Negative Equity in Auto Loans is Out Of Control

[@LoydJohnson-kp3jv]

People are financing cars for seven years or more, and by the time they try to sell or trade, they owe way more than the car is worth!

[@NelleHummell]

It’s like a vicious cycle. You roll the negative equity into a new loan, and it just keeps piling up

[@sebastiaanthijn7982]

I think part of the problem is that car prices shot up during the pandemic, and with interest rates higher, people just can’t catch a break

[@ericbergman7546]

It’s definitely a challenge. My cousin recently tried to trade in his car and was shocked at how upside down he was on the loan. He owed thousands more than the car’s value, and there’s no way he could afford to cover the difference. It’s like he’s trapped

[@CarlAcevedo-sc3bl]

You know, this is exactly why I decided to work with Nora Jean Erickson, when I bought my last car. It might sound weird to get an advisor involved in something like a car loan, but she really helped me understand the financial implications of long term loans and depreciation. I was about to fall into that same trap, but they guided me toward a more sustainable option

[@christopherherbert2407]

Wait, you worked with an advisor just for a car purchase? How did that help exactly? I always thought they were more for investing or retirement planning

[@SmartPracticeSuccess]

I just cannot imagine paying OVER MSRP for a car. That is just nuts. I bought my ‘02 Civic LX in ‘05. I paid it off early and drove it for 18 years total. Finally bought a new ‘23 Civic Touring last year for cash. SOOO glad I have no car payments! 🥳

[@chrisr897]

Congrats on breaking the loan cycle keep saving for the inevitable next car.

[@stevevlahos1]

You are the rare few that do it right. Most swap cars every few years and are in a constant cycle of payments.

[@SmartPracticeSuccess]

@@stevevlahos1It helps to buy a dependable car that lasts. For that, I look to Honda and Toyota. 😉 I’m not into fancy cars. And certainly Honda has moved their cars upmarket. My new Honda is waaaay fancier than my old Honda. And more expensive. Honda also knocked it out of the park with their 11th gen design. It’s just a beautiful car. I’m sooo happy with it! The meteorite metallic gray has a slight blue undertone and a subtle sparkle. SOOO pretty! 😍 And it’s enough.

[@SmartPracticeSuccess]

@@chrisr897Thx!

[@danielroth8738]

This

[@Euro316]

Ford trucks, Chevy trucks, and Dodge trucks are statistically what Americans are going into debt for. That is more reflective of the average person in this situation.

[@leftifornian2066]

Truck culture is strooonk

[@appleiphone69]

Most of the purchases outside of for business use are by people who are morons suffering from small peen energy. They don’t have a yearly salary of at least 3x the cost of the truck. I know that I am factual, because as interest rates rose. Sales declined along with lots filling up with unsold trucks. The truck bros finally cried uncle with the thought of a $1400/month payment.

[@shustyrackleford7692]

Wouldn’t be as big of a problem if they went for the work truck for $50k instead of the luxury truck for $75k

[@hben1052]

And i read 80% never use them to haul anything in the back. Can you believe that? 80% of beds are empty

[@appleiphone69]

@@hben1052 they are hauling their precious identity in the back. If they don’t have it with them 24/7. The horror.

[@fskof]

I'm not surprised. People buying brand new cars with no down payment and financed for 5-8 years are now complaining that they are under water...lol I don't feel bad for them at all.

[@alexlopez5800]

Just wait until those same people start complaining about the houses they can’t get out of.

[@danav3387]

There’s that but the real kicker is the extra 10, 20, 30K extra ADM they paid..

[@itechfive240]

Hmmm 1+1= $80k

[@NeptuneKnives]

I have to pay 580$ a month on a leased ridgeline.. realized I'm overpaying by 130$ probably But had to replace an old 2012 VW Can't do anything about it

[@andersbodin1551]

Why don’t they just buy a bicycle instead?

[@boroqcat]

I spent 45 mins in my ex wife’s garage last night literally begging her to get a used Camry instead of the Benz GLE with a $750 note and $9k down that she’s only got half of in the bank. Some people will literally sell their souls for a logo on the hood.

[@RichieRich7339]

That's a good reason why she's your ex wife.

[@boroqcat]

@@RichieRich7339😂😂 this guy gets it.

[@myoutuber77]

A stupid person and a smart one will not make a happy couple.

[@SinlowMusic]

They're nice cars... But buying it depreciated/used from a normal person or auctions is the way to go if you want a "nice" car. Not brand new or from a dealer. If you don't have it in cash, you can't afford it. She would have sunk your ship.

[@boroqcat]

@@SinlowMusic not even then Sin… Car affordability has nothing to do with the monthly carrying cost: that’s the barrier to entry. Affording a car consists of one’s ability to keep up with the maintenance cycle as outlined by the manufacturer. So either you have the resources to dealer maintain, the skill to self maintain, or the network to have a reliable mechanic(s) that can maintain the vehicle, to spec, at prices that fall within your budget. But if Total Cost of Ownership (TCO) isn’t included in their mental math, then these mortgage note car buyers can’t truly *afford* the vehicle. Wasn’t until I started reminding her about the “A service” and the “B service” and the premium gas requirement vs a jiffy lube oil change for the Camry, did I see the lights turn on in her head about how much of a money suck she was signing up for.

[@SinlowMusic]

They're not buying G-Wagons. Most people who buy those are buying them used in private sale or via auction. They're buying $70,000 Ford Broncos, Jeeps, Tundras, etc. and attempting to act like it's a good purchase.

[@AlphaMatt1000]

Buying any vehicle for 70k makes you an idiot. Hell, even if you’re a millionaire you’re stupid for paying that much when there’s plenty of used cars for under 15k out there.

[@leftifornian2066]

HEY, don’t you talk shit about Tundras mang 😂

[@SinlowMusic]

@@leftifornian2066 You’re a dumbazz too. You don’t get a pass. You Toyotards are especially insufferable and gullible.

