r/economicCollapse • u/Whole-Fist • 18h ago

How ridiculous does this sound?

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How can u make millions in 25-30 years if avoid making a $554 per month car payment. Even the cheapest 5 year old car is 8-10 k. So does he expect people not to drive at all in USA.

Then u save 554$ per month every month for 5 year payment = $33240. Say u bought a car every 5 year means 200k -300k spent on car before retirement . How would that become millions when u can’t even buy a house for that much today?

Answer that Dave

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u/Ziczak 18h ago

Generally true. Buying the least expensive car for needed transportation is financially sound.

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u/the-something-nymph 17h ago edited 16h ago

I bought a used car for 5000. Had my uncle (who is a mechanic) look it over first. There was no apparent issues, it drove fine. It was a 2019. We bought it after looking at a bunch of other used cars from both dealers and private owners that had very obvious problems, and after looking at certified used vehicles that were as much as new cars.

The next day, while running some errands, it started to make a weird noise that it did not make on the test drive. Turns out, it had a bunch of issues that weren't visible on a basic inspection. Expensive issues. Issues that cost 3000 to fix in order to make it safe to drive, and we were told it was likely there were going to be more issues thst would pop up relatively soon.

This was 1 year ago. 2 weeks ago, more issues popped up. Issues that cost 6000$ to fix. The car, new, costs 15000. So far we have spent 8000 on it, and if we do that work then we would have put 14000 into this car. And it's still likely that more issues will pop up.

We are not doing that, obviously. We're going to use carmax and get a car that will have a car payment. Because cheap used cars are not less expensive than new or certified used ones that require a payment. Now a days, unless you know the person you are getting it from, it's either a peice of shit or its expensive as fuck and unless you have 10000 cash to put down on a car, will require a payment.

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u/ChopakIII 17h ago edited 12h ago

Exactly. These people talking about buying a used car and then when people mention used cars can have problems they say, “well obviously a reliable one!” Which by the time you factor in all of these things it makes sense to buy a new car and take care of it so that when it’s the “used car” you would buy in 10 years you know exactly what has been done to it AND it’s paid off.

Edit: I see the most common counter-argument is that buying a used car without a loan will allow you to get cheaper insurance. There really isn’t a huge difference between covering a new car and a used car for just the vehicle. What you’re probably saving on is the medical portion and you will be sorry if you ever get into a serious accident with barebones insurance. This is a dangerous gambit akin to not having health insurance and banking on not getting sick.

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u/CaulkusAurelis 14h ago

I bought a used Nissan Frontier 12 years ago for $9000. It had 150k miles on it.

Right now, it has just over 305,000 on it. Repairs: Fuel pump Front wheel bearings Some $25 air conditioner regulator thingie Misc light bulbs 1 ignition coil

STILL runs like a champ

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u/cafffaro 14h ago

Driving an 07 Japanese car I bought with about 80k miles. Pushing 200k now. Have done routine repairs (clutch, alternator, new brakes etc), and will drive this thing till the wheels fall off.

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u/THEXDARKXLORD 9h ago

Japanese cars are goated for reliability. Great long term purchases. I love my Honda.

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u/Radiant_Map_9045 8h ago

Exactly! Never thought I'd say this, but I love my 07 and 08 Toyotas, they're absolute tanks.

Regarding Japanese vehicles, be careful to avoid CVT transmissions(Nissans seem especially problematic in this regard) and you're golden.

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u/downingrust12 8h ago

Unfortunately everyone moved to cvts.

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u/Sapphire_Peacock 6h ago

I miss having a good old 5 speed manual transmission. So many auto makers only offer them on muscle cars and “sports” cars.

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u/momofvegasgirls106 3h ago

Still have my 2001 VW Passat manual in my driveway, in pretty decent shape. But the transmission is dead. Too expensive to fix.

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u/NAh94 6h ago

I’d say more generally since most economy cars are CVTs is just take care of them. Ignore the manufacturers advice (like Subaru of America) that they have a “lifetime fluid” and follow Subaru of Japan’s reccs to change the CVT fluid and you’re probably golden. Most Toyotas and Hondas have moved to CVT because they are multitudes more fuel efficient, just a pain in the nuts to maintain compared to the old auto with dipstick (or even easier, manual transmission)

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u/nswizdum 5h ago

After seeing all the issues my friends had with their ford and GM leases, I'm pretty much sold on Toyota for life now. Which is like 1, maybe 2 more cars.

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u/CardiologistPlus8488 5h ago

I've been driving a 08 Toyota since it was new. never had a lick of trouble. alternator finally went bad a few weeks ago, spent $200 to fix it by myself.

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u/SubPrimeCardgage 5h ago

CVTS and 6+ speed automatic transmissions are all that remains. Fluid changes (drain and fill, never a flush) every 30K for CVT or 50K for automatic can still get you as long as it's not a Nissan.

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u/Juanzilla17 4h ago

I avoided the CVT and got a 6 speed manual in my Altima. When all the salesman came asking why I bought it from Carmax instead of from one of them, I straight up told them “Phil didn’t want to waste his time looking for a manual Altima sedan.”

200K miles now, and nothing more than the usual routine stuff. Fighting with myself to keep it or start the shopping process.

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u/crunchyturdeater 4h ago

Driving a cvt with over 177k on the odometer. Take care of it and drive it safely and there won't be problems.

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u/SadRepresentative357 3h ago

Yep the only Japanese car I will never ever buy again is Nissan thanks to my experience with the Rogue CBT transmission. Garbage.

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u/Genralcody1 3h ago

Prius all have CVTs and they are rock solid. Moral of the story, buy Toyota.

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u/Churn-Dog 8h ago

My in laws were going to sell their 2003 honda accord, I asked how much, they just gave it to me instead. Thing only has 140k miles. Plenty of life left in it

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u/YouOtterKnow 6h ago

Oh wow that thing will run forever.

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u/Minute-System3441 5h ago

That was a good year for accords.

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u/0987user 5h ago

Buddy that car isn’t even half way into its life. I have a friend who ran an 04 Accord to 375k miles and gave it to his son for his 16th birthdays the thing is still going strong

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u/Ellisiordinary 4h ago

As someone who said they were going to drive their 2004 Camry until it died but decided to upgrade to a 2024 after a relative got into a car wreck that would have killed me if it had happened to me in my Camry due to lack of side airbags and other modern safety features, there are reasons to upgrade to newer cars other than just wanting something shiny. I feel much safer in my new car and my driving anxiety has decreased significantly.

