Finance major too with an interest in personal finance. This drives me up a wall. Lots of “car guys” are peaking and will never afford to own their dream car because they’ve plateaued financially. You can live like this for years and your financial situation isn’t gonna magically change when you’re in your 40s and 50s. You’ll be in the same place with nothing but a decade old German sports car to show for it… I like that Justin says put the extra car expenses in the Entertainment/Wants category! Less vacations, eating out or nice clothes but you get the car. Some people are happy with that.
Another good piece of advise is to never roll your debt from one car into a new car loan. Or before you know it you'll be paying $1000 a month for a Civic.
1. Dont finance it unless you have what its worth or double 2. Go through a credit union or relationship bank to get lower interest (and stay the hell away from dealer financing) 3. Make sure your monthly payment isnt more then half your monthly income
The thing that got me was when you can out right buy your dream car. You see your bank account and think how long and how much work it took. To each their own but I went from wanting an M3 G80 to getting a 2021 330i.
lol best is when you have ppl around you saying you’ll never be able to afford it. Then showing up with it a few years later. Your honestly richer then you think. Put your mind to it and it will happen. 😊
The humility section really landed with me. I don't ever want to take a step back in anything. This ensures I frugally up my lifestyle only when I'm 100% confident I won't settle for less later. It's been a blessing. 340i paid off is much sweeter than an m340i with a note. Congrats.
This video is refreshing to see coming from an enthusiast. When most channels are throwing out crazy car payment numbers (not accounting for gas, insurance, maintenance) it’s refreshing to see someone recommend a more realistic, and sensible approach
Being in finance/ banking, I can say this video is much appreciated. It's also VERY important to note: If you're younger and living at home or renting, your car payment will have a huge impact on your debt-to-income ratio, which affects what kind of house you can qualify for. Try and keep your car payment as ~10-15% of your income. It's better to be invested in an asset that appreciates! Cheers Justin, congrats on being debt free and thanks a lot for the video.
your doing gods work. i was 18 when i got my first bmw. needless to say i got bent over. sometimes you need to understand your dreams till you captivate them. i promise you bro this will help a young enthusiast !
30 years old now, I've always purchased my vehicles in full (with only one exception, '13 FRS) and it is quite rewarding to have a debt-free life, however, low interest rates help you acquire high-valued items without the sacrifice of investment opportunity. As of today, interest rates are high so it does make sense to avoid car payments but when interest rates are low, taking a loan could benefit you in the long term if you know how to hold on to your cash correctly. I purchased a '16 IS300 back in 2021 when interest rates were 2.8% for a car loan and regret buying it in full since I could have used that money for something else.
This video came out great babe! I’m so proud of the time you took to put into this and the research you did for it. You have a lot of good information and I’m proud of the work you’ve done to take care of the car loan!
Heck yeah! They were also the type to drive a car “until the wheels fell off.” I’m thinking of a minivan my dad had when I was a kid. It was on it’s 3rd transmission before they finally decided to let it go 😭
This is such a good video as you've done it from a car enthusiasts perspective. Being a "car guy" isn't a cheap hobby. So trying to find that balance between being financially responsible and enjoying a hobby you love is key.
The amazing stress free laugh of a debt free man... Things you love to see😁 Big Ups Brother 💪🏽 on that topic of having to work in the warehouse, i feel that was one of the catalysts in what turned out to be the greatest step by far and bringing this channel to life😁... I relate to it on a parallel level where if my previous car didn't get totalled, my channel wouldn't have been created and our following and friendship wouldn't have been in existence 🙏🏽 here's to many more videos and growth 🙏🏽💪🏽
Yes! That all happened right around the time my channel was starting to take off. Rather than looking for another office job, I decided to grind it out in the warehouse for a couple years while making CZcams videos on weekends 😁
Never watched any of your videos before and this possibly came up as I’m a car person myself. What a great advice video, there should be more people like you who are putting out relatable and important content. We have quite the car loan crisis in Australia also. I’ve always avoided car loans and been smart with money but I was so sick of dreaming about one day owning my beloved E63 so I did some research and got a loan out to the get the car or I felt I was never going to get it. I can’t wait to pay it off but the smile it gives me daily when I start it is worth it.
Just bought my 335i for 12k 100k miles. All preventative maintenance done. Will pay off in 2 3 months then. I’ll modify the car aesthetically and engine wise!