[@BusArch42]

Guys love to act like those are “work” cars and they need them.

[@Cherrypi393]

@@AlphaMatt1000why would a millionaire buy a cheap used car and worry about the maintenance? If you have $10M, a new $50k car is just a drop in the bucket and they would buy it cash.

[@thePrisioner6]

“No shortage of idiots”. Yep sums up the American public.

[@ChristopherSmith-rn4wd]

Everyone wants to be the 1st on the block

[@dannysdailys]

Well, 53% of them took the vax, didn't they?

[@barbaraepsaro2718]

Not to mention new arrivals to the states that take advantage of the system

[@ThunderStruck94660]

And the funny thing is literally no one care what you drive. It is a bigger flex to me when someone tells me they have had a car for years! I had a guy tell me today that he had over 700,000 miles on his Tahoe.

[@azmike3572]

News anchor: "In other news, there's a nationwide shortage of idiots. Many have furthered their education, and improved themselves to the point that they now can't be taken advantage of as easily. On your screen below is the GoFundMe number to call to help."

[@JackF0372]

I love hearing stories about these idiots who overpaid for their cars and are now facing massive negative equities on them. They are the ones who pushed car prices up to the moon because of their willingness to pay for them. Can’t fix stupid!

[@RootBeerGMT]

The whole market went Ukrainian.

[@clintpatty]

I overpaid for my used car. Prices had already gone down about 70% on that model, and I've only seen them go down 10% more since then. At least it's paid off.

[@leroyjenkins12345]

​@@RootBeerGMT what?

[@11Toriko11]

I work at Nissan store, and this is 100% correct. My average customer comes in with 8-10k of negative equity.

[@jonsaircond8520]

Crazy

[@CruisingWithSean-ts6vm]

Damn on a Nissan, which are great cars I’ll go for the new Z

[@fin59shaw]

@@11Toriko11 WOW !!!

[@rachelgreen1368]

I bought my used Infiniti from original owner with cash in 2019. I can sell it for the same price today. Never gamble with car dealers and banks.

[@TeslaRoadtrips]

credit criminals

[@lifeofrichard]

$40k over the value is crazy for a Hyundai. But the bank has some responsibility for not giving the loan. They should had ask the buyer for the $40k before giving the loan.

[@kingtyty5]

As a person that works in the loan department of a big bank. We tell customers all the time about their loan to value that the are trying to finance. But people are idiots, all they care is that they are getting a new car. And don't comprehend the long term affects of being upside-down on loans

[@gregorymalchuk272]

Ban usury. Ban consumer credit.

[@andersbodin1551]

Democracy is the government by the people of the people for the people, but the people are idiots

[@CharlesCurran-m9p]

That’s true. It used to be you had to have 20% down and a good credit score to get a car loan. Then they started lending to anyone with a pulse.

[@PuffCloud720]

As a 23 year old, when I bought a 23’ Camaro last year I had no idea the financing I received was absolute criminal. I did not know about auto loan calculators and negative equity and how titles work when you want to sell a financed car. USE A LOAN CALCULATOR THEY WONT SHOW YOU EVERYTHING AT DEALERSHIPS

[@PuffCloud720]

On the bright side better to learn the lesson now than later

[@usr-qpwyg126]

I am not hating on you but you should have researched before buying. Everybody has a smart phone and so easy to google what a reasonable interest rate or not. The dealer is not a charitable organization and in it to make money 😮

[@PuffCloud720]

@@usr-qpwyg126 yup, at the time I was with my mother and it was my second car purchase but the first time with me doing mostly everything. I relied on her too much to tell me if everything was right or not and I didn’t know that dealerships would really screw people over. Like I always heard they were bad but just not by how much but you’re exactly right

[@tylerdurden722]

You wanted to be cool. And now you are. Enjoy your car

[@MrKillerRC]

Unless you live in a really weird state, all this information was on the financing invoice that you signed.

[@larrybenton777]

He picked the wrong wife if she asked for a G wagon.

[@SinlowMusic]

That's harsh and ignorant. They're nice cars... But buying it depreciated/used from a normal person or auctions is the way to go if you want a toy. Not brand new or from a dealer. If you don't have it in cash, you can't afford it. Most Americans in this situation are buying $70,000 Ford Broncos, Jeeps, other useless overpriced Domestic trucks.

[@Euro316]

@@SinlowMusic Was just about to say this. America has a weird fetish for overpriced Chevy;s and Fords. It's mind-boggling to Europeans and Asians across the pond. I know 6 people minimum who financed mega-trucks for ammounts they can not afford.

[@gregorymalchuk272]

​@@SinlowMusic They're objectively garbage cars. They have the worst reliability of any automaker on earth. Right there next to Audi and BMW.

[@SinlowMusic]

@@gregorymalchuk272 You could have just told us you were an uneducated clown. It would have saved you typing out that paragraph.

[@Euro316]

@@gregorymalchuk272 So glad the guy who makes videos about men's circumcisions and male genitals could come here to make himself look autistic in the comments section when discussing vehicles.

[@ronarnold1507]

I just recently purchased through a private sale, a 2009 Honda Accord. It was a total granny car. Less than 60k miles at 15 years old, and I dropped $4k on it, plus put about a grand into new tires, plugs, tune-up, etc. Damn thing drives like a dream, and no car payment every month!

[@jebril]

I was gonna say the Accord and Civic drive great.

[@amigo2k10]

I work as a mechanic/technician I'll take 2006 Tahoe any day for a family care and drive a 2013 camry 4 cylinder all day

[@Euro316]

I'm a technician too. I bought a few year old depreciated Porsche Cayenne with cash and have my old Lexus beater. Working on your own cars gives you freedom. The next best freedom is not owing the bank a cent for a car.