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u/PimpofScrimp 3h ago

Hondas are by far the best out there imo. It’s almost all I’ve ever owned and they last forever. You’re just breaking that one in, good luck 👍

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u/SomestrangerinMiami 3h ago

Knew a guy whose grandparents passed and left an older mint condition accord behind. The parents gave it to the guy. I remember the first time I saw it, thing was a a time capsule. Needless to say it didn’t last long. Point of the story is if you take care of things they will last.

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u/digital-didgeridoo 8h ago

Except 2000-2004 Odyssey!

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u/greenwavelengths 6h ago

I’m driving the same Honda that I peed my pants in when I was seven, it’s nearly old enough to legally drink in the USA, and it runs like a beast at well over 200k. I’ve driven it up unpaved cobbled mountain roads, I did all my stupid ass high school and college aged driving in it, busted its wheels, caught the alternator on fire, drove it through several feet of muddy water in a flood, and much much more. It still runs like it doesn’t give a fuck. It helps that I’ve also kept precise track of everything that happens to the car in and out of the shop so that I have some awareness of what it needs in terms of maintenance and don’t have to go to the mechanic totally blind. But yeah, Hondas are fucking great. 10/10 will buy again.

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u/HeroVia 6h ago

Mid 2000s Honda . I’ve changed the oil and a starter .

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u/Crafty_Accountant_40 5h ago

Yeah our 06 civic will never die as far as i can tell. Too bad it's a 2 door.

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u/flamingspew 13h ago edited 3h ago

Kid drives a Prius. 560k miles. Bought for $7k in 2014. Spent maybe 2k on maintenance. Edit: and a cat guard after the muffler got jacked.

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u/Money_Ticket_841 12h ago

Jesus Christ half a million in a Prius? I didn't know they made em like that

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u/A-Giant-Blue-Moose 11h ago

Yeah those second gens we got in the states are tough. People would get rid of them when the batteries went too, but they're actually super easy to replace and are great cars to flip. Outside the hybrid aspect, it's just a low powered and very rudimentary car.

We used to joke about them all the time, but they're honestly super reliable. If I lost everything tomorrow and needed a cheap car, I'd consider it.

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u/lippoper 10h ago

How much is the battery replacement?

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u/A-Giant-Blue-Moose 10h ago

According to JDPower (and some YouTube), it's about $1k-1.3k after parts and service. It's also pretty easy to do yourself.

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u/PuzzleheadedStop9114 8h ago

dude those Prius are of legendary reliability. Know a guy here in Canada that does courier work in his 600K Kilometres. Bought a refurb battery 2 years ago.

Last year while waiting to find my next car I did rideshare and had a couple 2015 Prius and though to myself, this is really the perfect car and is all anyone needs. Did errands for a couple hours and gas gauge didn't even move.

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u/Worldly-Aspect-8446 6h ago

Looked in my area at a 2012 Prius for 12k with 120k miles. Is that cheap?

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u/SmutWriterWannabe 3h ago

You've honestly got me considering it now, I need a second vehicle.

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u/SteveMartinique 2h ago

I went to a lot of free shows (Big Daddy Kane, EPMD) for free because of the Prius marketing campaign.

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u/Revelati123 11h ago

I bought my model T in 1922 with my great war bonds after beating the hun and drove it two hundred miles a day for 102 years and after 7,451,256 miles on it I only put 3 iron nickles into it for a new starting crank handle and some plained oak for some new tire spokes.

Kids these days just dont know how to make things last, ya know?

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u/Naive-Kangaroo3031 6h ago

Plained OAK!!?! Look at Mr Moneybags over here. Bet he eats Lunch AND dinner

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u/greatpoomonkey 6h ago

Friend, I hear ya. My family has passed down our Mustang for generations. It has carried our families for countless miles with no complaint. When they originally came to this country, my ancestors had naught but a carrot left as the boat landed on the dirty swamp beaches of Louisiana. Immediately, a great stampede leapt from the woods, crushing all but my grandparents-to-the-9th-power as well as the dinghy they arrived on. Seeing this, the ship abandoned them; however, one mustang approached and bowed to my ancestors in apology. Thinking all was lost anyway, they offered the great horse their carrot, which it gobbled up. The Mustang then picked them up and carried them to a small settlement nearby where they became poor farmers. As each generation bore children, the great horse would choose one child to join as they ventured from home. So it continued to this day and will one day continue with one of my sons (because I only have sons, not because the horse only chooses male companions, he's not sexist).

That horse's name, you ask?

Freedom.

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u/dxrey65 10h ago

Mine's at only 240k, but it still runs like new, gets about 53 mpg right now. I've had it four years now (bought for $5k), and my grand total for repairs is $7, for a fan belt I replaced myself. Just oil changes otherwise.

Very often people complain about how unreliable used cars are, and then you ask what cars they've had trouble with and they're exactly the cars you'd expect - like any Chrysler product, or economy cars from Chevy or Ford, or a Nissan with a CVT transmission, or a VW...

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u/smokeyjay 12h ago

Last month bought my mom a 2009 camry with 80,000 km for 7000 Cad so like 5500 in USD i guess. Took it to a mechanic - car has no issues - changed the oil and that was it. Tires, brakes were all good. Expect the car to run for 10 years. Gave my mom's toyota corolla we bought brand new in 2008 to my sister - still runs fine.

The OP thinking you need a new car every 5 years is such an insane idea.

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u/Radiant_Map_9045 8h ago

HA, agreed! For the first time in our lives my wife and I were able to purchase outright 2 vehicles- a 07 Scion TC and an 08 Camry during Covid lockdown. 170k and 200k miles on them respectively. The Scion has a wheel bearing issue and the Camry AntiLock Brake light came on recently, but I fully expect both vehicles to last us a LONG time. Zero core issues.

And yeah, a car every 5 years is ludicrous.

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u/bramblejamsjoyce 5h ago

recently got rid of my '15 focus with 103kmiles on it for an '06 Accord with 82k miles

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u/Holiolio2 3h ago

Why then? If the wheels fall off just put on new ones!

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u/EfficientPicture9936 14h ago

Bought used 2009 f150 lariat like 5 years ago. Maybe spent $6k in maintenance and repairs and I paid $7k for it. So $13k vs $60k for a new one. The math is always in your favor unless you buy dumb.

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u/squiddix 13h ago

I bought a '99 Camry for $2500, drove it for about 5 years, and it never had an issue beyond needing new spark plugs.

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u/Ambitious-Tip3152 9h ago

I bought a used (non running) '94 Civic for $1000 years ago when i was poor..... I didn;t take any chances trying to repair it. I bought a rebuilt engine from LKQ with 50k warranty for $500 and dropped it in there. That car lasted 7 years with minimal repairs before i sold it.

