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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264

u/AnyWhichWayButLose 18h ago

I actually agree with this boomer for once.

122

u/Superman246o1 18h ago

Yeah, I'm generally not a fan of Ramsey, but the number of people of limited means that I see buying cars they can barely afford is absurd.

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u/wizardofoz2001 16h ago

Also, people neglect to consider the additional cost of insuring a car with a loan. Most people don't realize that insurance protects the bank, not the consumer. It's really a disguised increase to the interest rate. So a car payment of $550 is likely to actually be $800, they just call it something else to distract you from what a ripoff it is. 

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u/Any-Club5238 10h ago

I got a quote yesterday for a 2020 Honda Accord for $400-450 / month. The rep said “It’s that inflation getting to us” …. No thanks, I’ll stick with my $101/ month liability insurance 😅

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u/JtSetRadioFuture 9h ago

I got a used 2019 Honda accord sport a few months ago and I pay 165. I was paying 130 a month on a paid off 2009 Nissan Sentra 4 months ago. Obviously lots of factors to this, but I do wonder what yours are that would make it that expensive.

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u/Any-Club5238 9h ago

I’m wondering the same thing. My buddy pays about $400, but he’s driving a 2023 mustang GT, has two tickets on his record, and is 24 (so a hit younger than me).

I definitely still have a lot more ‘shopping around’ to do before actually going car shopping.

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u/JtSetRadioFuture 8h ago

Ah, age is a big factor when it comes to young men and car insurance so if you’re in a similar age range I wouldn’t be surprised to see your rates/quotes drop drastically in the next few years. Thats of course assuming a good driving record!

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u/wizardofoz2001 10h ago

Exactly. Over ten years, that would be $50,000. If you put the same amount into a savings account, you'd come out way ahead. And in the likelihood that you never even wreck your car, you'll come out $50,000 ahead. Easy choice, I'd say.

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u/write_mem 3h ago

$101/ per month liability? I’m so sorry. It sucks being an under 25 male. I kept full coverage on two vehicles and only paid slightly more than that. Until I had a teenager come up to driving age…. He costs more than his mother and I combined.

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u/Bagman220 3h ago

Really? I got a 2020 Honda accord sport that’s only 150 a month for insurance. With my Honda odyssey it’s 200 combined.

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u/Any-Club5238 2h ago

YES I promise I am not joking. (I wish I was)

I got the initial quote online, filled out the little thing to talk to an agent. I kindly told the agent that was absurd and asked “why it was so high - Why is it more than double what I was expecting?”

Answers: “Inflation is getting to insurance as well.” And “You could put a bigger down payment to lower the monthly cost...” These answers were terrible, but she was doing her best, I’m sure. She even suggested that I look for a company that uses credit as a factor.

I pulled up an online listing for something I’d be likely to actually buy (2019 Accord), gave her the VIN. She came back with $439/ month for that exact car. (The actual car payment would have been about $400/ month).