@obione2950]

The biggest relief is having money lmao

[@jcarroll1202]

I purchaded older vehicles with low miles. "Old lady" cars. Lower purcase price and lower insurance cost. Drove one for 12 years. On year 4 with my current vehicle a 2010.

[@BenJehovah6969]

​@J Carroll Problem is those cars aren't as easy to find the past few years as they used to be

[@chrisandrews2980]

As a former car salesman I can tell you pat is right people don’t care about the interest rate. That’s how we sold, we’d surprise them that they could finance a $70,000 truck with their $40,000/y pay (84+ months). Those are the same people getting repoed now🤷🏻‍♂️

[@oneofthosepeople2101]

Scumbags taking advantage of idiots. Society pays the price.

[@chrisfabre23]

Whoa... Now THOSE numbers are absurd. 😳

[@thorneto2742]

It’s not that they don’t care, it’s that people are so inept at finance that they don’t understand what they’re getting into. Y’all are preying on the uneducated lol

[@johnv6806]

Didn't car loans only go up to 5 years pre pandemic?

[@chrisandrews2980]

@@johnv6806 No, I’ve never seen it done but I’m sure if you tried hard enough even pre pandemic you COULD finance a car for 15 years lol.

[@schawnettarobinson8584]

My mother, “You can want whatever you want, but buy what you can afford.” -Wise woman ❤

[@cl8wnm5n]

Ain’t that right? 👊

[@justinhunt4767]

Love it

[@imkriswithak1135]

Mine was you can afford anything but you can’t afford everything

[@schawnettarobinson8584]

@@imkriswithak1135 😊

[@spotifyseascapessmoothjazz]

Right, there are plenty of sub-$15k used cars that will get you where you need to go in comfort every day, if you research which models are reliable and you find one with a solid service record and minimal rust. The repair costs of an older vehicle are much lower than a new car payment, about $50-$150 per month on average.

[@blueghost5344]

Its absolutely true, most auto shoppers are focused only on the monthly payment amount. One of the first questions a dealership sales rep is what kinda monthly payment do you want, but never tell the customer about the interest.

[@inmate0054]

I havent jad a car payment in 12 years. Married my wife got rid of her payment in 6 months and she hasnt had one in 3 years. True financial freedom is no debt

[@Samsonight33]

Debt can be a tool to build real NAV

[@wrath231]

@@Samsonight33 huh?

[@inmate0054]

@@Samsonight33 like i said true fincial freedom is having no debt. Dont need much money if you have no debt. Dont have to jave this job you hate with bo debt.

[@Anthony-nv7gd]

@@inmate0054 Wow. You've really got it figured out, dont you? I guess all of the billionaires out there that leverage debt as a pillar of amassing more wealth are suckers. Guess you also don't need to be very good at spelling when you have no debt either.

[@rminitials]

Amen

[@joemachine4714]

Just made my final mortgage payment today 🥳

[@ReinitaSofia]

🎉🎉🎉🎉 congratulations that’s amazing

[@chenyitube]

How many years? 15 or 30? Congratulations!

[@joemachine4714]

30 yrs, thank you very much 😊 🙏

[@trainsandlocomotives]

Congratulations!!!

[@salvadorhurtado3704]

Congratulations!!!

[@maxwind1862]

I'm still driving my 1997 F250 XLT HD 4×4. Paid 6k cash 10 years ago, and I've never had a car payment. That truck brand new off the lot was $25,900. And I still like mine more than the new ones.

[@Adam-wt5id]

I sold cars and its wild the people that come in and actually buy from a dealer. Even my coworkers thought i was wild for driving cash cars but i was always hearing about them stressing over bills. I always did fine because i was working for commission and never wanted to put myself in a bad spot to begin with.

[@bmcdonald7303]

Good for you!

[@tdz69]

My man. What’s up with dealer websites??? They are loaded with fucking pop ups and chat windows. Are they purposely trying to get you to leave the website? Lol. I can’t stand them.

[@Adam-wt5id]

@@tdz69 lol usually they are just simple virtual tools on the manufacturers site that just let you look at different options. The goal of the websites is for you to put your information so a local dealer can begin to harass you. Try just looking directly at dealer inventory sites and avoid putting info down.

[@TheGbizaille]

My first car was a 2008 kia optima, it was $5k with 124k miles. I put $1000 down, financed it through my credit union, 2.99% on the interest rate. My payments were about $90 a month. Drove the car from 124k miles to 250k miles. Made over $60k driving it for Uber too. And I still sold it for $1400 after all.

[@ToddTinley]

As long as you claimed recapture.

[@terryjones9784]

NICE

[@nikkilav824]

Endurance and Grind...I love it...

[@Albundy11373]

How much you spent in repairs?

[@DiegoGotNext]

BS! you can’t uber on a older than 10 year old car

[@JK-zt4ym]

I lived for a long time with no car payments and it made a lot of sense. It allowed me to get to the point that I make more in just dividends than my house payment would be. I now allow myself one car payment at a time.

[@slavikarlov]

What's sad is that soo many people buy cars they can't afford for status. Then that expensive car has a high insurance payment too. You can easily have a $1200 car/insurance payment.

[@Mary-io1mb]

"Qualified buyers are decreasing"-Patrick is spot on!

[@user-ml6jb8hr4i]

There is a flaw in PBD's argument and here is the correct one: He incorrectly assumes that the 60% increase in car payments has to be matched with a 60% pay hike. This is a false logic because the salary someone makes in 2023 is $78K which is a % increase from $64,000 in 2018 whereas the price of the car went from $32,000 to $46,000 which is sufficient to cover the increased monthly payment for the car

[@MM-zm5qx]

​@@user-ml6jb8hr4i no what you don't understand is that 78k increase number in 2023 is fools gold because of higher inflation your purchasing power is much less today 🤔

[@NWO_Media]

@@user-ml6jb8hr4i everything has gone up, literally everything, the dude isn’t incorrect at all.

[@Atombender]

Banks aren't checking credit ratings anymore anyway, they're giving out loans to pretty much anyone.