[@amigo2k10]

@@Euro316 my exact thoughts experiences over materials is my new mind set

[@amigo2k10]

@@Euro316 i bought a mint show room condition 1994 mustang 5.0 gt came with everything to the key chain from the original dealer to the window sticker

[@OLDGUY7301]

2004 silverado Z71 5.3 433000+ origanal eng/ trany. This truck never stops, but I still get 17 MPG all day long. Purchased new. Best truck I've ever owned. Those were good years.

[@BusArch42]

Camry is a good car

[@sammni]

I own a Toyota Yaris 2005 Bought it for £280 and spent £100 to get the door fixed 8 years later it’s still running and I get my speed fix from my motorcycles Cost, Reliability and running costs over anything

[@fadyehabib1]

As you said, dealers and banks robbed themselves out of new sales. People overpaid and dealers and banks already made their money, they don’t need to make new sales. They are sitting on lots of cash

[@sergten]

Buying a new car every 2-3 years sounds excessive, not to mention financially irresponsible.

[@christofonobrown3659]

It’s all ego and vanity which people spend a lot of money on.

[@BusArch42]

Our last one was 13.5 when we gave it to a foster family who needed it. We had it since new. Paid cash and took care if it

[@afridgetoofar1818]

Of you can’t pay for your car in cash, you’ve bought too much car.

[@jasonbrown7258]

My parents used to buy a new car every 5 years but that was 50 years ago they always paid cash. However car's back then didn't last 10 years. I'm wondering if you bought a new car today and kept it could you make it last 25plus years? IF you follow the maintenance to a T. And how much in repair cost would you have within that time. Is it possible to keep a car running long enough to actually pay for itself.

[@BusArch42]

@@jasonbrown7258 we just gifted a 13 year old Mazda cx9 to a family. Car was in perfect running condition. The paint was starting to flake off on the back hatch but that was it. I’m sure they will drive it for another 10 years and their oldest will probably learn to drive on it like ours did.

[@jwelchon2416]

I have hit that stage in my life where I can buy pretty much any car that I want. But what I want is to not spend any money on a car. I drive a 2000 Marquis and am perfectly happy with it.

[@markokrasinski8033]

Same here And how many more of us out there

[@dingmanracing]

I'm on my 2nd Gran Marquis in 13 years. They're fantastic cars. Very low cost of ownership. No maintenance other than the odd water pump or an alternator..nothing like a transmission etc.

[@plants2plasticplasticjars161]

And that is why you have little if not no debt.

[@dingmanracing]

@@plants2plasticplasticjars161 ..I’ve spent some money on all of them at one time or another but I have a 1997 wrangler I paid $10k cash in 2003…going strong. A 1999 Kawasaki 1500 I paid $2k for 11 years ago. A $2k 2000 Honda civic 5 speed.(it’s kind of a back up car if my wifes car goes down)My wife drives a 2004 Mustang get convertible I paid $6k cash for about 6 or 7 years ago and…my 1996 Gran Marquis that I bought 11 years ago from a car dealer I worked for..for $750… it’s hilarious what a good car it’s been?? It IS however a”check the gas…fill the oil “ car but I’m retired..except for minor maintenance I’ve run through a couple sets of tires. I can almost outrun my wife’s GT with it!(not saying much) but having the titles to everything is huge. Granted I have to wrench on all periodically (except the Kawasaki) You can pay a car payment…or pay AutoZone.. at least a lot of the time…I get a breather. I believe in being covered so…I do have full coverage on everything but I have friends with new cars paying STUPID money for insurance..yeeeowww

[@thomaschew2191]

Another of the same. My last new car purchase was a 2020 Tacoma had it paid in 26 months. We currently have enough in savings to buy a new car for my wife, waiting until Dec 2025 will pay cash for a roughly 2 year old car. Then we are going to retire. I'm not financing anything going forward, staying debt free.

[@cbr630]

I would be willing to bet 85% of car buyers have no idea how financing works, and have no concept of negative equity. It was the most shocking revelation when I got into the business.

[@dannysdailys]

Almost every Tesla owner is upside down on their auto loans. I know an Uber driver who has a two year old Mach E and it already needs a 20,000 dollar battery, and he still owes 41,000 on the car.

[@hahamasala]

The main issue is people don't know math. Math is important because money is important!

[@Dantee.15]

⁠@@dannysdailysI totalled a Tesla in may. I was renting the car on an app. My insurance paid out 25k but the owner is trying to sue me for “10k+ interest” citing damages to the car even though insurance already paid out. I think he’s committing perjury or fraud. Through text I have proof he admits that the loan is why they’re suing me but they told the court “damages to the car”. What should I do? He’s trying to sue me for what he owes on his car loan

[@Dantee.15]

@@dannysdailysshouldn’t he have a 2 year warranty on the battery?

[@Dantee.15]

I was renting a Tesla from Some scummy people. They had their little car rental company but they financed teslas and are renting them out. Long story short I totaled a Tesla and my insurance covered everything but the guys are now trying to sue me in civil court claiming “10k+ interest in damages to their car” Btw this sounds like total bs because they told the court it’s for damages yet they told my insurance they’re suing me me for the balance they owe on the loan. They literally went to court and I have a court date but I believe this is perjury because they already got the money from insurance and they could have gap insurance to cover the remaining amount. Do you think they have a legit case? It is to my understanding that you can’t sue someone for what you owe on a loan. Also I noticed they’re suing me not my insurance which I believes they’re just trying to scam me out of thousands. Thoughts?

[@Eatongee]

My older brother told me once "You're always gonna have a car payment. You're never going to be able to pay cash." That is true for most people who continually trade up like my brother. I figured out very quickly that I don't have the desire to do that. I have kept my cars on average 12 years. I can't tell you have nice it is to NOT have a car payment. Meanwhile, my brother is driving a new Lexus paying $800.00 per month, and I am driving a free 21 year old Hyundai with 300K miles on it that I bought at 1 year old, that has only needed oil changes, brakes, tires, and 2 alternators. Sorry bro!

