November 22, 2024
Why You SHOULD NEVER Finance A Car AGAIN
 #Finance

Why You SHOULD NEVER Finance A Car AGAIN #Finance


hey what’s up guys welcome back to the channel welcome back to another CashNews.co if you’re stopping by the channel for the first time please consider subscribing to my channel and while you’re at it smash that like button for me i really would appreciate it in

today’s CashNews.co i want to talk about one of the things that keep us broke guys i do these financial mentoring and coaching sessions through my company rf financial consultant and i’ve had hundreds of these one-on-one sessions so i look at a lot of uh personal Financial

Statements from people talking about their Income versus their Debts and one of the Debts that jump off the page more times than not when i’m looking at these personal Financial Statements is car

Loan Debt now student Loan Debt Credit card Debt are two major Debts as well but the car Loan Debt is really the one that i want to focus on today

because i believe if we can understand this car Loan Debt that most of us have then it will give us an opportunity guys really to um change that and redirect that money towards building wealth for ourselves i know a lot of times you know we buy these cars because

of status you know maybe our friends have really nice cars maybe our co-workers have really nice cars uh maybe we want to project ourselves as being successful so we go out and we buy these cars that you know we probably can’t afford probably should be taking that money and doing something

else with it so it’s a status thing in a lot of cases guys i’ve fallen into that trap before myself three things we got to consider guys when we’re getting ready to buy a car the first one is will we have any borrowing cost and borrowing cost is interest right banks don’t

just give us money to buy a car they give us the money but then they’re gonna charge us interest in order for us to get that Loan and that interest rate typically guys is gonna be anywhere from three percent on up to fifteen percent or higher depending upon how good your

Credit is so the borrowing cost is a major component of when you’re buying a car the second thing i want you to think about is the depreciation on these cars did you know 65 of your car’s value has depreciated over a five year period ten percent of a new car’s

value depreciates as soon as you drive it off the lot so not only do you got the borrowing cost then you also have this depreciation thing that’s devalue in the car every single time you drive it the third thing i want you to think about is the maintenance now i know in a new car a lot of us

feel like hey i buy this new car i’m not gonna have any maintenance i’m not gonna have any any type of uh repair issues well guys let me tell you the more expensive the car is the more maintenance issues you’re gonna have you’re gonna have to get new tires right that has

nothing to do with the mechanical end of the car but you’re gonna have to get new tires and typically the more expensive the car is the more expensive the tires are gonna be you’re gonna also have to get new brakes same thing brakes are not cheap on these new cars or even used cars

depending upon if they’re you know american-made or foreign cars you know german cars are are insane when it comes to brakes i’ve owned a few german cars and the brake pad replacement on those cars are not cheap also you got to think about Insurance right you’re

going to have some Insurance because you got to insure the car you’re going to also have repair if the car is a used car again the more expensive that car is probably the more expensive the repair is going to be so not only do you have to borrow the money and pay interest

then you got to worry about the depreciation every time you drive it taking a bite out of the value of the car and then on top of that you’re gonna have this maintenance thing you gotta worry about the average car Loan in america is 550 per month guys that’s huge think

about it this way if you took 550 a month and you invested it into a investment vehicle that would pay you a 7 return on your money for the next five years guys you’re looking at about forty five thousand dollars uh in that investment after five years let’s take it one step further

let’s take that same five hundred and fifty dollars and let’s invest it for twenty years in an investment that will give you an annual rate of return of about seven percent at the end of that twenty years guys you’ll have two hundred and seventy five thousand dollars in your

investment account we got two ways to do this right we can either go for status right now buy cars that we can’t afford buy cars that are you know eating away at building financial uh independence for ourselves or we can delay gratification and take that money that we would be spending on

this very expensive car and we could invest it for a financial future create financial independence for ourselves financial freedom for ourselves see guys we can’t serve two masters you know either we’re gonna have to endure some short-term financial pain in order to get long-term

financial gain right that’s that’s it that’s the whole point of the CashNews.co is rethink these cars that we’re buying when we have not created wealth so what’s the solution here’s my recommendation at least i think while you’re in the building stage of

wealth you should be buying cars that are used you should be paying cash for them and you should be using those cars until the useful life of that car is gone so five to seven years use them use them use them beat them into the ground and then when that thing is when it’s gone then buy you

another one and take the money take this 550 and you should be putting that away in Investments that are going to create wealth for you that’s my opinion that’s what i would do if i were you guys i’ve been there for 20 years i grind right i didn’t have fancy

sports cars back then i drove normal everyday cars and once i built my wealth then i was able to go out and buy the cars that i really wanted and not have to worry about the borrowing cost not have to worry about depreciation not have to worry about the maintenance and the reason i never worry

about those things is because i had enough Assets i had enough Liquidity i had enough Income to be able to pay for those toys and it not affect my financial situation so that’s my recommendation to you guys delay gratification and take the