[@DieselRamcharger]

@@user-ml6jb8hr4i you have no idea wtf you are talking about. obviously.

[@Turner1281]

Realizing that some people are just learning about car loans right now, from this video, makes me appreciate my Father even more. Thanks Dad.

[@Jetski270]

The best car to own is a car you can afford

[@crazyg74]

yep! Don't borrow money for a car - ever! (unless your business makes profit from the car and can expense the loan payments against taxable income).

[@allyfizzle403]

Or just maybe common sense... Who takes out a loan on a depreciating asset? LOL

[@jessecortez9449]

​@@allyfizzle403you say depreciating asset as if the average person even knows what am asset is, much less one that retains value or increases in value. Common sense comes about from people being commonly taught something. Money is intentionally not taught in this society unless one takes the incentive to teach themselves. The whole monetary system is dependent on people being dumb.

[@dogguy8603]

​@@allyfizzle403many people get a car note because they need to get a car. Which is a need in today's society, they arent worried about a depreciation asset, they are worried on how they will get to work on time and drop their kids off at school.

[@markward7467]

Your analysis is spot on about the average person & way they’ll look at it, it’s about the payment. Same is true of home mortgages.

[@floridaexplorerk2518]

Thankful and grateful there are thinkers like you out there!

[@brian012281]

If you only consider car payments rising it’s scary but at the same time car payments rose so did EVERYTHING else. When you think about how people afford those car payments in addition to food, housing and utilities, that’s terrifying

[@InternetUser._]

Everything went up, except for inflation adjusted wages. Those took a cut. But J Powell will tell you the hot job market is responsible for inflation 🤡

[@karenpennington5073]

EXACTLY!!!!!!!

[@ajbomb2186]

We have a long road ahead. Prepare accordingly.

[@sagatuppercut2960]

Think of a $75,000 household income and divide it between a husband, wife and 2 kids. I don't see how they can afford a middle class lifestyle---unless they live in some rural part of America where the cost of living is very cheap. My household income is $60,000 with 2 adults. We drive very cheap cars.

[@SG-pj5zl]

And they want us to come back into the office when I’m working a second job after my wfh shift… without a pay increase Hell no

[@TravelingNomad100]

Talked to a local repo guy yesterday while he was working he said they could work day and night and not even make a dent in the outstanding requests. He also said he has never seen anything like it and he has been doing it for 20 years.

[@Lifeisapartydresslikeit]

Must be different in Toronto. Cars are in demand and I don’t see price’s coming down too much

[@k20z3keith7]

The data speaks for itself, but interviewing people on the ground actually participating in the data adds a lot of weight. With the market right now, when I drive I just guess how much people's payments are looking at their cars. Such a waste. Especially when it's not a Honda or Toyota.

[@michaelweyenberg6238]

​@@Lifeisapartydresslikeit You see why they're in demand. People who can't afford them buying them at inflated prices. Then this happens.

[@Alpacabowl98]

this is what happens in recessions.

[@One.Six92]

Good time to start a tow truck business huh

[@missmarysuicidal]

I just stumbled upon this channel and I love how they talk. Now at 40 is when I'm learning about credit and on my way to buy my first car. My credit education was "Don't touch it, don't use it" and of course it affected me, I was a ghost. And as someone with low credit, now my first credit card. Building it. I'm very VERY careful about cars and interests

[@dukewellington7050]

I work in lending and we are seeing a lot of 96 month loans. That's 8 years of a car payment. Absolutely wild.

[@gorkyd7912]

I once paid off a computer in 1 year. It was zero interest so I thought why not. After paying less than $100 per month for 12 months I was happy to be done, can't imagine paying $600+ for 8 years for a car. After 8 years that car is going to be worth less than 1/2 of starting price, if it's not wrecked completely.

[@mplslawnguy3389]

That's pretty scummy, but the people that sign up for that are infinitely stupid.

[@dukewellington7050]

@@mplslawnguy3389 we're a business at the end of the day. If the consumer is dumb enough to want it, we'll sell it.

[@hebrewharv8018]

Do you think alot of people do that to get a lower monthly payment so they can pay extra of necessary? And just incase they can only make the payment due it wont be too high?

[@dukewellington7050]

@@hebrewharv8018 well they apply for these extended loan payment schedules to bring their pti down enough where we'll approve them. Its mostly higher risk borrowers where they're interest rates are fairly high. If they went with a typical 60 month loan on 35k they'd be playing close to $900/month. We LOVE these loans because we milk the interest out of you but most people don't think that way. They just see a lower payment and sign the paperwork

[@adamgitmed3779]

Seeing this really makes me appreciate owning my car, just a humble 02 Honda Civic ex but it beats being in debt for the rest of my life. Being a private reptile breeder is my only income and there's only such a slight margin for profit and that's taken up usually by adding new animals or traveling so I couldn't imagine how much harder it could have been with hefty payments like that. I can only imagine what it's going to lead to.

[@BusArch42]

Honda and Toyota….you won’t go wrong

[@justins5225]

I had a 98 civic dx and a 2003 lx (destroyed by hurricane Sandy, recieved 500 more than I paid from Geico after using it 4 years) and a 2005 ex limited edition. Those cars were great, the first one had no ac or antilock brakes but the mileage was in the high 30s. Old school Hondas are the best. I live in PH now and mostly drive my Honda 110cc scooter, $4 to fill the tank. Bought it new for $1,150 cash 4 years ago. I go to the beach and play tennis at 45 because I never wanted a BMW. A dream car is the one that will lead to your dream life.🤙

[@jesseking8521]

We own our own business and haven't had a car payment in 5 years. One of the best financial decisions we have made.

[@zacharyvandyke1717]

Good for you! I am an employee :( But have owned both my two cars out right for years now

[@mikescott4780]

I would like to know what the average interest rate was as a whole. 16% wow

[@Nezzy750]

Half kidding when I say this but is that because the business is paying for it now? Lol jk

[@drunvert]

Business owners know the cost of money. My 08 Truck, mu 08 Mercedes, paid cash used. No payments

[@ima8533]

I’ve never had a car note my entire life

[@vedocapp]

The worst thing about this all, 80% of the time purchasing a new car is unnecessary lol

[@unknownsource4359]

People do it for “appearances”

[@Billy-rq9hs]

Yes sir.