@@jaywavy5734 I bought one with 150k 😂 if they’re taken care of they will go double that distance. The reason I got mine was because I drive 36k miles a year and didn’t want something low mileage bc it would add up. Plus being in the city all the time with mine being cheaper it not really so worried ab door dings or bumper damage, plus no car payment.
My first car was new and financed, and as soon as the first payment went through, I regretted that decision. That was a 0% loan over the term so I definitely could have done worse, but the depreciation hit over the next few years was definitely more than I was willing to accept. Decided then on that I'd only get a USED car now that had already taken the major depreciation hit, and that I can pay for outright, but finance should the interest rate be low enough. So far, that strategy has worked wonders!
Great video man! I used to work at several quick lube shops. One of the most frustrating things was when u would get a high end car that just wants a basic oil change. Then u have to explain to them that there vehicle takes ten quarters of full synthetic oil and it’s going to be well over 100+ dollars for an oil change then they look at u like you’re crazy. Not many people ask how much a basic oil change for this car and dose it take premium fuel. Two of the most frequent things u do for your vehicle.
Just paid off my BMW as well. Hey, I've been watching the channel for several years now. Heck, I remember when you used to skateboard in your videos lol. Excellent progress.
do your best to be simple and content. this is the key to be financially strong. i drive a 21 year old corolla given to me by sister who didn’t need it after buying herself a new BMW. Everyday is a temptation but I just remind myself that the car I drive now is a blessing from the Lord so why not be content and be happy with it. The corolla is so easy and cheap to maintain plus its a gas saver. 😊❤ i hope no one will fall into the trap of paying expensive car payments beyond their financial capcity.
I have a car loan of 16,211 at a 27% interest rate for a 2011 335i with 99k. I bought this car march of this year. I needed a car because my last one failed me and I really wanted a BMW but didn't have the money to pay in cash and I had no credit at the time. It was my first time buying from a dealer alone and when I look back, I realized how much I over paid. Their excuse was the bank needed so much down and because I didn't have that amount that help make up the extra at the expense of raising the cars price. I was also sold a 2500 warranty which I was able to cancel and get a full refund for. My payment is 495 with a 60 month term loan. I am currently sitting at 9,700 not counting acured interest and if I follow my budget plan I set up, the car will be paid off by Feburary of 2025! I have learned my lesson and next time I will either have the cash, or I will READ THE FINE PRINT ON MY CONTRACT. Lesson learned the hard way.
thanks for this video. i wish i could habe watched a similar video before i purchased my forst car a while ago. I was dumb and had started a new job making 14hr and at the time i felt "rich" because it was more than what people my age were making at the time. i went straight to the dealer and financed my "dream car". a used 2012 WRX with a 6 year loan at $420 a month. i just signed the papers because i had no idea about interest rates etc. i just looked at the monthly payment and thought, "yeah i can afford it". if you do the math, i paid $32k for a car that was listed at 20k. 5 and a half years later, i was so excited to not have a car note, and then my motor went out. (wrx of course). i was so upset because i didnt have $10k to fix it, so the same day i went to a dealer and started a brand new loan. this time i made sure i got a reliable vehicle. im a little more than halfway done with it now and ive been trying to pay off extra here and there but i cant WAIT to finish it. im done finacing cars from now on.
Good talk Justin! Cars are a depreciating liability, fact.... Just because you can get the credit doesn't mean you should... Build wealth not debt. Money saved is money earned.
Good video man and congrats on paying it off early. I did the same as I was fortunate enough to triple my payments for most of my loan term. Best decision I made was buying a CPO over new. It was fully loaded only 3 years old and nearly half price!
Picked up my car last March for 30k. That same fire was lit under me so I paid it off in a year and a half. Last payment is this upcoming Thursday. My main issue was I didn’t enjoy my monthly cashflow being reduced by 555. To me I saw that as money for savings.
Congrats on getting it paid off quickly! The last straw for us was my wife losing her job a few months ago. It's so much easier to make a budget without $414 coming right off the top each month. Now that money goes right into the savings 😎
Being debt free is totally liberating and feels great! Too many mugs financing cars these days, if only they understood the power of compounding interest. In short you should only finance a car if you can make use of opportunity costs or have a highly profitable business and can use car payments to offset taxes. In any case it makes sense to only buy things when you have at least 3 to 5 times the value of that item in cash or assets.
