Should You Pay CASH For A Car? (My Thoughts)
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- čas přidán 15. 06. 2024
- Should you buy a car with cash? This video explains why that may or may not be a good idea.
There are pros and cons to paying for a car in cash.
Some of these factors are emotional, some are mathematical.
Paying cash for a car may actually HURT you financially in some ways.
Watch until the end to hear my thoughts on buying a car with cash!
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ABOUT ME 👇
My mission is to provide my viewers with actionable content that enables them to create financial wealth. My videos are a reflection of my real-world experience as a real estate investor, stock market investor, student of finance, and entrepreneur.
This channel allows me to share my passion for personal finance, stock market investing, real estate investing, and entrepreneurship. I produce content that I would want to watch, and because of that, I give 100% effort in every video that I make. I also believe in complete transparency and open communication with my audience.
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#CarBuying
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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.
AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning, at NO additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact my opinion.
⏰ Timestamps ⏰:
0:00 - Introduction
0:32 - Benefits of Paying Cash For a Car
4:08 - Disadvantages of Paying Cash For a Car
6:55 - My Thoughts
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Good day Marko, just wanted to know what you thought of MPI secure compound interest (I think I said that right)? Curtis Ray has a good amount of videos on it.
Sorry man im a salesman we dont like cash deals. With finance they are more likely to buy BACK END products like warranties.
@@CP-od5ws watch my other videos
Signing up just for the Outros man!
Also, hey sometimes you got to sleep in that car too :D
I never had any problems paying with cash
And always got the car cheap
Marko the type of guy you’d want to have a beer with and talk finance 🍻
Finances the last thing I'd want to talk about while drinking beer
Marco, I'm glad to hear that you're making moves elsewhere besides CZcams. Being a content creator on youtube is cool, but it is wildly unpredictable and it'd be better for you in the long run to make a website/school. I'm glad you're doing that. You're definitely one of the best content creators for finances that I've come across.
Thank you that means a lot!
I actually had a finance guy ask me if I wanted rust protection. He then looked down, saw I was not financing the car, and said "nevermind".
?
@@jessicac2377 Financing the car lets the finance guy pack in extras like rust protection, vin etching, and extended warranties among others.
@@leeklinglesmith3427 Thanks for Explaining
Also I don’t know if I missed this but what 0% APR program/promo? Does that help to prevent you going into saving account???
@@jessicac2377 Lee is correct. It’s one thing to tack on an extra that costs you an extra $7 in car payment, you have a different perspective when it’s $300 coming out of your pocket right away.
That qoute at the end
Buy a used car with cash that you can afford and drive it down until it breaks down and repeat.
YUP. This is mathematically the cheapest way to buy cars. Even if you get one lemon out of the bunch, you will still come out way ahead versus buying brand new or leasing.
@@chartuck You want to avoid lemons, they are frustrating and expensive in different ways! So, Smart Wallet's advice works best with some knowledge about mechanics, and mostly common sense.
@@sparklysparks77 I only buy used Lexus. Never got a lemon yet doing this with their Toyota motors.
Smart move.
@@chartuck Way to go, those are awesome cars. No reason to pay a lot more for a new car that will get stuck in traffic just like a used one.
Marko! Why are you so on point? My little Jeep Patriot just went up. Everyone is suggesting financing. I’m paying cash without touching my emergency fund. I needed this video. Staying in the budget. 🙌🏾
Great video brother
Almost half a million subscribers?! So proud and glad to see this channel take off. Thanks for all the content :)
Marko your really doing a great job.
Marko your videos are pure value 👌 and has helped me...
He should make a video about investment 😉
I'm planning on buying a new car but I've got just *$8000* I need some sure invest which could get twice the money I invested....
*Investing* in *forex* now would be a wise choice especially now with it's current rise..mm
@@kamalaharris9074 🤔🤔🤔🤔
You’re a weapon mate! Many thanks for your diligence, effort and ability to convey intricate details.
I watched a commercial to hear the final words. I am glad I did.
You should make a video about how business owners can "write off" a vehicle on their taxes through their business.
Marko is one of those guys that would be a cool dad
Yeah, how great would it be growing up and being educated on what you actually need to know!
No he wouldn't. He'd be the kind of dad that would tell his kids..." I'm putting your weekly allowance in a special piggy bank so when you grow up you can buy mommy & daddy a new car"
Hes my finance go to man. Lost my dad when I turned 18 so I learned lots from him on youtube
Marko , killing it always!
Congrats on the upcoming school/website! Financial literacy and responsibility apparently is underrated when it shouldn’t be.