[@bryanfox2735]

Yup. I bought a 2012 ram in 2015 it’s Deisel, only had 40k miles on it and I paid 40k for it. A brand new one three years newer was almost 80k! I’m still driving it, it’s got 82k miles on it now and it’s paid for!!! 👀💪🇺🇸💯😎

[@remedialone6987]

I'm looking at buying a vehicle soon and a 5 year old model with 100k miles is only $5,000 cheaper than a new car. so what's the point of buying used?

[@Bella1neverknows670]

​@@unknownsource4359 you buy a brand new car you get a warranty you buy used one get it as is

[@LegacyMicro]

It's been a long time (years) since I've had a car payment but I still remember that feeling the week the payment came due. Stress and worry will shorten your life.... I couldn't imagine what I must be like to have a 7 year auto loan....

[@delmarhi]

I got lucky to have gotten my house in September 2020 and then had to get a new car in March 2021. Everything started going crazier shortly after that. All my payments are locked in at low interest and I bought what I needed instead of all the wants. It took a couple of years to build my credit to get there but glad I pulled the trigger . I feel bad for others that can’t take advantage of the financial situations that were available. Hopefully everything goes better than what it looks like.

[@kobragangbit]

But do u get bitches

[@MrPrplhaze1]

I remember business class in high school. The very first day, the teacher got excited, walked over and swung the door shut and said, "Today, were going to learn all about car lots".

[@vizionary_trading6050]

As a young guy who didn’t know much about interest rates and such. Went to a Toyota dealership trying to buy a 2016 Camry, the guy finessed me and told me the bank didn’t want to give me the loan but would for a 2019 Camry. I took it and I’m paying $800 every month. Have a year and three months to go. Worst mistake I’ve ever done and I’ve learned my lesson.

[@MK-xw1rp]

I'll make u happy buddy ur not the only one they put me in a mercades lmfao 😅I played my self

[@kingberry100]

I mean, at least it's a Toyota, should last you a very long time

[@avashurov]

People used to lease cars instead of buying with a payment of around $199/m vs $500+/m when fully financed. But now, the interest rates for lease are way more than for financing which makes the payment the same. I knew this was going to happen, so I refinanced my previously leased car last June, 7 months before lease maturity with 1.7 APR. I also made sure my mom got a car as well with the same APR. Best decisions ever! Now buying some gold and I’m ready for what’s coming!

[@512productions3]

I just bought a car over the weekend. And the question i was consistently asked is "what do you want your payment to be" and luckily im a little smarter than that but i definitely see how it gets people. I shut down several lots by saying i wouldnt pay more than xx total, and needed a good rate.

[@tdz69]

Haha. I just inquired on a used car off of AutoTrader. Dealer got back to me. Jessica asked me similar “what monthly payment are you looking for? Do you have a trade in?” Two questions, if answered, will benefit the dealer and not you. I told Jessica I do not have a trade in and my first priority is arriving at a sale price for the vehicle after I see it. Jessica apparently fell into a hole as I have not heard from her. I hope she’s ok. Lol.

[@toraso842]

Finished paying a $400 car payment 5 months into covid. After that I felt so good to start saving more money considering how this pandemic would be. People don’t understand how much a relief it is to be debt free even if u make good money.

[@danaoberlander5754]

You can weather any economic storm, if your debt free.👍 Currently, we are in an economic 💩 storm and it's going to be ugly.

[@kron9597]

I'm not a bot or anything but if I were in your shoes I would learn about crypto and instead of simply saving that $400 put $300 into Ethereum every month and get as much as you can while it's under 2k before the next big run up comes. I hope this message helps you random person on the Internet.

[@Matt-rk3de]

@@kron9597 Lmaoo

[@davidwright873]

ain't it wonderful?? lol

[@casual35]

Some of those savings will go back into major car repairs at some point. Then more savings into a down payment for a new car. The cycle never ends. You get short breaks or the illusion of freedom.

[@bsetdays6784]

The broad-based Standard & U.S. consumer confidence has sunk to record lows, thanks mainly to inflation. Retail spending, home-building, and manufacturing output all declined and those who drive the U.S. economy, are starting to cut back on discretionary purchases, such as appliances and services. Regardless of our market conditions, however, we should continue to promote savings and smart investments.

[@adenmall7596]

There is very critical situation for US people and other countries people. The global economy is going to very poor situation. Inflation and unemployment are on the rise۔

[@roddywoods8130]

There are several reasons I have been investing under the counsel of an advisor which are someone who sets asset allocation that fits my tolerance and risk capacity, investment horizon, present and future goals ‘’Eleanor Annette Eckhaus’ has provided all that and I don’t want to go into ROI on a public space.

[@kaylawood9053]

There is this podcast i was listening to and it said something venturing within your tolerance and risk capacity, see you mention it again got to me.

[@roddywoods8130]

What the pandemic showed is that people are a lot more secure if they have an emergency fund and a financial plan; one with a Plan B and Plan C. Also the war in Ukraine are both wake-up calls that stock market crash can happen abruptly in a recession and inflation may rise. Hence, everyone needs a crisis investment plan...

[@brandywhite9317]

Thank you roddy for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé..

[@Surtac100]

8 years ago I bought a house, the payments were $900. I just sold my house for double what I payed, the new payments are $2000 a month for the new homeowners, a 30 year old house.

[@cooldrop02]

Pat is cookin' this episode. Seems like he's done a bit of research after the past few interviews that he's had up here. Wages are not going up. Prices on everything has always been going up and has far outpaced the increase of wages. Thank you for bringing it to the forefront of the conversation Pat.

[@David-hy9ni]

“I’m still paying for the Eclipse” HILARIOUS!!!!!