As a car guy that can't seem to keep a car more than three years (at maximum), one thing I like to consider, as you mention, is depreciation. Paying enough on the loan to ensure the car's worth more than the loan amount left helps with the mental aspects if you can't pay off all at once. So, if I decide it's time to move on, I'll have "equity" in the car trade-in. Great vid!
My last few cars were paid with a check $100% mine when I drove off the lot. Yes new cars. I saved for a few years putting some money away each payday. And before long I have enough for that new ride.
My last car i bought was an 05' BMW e46, cost $6000, down payment was $2000, monthly payment was $200. I paid it off in a year & a half. Had the car for almost 7 years. Unfortunately a car rear-ended me. Took the insurance money & got a BMW e30. This one was $9000. No monthly payment on it. All I pay is insurance. My wife bought a brand new Toyota back in 2014 & just paid it off not too long ago. 10 years of monthly payments for her, I could never but she says it finally feels good to get rid of that bill. I told her keep that car for a while & enjoy not paying for it.
Great video! Nobody in the car industry is talking about this, they only show luxurios cars drag races. Thanks for sharing your experience. We know you are a passionate bmw enthusiast, just like us, but this bring us more hinsight to the reality that cars are not everything in life.
Incredible video! I tell people I know all the time to avoid financing a car if possible. You see so many people finance cars they cannot afford and it often puts them in dire situations. I bought my car for $11k in full and pay $100 for insurance. Having a car I love without having an intrusive car payment is such a blessing.
You Rock Justin! I started watching you because of My 2011 LCI E93 M3 😁. I have always enjoyed your “presence”, delivery, content, intent and passion. You seem like a really cool Dude, and to do this for the”Community”, how cool! Great info yet again. If you have anymore E9X stuff…let it roll. Seriously 🙏🏾 Thank you.
Here in the UK, I had a 5 year loan on a black convertible e93 which I crashed in year 4. My insurer payed out, but instead of clearing the loan, I bought a top spec Msport e92 with the money & let the loan run out on its own... Ive been Loan free for 2 years. It was the bank who told me to buy another car than a loan.. Rare, that a bank would be ethical..!!
Been watching the channel since I was in high school. Now that I'm working full time, I've entertained the idea of a 340i, M or not. I found the information you discussed very insightful. I did my research on the 20/5/10 rule or something: 20% down-payment, financed for 5 years or less, and less than 10% of your monthly income. I never thought about the total value of the car being less than 50% of your annual income as well. With that said, my search has broadened just a hair 😂
Good luck on the car search! To add to the other comment, insurance for my 340i is ~$1,700/ year, gas is $65 to fill up with premium, Michigan registration is $231/ year. An oil change is around $100 if you do it yourself using quality supplies.
Love the car enthusiast angle here! Couldn’t agree more. Currently driving a paid off MK6 Gti after selling a relatively new 2024 Honda. I would go a step further and have everyone shoot for not having your monthly expenses for your vehicle, including car payment, not exceed 25% of your gross pay.
Great video! As someone who has grown up watching a lot of car CZcamsrs and hope to get my channel big enough to be monetized. I don't think I have heard any of them make a video like this. Thank you 😊🙏🏾
I put 40% down on my gr86. I still plan on paying over what my 5 year loan is before modding or anything. Got a 1000$ truck too paid off (old yukon). I still add to invesments and have retirement. Currently with modern day interests rates paying your car faster is better than investing it for sure for alot of cases. Now i love my 86. I got it in neptune blue and i have an emergency fund. With the ppf i wrapped around it and the very limited options its half my yearly income in worth
I bought my car from the original owner and paid cash. I’ll drive it for a year or two sell it and repeat the same process. I don’t take much of a hit and get to change cars often. Thanks for the video
I paid off my MK6 Gti last month. I’m in no rush to get another car payment. My monthly was $250 a month. Now all I gotta do is modify it and keep up w maintenance. I’m so fckn happy to pocket the extra $$$.
Great topic. I love cars too. Made many financial mistakes with financing cars when I was younger. I'm 59 now. I still love cars. I own a 2009 BMW 128i Msport with a manual transmission. I upgrade with track emphasis performance parts, and service my own car to save money. the N52 is reliable and parts are cheap to buy. It is the best car I've ever owned because it is paid off.