[@erikq9788]

In 2019 I bought a Tacoma rolled 6K in negative equity and my total loan came out to 42K at 3.9%APR. Man it was such a good deal in retrospect. I paid it off in 3 years and I still have it. Plan to keep it till the wheels fall off!

[@DanGilliland-pi4vh]

I absolutely 100% agree, we got ours paid for and keep maintained and drive til the wheels fall off ,no more to car payments.

[@dawonbowser299]

This is still why I drive my civic from 12 years ago still going strong at only 100,000k miles 🤷🏾‍♂️

[@RTmuscle_]

What a video. To the point. Super true analysis. Fantastic job!

[@LuckyLopez777]

Much appreciated!

[@Ravaniscool]

Car payments get old real fast to be honest! I paid my 2 SS 23 Camaro off in 11 months and had financed it for 84, saving all that money on interest. My dealer wanted me trade it for a 24 Z06 but i decided not to as it's a great feeling not owing on a car or credit cards for that matter.

[@hellenOfficer]

Sure you did 😉

[@Ravaniscool]

@@hellenOfficer Absolutely!

[@johnhix484]

You did what you were able to do. Lots of people with negative equity were skinning the bone just to get into the 72 payment overpriced car they feel stuck with. Get a side job, cut expenses and get the damn note paid down. Watch for a refinance deal that will take some of the pressure off the high payment but keep paying extra on the note principle. AND - when you get the car paid for, SWEAR to drive it for the rest of your life!

[@rachelgreen1368]

I'm 48yo. Never financed anything. Always paid cash for 4-6 y old luxury cars and minimum insurance coverage. I even don't know what a car payment is.

[@myoutuber77]

I think you should have a car loan in a lifetime. For the experience. If you ever get a loan similar to mine (2% APR with $20k down payment) you will actually make money on the loan. This is because you get to keep the cash invested at a higher return rate than the loan APR until you need to part with it (a small chunk at a time) at time of loan payments.

[@rachelgreen1368]

@@myoutuber77I can't use a car loan. I like only BMW 750. It costs over $100k new. But I buy used 1 owner for about $30k cash.

[@myoutuber77]

@@valleyofiron125 Americans in general are overly obsessed with resale values. This is only relevant if you are replacing vehicles every couple of years, which btw is what the industry wants you to do, and unfortunately so many Americans fall for that. I have a different mentality. I buy a new car and keep it for 20 years. Who cares if it loses value, and at what rate. After 20 years of service all cars are worth the same, which is next to nothing. See my point? Get a new car, keep it for a long time and get good value out of it over time.

[@Epro95]

What mental state do you need to be in to pay 40k over for a Hyundai???

[@LuckyLopez777]

i know right lol

[@iceman9678]

COVID ballers!

[@leos3003]

Simple, you have a company that makes $10k/yr. You go to the bank and tell them you have 10 employees and you need to pay their salaries for the next year. You get $500K loan and claim you've spent it on payroll and the money is yours. Now $40K extra for a car seem cheap since you're one of the newly minted millionaires the gov just minted. Now cars, houses, watches even condoms can go up in price, we've got extra $3T to spend.

[@samueladams584]

My Honda is over 10 yrs old. No car payments and saves on insurance. I have no desire to buy an overpriced car and if something needs replaced, I know what work was done to the car. Less stress.

[@nycarpenter]

The United States of STUPIDITY!

[@alexlopez5800]

2008 2.0 literally… this time around it’s credit cards, student loans, cars, houses, etc etc.

[@soap1056593]

Bro said a G Wagon like every normal person is looking to get a g wagon 😂

[@Euro316]

Lol. Most Americans are in debt over Ford and Chevy's. Sad really. LOL

[@riseabove3082]

Only rich-wanna-be girls like G Wagons. Not only are they ugly but very unreliable too.

[@LordMcKrakenVonLittleBits]

I have seen more people that used to have a newer car that now have a 10 plus years old Chevy Tahoes and smaller Japanese cars. They were so buried in the red that was the only way they could get out of it. Surprising enough though is most of them seem happier. The debt isn't hovering over them. That new car smell doesn't smell as good as debt free scent.

[@twystedhumour]

Paying off your cars is such a great feeling!

[@LordMcKrakenVonLittleBits]

@@twystedhumour Yes it is. Had mine paid off 8 years ago and probably gonna keep it forever at the rate these stealerships want to charge nowadays.

[@johnhix484]

@@LordMcKrakenVonLittleBits Amen! Paid off my 2020 Ford F150 4X4 this month and 18 month left in double payments on my 2022 Dodge Challenger. When paid for at my age, these will be the last cars I buy.

[@rdharris77012]

great car purchasing advice. Unfortunately most people aren't listening because they want the vehicle so badly or their spouse is pushing them into it.

[@jonsaircond8520]

Love my 2007 RX330 that does everything I need. I could careless what anybody thinks about me driving it. I've saved tens of thousands driving inexpensive paid for cars for the last 15 years that makes me way happier than a newer car

[@lonnieswag100]

Smart

[@Derek8487]

Those are nice suvs

[@carlfromtheoc1788]

Ooooh look at Mr. Fancy. I drive a 2004 Ford Taurus SES. But I only drive about 3,000 miles a year. Isn't it great not having a car payment?

[@EddieGilliland-m3v]

@@jonsaircond8520 I’ve been driving the same bought used Camry for the last 15 years.

[@rst90274]

Haven't we all been told that an auto is a depreciating asset? Haven't we all been told that your new car loses 20% of its value the moment you drive it off the car lot?