[@WoopyGoldbergsHair]

I lol’d too

[@MrWellz412]

I came to say the same thing! 🤣🤣🤣

[@Bronxking81]

My father has sold cars for 40 years and I sold cars with him for one year 20 years ago. Let me tell you and it’s still true to this day, people only care about what their monthly payments are going to be. When a dealer hears a customer ask that question they also hear “CHA-CHING” at the same time!

[@workingshlub8861]

my father explaind to me this way.......say your boss cut you a check for entire years salary say 50k.....would you go run down to the dealer and buy a car for 30k ?? of course not because you would have no money for food and shelter after... if your making 50k you should be driving a 10k car max....

[@Bronxking81]

@@workingshlub8861 I hear you, how about if you don’t have the cash then you can’t afford it! Only finance cars and homes if its going to generate cash flow!

[@kingberry100]

​@@workingshlub8861lol, nah 1k max

[@manormyth]

Jeep can’t sell a car. They are ranked last in reliability

[@ejpemoney6984]

Thank you for making this chart and discussing this because I find this so ridiculous with what people are paying for their new 2020 and up vehicles

[@MikeBrownRehobothBeach]

Same thing happened to homes. Prices doubled and interest rates doubled. I've been a Realtor for 20 years, the last two years I've had lots of people calling me and crying because there's nothing they can afford. 😢

[@marktinkler6897]

I am 73 years old. As a kid, my family always drove used cars. It wasn't until I was in high school did my dad ever come home in a new car, and then, it was a Rambler. My dad was a Senior Research Chemist for The Eastman Kodak Company in Rochester, NY. He was paid $12,000 a year. We owned a home, had a boat, took vacations, never wanted for anything (3 kids - stay at home mom). That Rambler cost over $2,500. Even then, cars were a big ticket item.

[@marktinkler6897]

@@SoothingTranquilVibes Here, here!

[@koolkitties8552]

I'm from Rochester New York and known know lots of people who worked for Kodak

[@pammyrogers]

My dad always bought a Rambler too. lol

[@rommulus]

Easy because the car cost only 10% of annual salary Now cars cost 100% or more of salary

[@grod805]

That was a cheap car for how much he made

[@Concernedpilgrim1881]

Your always consistent and relatable. I’m on the low income side of life. 3 years of sobriety starting over. My credit score went from 400 to now 700. I’m paying my vehicle off this year. So I have been learning a lot from your content thank you for doing this.

[@ZenityStudios]

Good job, keep it up

[@dannyb7166]

Respect, keep at it. We walk with you in good health

[@StrongerThanBigfoot]

How did you get your credit score fixed?

[@Concernedpilgrim1881]

@@StrongerThanBigfoot basically living off cheap home made food. Paying off debts with every extra bit I had. Not going out to restaurants. I haven’t even been dating. It’s finally after a year and 4 months paying off

[@Concernedpilgrim1881]

Honestly listening to this channel and others. And actually doing what they suggest. That’s been a tremendous underlying force for my commitment to becoming successful ✌️

[@TimeIsTiempo]

9:23 "We push it every morning when we come here!" LMAO Great spark of humor. Love it. Feels like I'm sitting and chilling with my friends 😊😂

[@skaterwig]

The only way to appreciate not being in debt and having those payments is to go through it. Speaking from experience made this mistake early in my 20’s and free from it now at 27. NEVER AGAIN.

[@salempoor834]

I’m a nurse and I haven’t got an annual raise in two years despite being employee of the month. Being thrifty and playing the cash back credit card game has become a necessity.

[@thethinkingmansgame5050]

You need to travel nurse.. 2 to 3k a week

[@craigholland2274]

Sounds like you need to test the market and see what other places will pay.

[@GRB22]

@@thethinkingmansgame5050 2-3k is low. 5k with housing in the Northeast.

[@thethinkingmansgame5050]

I was just making a suggestion

[@salempoor834]

@@thethinkingmansgame5050 I would if I didn’t have my kids. Maybe when they grow up and move out. I appreciate it, brother.

[@Pedalbored]

My wife and I did the math and we can buy a condo cheaper than a new car. So now we’re starting our journey into becoming landlords.

[@Hamasisfilthytrash]

Lmao where in Chicagos ghetto just stop it

[@Bloom2Grow]

Don’t be a leach either. Don’t take advantage of working class families who are low income and charge them astronomical rent for a shoe box apartment either, just so you can maintain your lifestyle.

[@Hamasisfilthytrash]

@@Bloom2Grow working class aren’t low income but yea ok! Sorry McDonald’s and dollar general aren’t working class

[@Bloom2Grow]

@@Hamasisfilthytrash wrong!!

[@Hamasisfilthytrash]

@@Bloom2Grow prove me wrong!!!

[@davidlax5067]

Exactly! I remember that's how i was, my first car payment was based on monthly payments instead of the whole car price. Learned from that!

[@billponderosa88]

I'm pretty sure they had a seventy two month payment option for many years...my 1st car in military was a Toyota corolla 29% $550 a month. in 2007

[@LBmustwin12]

Dave Ramsey might have a heart attack is he sees this

[@sagatuppercut2960]

This would be a great topic for his show.

[@BishezicespiceFAN]

😆 🤣 😂 😆 🤣 😂 . Dammit..

[@MichaelJames-lz7ni]

Ramsey has been preaching sensible spending based upon Interest rates. People should be paying CASH for depreciating assets - NEVER BORROW.

[@TopVillain]

Found ya! The Dave Ramsey 🍆 rider is always in here somewhere and I found ya!

[@MichaelJames-lz7ni]

@@TopVillain Ramsey is a Fiscal Conservative that is worth closer to $1BIL than PBD can even dream-of.

[@elcapitan549]

Anyone else notice PBD hardly ever has commercials? Love these guys. They are truly elite

[@markdailey8526]

Did you notice how dude was quick to call people idiots for not knowing or wanting to learn. Did you see how Patrick corrected him for saying that horrific statement?