Good stuff, Marko!! Thanks for sharing this knowledge! -Ray & Zach
Thank you! I need to get back to Zach soon. Been super busy
Great vid man. Perfect timing for me as well. Cheers from North Olmsted...
Yesss!!! Please start this school!!
Great video! I'd be super interested in hearing more about your experience working as a salesman, and the sorts of things you saw people do.
Best advise ever: "Never buy a car to impress someone at the stop sign"... Seriously
People that work at dealerships are disliking the video! Great content.
Looking forward to your courses
I literally just turned on the notifications on your channel . Perfect timing. And in my opinion the best way to buy a car in your early stages is to buy a cheap reliable Toyota or Honda or hyundai , drive it for as long as it runs safely and repeat.
"reliable" and "Toyota or Honda" are redundant. You lose points for Hyundai.
yep, still rolling with my 2006 Toyota Tacoma. Never getting rid of it!
Or a Lexus. If you wait long enough and are ok with a few extra miles on a Toyota engine, you can find good deals on a Lexus.
Any year Camry 👌
Good tips Marko! Did you replace the BMW with a Tuscon?? ;) Wish we could have met up again this year at FinCon for some Mexican food. Maybe next year!
I don't know you but you would be considered one of my smart friends!
Marko has one of the best youtube chan :)
He is a really good friend in person too!
In my mind, his my friends too. 😂
Love your videos Marko always sharing the love!
Epic stuff Marko! Another great video which i learned something from 👍👍👍👍
Keep them coming! 🔥🔥🔥
I usually don't really listen to other peoples advise completely because I feel it's not all truthful but this guys advice seems genuine
Couldn’t agree with all of this any more. A lot of sense here. Great video!
This guy always has great videos showing the pros and cons of different scenarios
Great video Marko! However, Dave Ramsey does also say leasing is the worst option because it averages out to be 14% interest rate! It’s not put on paper that way but that’s what comes out of your pocket.
Thank you for this great video
Really like your videos!
It's not as cut and dry as I thought. Thanks for the tips!
Great video Marko. In this situation right now, got the outdoor price from dealer. We did not discuss how I was buying the vehicle. Rebates are figured in. If I can get rid of the $1,000 doc fee I might have a super deal.
This is a great video. Thanks for sharing!
I just want to say thank you!
Yeah I needed this as I'll be looking at buying a new (used) car here in the coming years! Thanks👌🏽
I think staying on budget like you said is a bigger factor than stated. With financing im looking at cars that cost 10k plus. With cash im thinking that early 2000s toyota for 5k doesnt look so bad. To part with that kind of money upfront , in my experience really reminds you what you can and cant afford.
Thank you, this video is pure value!
Thanks. I strive for pure value in all of my videos.
Great content buddy, thank you
My pleasure thanks for watching
Great job. Me and my wife watched this episode together, just now. She liked it.
Always wanted to know about this.
Champagne tastes with a beer budget! Gotta love it Marko- excellent video!
It's a great song😂
Champagne is pretty cheap tho lol $6 for a bottle of brut
Marko, great info. You should do a collab with Your Auto Advocate.
Car dealership hates it when you pay cash. They make most of their money via the interest financing. This is coming from the mouth of the finance guy at the dealership.
I thought they love cash
Whenever Marko checks his notes to confirm numbers, I feel like he’s checking in on the class to see if they’re still following along.
First 💖 thanks for everything you do! Learn a lot from you!
Thank you!
Great 👍🏻 video.
What confuses me with the whole “cars depreciate so buy a used car” and just buying cars in general is I will have to buy another car in the future, so I’ve been looking at it from a “how much will this car cost per year of ownership based on the purchase price and how long I can safely expect it to last?”, with the mindset of a new car needing to be bought immediately after. If I can expect a new car to last 12 years based on how much I drive and buy a 6 year old used car for half the price had it been new, I’d be paying less money for the car, but I would have to buy another one 6 years sooner had I bought a new/newer one, and would be owning it during the time when it’s more expensive to maintain, potentially making the cost of ownership per year more than had I bought new/newer.
I plan on buying my next car in cash whether it’s an older used, newer used or new and have enough saved for each plus a 6 month emergency fund and just don’t really know how to look at is. Also I’m confused with the “the money going towards the car can go somewhere else with a better interest return” because where is the money being set aside for the car you’re going to need to buy in cash in the future? It always seems to be talked about as if you’re buying a car and that’s it without the fact that another car will be needed afterwards. Like once I buy a car in cash I will still need to set money aside each month for my next car if I want to buy it with cash.
Confused please help 😂
Great video!! What are your thoughts on lease takeovers? Cheers
Thank you.
Let us when you start you program Marko I predicated what you doing for us thanks for sharing keep it up good work.