[@jochenkraus7016]

Yes, but you work hard so you deserve it. If you want a family a short time later, you buy an SUV because everybody does. And if the car is fun to drive, 1. yolo and 2. frame it as an "experience" because that's what everybody tells you to spend money for. And always call it "investing" instead of "spending" or "setting a pile of money on fire". And talking about depreciation, a house also needs maintenance and costs money e.g. insurance, taxes, heating etc.

[@southpoleelvs]

I’m one of those people who didn’t buy the hype and didn’t buy a car. I’m sitting on cash, but I’m still not buying. No one wants to negotiate

[@rkalla]

You deserve props for that - decisions like this make all the difference later in life.

[@everardoochoa207]

Same. My daily driver car broke downn. I went to multiple dealers and no one wanted to give me a fair deal. The best offer I got was a 28,800 for a 2024 Toyota cross L out the door. I ended up buying a used car from a private buyer on offer up.

[@rwdplz1]

No one wants to sell cars anymore.

[@southerncali88]

I had a dealer come down 8k on a used Honda accord they had her priced by about 8k 😂. Just by telling them my credit and cash down amount they were willing to work with me. Unfortunately they didn’t want to meet me closer to the kbb true car amount.

[@SupraSav]

Thank you!!! Never change! Hope more people are like you! I am saving up for a fat down payment also!

[@johnhatmaker6585]

Work for Land Rover in sales. It’s insane how much negative equity we are seeing in all types of vehicle.

[@LuckyLopez777]

I bet lol.

[@garrettmgunderson]

lol I couldn’t sleep at night if I worked for Land Rover or many of these other companies where people lose 2 years net salary in a year they’re such stupid consumers

[@rachelgreen1368]

Land rover is at the very bottom. Ugly and overpriced. My friend visits dealer monthly with his Range Rovers sport. Minimum bill is $700-$900.

[@Dantee.15]

I was renting a Tesla from Some scummy people. They had their little car rental company but they financed teslas and are renting them out. Long story short I totaled a Tesla and my insurance covered everything but the guys are now trying to sue me in civil court claiming “10k+ interest in damages to their car” Btw this sounds like total bs because they told the court it’s for damages yet they told my insurance they’re suing me me for the balance they owe on the loan. They literally went to court and I have a court date but I believe this is perjury because they already got the money from insurance and they could have gap insurance to cover the remaining amount. Do you think they have a legit case? It is to my understanding that you can’t sue someone for what you owe on a loan. Also I noticed they’re suing me not my insurance which I believes they’re just trying to scam me out of thousands. Thoughts?

[@gimmegaming5345]

@@Dantee.15 100% trying to scam you out of money. This is not your responsibility. Your insurance covered the cost of the car. The fact they are underwater on their loan is nothing to do with it.

[@paytonpeta1336]

Remember not to tailgate a g-wagon. They will break-check you for the insurance money.

[@PassportBrosBusinessClass]

brake-check

[@LuckyLopez777]

1000%

[@snap4720]

​@@PassportBrosBusinessClassGive him/her a break lol

[@siferd18]

That’s why you get in front of them and do that to them in your average car lol.

[@Euro316]

G-Wagons hold value pretty well. Better than 90% of cars on the road since they're literally built like tanks. It's an easy out for someone with one. Not saying it is right... but that's certainly why. I'm a Euro tech and have seen people crash them on purpose during positive equity/break-even/etc. periods.

[@nathanhatfield1044]

One of the most reasonable car market videos I’ve seen in a long time. Thank you

[@randommemebean686]

Dude why dont people drive the car till it can't. Like i just got done paying off my loan. Why would i want another car payment? That shit is insane.

[@danielfair4675]

I've bought 4 new cars in the last 26 years. I still "own" and drive 3 of them. I'd never have to buy another car the rest of my life if I don't want to.

[@jobcordova3631]

thanks for the videos, keep the vids going. I'm a salvage dealer in Oregon and its a different story when cars loose most of the value because of a accident

[@michaelwilliamson3551]

Here is the solution. Bank repossess a vehicle, your credit goes down the shitter. Sad but true, Harvard Fair.

[@ycoyle2803]

Negative equity has been around much longer than a decade lol. We ran “ upside down payments” ads in the mid late 90’s. I wanted to get Cheshire Cat stickers that said “grin and bear it” to put on some of the worksheets in the ACV box.

[@AS-np8kw]

80k for a Hyundai is absolutely wild 💀

[@genoaoak]

They will be lucky if that Hyundai outlasts the payments.

[@JohnLivingstone-qf2sr]

Lots of Toyota stories so here’s mine. I bought a 2014 Toyota highlander in 2016, $38k Canadian, paid it off about 4 years ago. It has 120k miles on it. We love it and take great care of it and treat it like we can never find another. I’m trading my 2011 mazda3 that I’ve owned since it was new, 170k miles, for a 2005 Toyota 4Runner with 280k miles. I’ve had no payments for nearly half a decade and I don’t miss them at all.

[@ArchfiendRai]

I really don't get this obsession with changing cars every three years. It's a perfectly good fucking car. Unless something is WRONG with it and making you hate driving it, why would you make the conscious decision to owe money for longer?

[@charless.gorski537]

They need to keep up with the Joneses even if it's a terrible financial mistake, that doesn't matter.

[@000distructzero]

Agree completely.. My last car I had for 20+yrs (camry). Only real reason I sold it was I bought a small boat and needed to be able to tow it. Bought a new 21 tacoma and have it paid for already. I'd plan to drive this thing till I'm so old someone takes my keys away from me, Unfortunately I live in the north so rust will eat away the thing to a point someday I'll have to get rid of it 😢

[@crazeguy26]

@@000distructzero wash it off (no soap) when you can, if the truck was just on salted roads leave it outside.

[@fartpluswetone8077]

​@@000distructzerowould it be possible to get the frame rust coated? I can't testify how effective it is because I live in the South but I'm sure it did something for our SUV.