[@matthewjames6076]

i use brave no commercials

[@toiletpaper7864]

Premium gang

[@stephenb3348]

​@@markdailey8526 yep, it was a totally tone deaf comment

[@hc3550]

I love being able to afford youtube premium 😂

[@CampbellsUniverse]

2005 Totoya Echo, 280,000 miles. Bought it for $1300 in 2020. Keep me on the road ol bessy! 🤞

[@leechburglights]

This is a great point! I got a 2020 4Runner during the pandemic. Its my first new car. I was debt free, and got the OTD price of $41k. The finance charge on my 72 month loan is 3.23% but I'm keeping my credit going by having a loan. Anyway, it will be paid off this December by making double payments. I plan to own it for the next 20 years and only put maybe 12,500 miles on it so far. Get out of debt people and live like no one else so you dont get caught in the future storms that surely will come!

[@disgustipatedwon]

The craziest thing is we used to have bare bones stripped back versions of specific cars for 10k roll down windows no AC etc... we had a variety. Now everything starts at 20/25k with interest trucks are minimum 50k there is little to nothing in regards to competition.

[@Billy-rq9hs]

It’s awful. And the more shit the cars have the more shit breaks

[@erickn7985]

​@@Billy-rq9hs Big facts my grandp tells me that all these fancy cars are just big waste of money, you just need a good reliable car to get you from Point A to Point B

[@venicec3310]

Yup better off getting an pre 2010 car and just maintaining yourself these modern cars require so much to upkeep you cant work on them yourself anymore especially the electric ones

[@anthonys2818]

I enjoy different personalities on the show and you guys got that. 😂

[@bethanyg153]

Years ago we financed through our credit Union. The dealership was beyond annoyed with us. Couldn’t believe how rude they were about it. We should have just walked away. I don’t understand how they don’t offer the best financing from the get-go. It saved us quite a bit to have that smaller interest rate.

[@robertsmith7637]

The fact is dealerships don't even want to sell a car to a person paying cash.

[@nodaklojack]

You make an intention you will be financing through them. Then at the last minute you surprise them with a credit union check and outside cheaper financing.

[@GeneralChangOfDanang]

I just went through their lender and then paid it off in the first month.

[@mplslawnguy3389]

Just finance it and pay it off the next day, it's not that complicated. Everyone knows they don't like cash, they get kickbacks from the financing companies that operate out of their dealerships.

[@muskaos]

If you have cash, why are you at a dealer in the first place?

[@eb1680]

@@muskaos To get a car lol

[@josegurrola9021]

My HS history teacher once dedicated a day to car finance and why you shouldn't buy brand new off the lot. Learned a lot that day, and it has since deterred me from even looking at new cars. I'm happy in my late 2000s car for now, and when Im sick of it ill be buying used again most likely

[@DomT0311]

Then all the used dealers jack the price up.

[@enriqueb4412]

Used car prices were bad back then and worse now. Sometimes new is better. For example a basic trim sedan, under msrp, and financed through a credit union.

[@n8meade]

​@@enriqueb4412 from what I understand, car makers are or have moved away from entry level models entirely.

[@mysticmandy1248]

​@@DomT0311 buy from owners rather than dealers

[@stratplayr6997]

True. In 2019 we bought a 2017 Volvo S90, certified pre owned, with only 6000 miles on it. Paid only $35k, about half of what a brand new S90 would've cost. Best car purchase I've ever had. And with a better warranty than you get if it was new. Only problem today is you can't find many CPO cars because nobody is buying right now. I have no idea how many dealerships are going to survive, let alone the manufacturers. Got a feeling we're going to see some major downsizing in the auto industry soon.

[@Ottotherepoman1]

HARD FACTS - Modern cars are stuffed with expensive extras. People need basic cars with no electronic gadgets, no power seats, power windows, no tv screens, no wifi, no computer chips, and poof! cars could be made for 20k again.

[@gilberthurtado1984]

He is right 100%. I needed a car real bad in my early 20's and I also took a car at 20percent interest . That was harsh and my only thought add the years till I was at point to make confirm payment.

[@sarahmcdonald9624]

Yep. I’m in the car business and have been through the whole pandemic. It was wild. With Honda and now Mercedes. I feel bad for the people who were buying. I am in accounting and the amount that people were overpaying was wild. The people who got the best deals were the ones who did a lease buyout. They even restricted those after about a year.

[@victorecheverria9269]

Hi Sarah, I have some cash to buy a car. Would you recommend to wait a couple months until prices go down or is it better to buy right now?

[@johnv6806]

I got a bronco sport exactly 1 year ago and it was significantly more to lease it than finance it

[@refrefwgwgwegew]

@@victorecheverria9269 I am in the same position, not worth it to be honest with you.. if you have the opportunity I suggest store your value, not sure what role transportation plays in your life obviously

[@MyMostBeautifuCinema]

@@johnv6806 A lease buyout is different from getting a lease.

[@ROFLgator1]

Prices are never gonna go down buddy. Its only going to get more expensive from here on out. Why don't you just buy a used car and fully pay for it with your saved money? Last February I bought a 2000 Honda Civic EX with 168,000 miles. Paid $1,200 with insurance. It's beat up but hasn't given me any problems at all. It has 202,000 miles now.

[@Piccolo_Re]

No car payment is the best way to go. My last car had no payment, and it was so nice to not worry about it. Unfortunately, I had to get rid of it and didn’t have cash to pay for a safe and reliable used car because of what used car prices are now. Car prices are just insane.

[@Dan.a.k.a.bradpitt]

actually best deal out there for bang for the dollar is toys like mine

[@TK-cl1jm]

​@Dan. a.k.a.bradpitt please elaborate!

[@patrickbellefleur5508]

Im a cash guy. If you are ever out of work you never have to worry about a bank repo'ing your vehicle, or making car payments.

[@scruf153]

if your commute is not far and your in fair shape try a bicycle or ebike

[@ineedbbq]

You are right about the payments. I look at that but my wife and I are looking to buy a car but we are putting 50% down to keep it manageable. And we are no looking at super expensive cars either. Got to know your cash flow and work in your lane.