School, yess!!!! 😃👏🏻
We have a 2004 ford freestar SE with 50k miles, it is in “excellent” condition no cosmetic problems with rims, paint, interior, no issues with the engine or transmission it’s super clean we got it for $4k with title transfer, plate transfer and registration included from a wholesaler that usually doesn’t sell to the public we have never had an issue with it except for when we got it having to get new tires (they were from 2008), rotors/bearings, and battery (from 2015) and have had it for a year and driven far distances/daily.
You should definitely do a cooperative video with The Homework guy !
Your advices on car buying are both excellent ! :)
Thank you for the insight! Your seriously the car wiz haha ;)
Lol thanks bro
my calculator is solar and has no power. i'm trying to use the light from my laptop but when i push equals, it turns off...lol
that quality tho wow, looks great
just buy a 1000-2000 dollar honda from the 90's these damn things run forever and maintenance cost is 9th grader's pocket money, and if you get one with VTEC and manual you'll have some fun too
I agree with this take. The counterpoint that I consider most important is that opportunity cost can also be risk cost. You’re likely to outpace a 4.5% loan with investments... but not guaranteed. Someone paying cash in February would have appeared omniscient given hindsight (assuming they pulled from investments). Same thought process on not taking a title loan in hopes of outpacing the interest.
Welcome back Marco! I was wondering what happened to you!
This is my 4th video this month. My channel isn't being distributed by CZcams unfortunately.
Love take away with 1. Sleep at night. Keeping it real to hell. Whatever helps you sleep at night puts a smile on your face
Marko, what's your opinion on using a CD loan to purchase a car? I heard that it's a great way to avoid interest and build credit.
At 1 time you could add somebody to your credit card account . The person added to the account would benefit with the original account holders good payment history. That being said when I was a teenager in the 1990s my dad had me added To his Am Ex Gold card. Shortly after my 18th birthday I wandered on to a Toyota lot and was told that my credit score was so good I could sign for almost anything on the lat.. I bought a brand new top of the line karolah LE with the touring package. 2 months after buying the car and before I even made my 1st car payment I lost the car when a drunk blew through a traffic light in totaled it. Once the dealership collision center explained to me the car was totaled I then wandered over to the new car lot again and signed for a new 99 Camry. I thought I was being responsible by buying a bigger safer car. With what the insurance paid for the karolah I thought I would have more than enough but was upside down almost 8K so they just added it to the new Camry loan. 6 months after owning that 99 Camry a Tropical pain in the ass passed over Miami flooding That 99 Camry under 4' of water. Back to the new Toyota car lot I went and bought my 1st used 2000 Camry With only 700 miles. I thought I was doing the responsible thing by buying a used car at this point. I negotiated A29K car down to only 18K with a really great interest rate. I'd love the car until Toyota redesigned it in 2002 when I decided that I could not get stuck in this old thing that already had almost 50K. I sat down and actually figured out how much the car was worth versus how much I owed. Although I had been paying religiously $349 Per month religiously for 3 years I still $33000 And I had stupidly signed up for a "smart buy" aka Balloon payment so the final year My car payment was going to double. To make a really long story a little shorter that was literally the last car loan I ever got myself into and I still drive that 2000 Camry today. She has 432 K miles on her and has been paid off since 2005. She still shines and drives like new and has the coldest AC on Earth. Because of that experience I decided to get into auto finance as a business where I Can scream and warn stupid people About the dangers of Jewish finance And the kosher tricks they play. It really does any good because there's no More intoxicating fragrance than The scent of a new car.
Hey Marko Love your Chanel - thank you for sharing your wisdom!!!
- Make a video on how to prepare for global Currecy Reset / Global Reset
Where to put our savings so they dont lose value? What to invest in? should we buy gold or silver when its really expensive now? . Is alt currency gonna crash like last year ? Dangers of crypto?
We need a video on how to negotiate a lease on a car
There are some exceptions to cars being depreciating assets. Namely collectible classic cars and others that hit that 25 year mark and nostalgia kicks in and vehicles reach the bottom of their depreciation curve. If you get the right deal you generally break even or don’t really lose much. Classic muscle cars, some mid 90’s and 2000’s Japanese cars like Toyota’s like a Supra’s Honda s2000s, 90’s Ford Broncos etc.
Professor Marko coming soon!
This is a question that I've been asking myself for quite some time my current car is paid off but when I go buy another car if I can get an interest rate like I got on my last car I probably won't buy it in cash
Just don't go commenting that under Dave Ramsey and Chris Hogan videos. I have a feeling they wouldn't approve lol
Black vito strikes again lol that's my guy
@@2Fresh313 right poor Dave will get a heart attack 😂😂
It depends
I do agree with paying cash for a vehicle but with very low interest rates nowadays financing may be worth considering. My friend just bought a Range Rover with 0% financing and his choice of a 3-6 year term with no prepayment penalties.
always save up money and buy with cash! saving that interest payments will open up doors to use that money somewhere better in life.