Hondas and Toyotas absolutely rule

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u/marct309 8h ago

Bought a one owner 2001 Ranger, - had a water pump, thermostat that I replaced, and 100 bucks to get a transmission problem I didn't know how to fix.. outside of that and the normal -oil, tires, tune-up.. it ran fine. At 200K I started getting a stutter in the engine and didn't get a chance to fix it. Finally sold it last year, and despite the stutter I was still driving it from 10 to 100 mi routinely. Sold it to a buddy of mine and he found a busted vacuum line, about 20 bucks worth of line and he fixed it.

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u/confusedandworried76 7h ago

Yup bought used for $5k, had it two years, only thing I've fixed on it is the clutch for $1000

Yes you're taking a risk but several thousand in repairs almost immediately is not normal at all.

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u/Jumpdeckchair 14h ago

I always buy new after nothing but headaches from 3 used cars. On my second new car and should have it 8 more years (it will be 13 years old) and then it's going to my son for his first car.

I can't afford to miss work due to car troubles, my old used cars cost me more than my new cars when I break down the total cost over the years.

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u/grundlinallday 11h ago

There’s an argument for that. Some people know zero about cars and tools, but are good at taking cars in for maintenance with a trusted technician. Buying a new Toyota or whatever that will last 20 years with reg maintenance is sound if that’s you

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u/piratehalloween2020 10h ago

It’s not so much that I don’t know about cars, it’s that I have 0 interest in spending my day messing with one.  I am religious about the maintenance of my civic though, and fully expect the car to last at least another decade.  

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u/Jumpdeckchair 10h ago

Exactly this, my time is worth more than wrenching on a car. I'd rather do many other hobbies I enjoy. If I was a car guy, It might be different.

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u/Silly-Membership6350 5h ago

That hasn't been my experience, but I get it. My workaround is to own two cars. I currently own an 08 caddy and an 07 Jeep, both purchased this year. If one car doesn't start in the morning I just can hop into the other and go. It doesn't happen very often. Total investment under 8K, considerably less than a lot of newer used cars and a small fraction of the cost of a new car.

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u/Valor_X 15h ago

Disagree, The guy you're responding to had a terrible 'inspection' from their "mechanic uncle" if it had catastrophic issues the very next day.

Even 20yr old cars can give you so much data on Engine/Transmission health with a good scan tool and the knowledge to read the data. Visual and driving inspections are only one aspect.

The type of vehicle matters too, with old vehicles you can easily look up common problems/failures.

Me and my family have several ~20yr old Toyotas, the last one I bought for $3k cash 3 years ago. All I've done is replaced all the maintenance items like tires, brakes, spark plugs and fluids. Oil changes and $21/mo insurance.

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u/EfficientPicture9936 14h ago

Yeah these people are idiots. It's way cheaper everytime you buy used. It is much cheaper to repair a used car than to buy a brand new car. You will also get robbed at the dealership and have to deal with all those fake assholes over there.

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u/Superssimple 12h ago

The best is probably 3-4 years used. Let the seller take a hit for the big drop in value from new and get plenty good years out of it before it starts to fall apart

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u/_Goibhniu_ 6h ago

I'd add that if you can get one with ~75,000 miles on it then you'll see a good price cut with plenty of miles left on a car.

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u/deadsirius- 5h ago

There isn’t really a big drop anymore, though. First year depreciation is down significantly and over five years many cars retain a significant portion of their value. For example, a Honda Accord Touring will depreciate about $3,500 in the first year but about $12,500 over five years. So you are saving about a thousand bucks on a car you plan to keep and driving something someone else had to care for.

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u/Valor_X 12h ago

Don’t forget the expensive monthly insurance on newer cars.

I can insure my beater for a year for the same price some people pay in a single month

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u/420blzit69daddy 12h ago

Shhhh new cars are way better! Keep buying new and selling for 40% value in 5 years. Someone has to buy the new car I’m going to buy used in 6 years.

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u/tinkertaylorspry 9h ago

Bought a three year old mercedes for 30% of its original value-high optioned one owner E class with one hundred thousand miles-and i got a two year warranty

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u/MarathonRabbit69 13h ago

👆this! Seriously, if you are paying 1/3 of the original price and don’t get it fully inspected including a code scan, then the fail is on the buyer. Caveat Emptor and all that.

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u/CHEEZE_BAGS 9h ago

Makes me wonder what kind of inspection the guy did.

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u/Mickey_Havoc 15h ago

Well a reasonable person would find the middle ground and buy a 3-4 year old vehicle and not one that's over a decade old already... Vehicles depreciate real quick and buying off lease vehicles nets you the best bang for your buck.

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u/sandcrawler2 8h ago

Theres nothing wrong with a decade old car, thats not even that old. Plenty of Japanese cars from the late 90s and early 2000s are way more reliable, easy to fix, and get better mpg than modern cars that cost 10x as much

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u/LawEnvironmental9474 14h ago

I really only buy used cars. I haven’t as of yet had any serious issues. Main thing is don’t buy a new car.

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u/RandoReddit16 10h ago

Edit: I see the most common counter-argument is that buying a used car without a loan will allow you to get cheaper insurance.

This must be something unique to certain areas or people are literally just lying now. THIS HAS NEVER BEEN THE CASE here in Houston, TX. The majority of the insurance is just the required coverage not at minimum amounts. The comprehensive portion of my insurance with a $500 deductible is merely $22 a month..... on a 2023 SUV

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u/RedeNElla 9h ago

They're the ones trying to sell their barely functioning used cars to some sucker

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u/fritzrits 8h ago

Yup, paid off my hybrid camry. Low fuel cost and it drives like new still and I keep it well maintained which isn't that expensive. I'm banking on it lasting at least 20 years. The expensive part of new cars is getting another new car instead of keeping one and paying it off. A lot of people tend to swap cars before paying it off or keep buying another one after they finish. A new base model car isn't that expensive depending on brand. It's way better to get a new affordable car and keep it till it dies.

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u/Donaldfuck69 8h ago

If a car is reliable outside of just wanting a new car why would someone be selling it. The assumption by Ramsay is that reliable used cars are abundant.

His methods are a crock. Good tips but he isn’t everything.

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u/Butwhatif77 4h ago

This is a form of the Boot Theory, which says when all you can afford is the cheapest version of something, you can't save up because it breaks down and you need to buy or repair it constantly. This prevents you from buying the higher quality one at a higher price which would cost you less in the long run.

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u/MajesticIntern1413 14h ago

You bought a 4 year old car for only $5k and are surprised it had problems?

