How Cars Keep You POOR!

Cars have become an integral part of American society. While it can feel like buying a new car is granting you new freedom, buying a new car is more likely to take away your freedom and security.

Welcome to the first episode of Two Cents • PBS! If you like this video, make sure to subscribe to our new channel! We'll be publishing new videos to this page every week.

Two Cents on Twitter: @twocentspbs
--
Two Cents was created by Katie Graham, Andrew Matthews, Philip Olson CFP® and Julia Lorenz-Olson and is brought to you by PBS Digital Studios. We love dropping some knowledge on all things personal finance and helping you make better money decisions.

Two Cents is hosted by Philip Olson, CFP® and Julia Lorenz-Olson
Directors: Katie Graham & Andrew Matthews
Written by: Andrew Matthews & Julia Lorenz-Olson
Produced by: Katie Graham & Amanda Fox
Images by: Shutterstock
Music by: APM

SOURCES:

[laxfan]

Why do I learn more about finances from youtube than when I was in school?

[aldojansel]

I saved a lot of money on my car insurance by switching to bicycle

[backroom]

In 2024 no car that is 5 years old is being sold for 63 percent less than it was new . Maybe 20-25 percent . Car prices are ridiculous and have always outpaced what a dollar is actually worth .

[ninetyseven]

5 tears old car is a saver. But also consider the maintenance cost

[CrazyKidz]

Smartest thing I've ever heard. "If you cant save 300 a month, you can't afford a 300 dollar car payment." I've really never thought like that. Great video!!

[DagoRuiz]

Can I think of anything that depreciates as fast...? A smart phone.

[georgepot]

this did not age well, a car priced new 12.000 € in 2019 is now 15.000€ with 40.000km

[binks]

63% depreciation after 5 years ? Ahh the good old days. Try buying a 5 year old car in 2023 and see how much it depreciated.

[konakoffee]

"How cars keep you poor"

YouTube ad: The all new 2020 Camry!

[odesssdd]

They should start manufacturing five year old cars.

[tonybanks]

4 years ago this was excellent advice, but with the price of used cars being nearly the same as new it just doesnt pay off to sacrifice the warranty. Also, part of that depreciation is the miles put on the car. Its difficult to factor that in if you only go by the 5 year rule.

[rzakhan]

Since when Ryan Gosling started doing youtube

[TheBskids]

Being smart with your money is way cooler than having a hot new ride.

[bussin]

Been using my bike, getting lots of excersize, staying healthy, and no traffic can halt my route. Savings thousand's every month.

[BrianMalibu]

I live in Los Angeles. I went on a date with a guy 5 years ago who works at a big car company (I forgot the company's name). He's a lobbyist and basically bribes the government into making all American infrastructure highways and streets so you're basically forced to buy a car. I'm 33 and I hate driving. It puts me on edge, makes me tired, and irritable. Even at 16 l dreaded getting my license. I'm working on getting a remote job so l never have to drive anywhere ever again.
Great video! Very informative.

[Miatalustrium]

Tip as someone who sells cars;
(I know this video is old)
When you get your car CASH, Do NOT tell the dealership. Haggle them for the best price and they'll make up on the back end with interest. THEN pay off the car when the first bill comes in. You paid $1-6 in interest and saved some extra cash on the front end of the car, too

[stephenmaxwellfuks]

As a car enthusiast, a car is a tool for regular people. One of the biggest things they missed is reliability, you’ll save thousands by getting a car that lasts and you’ll save by not having to buy another car, generally stick to reliable brands (Japanese, American, Korean) but also look at the individual brands and models, as some reliable manufacturers can still make a bad car. Use consumer reports to check on reliability, they tend to agree with what I’ve seen firsthand in the real world. Another great thing to check is what common issues the cars that you’re interested in have, how often/likely is it? How much will it cost to fix? Are replacement parts available? Etc. Another very important thing to look at is the condition of the car, even as a wannabe expert I always make sure to have a 3rd party mechanic do an inspection on a car I’m about to buy, even if it is a dealer you should do this, it doesn’t matter how reliable a car if the previous owner ran it into the ground. Lastly if you need an easy choice, just buy a toyota

[mexicanboy]

Now a days a 3-4 year old car wont cost significantly less than a new car for it to make sense purchasing. Also have to take into consideration any scratches and dents, milage, and if theres something wrong with it. This is why I now settle for new vehicles.

[Nick_S]

My wife and I have a different strategy. We buy new with 40-50% down and keep the car about ten years. We rotate out one car every 5 years with a 3 year loan. I always have a 2 year gap with zero payments and I'm in one now. I keep up on all maintenance mostly myself and wax about 6 times a year to keep them looking good over the course of 10 years which helps maintain the value.

[PhotonTheta]

You didn't even touch on the cost of insurance., .