One of the things to keep in mind when you do this is that the EARLIER in the process you do it, the more interest you save. A quick look on-line at loan amortization schedules for car loans (and home mortgages, for that matter) is that the biggest interest cost is in the first year, and the share of interest paid gets lower from day one. So if you can, double down EARLY, because by the end of the loan, all you're doing is returning borrowed capital back to the lender. So you can give yourself a break from accelerated payments as you get closer to the end and just let it run off.
It is always so tempting to get more car or house than you really need. I work with people who make really good money and live paycheck to paycheck because they needed a big house and a F150 that gets 13mpg to get to an office job. I have learned that pretty much anyone who says "I got a great deal" after buying a car more than likely the opposite is true.
LNOW WHAT YOUR GETTING INTO!!!!!! Soooo many young people want that FLASH CAR, PHONE, HOUSE, ETC, and are not willing to wait or research and know what they are getting into, I told my friend wait and know what your getting into and be ready to walk away if it doesn’t work out. He really wanted specific cars and made it happen but took some time and patience and effort on his end to do so. Others should do the same.
I follow the rule of, the max you can finance for a vehicle is 30% of your annual salary. If you earn 100k and want a 50k BMW, you front 20k of it yourself. The second catch is, you pay that 30, like it's 50k. My repayment for my 22 Outlander is zilch as I paid 20k cash for it, but whatever I finance is never more than 30% of my annual income. The last car I had under finance was 60k, I financed $35,000 of it and paid the other 25k upfront before realising, I really don't need a car loan as the $700 a month is much better in my investment account than it is in the banks.
What a responsible video 🧐 I haven’t quite paid off my car, but I am making it my mission to do so before the year ends. I owe $6k on my 2019 GLI. The original loan was $23k, and the rate is 2.74%. It has just over 47k miles on the it.
I made my final payment in May (6 months early). It's an awesome feeling for sure. I didn't want to make any sacrifices. But sat down and seriously reviewed all the numbers...then saw a path. Initially target was 3 months early--just make extra payments. Had an oversight, and didn't realize I had cleared the remaining balance to ZERO!!!! Discipline plays a big role also...and safafices, no matter how minor, goes a long way!! BTW, enioy the videos (as always) Justin. 😎👍
I wanted to buy a mustang gt and I'm just going to save up a bigger bag to damn near pay it off so even if i had a payment it would be super low and i paid off old car as well.
Paid off my car loan during the pandemic I did by paying $50 or more every week before my usual car note of $405 & I've never bought a new car since the COVID pandemic. Nowadays I just go to either Copart or IAAI & I find a car with less than 100l miles with little to no damage & I fix it up & drive it for 3 to 6 months I sell it & find another one. During the pandemic I bought a 03 Lexus IS 300 with 180k miles from Copart for $1,000. The car had a big dent on the roof & it cost me $2000 to fix the whole car up including paint wheels & tires & it's my toy that I drive during the summer. I just happened to have a totaled 03 Lexus IS 300 that was rear ended sitting for 2 yrs in storage. I took that car stripped it & moved everything I had custom on that vehicle & called the junkyard to come get the shell of the totaled vehicle. So if I get bored of what I'm driving I just go to Copart or IAAI & look for something else.
🎉 great video. My husband and I just paid off our 50k loan we had for our cars combined. I’ve got a bmw white 340 I drive and he’s got Audi s line. Both pre owned. Took us three years to do it but so happy we did. Now I can focus on the modifications I want to do. Starting with exterior. Feel like I want to do same thing you’ve got going on. Looks so sweet. 👌🏼
I didn't own a car until I was 29, and just "made do" with walking, bicycling, public transportation (mostly) or scooter/motorcycle. So when I got my first "real" job ie career job, I was shocked at how much cars actually cost. I had no idea. And yet, in the US you are practically forced to own a car. It's a "necessary but insufficient" constraint. I would think with cars being so ludicrously high, Americans would agitate for more public transportation but so far that is absolutely not the case.