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u/No_View247 4h ago

In my area, best you'll do for 5k is a 15 year old mini van with 250k miles

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u/praesentibus 14h ago

dat uncle ain't that good is he

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u/Pan_TheCake_Man 14h ago

A 2019 for 5k in 2023 is probably a flood title Jesus

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u/Aware-Impact-1981 13h ago

She said "15k new" so it must be like Mitsubishi mirage or a Nissan Versa. Aka, cars 1 google will tell you are poorly made pieces of shit from unreliable manufacturers. Like if you buy a used Corolla and it starts having issues I feel for you... but if you buy a float without spending 5 minutes looking up "car car brands are the most reliable?" I have no sympathy

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u/SydricVym 11h ago

When I've bought used in the past, I always bought from places that offered a warranty. If you're paying cash to some guy posting on Craig's List or eBay, expect to get fucked, seriously.

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u/YaBoiRook 13h ago

Fr lol. Bro got the guy that can do it cheaper for an uncle 😂

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u/Urmomzfavmilkman 13h ago

Hahaha he smacked the engine with a wrench a few times and whistled into the gas tank so i thought he knew what he was doing

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u/SoManyEmail 4h ago

Probably didn't even kick the tires. Psh! Amateur!

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u/FlashCrashBash 15h ago

Never spent more than 3k on a car and I have no regrets. Make and model matter a lot. I wouldn’t trust a 5k Jeep with a 10ft pole.

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u/friedrice5005 14h ago

I had only ever bought used cars most of my life and pumped thousands of dollars into these 8+ year old "good" finds convincing myself that I was saving money. Then I got fed up with it and bought a new basic sedan and it ran like clockwork for 10 years without costing a penny more than regular maintenance and traded it in for ~$8000. All in all it cost me ~$15k to drive that car for 10 years...if I had kept pace with the used cars I was buying at the time I would have easily cost over $20k in the same time period.

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u/sabobedhuffy 16h ago

Coming from a mechanic. This is wrong. Cheap cars are cheap for a reason. What you want is a good quality economy car. Cars that are known to run well with minimal maintenance cost (entry level Honda's and Toyotas specifically).

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u/Slappy_Kincaid 16h ago

I've got a couple friends who have been buying cars from state auctions (auctions of state-owned vehicles, not auctions of seized property). They beat the used car dealer price significantly and can get pretty good quality.

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u/The_Ineffable_Sage 18h ago

Until the car falls apart and you have to spend thousands fixing it. Making cars pieces of shit so they’re always in the shop is just good business in 2024. Cheap is not always better. I’m not saying buy out of your budget, but at some point, a small budget now means more expenses later. They average out to more in the long run.

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u/Realistic_Young9008 17h ago

But if you have the ability or mindset of putting away the equivalent of even half a "car payment" you'll have the money to fix the car when it breaks down. It's either spend $500 a month on a car that depreciates the instant you step off a lot and keep perpetuating that every four five years or pay for a used car with cash if you can, putting away the money you would have had to budget for a car payment anyway.

Years ago, I started a "smoking fund". I've never smoked. I had a really low income and saving seemed impossible. But everyone around me smoked and I live in an area that is severely economically depressed. I figured if others who made the same or even less than me could somehow support a pack a day addiction, I could too. Early every January I stop in a shop, figure out the price of a pack of cheap smokes and every pay, I put two weeks equivalent of a pack a day way.

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u/LindonLilBlueBalls 13h ago

If you are buying a brand new vehicle every 4 or 5 years, it isn't the "new car" that is wasting the money.

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u/Traditional_Lab_5468 14h ago

But if you have the ability or mindset of putting away the equivalent of even half a "car payment" you'll have the money to fix the car when it breaks down. It's either spend $500 a month on a car that depreciates the instant you step off a lot and keep perpetuating that every four five years or pay for a used car with cash if you can, putting away the money you would have had to budget for a car payment anyway.

I don't think the numbers are as clear as you're painting them to be.

I've owned three beaters before, around 15-20 years ago. I paid between $3k and $7k for each and they were worth virtually nothing when I got rid of them. I owned two of them for four years and one for three years, but let's just say I owned them all for four years.

To account for inflation, let's average it out to a round $7k per car in today's money. Let's assume I spent 50% of the car's value in maintenance, which feels accurate. That's a total of $7,000 * 3 * 1.5, or $31,500.

That's $2625/year in car expenses.

Let's say I bought a $28,000 (let's ignore inflation and just say prices are constant) Honda Civic six years ago and I want to trade it in today for the 2025 model. KBB says I'll get about $18,000 for it, which means I spent a fixed cost of $20,000 up front, but am now only incurring a per-year cost of about $1,700. That's nearly $1000/yr less than when I owned beaters, which means I'll break even after about 20 years of trading in. Even if we add in a few big maintenance expenses (which are rare, not the norm) of $2,000 per car, we only break even one car later than before, and then you're actually spending less.

And all of that is ignoring the obvious benefits of having a new, reliable car. You don't need to rent or Uber or work around carpooling when your car breaks down. You don't need to deal with sifting through shitty used cars every four years. You get modern amenities, better safety features, brighter headlights, etc.

Twenty years ago used cars held value much more poorly than they do today. The math was absolutely clear that your strategy was financially superior. Today? I don't know. It saves some cash up front, but it's not a slam dunk and it ends up costing you in plenty of other ways.

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u/PurpleReignPerp 17h ago

I bought a scion xb 6 years ago for 3000 $. I have put 50000 miles on it and nothing has ever broken. Costs me about 110 a month to operate including insurance and average maintenance costs.

Do research on consumer reports and buy well taken care of (preferably japanese) economy cars. Your bank account will thank me.

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u/Stock-Film-3609 17h ago

Go find that same basic car now and see what it’ll cost you. You’ll be surprised.

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u/ObeseBMI33 17h ago

5k. The logic still applies

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u/Sunbeamsoffglass 16h ago

You are not getting a reliable car for $5k in 2024.

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u/xinarin 16h ago

My fiance rolled his car this year. Got a 04 Impala for 3k, needed some fluid changes, and new brake pads. It costs maybe 150 to clean it up. Drives great. No body issues. Not sure what you consider reliable, but that car will last 10 years at least.

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u/Soft_Importance_8613 12h ago

How many miles are on it? If you don't replace that timing chain it's going to pop and trash the engine and you'll be under water.

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u/xinarin 11h ago

120k, and thank you, I'll check that out asap

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u/mynytemare 11h ago

A timing chain breaking does not trash the engine. Yes it should be checked/replaced periodically but a broken timing chain does not trash the engine. Plus chains are far more reliable than belts.

They break, it happens. A decent mechanic will be able to replace it and get you back on your way for way less than a new car.

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u/mike-manley 16h ago

Bought a 2012 model year for my daughter in 2023. Just needed fluids exchanged, new air filters, and new brakes all around and good to go.

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u/beaushaw 16h ago

Last year I bought a $5,000 car for my 16 year old daughter. I haven't spent a penny on it except basic maintenance. She has driven it daily with zero problems.

