Should you pay cash for a car?

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[warrentrout]

The current economy is exactly why having no debt is good

[moonbeamskies]

My view is pay cash and keep the car for a long time. Get all the value you can out of it, and pass it down to your kids or other family members so they can get value out if it. I'm not into constantly having a car payment, and all the aggravation that goes along with it. I like simplicity.

[salty]

There is no better feeling than walking into a dealer telling them what you will pay in cash and walking out knowing you own it and exactly what you paid. Also most people including myself take better care of their car.

[goldenretriever]

Never had a car payment in my life. Driving an 18 year old car with 400k km. Don't need to impress anybody

[isaachunt]

i pay cash for my cars...i like to own my things rather than pretend i own them

[paulbroderick]

IF you buy new, make sure you are going to keep the vehicle of a long, long time. Bought a new Honda Civic in 1993 and still own it, 27 years!! A most reliable vehicle.

[ianbrown]

I love what you and your son do but a cash buy is the way to go for so many good reasons.

[uf]

Buy used, pay cash! The borrower is slave to the lender. A brand new car or truck purchase is a terrible choice unless of course you are very wealthy. Just my 2 cents.

[taahdaah]

It's concerning that someone would be so apposed to a customer paying cash.

[magellanmax]

Pay cash for a car that's under $10K (4-6 years old) that has pretty much lost most of it's value but is still considered a reliable model and has much life left to it. The idea is to keep away from monthly car payments & and high insurance coverage. Keep the rest of your cash in the bank or invest it.

[nealammerman]

Good points! And they make sense from a numbers perspective. Yet I’d rather have less left in savings than have a long term car payment obligations. The interest I pay is secondary to the idea of a large debt burden. In my case, I keep a vehicle for so long there’s no trade in value left anyway.

[tbvv]

I just paid cash for my new SUV. Make no sense to take a loan when you have the cash to pay for it.

[brianandrews]

Paying cash for a car makes perfect sense when you faced with the possibility of losing your job and either continuing to make a car payment or buy food!

[tjfrasco]

This is terrible advice. Leasing is a devil in disguise. And buying new means losing thousands in depreciation. You will pay considerably more in these scenarios. Save up and pay cash.

[BrettShuffler]

I have less then a year left on my Honda Civic. Can’t wait to pay off this damn thing. I never want a car note again

[walkerb]

I strongly disagree. It’s this cycle of accepting debt that has got America in the trouble we”re in today. Save up, pay cash, drive until the wheels come off, repeat!

That said, I do appreciate your videos. Very informative and helpful. Keep up the good work!

[Cmon_Nah]

Ray, you’re like the dad with sage advice some of us wish we had. I’m just starting my car shopping journey and am taking your videos to heart. Thanks so much for sharing your knowledge - it’s invaluable.

[davidp]

I started leasing cars in 2013 when I wanted a car I absolutely couldn't afford and had no business getting into the deal. I was stupid. Due to unfortunate circumstances I had to return that car early and I didn't have money to buy another car, so I leased something much less expensive. The cycle continued until 2020 when I was able to acquire a family member's old car for nothing. For me, leasing wasn't a good deal; I was always paying for something that was never going to belong to me. I'm finally back on solid financial footing, and just to be clear...the whole thing is my responsibility, I'm not blaming anyone for my issues.

Some very expensive lessons learned.

[nealammerman]

The biggest argument to me for paying cash if possible is that it avoids debt. One example is I paid cash for a new car instead of obligating myself to payments for 3 or more years. A few months later I lost my job and went broke for a while . Many times I was thankful I didn’t have a car payment I had to scrape up during the next couple of lean years, but I had a good reliable car all paid for. Even now, the idea of an extended car payment just scares me. I paid just $5000 cash 3 yrs ago for a Ford Ranger that now has 245, 000 miles and has had no
major problems and the best vehicle I’ve ever had. I’ll run it until all 4 wheels fall off. It’s just good to avoid big debt when possible simply because debt is bondage. I’d rather be low on cash and debt free, or low debt, than face large payments for years .

[MrSloika]

This guy tells the truth. Leasing v buying depends on how long a person intends to keep a car. Most people wouldn't be seen dead in a 5 year old car. Leasing makes sense for them. For me? I don't care. 10 years old? 15 years old? It's all good. I also do my own repairs. For me it's buy for cash.