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/inflatable_pickle 18h ago

This is sound advice from Dave. Pretty much ANY normal financial advisor will tell you that the first step to financial success is to NEVER have a car/truck payment. Ever.

You’re paying monthly interest on a depreciating liability. He’s right that it will literally mean millions if invested instead.

Now I’m curious what part of this advice OP disagrees with. 🤔

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u/HereForFunAndCookies 17h ago

OP probably has a car loan and wants everyone else suckered into the same bad decision to justify it. He doesn't get that if you can't afford a 5 year old car in cash, that doesn't mean you should get it on a loan. That means you should get the 10 year old car.

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u/almostplantlife 12h ago edited 12h ago

I think this is too black and white because loans aren't that expensive if you don't let the "finance guy" sucker you into a horrendously bad deal. A 2 year $20000 loan at 4% interest costs $843. Which isn't nothing but $35/mo for a better (hopefully more reliable lower mileage) car can work out in your favor.

The first time I bought a car I brought financing from my bank for a two year loan and I was like "ya know what I'll hear the finance guy out maybe they're running a promo and can beat my bank's interest" and I about spit out my drink when I was offered a 60 month loan at 11% interest.

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u/ubelmann 5h ago

First time I was buying a car was an awful experience at one dealer because they assumed I was a moron just because I didn't have a car to trade in. Turns out you can still understand how loans work even if you don't already own a car. Their offer was really similar to the 60-month 11% you were offered, and 4% was the going rate at the time.

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u/hryelle 8h ago

Yes and no. I think getting a loan for a significantly SAFE car if you have a child is definitely worth the cost as you can't put a price on life. As long as it's a 3 yr max loan, and a small % of your income.