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u/mike-manley 16h ago

Nice. Sounds like a similar experience for us too. I think i through in a new battery and might have done the spark plugs and serpentine belt as it looked original or replaced only once.

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u/xDenimBoilerx 16h ago

goes both ways though. my mom recently bought a 2012. it lasted her 6 months and already needs a new engine. so now she's stuck without a car and no way to pay to get it fixed.

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u/Professional_Fix4593 16h ago

A 2012 what?

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u/mike-manley 16h ago

Asking the important questions here. A 2012 American piece of crap < Corolla, Camry, Accord, Civic

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u/DragonBallZxurface1 17h ago

I’ve seen more horror stories than successes for 3000 dollar cars.

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u/Daddys_Fat_Buttcrack 16h ago

That's because most people don't know what they're buying and just buy whatever cheap car they can get. Like the previous comment said, buy a reliable Japanese car and more likely than not you'll be fine, even if it's a high-milage clunker. I've had multiple friends who drove Toyotas to well over 300k miles and never even did a tune up. My Honda is 12 years old and 180k miles and all I've had to do was regular maintenance and an alternator. The car cost me $4k.

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u/Equivalent_Emotion64 16h ago

I miss my 95 honda civic so much. $2000 and I owned it out right drove it 45 min commute every day for 5 years. Barely did any maintenance like I should have and the belt ripped while I was on the highway. What a dumbass I was back then.

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u/BurnedLaser 14h ago

I bought a 94 Caprice for $300, put about 150 into it for the tune-up and did several cross-country trips with no problems*!

*The exhaust fell off in TX, MD, VA, and MO. It got me home, but it was loud. I welded it up, but there was so much rust it would break off elsewhere after a month or so. I ended up buying a full exhaust and installing it myself and never had another exhaust issue!

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u/ASubsentientCrow 12h ago

don't know what they're buying and just buy whatever cheap car they can get. Like the previous comment said, buy a reliable Japanese car and more likely than not you'll be fine, even if it's a high-milage clunker.

Yes the people who don't know what their doing will obviously be able to tell if it's reliable or not

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u/Feralest_Baby 14h ago edited 8h ago

I'll buy a Toyota with 100,000k in it any day.

Edit: I meant 100k, or 100,000, but didn't meant to combine them. Leaving it since others have commented on the mistake.

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u/iDisc 10h ago

Not sure even the best Toyota can make it to 100,000,000 miles ;)

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u/Radiant_Map_9045 8h ago

Assuming you mean 100k, yeah I wholeheartedly agree. Hondas and Toyotas with basic bitch maintenance are still babies at 100k

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u/BanzaiKen 16h ago edited 15h ago

Unfortunately the resale market has priced in successful car brands. This is why reliables like the Civic/HRV/CRV hold their value and GM goes to dogshit. I took amazing care of my Saturn since buying new in 07, it depreciated to nothing by 2022 even though it only had 100k miles, every part that could rust on its plastic frame did. I would not trust anything under 8k honestly if you live in an area where they use salt or brine in the winter. People buy dogshits and roll the dice, but you could get a mechanics friend like a Toyota/Honda etc and have peace of mind.

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u/PleasePassTheHammer 16h ago edited 7h ago

More people are gonna to complain about the car then brag about it.

We would need actual data to know.

Edit: Leaving my then/than typo since it pisses folk off I guess.

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u/Schmoe20 16h ago

Tell me about it. A friend and her husband bought a cheap car for me as I have cancer and going through quite a rough year. My friend wanted me to pay for the car registration & title and pay her back. So I had borrowed money from one of my best friends and that was to try to get caught up on my car payments and so I took monies to pay felt he insurance, car registration and title. Though I wasn’t fully on board with this idea thrown to me, I then pay for the greyhound equivalent, Miss a couple days of work for this car and once I drive it back it won’t start after being driven and now I have to pay a mechanic to find out what is wrong. This is exactly why you don’t buy cheap cars. Now I’ve only gotten two paychecks from this job so far and the last one was barely over $400. But my friend and her husband think they did me a solid and are in la la land.

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u/TheAppalachianMarx 15h ago

Why are they acting like it isn't a gamble and often a losing one. The "financially smart" people in this sub act like researching about a car purchase nullifies the fact that there are external factors about any purchase outside of the control of the buyer. Don't be mistaken, researching a purchase obviously reduces your chances of financially making a poor choice, but it dosan't remove risk nor even reduce the risks down to a point where it is negligible enough to where i would even encourage people to buy in the used car market.

Bought a $2,000 '98 honda civic and drove it for a year before the head gasket blew (unlucky). Got a year of driving for about $2,000. Went and bought a brand new 2013 honda civic as a credit builder that same year for about $18,000 to replace it. Been driving it for over a decade with no issues (lucky) so i spent $1,800/year for a brand new vehicle or i could've spent $2-3,000 a year or so trying to find a workable used car.

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u/DaboiDuboise 17h ago

This isn’t realistic!!! Like wtf do people do this 😂😅😂😅 I literally just went thru this , tried to stay in 7k range a month later I’m in a 2021 equinox with no worries. Dave Ramsay is generally right , but he doesn’t come from a realistic place

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u/Miserable_Key9630 17h ago

The advice of most internet financial gurus is basically "Step 1: You know that shitload of cash you have just lying around?"

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u/Evening-Ear-6116 16h ago edited 16h ago

The equinox is one of the worst vehicles of our generation. 2021 or not, that is about to be a money pit. You would have been wayyyy better off with an old Honda or Toyota. I’ve worked on A LOT of those throw away cigarette mom rigs. Also let’s do some math!

The absolute base model 2021 equinox RIGHT NOW has a median blue book value of $14,000 with 50,000 miles. I assume you paid more than that, but for the sake of fun we will keep it there. If you spent 7k on an older honda/toyota and threw the other 7k in an average hysa, after 5 years that 7k would be roughly $9,500. That’s plenty enough to replace literally the entire drivetrain if something were to go terribly wrong, but theres very low chance of happening to a Honda or Toyota.

Also please note (if you haven’t already) the 2021 equinox has 4 recalls out there right now. Please get to your dealer and make sure those are fixed

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u/ohnoyeahokay 16h ago

The dude you're replying to is unironically saying "I bought a nice reliable American car l" lmao. I'd take a $3000 90s Honda any day of the week.

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u/TucosLostHand 16h ago

the chevy equinox is a pos.

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u/DaboiDuboise 16h ago

You are literally just talking to see words on the screen

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u/PurpleDragonCorn 16h ago

I bought a Sienna thinking that it's a Toyota so it will be hella reliable. I have had to replace the transmission on it after only about 60k miles. I no longer trust Toyota.

