Why You Should Never Finance A Car Again

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Lets not pretend like the average car payment didnt just reach $700 per month, and lets not pretend like a lot of people are not trap in the car payment loop. That's when people buy cars and finance them, over and over again every 5 years, and the dealers convince them to do it because the warranty is going to expire and they offer some crappy trade-in value. But I’m not here to blame dealer for being smart, i’m here to teach you to be smarter than they are, thats the game.

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1. Why You Should Never Finance
- finance does 3 positive things that are actually super stupid
First: it lets you buy more car than you can afford to buy in cash
- And that's not free, or because they like you
- Its because the banks make money on interest and the dealer gets a profit immediately
- And you are the one responsible for keeping our economy going ( Cha-ching )
Second: you trade a One-time payment with a Monthly Payment
- its like a loan on your income if you think about it
- People do not understand how long 5 years is, thats 60 months, means 60 times you will have to pay each month for this car
- Just because you wanted it and at the end of the road in 5 years that car is not going to smell the same and have the buzz it had on you
Third: Miss out a great a deal to buy a Used car and at a discount
- Instead of viewing a car in dollar signs, lets think in time value
- A car can cost 50k brand new, after 5 years same car cost of 25k ( but its used )
- But this isn't like buying a used toothbrush or underwear ( that should make you disgusted that's why i said it )
- Its a vehicle that can you can watch and boom its brand new to you
- But seriously, the life of the vehicle is 250k miles if you buy a good car ( more on that later )
- Even if you drive 15k miles a year, that 16 years of vehicle life ( you buy at year 5 you still have 66% left )
- And if you drive it for 11 years that same 25k, ends up costing you about 2.2k a year ( obviously you dont have to by a 25k vehicle but this is just an example )

2. How to buy your dream Car
- My dream car use to be a lambo, Porsche and tesla model x, bit i realized i wouldn't be able to handle that much attention and i didn't thousands at repair job
- So my current dream car, is the car i can afford to pay for in cash and i know based on statistics that it is reliable, plus saves me money on gas (i will reveal my pick at the end of the vid )
- So take this actionable step

Write down on a piece of paper
- How much cash do you have
- I recommend you look at Toyota, Honda and Mazda
- Those are the car that are most reliable according to consumer reports

3. What if Scenario
- If you buy a $5,000 dollar car today, because that all you can afford
- And you invested the $700 you were going to pay month at 10%
- How much do you think you would have by the end of the life of that car

The Math says this:
- If you have another 10 years left on that car
- You will have about $147,261.80
- Instead of having 2 cars that you ran through and lost a bunch of money on
- Same time but different results

My dream car
- I can grab 20% of my investment money, which is about 30k and buy me another used car and pay cash for it and do it all over again
- But remember that 30k car use to be worth 60k potentially
- And in another 10 years you’ll have roughly little less than half a million
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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I'm an Accountant but I'm not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

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You know what’s another issue, the car brand itself… people wanna buy cars for clout or for looks and that’s the last thing that should be on your mind.. the first thing you should look at is reliability, does it have any recalls? How much do car parts costs? How to properly read a car fax, how many miles was the oil changed in between intervals… how to properly inspect a car.. not many people do this and they end up with a Chevy, Jeep or a Ford that’s burning oil, needs a new transmission or engine and they are confused on why does the car need all of this and it only has 90k miles… and finally the last part of this.. just because a car has low miles doesn’t mean the car is reliable.. probably the dumbest thing you can ever evaluate a car for..

Hecta

I paid car notes for 14 years. When I realized how much money was spent, I wanted all of my money back, so I went 14 years without a car payment. Now, 14 years later, cars are no longer $15-$20k, and I absolutely refuse to pay $50k+ for an average vehicle. My 2008 Jeep cost $5000 cash. Been driving it for 4 years now! 🙌🏽

CreamOfBeats

Bro. Finally, someone online that is against the stupidity of having a car loan. Good job fam

crow-vzlx

I got rid of my car loan in 3 years instead of 7 years. I couldn't stand paying 445/month. I took advantage of the covid pay as a nurse and made bigger payments, the last year I payed $1000 /month. It hurt at first but I'm so glad I don't have any car payments on my 2017 toyota camry.

jonellefigueroa

I’m a truck driver, I’m one of the few who drives an old beat up car in my company. An Infiniti G20 2000, I bought it in 2010 with 140, 000 miles. It cost me with taxes $5, 000. Now, that car has 390, 000 miles and still running and passing smog checks every two years, due to a good maintenance. I commute to my work around 45 miles each way. However, I’m happy with my little Japanese car. My coworkers have big pick up trucks that might cost around $50, 000 to $80, 000 dollars. But, I’m 4 years away to pay off my home because Instead of giving a car payment, I give an extra principal payment for my house. I felt sad when a coworker and new trucker went to the dealership and got trapped with a Corvette.
Some people don’t even see their own economical reality.

oscaramartinez

One element that you’ve missed regarding buying a used vehicle, that is the cost of maintenance. As cars get older they require more maintenance.

SasukeUchiha-ftqd

My last financed car was in 2020 and finially finished paying it off...im keeping my 2 cars till the wheels fall off. Its feels soo damn good not having car notes and having more money in my pocket for other things like investing and vacations....what a relief.

RayRiv

I dont have a problem with financing a car. Thats what i do because i dont keep a ton of cash, most of my money is tied up in retirement/home equity/investments. But i do have limits on how much im willing to pay for a car. I will finance $15-20k and pay it off in 4 years or less. I also won't look for the next one until i have a good reason like needing a different type of vehicle or costly repairs that are not worth it due to the car's age

raiden

Life is too short. By whatever the hell makes you happy. So long as you can afford it, and your emergency fund is solid.

donleon

I've been driving since 1986 (37 years) and have spent less than $7, 000 on buying cars. I used my money for other stuff I cared about.

EddieDeeVee-pfiu

Depends on what you care about. What gives you joy.

rocketrollsvlogs

I bet you and Dave Ramsey have a lot in common I've been using his methods for a few years now I'm 55 now and I wish I would have known about him in my 20s I'm glad you're spreading your knowledge to the younger

davidkerins

Dropping gems as usual. I was in the middle of looking for a new car, because I just paid off my current car this week. I needed to see this vid.

RM-cxkk

Lovely work Tommy it makes perfect 👌 sense. You have a new subscriber love from London.

ipanemakid

Thanks for dropping these good pointers for us to hear. I've only had 2 financed vehicles since I've been driving over the years. The majority of my vehicles have been cash bought and I applaud myself for that.

Travdaman