[@000distructzero]

@@fartpluswetone8077 I had it under coated, not sure how effective it will turn out but we'll see.

[@Jim1971a]

I enjoyed this video so much. I can’t believe how poorly people are handling their money……buying these expensive cars they can’t afford. I guess they care more about driving a fancy car than retiring one day.

[@alchesterdescallar6053]

American Dream is actually is actually keeping up with the Joneses!!! 😂😂😂

[@thegreatbambino3358]

Bought my first car in 2012 for 1500 sold for 900. Bought the next for 2500 and totaled it when the head gasket blew. Bought the next for 4000 sold for 3000. Bought the next for 6000 and sold for 3800. Now sitting in a 9000 SUV that I love. Bought everything on craigslist, get to switch cars every 3 years and have no debt. People place too much value on a new car that is new because it won't have mechanical issues.

[@gerardoduran9066]

It's not shocking that most people are still buying way over priced vehicles new or used at dealerships. When we got ours I was able to bring the price down by $13k just by negotiating with them. Look at the contract and the fine print. And be patient just like what L.L. said.

[@Sirkofski]

I was doing the financing on a couple F150’s. This year I got a ‘15 4Runner for $23,000 with 80,000 miles. Paid cash and sold my financed Ford for 12k more than I owed. So happy to not have a car payment and less stress on our family. Will never finance a vehicle again if I can help it.

[@BLACKAAROW]

I saw this coming as well, also a lot of idiots severely overpaid for the new ford bronco and especially the raptor version 😂

[@kylemacmillan652]

It’s crazy. When I was looking at F150s in ‘21 they were all 5-10k over what I saw them selling for a year before in the used market. I had a new job making a ton of money so I saved for a year and just watched the market and waited until I found the truck I wanted for the price I could handle and put half down.

[@ImperialCityNord]

A ton of money - people who actually make a ton of money don't say that

[@valente7436]

I bought a 23 fully loaded lariat for 52k a year ago

[@4X4ish]

There isn’t a dilemma, people need to stop buying new cars. Fixed.

[@drummerdude476]

Ive got a 2001 camaro that i drive 2 hours everyday for work. Hasnt let me down for the past 75k miles, sitting at 230k. If it dies, ill just get another one for

[@dougsheldon5560]

Seven year loans don't seem so bad until year four and you're still underwater.

[@zacklewis342]

Anything more than 3-4 years is a mortgage.

[@MrHeavy466]

Very happy that I heard about Dave Ramsey right as I got close to paying off my car. I’m also happy that more people like you are de-mystifying car lending.

[@SuperJgodfrey]

You know what car values are and to give over MSRP and especially the large markup just seemed crazy to me that time even today they are overpriced

[@Darkpara1]

I'm over here haggling over a used camry in the 20k range. But there's so many idiots with challengers, chargers, giant trucks that they're paying 800 a month for 7 years for.

[@thegamingsquad9546]

I’m happy with my paid for 2010 Honda! 👍

[@LucaVespa99]

Went from a $5000 car to a G waggon. At this point, I don’t think they care about negative equity. lol

[@dansnowman29]

Because of Lucky, I'm still driving a 2013 Outback. Free and clear. Learn to do all the work on it myself. I might be out of work soon but it's a lot less stress than having a car payment.

[@MrTigerStarX]

Adding to that, if you have a lot of miles on that car, the bank won't let you refinance it either.

[@ZiskaR-m6o]

Why I have never had a loan for more than 60 months and I always pay a little extra each month towards the principal

[@johnjones393]

I work with a couple guys who bought used late model European luxury SUVs during the height of the craze. Now they want to trade but each guy is about $25k underwater. Meanwhile in "slumming it" in a paid for 2011 Lexus with a ton a miles and no regrets.

[@C_Mor_Rocks]

I can’t tell you how many people come to me thinking they can still apply the value of their vehicle to a new purchase even though they have 9-11k neg equity 😂. Somehow most of them are dumbfounded that they still have to pay for the old car’s loan, regardless of what else they want.

[@legendofthefox86]

Experienced a similar situation when I bought my Hyundai Tiburon when I was 20. 84 months finance plan on this balloon style loan (don’t think they do them anymore) where the first years were less. I tried to trade it in 3 years later for a genesis and was blown away at the idea I would need to pay extra just to get out of the existing loan. Ended up riding out the full 84 months and got a wake up call on financing vehicles. They prey on your lack of financial literacy.

[@iceman9678]

Remember adults, they don't teach kids in college about having to pay back loans. Further, college doesn't teach the young about the overall cost of financing. Eh, it not like the political leadership are setting a good example.

[@LuckyLopez777]

Well said

[@BusArch42]

Mine learned this in HS. Some listen. Some don’t. They played Dave Ramsey videos in their personal finance class

[@ivarb629]

That happens every time you buy a new car. You pay full price, car loses 30% off the lot

[@macbrazzle754]

Stupid people and greedy corporations is why

[@davidestrada605]

My 06 Camry and 99 expedition have been solid cars , people think I’m broke till they see the house I have.

[@BusArch42]

Our house looks moderate too. It’s only when you look at our net worth that the image is shattered. 😂

[@PassportBrosBusinessClass]

I’ve literally heard people say “I don’t wanna drive a car for more than three years”. This leasing culture has ultimately thrown everything out of whack. The car industry makes cars that people absolutely can’t afford with the exception of being able to lease them. A perfect example is the BMW XM which is about $160,000 but can be released for about $1500 per month. People buy this stuff that depreciates fast and then when they get finished with it, it goes back on these lots and simply rots because either no one else can afford it or no one can afford the insurance and maintenance cost associated with having one. Then these other people get the mentality that they need a new car every time their old car gets past what they consider to be “new”. Attempting to keep up with the Joneses is a losing proposition.