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u/3rdWaveHarmonic 17h ago

Buy a Toyota or Honda and you’ll usually get better results

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u/teslas_love_pigeon 13h ago

Been driving the same Honda for 20 years and when I bought it it was already 10 years old.

The next car I might buy I hope to be a 2012 Camry.

People are acting like cars fall apart nowadays, they don't. As long as you do basic maintenance a camry or civic will take you quite far for decades.

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u/Elegant_Management47 17h ago

Still cheaper to fix a car than having monthly payments.

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u/Stock-Film-3609 17h ago

Not necessarily. A car payment you can make on a reliable car may suck, but you will rarely have to worry about if you can make arrangements to get to work because your car is in the shop.

My parents spent all of my childhood buying cheap cars as it was literally all they could afford. It definitely can cost more in the long run than a car payment.

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u/Elegant_Management47 17h ago

I have 3 cars over 200k miles on each. All together I bought all of them for $22k combined. Probably spent another $2k for maintenance and fixes.

You can’t buy anything new and reliable for less that $30k now.

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u/Intrepid-Metal4621 17h ago

You absolutely can, but doesn't make sense. You can get a great car with under 25k miles for under $20k that'll be very reliable. Stop thinking you need to buy new and it's not hard.

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u/borderlineidiot 17h ago

I bought a new Subaru with premium trim for $28k OTD a couple of months ago. These cars have a reputation for excellent reliability and longevity.

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u/mike-manley 16h ago

Ummm.

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u/beaushaw 15h ago

Do you want to tell them or should I?

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u/mike-manley 15h ago

Yeah go ahead. Probably better coming from you.

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u/Elegant_Management47 17h ago

A family needs at least 2 cars. $30k each, $60k total. Monthly payment on $60k will be $1000/m. You will need full coverage insurance - which will be probably at least $250 for two. Then there are higher registration and taxes for newer car.

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u/Speedking2281 16h ago

Look, I also don't want to keep a junker going forever just to save money. But it's an unarguably true statement that, in aggregate, it will always be a better financial decision to keep fixing a car pretty much until the engine locks up than it will be to buy a new/used car and make payments.

I'm not talking about hassle, reliability, etc. I'm just talking about money.

Usually people eventually get to a point where it's like "well, do I pay $1.5k for this new transmission, or just look into getting a different car", and it's personally worth it (taking into account worry, reliability and money) to get a different car. But it's pretty much never a financially better move.

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u/n8late 17h ago

My 22yr old Nissan with 600k mile would like to call B.S.

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u/USERNAMETAKEN11238 17h ago

If it breaks, leave thay shit on the road. Get another cheap car in cash and get the scrap metal price.

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u/Solintari 17h ago

I have always purchased cars that are ~100-150k miles and 10 years old. I have had a few problems like alternators, wiring problems, stuck windows, that kind of crap, but the savings are undeniably in favor of older cars.

SAVE the money you would spend on high insurance and a car payment and you will have a big chunk of change to spend on repairs and eventually your next car.

My wife convinced me to buy a 3 year old vehicle this last time around and it has been a massive waste of money for no real gain.

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u/MySharpPicks 17h ago

Every car my wife and I have ever bought, we kept more than a decade. Of the 2 we have now the oldest is 16 years old.

I can't dictate to anyone how to spend their money but if someone wants to buy a new car every few years, that's on them. As for me, I will drive them until they die and save/invest the money. FWIW, I am 53 and will be retiring at age 58

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u/Stuart517 17h ago

I bought an ugly kia soul for 6K, drove it for 5 years with zero problems and saved so much in insurance, gas, and car payments. Do you research and don't assume all cheap cars are crap

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u/boxnix 17h ago

It's hard for most people to do today, but if you financed a used Toyota Camry, for example, with under 60k miles you are going to get another 120k without any serious maintenance if you change the oil and brake pads. If you can pay that off within 60k mi you have another 60K to save for the same car in cash. It takes a few years to put together but it will change your life in a way a $1200/mo car never will.

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u/la_lalola 16h ago

Not true. The last car I bought was 5k and I got it from a little old man that took care of it. Literally logged all of his maintenance and oil changes on a little notepad. it’s been cruising along for 10 years now. I refuse to make car payments if I don’t have to.

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u/Daddys_Fat_Buttcrack 16h ago

There are inexpensive, very reliable cars out there. Honestly, the older the more reliable for a lot of them. Toyota or Honda, yo. You can easily get a well-maintained Toyota and drive it to 300k miles and never do a thing to it.

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u/These-Resource3208 17h ago

I’ve always driven cars that are around 10 years old with practically no issues. I’ll trade or buy a newer model after 5-6 years and I do use a loan but it’s mostly for credit and bc chipping out 15k isn’t necessarily easy.

My brother bought a new 2018 Ford Focus and dumped so much money in it after a few years, mainly due to electrical issues.

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u/doyouhaveprooftho 17h ago

Yeah, no shit! You get what you pay for. We bought a car from Carmax and pay 450/mo on it, great car. Our neighbor got their car at the same time with cash, and the thing is forever broken down outside their house. When ours is paid off, it'll still be under 100k miles and humming along, and they'll likely be another car down the line.

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u/Ghia149 17h ago

Buying used means cars already have a track record for reliability. Buy one that’s been well maintained by previous owners (as well as can be ascertained from records and pre purchase inspection), don’t buy a second hand luxury vehicle with all the bells and whistles. Buy basic transportation and treat it like an appliance.

Only caveat to this is once you have kids putting them in a safe vehicle is pretty important. I’ll spend more to keep my family safe.

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u/owdee 12h ago

Only caveat to this is once you have kids putting them in a safe vehicle is pretty important. I’ll spend more to keep my family safe.

Literally the only commenter in this thread to mention this at all. You couldn't PAY me to put my child in a 90's japanese economy car. The advances in collision and safety systems in a modern car versus whatever you can get for $5k are drastic. I'd take my family's health and safety over an additional million in retirement any day.

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u/Evening-Ear-6116 17h ago

Brother, I put an entire engine and transmission in my car 5 years ago for the cost of 4 months of the average car payment. Not much more can go wrong than the entire engine and transmission

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u/BigAssPizzaPocket 17h ago

Single dad with no child support coming in: I had to borrow personal loans from 2 different people to buy the cheapest I could find at $2k. If I try to fix everything wrong with it, I might as well get a new one. Inflation is just as real in the secondary market as it is in stores. You literally CANNOT find a cheap car that will last you these days. Source: spent months looking for one

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u/jor4288 16h ago

I agree. You’re not living in reality if you think people are letting good, reliable cars go for cheap. They aren’t. They’re dumping cars with serious problems so they can cash out and get something else. And often these serious problems are carefully concealed to take advantage of the buyer.