Marko, amazing content - you just a got a new sub!! Question: Why don't you hear more pple just finance through a low-cost HELOC and make int only payments? Here in Canada, I can get a HELOC at under 2%. I'm in the market for a 80k car - why wouldn't i just make interest-only payments of $133 /mo or $3.2k in 2 yrs ownership and the sell and pay off the HELOC (and the remainder out of cash at the end for the depreciated amount). Please let me know what I am missing here - note - I would buy a 2 yr old German car (so not high sticker price and yet still under warranty for 2 more yrs). I hope you get to answer this one!! thanks again
Any debt is effectively traveling into the future, (impossible at this time as far as I know) gathering a bunch of your paychecks, and traveling back to the present to buy something you want this second for the promise of your labor and treasure for years to come. When you plot out the fact that a car could cost you the first 1-2 weeks of your labor per month, for 60-70 months, you really get clear on what that will mean to your happiness and wellbeing. Getting a good bike and the Uber app could be a far better option. Says a man who owns 2 cars that are both over 17 years old...
I want to buy a civic type r. How do I get around paying the dealer markup. Also, great hair bro.
Because investments carry risks, a more relevant comparison would be to compare the rate of return of fixed income investments vs. the financing interest rate being offered, to see which is a better deal.
Just in time for that school discount 😉😂
Marko you certainly buy vehicles the right way! Selling the car for more than you paid for it and driving it for a year and a half not a bad gig! By the way how did you like the BMW?
I missed you Marko!
I've posted 4 times this month lol. I'm sure CZcams is not recommending my videos anymore.
@@WhiteBoardFinance yeah I haven’t been getting any notifications!! What’d you do to CZcams why they’re treating you like a lost cousin lol
Buying a car with cash is a smart decision for most... but what if a person has all the cash for the car and just finance some of it to build credit??? Use some of the cash for investments & save while building credit.
6:21 that is the reason I am subscribed to this channel..."I'm just sitting there thinking to myself..what are you doing Dude!?! But it is what it is l can't say nothin cuz it would complicate the sale"...meaning if you want to screw yourself up than then so be it, i actually laughed out loud :D Sad but it is like that I've seen it as well but it happens because a car is such a status simbol and a false sign of success in our society
Classic Marko
Last words👌🏻👌🏻
Marco for president!
How about buying a car through Costco or another of those programs?
Pro Tip
Buy a car with a colour out of fashion.
1. You won't see the colour of your car while driving.
2. You can save a few thousand, because the car is hard to still die the dealer.
3. You always will find your car on big car park.
Hi Marko, just a comment, you’ve noticed car market value is quite within the higher range during these times?? Weird
Yes, thats the only way you should buy gets your name on the paperwork of ownership right away and saves you money.
So how about this scenario if anyone had some input. Would you buy a Honda Accord 2913 for 19k all at 47k miles. Or an Accord 2018 at 32k miles for 26k with a 10k down payment and a loan at 3% and no warranty.
How'd you read my mind? This is something I have been debating with myself these past few weeks.
I'm an old school finance guy. I buy what I can afford. If I need to take a loan on it, I can't afford it. The exception would be for an appreciating asset, like real estate.
Would you be willing to do a video on target date funds or link me one that you have because I haven't found a good one thanks marco
I had a really great experience the other week by listening to Marco. I went in with my own financing in place. Had a fat down payment, and got a pre-approved loan at a credit union. I paid 10k down and financed 6k. Whilst that sounds like a lot I actually have a really good job and I have almost no credit with big purchases. So this is my first car and it will help my credit. I also paid no fees! I made sure to not feed the girls in the back and had them get rid of the DOC fee and everything else 😂 My payments are small, and im super happy.
Glad to hear this!
1. Because you don’t know if your investment is going to make more than your interest rate. It’s just a guess.
2. Miss one payment and you owe interest on the full amount of the purchase price. Also, they usually don’t allow option for early payoff. No thanks
3. Don’t use an emergency fund for a vehicle. Have a separate account for purchasing vehicles(USED), vacations, etc. (Play money)
That's a TON of interest 😮
Yes it is!
Which app do you think is better for beginner investors Webull or Robinhood?
If you pay cash for the car do you still get the cash back/ cash offer? Or do you only get the cash offer if you finance?
What you should do is get the “out the door” price in writing then get financing somewhere else.