[@dannysdailys]

Anything you have to lease, you can't afford.

[@evoman44]

The main reason why most people lease BMWs and most European cars is because they are too costly to keep after the warranty expires. But instead of buying a Lexus they rather lease a BMW unit they get tired of it. I have read many comments of former BMW owners that owned several of them that finally got tired of it.

[@dannysdailys]

@@evoman44 BMW's, Audi's, Land Rovers, and even Bentley's are all cars you can't have past their warranties.

[@PassportBrosBusinessClass]

@@evoman44 nobody wants a fuckin Lexus 🤣

[@evoman44]

@@PassportBrosBusinessClass What part did you not understand that I have read many comments of Former BMW owners that reluctantly gave on BMWs after getting tired of those money pits.

[@Doty6String]

06 caddy STS driver here. Bought off an old man and just keep up on all maintinemce. Quiet AF, comfortable, fits a good amount of crap in it, plenty of power. I want a pickup but, forget it at these prices.

[@bkraft]

I just paid cash for my vehicle. 2024 Tacoma. I generally buy a new car every 20 years. I’ll start saving up for my next vehicle - I’ll pay cash again - 20 yrs from now. 😂

[@riseabove3082]

Even though I can afford to buy new, I still won't. I'll buy something used and put the cash in a solid investment instead.

[@bkraft]

@@riseabove3082 I hear ya. I’ve lost more money on used vehicles than new though.

[@BusArch42]

The Toyota will last too. I expect my Avalon will be in our family for 20 years.

[@wasp7361]

The only way to win in this game is to not play. Keep you car's maintain them properly. With some exceptions, your car can go for decades. We've had our Suburban for 24 years and still going strong. Our our 2003 Subaru is our daily driver.

[@news26boom]

I remember when Toyota dealerships were selling the Corolla Cross at $8k over MSRP. Put me off permanently.

[@BusArch42]

Ugly car too

[@emmaemma1048]

I wanted to buy a 2019 Sahara Jeep Wrangler at the Manhattan Jeep Chrysler. Dealer price was 31,902 then after taxes and fees it was $39,684.31. It was my first time, they knew I had no experience and they tried to take advantage of me. I expected to pay taxes and fee but they added dpi for almost $4k another non tax fee for $400. When I questioned it, Neil said I have to pay to fix it before they can sell it to me. There was no answer when I asked why not add it to the price. And I also wanted to pay cash, but they charge extra for paying cash because they’re losing out on the commission they would make when buyers take a loan. Toseph his manager worse. I walked away and didn’t buy it.

[@Shawnjohson1608]

This is why everybody’s car insurance is going up. It seems like we are at a point in history where there is to much negative equity/ upside down loans in the car industry.

[@valleyglenify]

I walked out of a sale and kept my 9 year old paid off car because the dealer was going to steal my old car in the trade ! Now, I'm still happy with that decision because insurance is also over priced now !

[@jonnytrux3697]

I got an Enterprise car retired rental buy w/ 40 k miles 2021 , 7 % rate , paid 1/2 of the new sticker price . I think I did well for my self . Got it in may 2024 , super happy !

[@markwegner6100]

Last year I bought a 5 yr old Honda Odyssey Elite van for half of what they go for new. Same v-6, same 10 speed auto as the new ones.

[@williamanderson583]

Great video Lucky. Years ago I got upside down, I decided I just had to pay my way out of it. So I kept the car, made payment for years and have never put myself in that position again. I pay cash for my cars now or finance for a reason - if the math makes since for a short term. For example, I bought my new ram, they offered another $1000 off if I financed for 6 months. So I did, paid it down to just $2000, and paid it off in 6 months. I paid $200 interest for $1000 off, a net of $800.

[@spazzypengin]

I’m so glad I’ve never had any debt related to my nugget.

[@johnanderson9735]

True I made out during the pandemic because I got $20k for a 2015 Sienna that cost me $25k new. I realize these days I either have to keep my cars longer so I don’t get upside down. It’s now one of my rules not to pay over MSRP.

[@LuckyLopez777]

Nice

[@MrGrapeYT]

Me listing to this with little under 4000$ left on my Mercedes that I bought. 2014 c250. Happy that i am NOT under water on it and was worth getting to rip through the California hills with out being negative on equity. Built my credit to 720 from nothing doing it. Will get rid of car when it shits out

[@roncedad7032]

Trying to buy a 2012 toyota sequoia from a "no haggle" dealer. They are 3k over car gurus and kbb. I'm a bit shocked how stubborn they have been. I'm going to stay patient it's been on their lot for 45days.

[@iceman9678]

Stick with it brother. More and more deals are coming online.

[@gjvah]

Got a car a year ago, all the dealers that laughed me out for not wanting to pay a markup are texting and calling me to this day. Stay the course, buy it at 3k under in a few weeks.

[@NeXuS858]

3 years ago paid off my 18 Audi S3 that I bought new. So happy I don't have a car payment right now.

[@JA-zh5xi]

Here’s an idea - if you can’t pay for a car in cash you can’t afford the car.

[@MACH1TIPS]

Thats a little extreme. The value of the vehicle should not be more than half of your take home pay for the year.

[@Mr.T711]

I sold new Toyotas for six years and there were always certain trade cars when they rolled in we made a game out of guessing how upside down they were.

[@miket2607]

Had a small rental fleet of 8 cars. Everything was great, then insurance came and kicked my ass a year in to be insured correctly. Turo isn’t lucrative enough and I’m paying those cars off. Negative equity is kicking my ass 🤦🏽‍♂️. Lesson learned. Hard lesson at that.

