Why You Should Finance Your Car (And Not Pay Cash)

CHECK OUT CARS & BIDS!

Yes, it's true: you should probably finance your next car, and not pay cash. Today I'm explaining why it often makes more sense to finance your car, and not pay cash -- and I'll explain the scenarios where I think financing a car is better than paying in full.

WEBSITE & MERCH!

FOLLOW ME!

DOUGSCORE CHART:

[TheIndulgers]

The best financial advice: don't buy a new landrover defender.

[urban]

All youtube finance channels: This is NOT financial advice
Doug: THIS is financial advice

[Theultrazombiekiller]

Well not being in debt is a good thing and that cannot be argued. One thing I have done is the one time I paid cash for a car, I went in and the salesman kept asking about financing and I kept saying I'll discuss it with the finance manager. I then kept pretending like I was going to finance it like most people do and talked them down over $1, 000 in the finance managers room, and then asked if that was the final price, then shook hands, then got out my check book and wrote a check for the entire amount haha. They were not happy at all. They actually told me to not come back haha.

[ayylmao]

Take in mind guy’s this was before everything went to shit, INTEREST IS THE HIGHEST IT’S EVER BEEN RIGHT NOW, most people right now are paying 14% interest for a car, that’s another 10, 000$ in interest alone on top of the 30, 000k on a 4 year loan and the average is 6 years for a loan, 14k more in interest

[BigAltimaEnergy]

When Doug forgot his password for his “More Doug” channel

[MindofaGeniusRecords]

Best financial advice: never buy a Land Rover.

[brianlech]

Having the money in your bank to cover any unexpected expenses is a more relevant reason for most people. If you have the money to cover the cost of the whole loan, you have the money to cover it monthly. Once it's in the car it's tied up, and to get it back you'd have to sell it.

Nothing beats money in the bank. (Or invested)

[TMedia.]

Me watching this in 2023 with 7% rates 😢

[TungTran-pptx]

One financial advice that everyone can agree on: don’t live beyond your means.

[nicklopez]

Can’t wait for the Doug v. Dave Ramsey boxing match

[Brendonbosy]

Loans are 8%+ now. The days of cheap money are over. Cash is king

[richurro]

800+ credit 20k cash down and not even Toyota would give me lower than 8% interest.

I just paid the whole car off in cash.

This is no doubt the worst time to buy a car in history.

[hirayahana]

Wow. I can't believe that I'm listening for financial advice from a dude that bought two Land Rovers

[zachg]

The problem is that people with massive car payments generally don’t think or know about investing the rest, they are living paycheck to paycheck and can’t afford to pay cash for the vehicle anyways.

[skdjf]

My wife has a way of spending her whole paycheck every month no matter how much she makes. My evil idea was to have her finance our Mazda so at least at the end of that time we will have a car to show for it. Working great so far!

[ravenbom]

I feel like this deserves an update as interest rates are jumping up to that 6-7% level (which also means that credit card interest rates are the highest they've been and with inflation, especially groceries and gas and essentials, means families are likely depending on things like a credit card which is another bill with a very loan shark interest rate)

Yes, it's logical if stock market average is 6-8% return vs a 2-3% loan, but this also only works in scale and when you have some liquidity because stocks are not without fees whether or not you're using an App or a Broker but it's something that really only makes sense in scale (if a family can afford to set aside 10k chunks of change and has insurance so their kids are safe).

But even when this was published, the world was ANYTHING but safe and had proven the need for some sensibility in rainy day planning. And frankly, financing is a slippery slope, sales people will upsell you to your limit, that's their own rent money they're after.

This really should be re-addressed. Every limit you set has been hit and everything you predicted about the stock market being even remotely stable and upward trending has not come to pass. This was LOGICAL advice. But it was the wrong advice.

[tavarish]

I only buy cars with cash that have been crashed already. That way you can know which side not to hit next time.

[Jackson-shbs]

Why would you need to finance it when you can just buy it from CARS AND BIDS

[TheDustyShed]

Being debt free is always a good idea. Some circumstances make the loan a good idea too. That doesn't make being debt free a bad idea.

[GeorgiaMoore.]

Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market