Brother, I just payed mine off in July. Car Payment free. It feels so good. The loan company will not bother you again. And believe us if you miss a payment, it's not a nice thing when they don't stop or care. . They just want thier money or else, the threats start with,, we can take the car. Well no according to the contract they have to get a court order first. And there you have at least 90 days to move and get back Payments payed. And boom no more harassment. But ok its there cash. They gave the car company or car dealer the cash so you could buy that car, with interest for the loan. Not a good idea. Your now stuck until you pay it off, re finance the thing, or sell it to pay back the loan because the car is not yours yet. Try to sell it for more money, THEN they have to be in on it, because they still own the car and have to agree with this sale. and that almost never happens. Not good because now in the long run🎉 you paying more money and they extend the loan at smaller payments. So now you must pay a smaller amount but at a longer re written contract and there making off with your money for a longer time. And hopefully everything go's well. And at the end you really at that time have nothing. But an old car. Depreciation and so on. Unless that car has a great resale value your done. Paying for a Manchin and end up with a shack. So ya" your right don't finance a car it's the banks that are making, or taking your hard earned money and you will never see that money again.😢 New at purchase, old paying off that loan. Just keep it. Do not sell it. As long as it's still running good. Keep it. The thrill of ownership has it's rewards..!
I payed off my WRX back in 2020 and I payed it off early too. I am done with car payments. I'm now saving the money that I used for car payments. I'm going to drive my car until the engine shoots out of the hood. Next time I buy a car I will pay straight cash.
That’s great! Congratulations to you and your family! I bought my first car, a 6MT Corolla SE, last July shortly after graduating university. Car payment, insurance, gas, and maintenance is
Thank you! Congrats on getting the student loans paid off, that's huge! I think we can find a balance between the Dave Ramsey approach - no debt under any circumstance, and "average" - $700+ payments while making $40k a year. If car payments cause someone to have to work overtime, get a second job, or prevent them from saving, it's not a good deal.
Finisnced an Audi s3. Paid 27k after taxes and interest at 7%. Just sold it 2 weeks ago and sold for 12,700. Never making that mistake again and never putting 16,000 down on a higher milage S3. I was 18 at the time now 21 with a much better understanding of my finances . Paid off the car in 2 years and my credit score did go up a ton. From a fellow car guy, make smarter choices than I did and rethink that decision before buying that nice car, rather invest your money and thank yourself in a couple years .
I drive a 2015 Acura TLX with 76k on it I bought in 2019 with 33k I also use to be a technician so I save myself money on most of the maintenance. I payed the car off in 2022 so I have been car debt free for 2 years. I’ve invested the difference within those years and it feels great having a good amount of savings and money invested. At this point I do want to buy a new car but I rather save money for a good downpayment and not have a huge loan
I just bought an E92 335i for 20k CAD. I wouldnt have bought it if i couldnt afford it atleast 2 times over. Im 22. Debt just doesnt make sense any more. When cars were 0.99% interest I might have considered it, but now with 6% on new cars and 9-12% on used cars its insane. I am lucky i will say that because I have good income and the money but i couldnt imagine sleeping at night when you dont know if you can afford even a single month of car payments if you lose your job.
I traded my E90 328i in at the place I used to work at and got a mint F01 740 and only payed a 300 sales tax….. living debt free is the best, and it’s good to network to make things go smooth too.
😭 Less than 3 years and I’m car payment free, $400 monthly does suck but at the end of the day I’m happy with what I drive. I think another thing that helps is appreciate the car you have, I see people trade in their cars between 2-5 years because they want something new not knowing they just putting themselves in further debt chasing new.
If you have a PCP (in the UK, not sure what it’s called in the states) a car loan is more financially viable. You can get into a really nice car (sometimes ones of your dreams) and over a fixed term of 36-48 months, drive it for what it would have cost post depreciation, sometimes even saving 2-3 months worth from what you would’ve paid if you did it all outright, and sometimes still hold equity within the car in the 2/3 or 3/4 period of the term. The equity can then be used towards another car. HCP (which is what this video sounds like) isn’t a good option, as you pay off the total value with interest for you to keep, whereas PCP is up to you. PCP with its guaranteed balloon payment that is optional, is up to you to pay, you either hand the keys back, or you can go to any dealership and sell it and use that money towards progressively upgrading cars over time. It’s not logical to pay £50k outright to buy the car of your dreams (unless you’re loaded, then it’s logical). But this all only applies if you’re not already tanked with other debt, if you will struggle with taking the payments, you shouldn’t sign on for a loaned vehicle.