[@Dantee.15]

I was renting a Tesla from Some scummy people. They had their little car rental company but they financed teslas and are renting them out. Long story short I totaled a Tesla and my insurance covered everything but the guys are now trying to sue me in civil court claiming “10k+ interest in damages to their car” Btw this sounds like total bs because they told the court it’s for damages yet they told my insurance they’re suing me me for the balance they owe on the loan. They literally went to court and I have a court date but I believe this is perjury because they already got the money from insurance and they could have gap insurance to cover the remaining amount. Do you think they have a legit case? It is to my understanding that you can’t sue someone for what you owe on a loan. Also I noticed they’re suing me not my insurance which I believes they’re just trying to scam me out of thousands. Thoughts?

[@jasonlovell3934]

The banks should have been the adults in this situation but unfortunately it never works that way.

[@underachievingwatchcollect1878]

Lucky, I’m starting to believe you when you say many car dealers are stupid! Killing future sales by burying current customers in negative equity is bad business!😎

[@LuckyLopez777]

10000% lol

[@CaptainCaveman1170]

But they've been doing it for a while now and new morons come out of the woodwork still. Why are the banks entertaining the roll overs at all? Pulling forward future demand has always created an air pocket in "the future"...but the future never seems to arrive for the lenders and scumbag dealers alike.

[@Baasicstuff]

G wagon is a really good tax write off also for a business

[@isotope115]

Lucky- You left out “Option #4”. Insurance fraud. People think that this is the escape route. The catch is that Insurance companies Won’t pay off their negative equity and even gap insurance has very strict limits. But that doesn’t stop them from trying.

[@LuckyLopez777]

That’s why are insurance is skyrocketing

[@isotope115]

@@LuckyLopez777 17 years in the business…. Yes… it’s definitely a factor.

[@osvalditochirino3428]

That’s why ins up they know this

[@Dantee.15]

Please read I need your advice. I was renting a Tesla from Some scummy people. They had their little car rental company but they financed teslas and are renting them out. Long story short I totaled a Tesla and my insurance covered everything but the guys are now trying to sue me in civil court claiming “10k+ interest in damages to their car” Btw this sounds like total bs because they told the court it’s for damages yet they told my insurance they’re suing me me for the balance they owe on the loan. They literally went to court and I have a court date but I believe this is perjury because they already got the money from insurance and they could have gap insurance to cover the remaining amount. Do you think they have a legit case? It is to my understanding that you can’t sue someone for what you owe on a loan. Also I noticed they’re suing me not my insurance which I believes they’re just trying to scam me out of thousands. Thoughts?

[@Toyeboy89]

Car accident forced me to get a used 13 Prius C in mid 2020 COVID times. I thought I overpaid but it was $9000 OTD cash which has turned out to be very decent and I have put 45k miles on it with only oil and tires costs. Plus 45mpg in my ownership is cherry on top. I love no car payments and I will keep this until it likely rusts out before it dies mechanically.

[@dannysdailys]

Hoovie waited two years for a Cyber Truck and was looking at losing 40 thousand dollars depreciation the first year when he finally got it. He traded it in within a week. It didn't even have time to even get dirty. Car Max wouldn't take it for any price for the same reason. Instead he traded it in to a Chevy dealer for a one year old 70,000 dollar top of the line Cadillac with 8,000 miles on it. He bought the car for less than he was going to lose on the Cyber Truck. Despite two mark downs already, the Chevy dealer still hasn't moved it. I wouldn't want to be peddling used EV's these days, that's for sure. All those people who bought EV's and get new cars every three years? They are all in for a very rude awakening. These things are losing almost half their value the very first year. The more expensive they are, the more they lose, and that's a fact. That's real negative equity folks.

[@lestersitotrying6841]

My wife was down 20k on her VW Atlas for the same reasons that you mentioned. We just parked the car on the bank and gave them the keys and bought something cash

[@BusArch42]

But it will hit her credit score hard

[@lestersitotrying6841]

@@BusArch42 I know, but for 20 k downsides, a $1072 monthly payment for the next 6 years and a possible car value at maybe 10k after the fact. Don’t you think is worth to walk away even though her credit get screwed. We are not proud of what we did but this is the reality for many Americans now

[@BusArch42]

@@lestersitotrying6841 I would have recommended the same. My credit score is not that high. We paid off the house in 2011 and haven’t borrowed money since. The only thing feeding it is credit card use (which is paid off every month so no interest) and it pops up and down. You don’t need a score if you don’t need to borrow money. Props to you for walking away from that toxic lifestyle.

[@johnmcdowell3433]

Another great video it shows you do your homework. You should write a book on how not to be an idiot. When buying a car you’ll probably make millions keep up your good work.

[@LuckyLopez777]

How to buy cars for Dummies. or. How to Say NO lol

[@hahahahhahahhaha786]

One thing I can’t wrap my head around is the fact that you can’t get a 30 year loan worth more than a home’s appraised value, but you can get a loan on a vehicle that loses half its value after driving off the lot.

[@jeremiahhall2281]

The problem is greed with people. Folks aren't content, and are impulse buyers. Folks are treating vehicles like cell phones, and those are the perfect suckers for car salesmen!!!

[@twystedhumour]

Thank you. Ppl just keep thinking it's just the businesses that are greedy. We need to look in the mirror more, ppl!

[@mattodude237]

I just can't believe the extent/willingness people have to seek validation from random strangers you pass by. I make a sizeable income for my area and bought a 10-year old used car with 70k miles for 13k cash 2 years ago. No car payments. Now, I can go spend it on things that don't break down and depreciate.

[@Cucumberflavoredmustard]

A decent sales rep sells someone a car. A great sales rep sells someone 5 cars over 15 years. If you burden that first time buyer with a garbage loan and nuke their credit, they will not be back. No long game at all.

[@amahana6188]

Imagine dropping 120k on a F150, having a 1200 payment…and in five years it’s rolling junk. Only to find out you still owe 60k on a truck worth 15k. I personally know guys in that situation.