550 dollars now your car payment may not be five hundred and fifty dollars maybe it’s four hundred dollars you know maybe it’s six hundred dollars i don’t know only you know that situation i’m just telling you based on all the people that i’ve talked with over hundreds

of these one-on-one sessions that i’ve done there’s a lot of car Loan Debt out there guys many of us have that car Loan Debt and it’s gonna keep us broke so buy you a car that’s dependable buy it outright

and then take the money you would have been paying on that car payment and then you put that money aside in an s p 500 index fund and then earn financial freedom through making those Investments every single month if you’re stopping by the channel for the first time please

consider subscribing to the channel share the CashNews.co smash the like button thoughts become things if you could see it in your mind you can hold it in your hands you guys keep chasing your greatness never stop believing in yourself and i’m gonna catch you on the next CashNews.co peace if

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company i work with individuals just like you through financial mentoring and coaching sessions and in those one-hour sessions we talk about strategies to help you get to your financial freedom whether it be through Real Estate investing Stock Market investing

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discuss if i’m the right fit for you

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46 thoughts on “Why You SHOULD NEVER Finance A Car AGAIN #Finance

  1. In the last month, I discovered the money concept called Velocity Banking. I think it is genius.

    We as consumers are working and paying expenses anyway. Why not do so contrary to the way most Americans were taught.

    Look up Vanntastic Finance and give it some thought. I think this is the way you out smart the bank's concept of checking, savings and personal loans.

    The Line of Credit allows you to be the banker to your self.

  2. 12 payments left on my car. My interest rate is only 4.5%, but I’m still counting down the SECONDS until it’s over with! I’m really looking forward to having that extra money to put toward aggressively paying off debt.

  3. I’m all for used cars. My main car I drive is a used car. I’m just not sure what to do once I decide to buy a car for my cleaning business. Do I use business credit to get a loan to buy a new car or just buy used?

  4. I honestly think you don't have to buy a new vehicle ever. As long as you do your research and stick to reliable brands you'll be fine. Just know a little bit about cars and its history. stay away from salvage/rebuilt titles, its a gamble.

  5. I drive a 2013 Dodge Ram. It has 127,000 miles on it with no mechanical issues l, perfect paint job and I love it. It's paid off and I will drive it until the wheels fall off

  6. Why do broke people keep buying cars and homes and materials they can't afford🤣 I get ya'll want to feel rich with some instant gratification, but if u learn delayed gratification u can become rich and actually afford these things

  7. A car note is for fools. It is the most depreciation thing in your portfolio. I don’t have to go anywhere that bad. If you look at cultures like the Amish they will not do anything like that. I save 25k not owing a car, GO figure. I can live a better lifestyle without a car and I have a flourishing business instead. I laugh when guys pass me up and when they find out I’m excellent I’m with money then they wanna talk. When I’m eating $300 meals they have to downgrade to $50, Give the car back you will live a healthier lifestyle.

  8. I've been a financial samurai since I was 18 years old. I'm not buying this 80k car cash and financing 50 percent of it. I don't want to be in my 40's and 50's enjoying the fruits of my labor. YMMV.

  9. My uncle says when a service on your car is a waste of money al your get for your money is washer bottle is filled up tyres filled up with air that cost price of a service

  10. My job doesn’t pay for my work

    They are thief’s and trying to force me to move

    They steal money

    Try to kill my pets

    They commit felonies

  11. Brother ' if I don't buy a car on credit, my life stops 🛑 right then and there.
    I know for sure, that even ' if i won the lottery, I would still not buy a brand new car, (1): Not with their overly exaggerated prices. and –
    (2): they are made very cheaply.
    All I can say is take care of your credit score, pay your bill's on time, pay a little extra if you can every month, hopefully you'll pay those bill's off and be free from debt.

  12. My brother and you prevented me from buying my mouth watering Genesis GV80 yesterday. I make very good money and can afford it but should I? You got me thinking, there is always room for more growth. Rich dad poor dad. I just got out of debt ( my home was comped to waterfront in 2008 and when I sold it, they would not comp it to waterfront. Fraud in my opinion on the part of the appraisal co and a lawyer stated it would cost about 300k to fight which would break even. I walked away , took the lost, and brought a condo. New approaches, new strategies. You are helping . Sincere thanks.

  13. Question. I financed a 10k car. Got a 14% rate since I didn’t have good credit. I’m up 650 credit score on Experian. why not finance a cheap car like I did and use the extra money to invest or do some side hustles? Like right now I’m also up 6k in my checking account. I don’t want to pay off car note because I want to invest. Once this car start failing I’m probably going to get another 10k car

  14. why would i not take out loan on a car? i got a 2% interest rate on a 40k loan.. now i take that 40k that i do have in cash and instead of buying a depreciating asset.. i used the 40k to buy a cash producing asset.. at the end of my loan i would have paid like 2k in interest .

  15. I would only finance a car from now on. Why pay 10k, 50k, or 200k cash for a car when I can put 0 to 20k down and then invest the rest of the money. Just to save 5% when I can make 10-20% on the money, 40%+ if I flip a house

  16. I’m here letting people know my experience with Linda and her team, “ Me and my wife invested $7100 and within 3 weeks received back $48,063 to our bank account…. They is the real deal please people stop wasting your money elsewhere and contact them now…. Go low so you can see results fast!!!

  17. good information. In my experience, my best car purchases have been used Toyotas or Hondas for cash. If you can find one in good shape, even with 100K miles, it still has a lot of life left in it, and it doesn't cost a fortune to maintain. Financing new cars is one of the worst financial decisions people make.

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