[@alfredorivera3454]

I almost made the mistake of buying a new truck half way paid in my current truck (Toyota Tacoma)fully loaded with all the bells and whistles 600 monthly pmt at 2 percent for 66 months. Was going to trade in was not getting much for trade in and my new truck pmt was 900 with 5 percent for 72 months for a Toyota tundra mid grade nothing fancy. It’s good to watch videos like this it opens your eyes for mistakes that might do in life.

[@Nicholasxie]

Pat is absolutely right. Most people only care about how much their monthly payment is. When I bought my first new car in 1995, the sales person asked me how much I wanted my monthly payment to be. I told him that I wanted a 36 month loan not a 60 month. He kept telling me what my monthly payment would be so much lower if I did 60. I said, “I only care about how much the bank is making off of my loan in interest. I’m not giving the bank anymore money than I have to.” He was surprised. My eyes are always on the interest when it comes to loans.

[@Rex69Rutherford]

Standing 'O' for Linda Sun.... smart cookie

[@tylersingleton9284]

It's also important to ask the total price. I went in for a new phone the other day and the lady told me the monthly. I asked her the total cost of the device, and she repeated the monthly and looked at me like a fish. Like, lady, how much does the phone cost? 😂

[@Rex69Rutherford]

@@tylersingleton9284 Well done! Those that don't understand that are the ones that have caused a 50% increase in new vehicle prices over the last 3 years.... they just don't focus on the MSRP or interest rate.... just that one magnitude (monthly payment)

[@humpteedumptee8629]

I personally am more focused on the opportunity cost. if you paying x % of your income to a reoccurring bill. your income and ability to utilize it in any other way is stunted until its gone. if you're spending 1000 a month on car payments. that's 12k less in getting ahead every year.

[@justing6594]

Same here Linda. When I was 23 I was looking at new corvettes. They did all my paperwork and come back at 11% interest. The payment was 1100.00 a month. And I knew I could afford that but I'd be barley scraping by. Went back to the dealer a couple months later I dealt with a salesman and the manager. I bought the car at 0% interest and a 900.00 a month payment. And I saw the first salesman when I was doing the paperwork for the car. He looked pissed. This was in 2003. I know longer finance cars. It was a young and dumb kinda thing.

[@xAmirKDx]

My car is from 2003, 99k miles and still holding strong! Meanwhile, everyone around me is getting new cars, and asking "man when you're going to get a new car?"

[@GoodDay-jp5hi]

Answer them back :Your car is not ''new''anymore....When are you going to get a new car ?

[@javi8896]

bro! i hear that every month “dang you still have that ‘09 babymomma honda fit?” like yea & the pink slip😂 there over here making 500+ payments

[@justjsse8917]

My jeep is a 92 at 280k😅

[@mattman20132]

2007 civic si, 285,000+ miles and counting

[@Immigrationsituation]

2004 Subaru outback rebuilt motor here. Got it for $2,500 paid cash. Pre covid by 6 months. Still runs great. No way will I ever get a bank loan for a car for rest of life, have saved enough for a decent used car once mine dies.

[@michelew2191]

Interest is important, net worth is important, but not nearly as important as cash flow. Monthly payment amounts definitely matter, and you should take the hit on overall interest expense if that's what it takes to have a reliable ride to work. Finance rules and priorities change depending on your income to expense ratio.

[@xpudx15]

@valuetainment Toyota revolutionized manufacturing my integrating LEAN principals and creating The Toyota Processing System. Primarily focusing on eliminating waste and batch manufacturing orders. Don’t make more than you need or you are creating waste. Maintaining a limited supply while meeting demand needs is a key to the process. Many of those companies that are mentioned in the graph at the bottom also follow similar systems. Although I agree with the overall argument, there is some nuance at least with Toyota.

[@mrfunkybassist]

Last new car i bought was in 2017 and dont plan to ever do that again. We were able to pay it off in 2 years and havent had a car payment since.

[@mplslawnguy3389]

Me too, I bought a new truck in '17 and paid it off very quickly. Never again though. What I paid seems cheap compared to now. No way in hell am I dropping $50K on a vehicle.

[@gabrielvasquez599]

I have a degree in finance and worked very briefly at a car dealership. The biggest problem I saw was payment shoppers. The only four components relevant are the interest rate, the number of payments, the principal (or price of the vehicle), and the monthly payment.. Dealers tweak every other variable just to get the monthly payment acceptable to the buyer. Never mind the fact that they probably just added two years to your loan, at a much higher interest rate then you may well qualify for and certainly did not lose any money on the car price itself, despite what they say. My simple advice: go online and access an auto loan calculator. Plug in the numbers- right in front of them, and if they don't add up, something is very wrong. Note: the down payment will, or should, reduce the principal used in the formula.

[@erinhardick4803]

After being ignorant to that for years the last 2 cars I purchased I went to my credit union first to secure a loan that I found acceptable within my budget. The interest rate was far lower than any dealership would have given as they get $$ on the back end for jacking the interest up.

[@cfsllvan]

Great advice to get someone ran out of a dealership using “chaos” math

[@markcowan3366]

The problem Ive always had at dealerships is I come in pre-approved for the vehicle I want, at the price Im willing to pay. They hate me because I know what the vehicle is worth and they cant finesse me. Ive walked out of dealerships because the salesman and manager arent willing to come down on the price, and they cant make extra money via financing. They get really pissed when I tell them the only thing I care about is the principle because Ive already got a loan. Monthly payments dont matter, interest rate doesnt matter, and duration doesnt matter, just the price of the car lol.

[@jns08d]

Its crazy that in 2023 people are still payment shopping, I bought my first car in 2018 and literally the advice I kept seeing on the internet is not to payment shop, I thought it was common sense smh

[@cxa011500]

Buy used.

[@jeffersonia]

Bought a brand new Pacifica in 2019, total loan was 36k over 5 years at %0 interest. That $600 monthly payment was killer. Sold that car beginning on 22, bought a used van cash and never looked back

[@docohm50]

I am a aircraft mechanic and a shade tree car mechanic. I will drive my paid off car until the wheels fall off before I pay $950 a month for a car payment.