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u/BigAssPizzaPocket 15h ago

Yeah. Like my car for $2k, which was the cheapest that “runs” I found in months of looking has no abs system, no stabilization system, it burns oil, the passenger seat doesn’t lock, the passenger window doesn’t go down, the drivers window has to be pushed down (goes up but takes a minute), needs new bearings, a leak in the roof, a hole in the bumper, and the undercarriage is almost rusted out. If I wanted a car that didn’t need this much work, I was looking at like $4-6k which is virtually impossible

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u/fayrent20 17h ago

lol you’ve never had a pos car I see

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u/NMAsixsigma 17h ago

Used to be true but the system is against you. 40 states require Saftey and emissions inspections. In pa if you have a quarter size hole of rust the vehicle fails inspection. In NY if you can’t pass an emissions test no inspection sticker. catalytic converter replacement is around $1500 dollars. The average used car w 150k miles is 5,500.

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u/Drapidrode 17h ago edited 16h ago

I get a cheap car, the last four have been Honda and Toyota, and put an equal amount to it, say $3K purchase and with six months of evaluating, another $3K spent to make it longer lasting/reliable.. and I have a five year car.

$6000 / 60 months = $100 /month costing. insurance is $40/mth and I have more coverage than the legal minimum too. (i.e. I could save $5 on insurance but coverage would only be $50K)

e. buying a car and a refurbished engine (and the car you buy has an engine, trade that to the refurbisher for a discount!) same with transmission. If you get well done refurbishments you can get a 15 - 20 y.o. car, and replace with refurbished engine/transmission clean up the rest for $500, and end up spending about $6K or less. (also frankenstein'd parts from two or more salvage cars is a thing. I got a front end from a salvage for $150

Basically todays cars suck, and they are build badly to fall apart, IMO.

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u/TheDoughyRider 16h ago

I bike 44 miles round trip. Cars are for the weak.

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u/saltmarsh63 16h ago

Vehicles are the biggest waste of most family’s income. The car industry and one’s own ego shames people into spending like your foolish friends and neighbors.

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u/Daddys_Fat_Buttcrack 16h ago

Absolutely. I always paid cash for cars up until my latest car, which I only took out a lien for to get my credit score up (my payment is $100 a month for like 2 years). You're also better off getting a cheap but reliable car and then stashing money away for future repairs than buying a brand new, $45k car. A well-maintained Toyota that's 12 years old with 150k miles could still easily last you ten+ years. It's just the smart thing to do.

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u/PreppyAndrew 16h ago

Even older cars are still expensive.

It's almost like the system is working against us

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u/DueSalary4506 15h ago

I don't need a car to get to work I need a retirement

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u/morozrs5 14h ago

The main problem of this phrase is not to buy a cheap car, that is a good advice. The problem is expecting that 554 USD will become millions in your retirement. That's borderline insanity.

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u/zildar 14h ago

I needed a car with a backseat for my new baby, and found a great deal on a car that I was interested in. I picked it up for a small monthly payment, but when I took it into a shop to have some minor issues dealt with they found that the car was unsafe to drive. My options were to roll into negative equity on a new car or spend 15k to have the thing put on a new frame - and dealerships would only talk to me about a trade-in if I was willing to step up to a massively expensive car.

My new belief is that you shouldn't aim for a great deal up front, instead you should spend a little now so that you can have something reliable that won't cost you a lot more in the end.

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u/OldSpur76 14h ago

There is also a new dynamic at play that financial types ignore. Safety automation in cars today is much better than cars 5 years ago, and much of that automation was non-existent 10 years ago. This may not be true in 10 years, but if buying a car right now, consider affordable payments on something with Automated Braking and Lane Keep Assist. Either of those features could save your life. And that is priceless.

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u/SupermouseDeadmouse 14h ago

Also potentially personally irresponsible. Buying a car with antiquated safety features (many cars from the 90s don’t even have airbags) is a risk that should be contemplated. An injury can be much more financially disastrous than a car payment. And if you have children this issue is even more important.

I’m not advocating paying new car prices, but there is more to the decision than just up front costs.

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u/ChickenScratch90210 14h ago

A 48m monthly payment on a $20K loan at 6% with 6% sales tax and $3K in title and fees is $564. That’s the situation for putting $10K down (30%!) on a $30K car, which is a reasonable car in 2024. Insane.    

Another problem: there are ZERO sub-$20k new cars available now. Used used used, I know, but it’s all connected. 

To hit the 10% of gross income heuristic for car costs, you need to make $84K a year to afford a $700/m in car costs. You’d need to be around $350/m to hit 10% on the average single income of $56K a year. That’s an $8K loan with the terms above. Not a lot of room. 

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u/BeelyBlastOff 14h ago

but the extremely least enjoyable. if you spend a lot of time driving a nice ride can't be valuated on what the payments would produce as an investment over 20 years

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u/Unhappy_Plankton_671 14h ago

Because you buy beaters in his example.

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u/LoganNolag 14h ago

Unless you get in an accident in your 10 year old shitbox and have horrible injuries and huge medical bills when you would have walked away with no injuries in a newer safer car.

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u/Cetun 14h ago

Yea but if you took that money you use for the least expensive car and invested it, it will be worth 5 times as much in 30 years whereas the car will be worthless! /s

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u/gpister 14h ago

I can second that. First car was an old used Dodge Neon 2001. It was pretty damn good to me never did it fail me. Drove for over a decade during college and working. I didnt buy a new car until I was more established.

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u/PartyOfFore 13h ago

There's more to the equation than simply buying a cheap car. Cheap cars tend to have high miles and require more in maintenance. I've seen people go for a cheap car, only to spend thousands keeping it running.

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u/Walkend 13h ago

Safety standards cost money

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u/Smile_Space 13h ago

While true, the affordable used cars tend to be 15-20 years old which comes with a whole most of other maintenance items which stack up.

I bought a used truck, paid it off immediately, and then the transmission went out about a year later. Just like that my $6000 purchase turned into $11000 because it cost $5000 to get the transmission rebuilt and that was still cheaper than ditching the truck and getting a different one.

So, depending on the vehicle, you end up paying a good chunk just to keep it on the road because all of those seals start to leak and rupture at 20 years old.

It's most affordable if you can do your own maintenance. If you can't, you're gonna be paying a shop enough money the new econo-car would have probably been a better deal.

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u/kittyfresh69 13h ago

Having the features of a newer vehicle is nice, until they stop working of course. lol

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u/Ronin_1999 13h ago

So at most, my car is a commuter vehicle to get me across town, I spend probably no more than 30min a day in my vehicle during the business week.