[@johnferreira885]

Most of the people out there don't even need a 75k truck they don't even use it as a truck blows my mind.

[@maelstrom2313]

I've never purchased anything on credit in my life because basic math taught me that poverty is cheaper than slavery.

[@nauxsi]

I like that.

[@williammathis6044]

Man I am stealing that phrase…

[@Holler_Rat]

With an income tax, aren't we all slaves?

[@perspective_prospect]

Agree. We are already paying 50% in taxes(income, sales , inflation) I want to keep the remaining

[@coreyfreeman6226]

But poverty is just slavery squared

[@jwlee1059]

I am with you guys....I always negotiate the interest first.

[@Keepgrinding3173]

“What do you want your payment to be”? The oldest car sales trick in the book. Dude was right when he said people are idiots 😂

[@Ret2Play]

Adam has never been in a position where he’s struggling…if a person has to get to work, they get what they can pay for…been there done that…now everything is paid for and I’m going to drive my car until the wheels fall off! 😊

[@xmforce6175]

Yeah that statement rubbed me the wrong way.

[@sjmuhammad19]

Right...he's obviously never been in a situation where he didn't have the luxury to worry about turning down a car due to how much interest would be paid. When you NEED to get to work etc you get what you can get to survive and worry about the rest down the road. The only thing that can be done is educate yourself beforehand to escape becoming a victim.

[@donpcorleone6865]

Totally agree. His comment came off very much like Kim Kardashians "work harder" statement.

[@lucaswolgast1520]

Just buy a 500€ car lol

[@patrickbellefleur5508]

Big facts. You also have the people who are knowledgeable on personal finance but make decisions based off of emotions, or obtain satisfaction through material items.

[@THEFINANCIERTV]

This could probably be the realest podcast out right now.

[@gabriellec7845]

The VERY FIRST THING this consumer LOOKS AT IS THE INTEREST RATE! That rate determines if I will or won’t buy, I don’t care how much a need there is.

[@WillCarter1976]

My Grandfather was a child of the Great Depression. He once told me that, "if you can't afford to buy something twice, you can't afford it". In this economy I understand what he meant. 😢

[@sheabilladeau1392]

PBD. Congrats on 4M. Love your show.

[@ronnestman4696]

This

[@atex6175]

Pat your 100% right if people actually cared about interest rates instead of the payment each month places like rent-a-center and Arron’s wouldn’t be in business.

[@Zb_Calisthenic]

Predatory lending is like Apple pie.

[@pawelwisniewski6849]

And all credit cards

[@DC-bx8ww]

I worked at a rent to own, soul crushing. I couldn’t sell to people because I was like you are willing to pay 150 bucks a month for a 4 year old tv for 18 months when you could save for 3 months and buy it straight off. Only 39.99 a week!

[@Okeen12]

@@DC-bx8ww if you think that’s soul crushing, do a deep dive on the cash now places giving people $5000 loans around Christmas for 46% interest rates… ive heard stories from an employee of absolutely devastated people signing for near 50% interest on a loan they literally will carry for the rest of their lives if their situation doesn’t change

[@stinnettcorey]

@@Okeen12 yeah I've said they should make it illegal to do rates so high.... They prey on the poor who are at hard times and then wonder why ppl have to rob gas stations and steal.

[@coyotetacticalsolutions]

I went last week and test drove a KIA Telluride. I loved it, went to look at the numbers with the sales guy and they had the audacity to slide me a paper showing $1,000/month for 72 months with $3,000 down!! I laughed hysterically and walked right out.

[@ogles824]

The car market has really been priced out of the general public’s reach since 2008 because of the UAW retirement bail out. I quit buying new cars and trucks at that point. In 2016 when I bought my current pickup that was 3 years old at the time, the dealer had 6 vehicles on the lot that had recently been returned with in about a two week period of my purchase because people got them home and the reality set in that they couldn’t afford them. The auto manufacturers need to build vehicles minus all the technology, bells and whistles, etc that can be bought south of $30k as we had in 2008 and earlier.

[@56societymx1]

Car payment is a fun exercise. Now do the same exercise with groceries. I'm guessing that's also at least a 60% increase in the last 3 years.

[@gorkyd7912]

About 10-20% depending on item.

[@venicec3310]

Eggs tripled in price same as milk

[@uncommonwisdom101]

Adam: "if the interest rate is high I don't buy food this week"

[@jasonweppelman3318]

Thank you. As if in many parts of this nation a cad is something optional. And the used car market was/is just as horrible. So your choice is a payment you can’t afford now or a bad long term deal.

[@sagatuppercut2960]

Maybe he should eat his car for dinner.

[@scottd7222]

yea he is a tool straight up probably never struggled a day in his life.

[@josephhoope]

So wild.. thank you for your insight!

[@mothmaze5552]

My first car was a used Honda Civic for 3.2k back in 2013. I paid 3.2k on day of purchase. My second car was newer Suv for 8.5k I paid 8.5k on the day or purchase.

[@michaelmorrison9186]

What Adam started to say was: you cannot get a 108 month car loan for the same interest rate as a 60 month loan. When loans get longer than 60 months, bank added .5% or so for every extra year.

[@jayo3074]

As they should lol

[@eligreg99]

That’s not true the longer the note the lower the interest rate is.

[@wittyedge]

Which they really have no reason to do that, it's just another tactic to make it even more difficult for the customer.

[@MrYoungbrickz]

Was looking to buy a car 3 years ago planned on just financing with 0 down but my older brother convinced me to at least save up 40% of the car, while saving up a year later ended up finding a 2015 Kia with 65k km ended up buying it for 8k (which was less than what I saved up) BEST advice and decision I made especially after seeing my friends car get repoed

[@sammyweed4771]

To bad you bought a foreign piece of crap. That has a good chance of catching on fire, that’s the problem with ppl like you buy American. If we all bought American cars they wouldn’t be so expensive… unreal

[@rand0m742]

Got sold a car 25% interest when I was 23, fresh out of college and broke as can be... Absolutely sick and criminal, but didn't know any better unfortunately.

[@dariog36th]

My newest vehicle is a 2005 Lexus LX470 and it’s the best vehicle I’ve ever had. Best thing about it is that it’s paid for and I don’t have to worry about car payments. Maintenance costs don’t compare to $800 car notes.

[@billmcmeekin7909]

Three years for a car payment was the norm a decade or so ago with 0% interest. Crazy days!!!!!!! I'm with Adam. Interest matters! My Uncle taught me a simple lesson many years ago. Interest in your pocket great, interest out of your pocket terrible. Live by it, and you will get ahead.

[@eligreg99]

I have a 3 year note at 12%. Monthly payments are $177 but I’m not going to take 3 years to pay off the rest. It’s 4k left

[@keeganrobbins-pu6cb]

​@@eligreg99 and what are you driving a 1988 Ford escort?

[@eligreg99]

@@keeganrobbins-pu6cb A 2013 Chevy Malibu with 105k miles on it. So far I’ve had to replace the wheel bearings and do an oil change but that’s about it. I thought it was a pretty fair deal at the time for 7500 with a 3500 down payment.

[@keeganrobbins-pu6cb]

@@eligreg99 yeah see the difference is your talking about a car for 7500 vs what the video is talking about $40000 and ^ big difference

[@eligreg99]

@@keeganrobbins-pu6cb Why would someone be surprised about a high car payment and interest on a new car?

[@ArnoldsDesign]

Thank you for addressing this. Auto affordability, or lack thereof, is becoming more and more mainstream by the day. I watch several auto market channels, and see what is happening. To make matters worse, auto manufacturers such as GM are holding back some truck production to keep inventory low so that prices stay at the current profit margins. Even worse than that, many new car dealerships are still marking up over msrp. When one channel host ask ed his audience, "Who is buying new trucks at these high prices", in that case F150's, and F250's, he answered himself. He said "No one is! That's why you're seeing rows and rows of new trucks covered in dust!" They are no longer the working man's truck. Neither is Ram, because Stellantis is also increasing prices.

[@96fido96]

Make a poll if people are more interested in car payment, or their interest rate for the car

[@yoshit9819]

Buy a cheaper car or give a higher down payment. I work at a Motorsports dealership. And he is right. Most People only care about the monthly payment

[@MustangWriter]

This is why last year I bought new head lights, wheels and grill and just 'updated' my truck.

[@Pantera972]

Yep, I'll be doing the same this year too. Cars prices and interests are ridiculous right now.

[@aadilmohideen5070]

I explained this to my wife but she was adamant she wanted the car. After 2 months of trying to explain it to her she still didn't get it. Anyway she ended up buying the car and now complains about the payments and duration. I have now banned her from any and all financial decisions. I make all the financial decisions now on my own. I think it is just emotion that ends up selling the car.

[@jasminecontreras7341]

“Banned her” 😂 that’s funny. Whoever’s more financially knowledgeable in the relationship should def make those big financial decisions

[@TanManFixes]

give it up to the bank. you CAN do that. it will release your debt and the stupid decision.

[@Ocean_breezes]

Happy wife, Happy life

[@mmp495]

Man that sucks when couples can't be on the same page. It hinders growth to wealth. Sell the car and get something for cash. Save up for the car of your dreams but pay cash. 💰

[@Petesworkshop2225]

​@@Ocean_breezes Money in the bank... Happy life AND happy wife.

[@J.NX10realestateinvestor]

Right ! The average people only care if they can make the payment they never really worry about the interest rate because some people will end up paying it off in cash within weeks or months and some people will end up refinancing later if they find a better rate or they’ll just get stuck with the car and pay it until it breaks down but if that was me I’ll get rid of it before it gets worser than worst

[@2chrisp]

I bought a new car in 2017, with low interest. The total for the car including taxes etc, came out to $34k. I was young and dumb but over the years I managed to pay off the car and being my debt down 40k in 5 years. Almost done! So I’m happy with my progress. I have a total of $2500 to work with each month after all my bills.

[@gdeco707]

It’s so true what Patrick says most people look at the payments per month and don’t look at the interests rate talking of experience l remember when l bought my car the interest rate was 20% and my insurance company told me why l bought a car with the interest rates that high but l didn’t really know or looked into it because l needed a car

[@connievida4089]

I thought it went by credit score

[@mjk0117]

Do not overlook the $3,590 taxes and fees due upfront on the "no money down" deal.

[@oxo588]

You tube blocking comments again I see

[@runswithraptors]

Dealer robbery

[@mxbadboy263]

Na, just roll it into the loan! What fools people have become.

[@randyescanuelas1565]

Market adjustments were also a big culprit, overpaying for a car that already loses its value the second you drive off the lot.

[@jake51515]

I gave up my car payment a few weeks ago and bought a nice used 500 toyota matrix. Ill save and buy something nicer with cash and avoid car payments from this point forward. Problem is people think an 05 isnt good enough, plus they just gotta have the leather seats and all the tech. Nah, man. Learned my lesson on that. Not having a car payment is a HUGE stress off my back.

[@edog551]

I know middle class people living at home with their parents who bought a 35k car, 7 year loan, and think nothing of it. They just locked themselves at home for another 7 years.

[@JonnyBeoulve]

When they're older and look back at how much that money would have been worth if it was invested in virtually anything but a depreciating asset, they will be suicidal.

[@MrBurgerPal]

@@JonnyBeoulve what if they need the car to earn income? The $5k cars have their own issues, buying a new one every few years adds up

[@JonnyBeoulve]

@@MrBurgerPal Buy a 12,000 used Lexus. Problem solved.

[@MichaelJames-lz7ni]

@@MrBurgerPal There are USED, reliable cars with available warranties that don't cost more than $20K cash. I have a car available for $9.5K that only has 59K miles on it. The only barrier to affordable financial solutions is laziness.

[@MrBurgerPal]

@@MichaelJames-lz7ni what make is that car?