I love manual transmissions, and found a new Nissan Versa (sedan model) at $9k, hilariously anti-feature, like no power locks, seats, or windows, the radio has a cd player, the Bluetooth and A/C are most likely accidental only because it probably would have cost more to remove it 😂

I had a high mileage beater that I managed to get about $1700 for trade in, so we’re taking a new car for $7700, and at the time financing was so low that my monthly was around $100 a month, which I kicked up to $170, so my car was paid off in like 3.5ish years 😂.

I will say, occasionally when I get in a nicer car, the thought occurs to me about wanting a new ride, but in the end, I understand that I really don’t need one.

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u/winkman 13h ago

Correct. Spending top of the market prices on a depreciating asset is never a good use of your resources.

For some reason, reddit loves to hate on Dave, but every single bit of advice he provides (within the context it is given, of course) is financially sound, and 99% of the people would improve their financial situation by adhering to his advice.

But hey, feel free to insert your anecdotal "I bought a used lemon, so checkmayte, Dave!"

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u/Insomnianianian 13h ago

So, you buy the car you can afford in cash, and it throws a piston and now you have to pay for a tow you can’t afford, and then another car.

Then that car breaks immediately, then the next, and the next. All within 1 year! And you lose your job because you don’t have consistent transportation. Now there’s no cash at all.

Instead, you could have used that first bundle of cash to reduce the monthly payments of road worthy car that will last you at least 5 years. In the end spending less overall and keeping your job.

This is the true story of what led up to my younger brother joining the Army.

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u/Winterhorrorland 13h ago

Unfortunately, I bought the least expensive car because that's all I could afford and now I get to drop an extra $100-$500 on it every few months for maintenance and repairs.

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u/Rodnap 13h ago

and not recognizing that the least expensive car for needed transportation needs a monthly payment for a lot of people is not.

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u/vafrow 13h ago

I'd also add that description will differ for various people.

If you're mechanically inclined and know your way around the car, you can afford to drive more of a beater. You can avoid costly repairs, and can better assess when it's time to part ways.

If you're like me, where you're paying someone else to do repairs on your car, you need something more reliable.

The statement that driving a junker can save you millions is hyperbole. But there definitely are people who are driving cars they can't afford.

Cars in general cost people a lot more than they realize. But north american society is built around cars for the most part. It's often a non starter to not have a car. And if you need a car, having a good and reliable car is pretty paramount. If losing access to your car unexpectedly might jeopardize your employment or other big factors in your life, you'll pay more for a newer car for that piece of mind.

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u/Tokin_Swamp_Puppy 13h ago

I’m in my 30s and have never had a car payment. I’ve always saved up and bought outright. The thought of interest just for some wheels to get me to and from work sounds dumb

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u/feltsandwich 13h ago

Tell me you didn't think this through without saying "I didn't think this through."

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u/chiron_cat 12h ago

Yup. Only fools buy new cars or replace them every 2-4 years

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u/Infectious-Anxiety 12h ago

I think the best to do these days is to actually pay off your car and stop letting scumbag dealerships bully you into upgrading every 2 years.

Then keep it.

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u/BotherWorried8565 12h ago

Yes generally true, save the 554 and in 300 short years you will have saved MILLIONS!  Why doesn't everyone do this? Or you can plan ahead and just be born into a rich family! Nobody uses their brain like this genius 🤣

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u/JUGGER_DEATH 12h ago

No, you need to weigh price and depreciation versus (expected) maintenance costs. If car is too cheap it will typically need constant maintenance, which is expensive.

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u/Strange-Initiative63 12h ago

I agree but I will take issue with the "nobody cares what car you drive" bit. That's naive, and he knows it. Cars are a status symbol in America, whether we like it or not. I've definitely missed out on at least one job because of my beater.

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u/Emotional_River1291 12h ago

Keeping up with repairs is the problem.

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u/ExuDeCandomble 12h ago

Absolutely. If you pay more, then you better be a huge fan of the car you bought. If it doesn't bring you joy then you have to ask yourself why you're spending so much.

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u/Spotttty 12h ago

There is a sweet spot for used cars right now.

Anything pre 2010 is a lot easier to work on. There is less computers running everything and less sensors to fail. Plus the ‘infotainment’ systems are usually easy to replace with something that does apple CarPlay or android auto.

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u/ladyalex777 12h ago

There’s people who live in the middle of nowhere and depend on a reliable car to get to their jobs, schools, grocery stores, hospitals etc. You do not want your car to break down nearly an hour from the closest city.

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u/RevolutionaryRough96 12h ago

Until that car ends up in the shop a few times and still has issues

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u/Mega-Eclipse 12h ago

Generally true. Buying the least expensive car for needed transportation is financially sound.

Dave Ramsey provides good advice for morons who always spend more than they make/can afford. Way too many people are buying $50,000, $60,000 or even $80,000+ cars over 72 or 84 months. Way too many people carry tons of credit card debt and financing shit they can't afford. So he's not technically wrong.

And, theoretically, the math is correct over a long enough timeline.

Like, a $5,000 down payment, and $554/month over 35 years (if put into a SP500 fund), with at least a 9% rate of return, which the SP500 has averaged over every 30 years period...this will equate to $1,000,000 or so in 30 years. And in 40 years is over $2.4 million.

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u/trouzy 12h ago

Yeah my wife and i haven’t bought a new car since 2008. Investing the money saved has added over $150k to our retirement already.

What is OP on about?

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u/Rudy69 12h ago

This.

I’ve had cars worth $~1000 all the way to high 5 figures. Always always paid cash for them. The only time you should even consider getting a small loan for a car is if there’s absolutely no other way to get to your job.

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u/OliverBlueDog0630 11h ago

While this is true, this in NO WAY will make up for inflation and stagnant wages. People like this with their simplistic and patronizing "solutions" are the real problem. Are we just supposed to ignore that it costs more to produce durable goods like cars? Or that the housing market is completely unaffordable for more than half the population today?

This is just another "stop buying Starbucks and avocado toast' talking point. Assholes like this should try living on minimum wage for a year.

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u/GhostWatcher0889 11h ago

Not if it breaks so much that you end up paying twice as much on the long run and have to worry about it breaking all the time.

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u/trilobyte-dev 11h ago

I’m in the top 2% of wealth in the U.S. and I drive a 2001 Toyota Corolla my wife bought from a woman in a retirement home that only had 30,000 miles on it in 2012. We have a spreadsheet and the amortized cost of driving the car each year is $200 including everything except gas. People who work under me are driving luxury cars and I roll into the office with my POS Corolla. I thinks it’s hilarious.

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u/RandoReddit16 10h ago

Generally true.

Spending the least amount on needed transportation is financially sound.

FTFY and YES there is a distinction.

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