I completely agreed with you I just gotten rid of my 2010 BMW 328i with 65,000 I Feb this year. I bought a 2024 Toyota 4 runner. Initially I signed up for a loan with 1.99% Int. I put 50% down and was panicking about a car payment. Three days later I contacted Toyota Fin and paid off the balance the car was over $50,000 but what a great feeling to not have any payments. PS . I didn’t pay any interest on the vehicle!!!
Honestly in my opinion. Its best paying off a car rather than having a monthly chip on your net income. Specially if you’re a car guy if you plan on modifying a vehicle its best to sleep at night knowing that you don’t share with the bank. I always live by my mom’s saying “dont go broke trying to impress people that won’t help you” as these cars tend to fall into issues over time and maintenance.
Great video Justin, I think the young generation need to realize you don’t need an expensive/new car to get through college or early career phase. I never owned a car while through school and was able to buy my dream G30 540i used with cash about 3 years ago. I personally tend to stay from all kinds of debt and stay a debt free life.
That's the way to do it. People nowadays have such a casual relationship with debt, and perhaps don't feel the weight of it like older generations. Congrats on saving up and buying a 540i! Enjoy it!
I target a car payment that is less than 5% of my gross monthly income. This way it’s not too much of a burden and I don’t feel rushed in paying it off. I’ll also add that I’m investing towards early retirement so most of my excess funds after expenses are going to that.
I recently moved to the US and I couldn’t believe when I learned your credit score gets a hit when you PAY your loans. Nuts. Ppl here also don’t realize how cheap you can get used cars. Just got an N55 for less than 12k in pristine condition, paid it cash, loving being debt free.
Regarding that finance friend who made the negative comment. It irritates me when ever I open up to my manager (I work in finance) how I want to get another car, and he immediately starts laughing at me how I’m dumping money into a depreciating asset. My take on this is that If it’s an ordinary commuter car or a basic luxury commuter (e class, s class or a4) yes it’s dumb af. I want to get a 997.2 c4s. Like dude I’m a car enthusiast, and this brings joy to me.
an easy thing that I do is make payments every 2 weeks - not monthly. I split the payment in half, round up a little, and by paying every 2 weeks, I actually may 26 payments a year. It adds up quickly. it has done wonders for my mortgage. nice video.
Im a financial advisor and applaud this video, nicely done! Being debt free is an incredible feeling
Finance major too with an interest in personal finance. This drives me up a wall. Lots of “car guys” are peaking and will never afford to own their dream car because they’ve plateaued financially. You can live like this for years and your financial situation isn’t gonna magically change when you’re in your 40s and 50s. You’ll be in the same place with nothing but a decade old German sports car to show for it…
I like that Justin says put the extra car expenses in the Entertainment/Wants category! Less vacations, eating out or nice clothes but you get the car. Some people are happy with that.
im debt free, Got plany of cc debit, just not paying it😅
Why didt you make a video like this?
Yes it is. I eat well,sleep well...
That’s why Allah said interest is sin
Another good piece of advise is to never roll your debt from one car into a new car loan. Or before you know it you'll be paying $1000 a month for a Civic.
I know someone paying 800 for a Camry.
@@brendanhickey9771I know someone who brought a new type r fl5 20k over msrp… $1200 a month for 300 hp and fwd is wild.
I just did that :/
@@brendanhickey9771 for a camry damm :/
@@brendanhickey9771Currently paying $600 a month for a 25’ Camry :(
Focusing on paying off my car/student loans was the best thing I ever did. Debt free is an amazing feeling.
1. Dont finance it unless you have what its worth or double
2. Go through a credit union or relationship bank to get lower interest (and stay the hell away from dealer financing)
3. Make sure your monthly payment isnt more then half your monthly income
Original owner of BMW 550 paid off for 3 years now. Aftermarket mods from China have made me feel like I have a brand new car again.
The carmall cluster saved my 2013 328i
The thing that got me was when you can out right buy your dream car. You see your bank account and think how long and how much work it took. To each their own but I went from wanting an M3 G80 to getting a 2021 330i.
lol best is when you have ppl around you saying you’ll never be able to afford it. Then showing up with it a few years later. Your honestly richer then you think. Put your mind to it and it will happen. 😊
2021 330i you could afford a 2016 340i and still have fun
The humility section really landed with me. I don't ever want to take a step back in anything. This ensures I frugally up my lifestyle only when I'm 100% confident I won't settle for less later. It's been a blessing. 340i paid off is much sweeter than an m340i with a note. Congrats.
But an m4 though… 👀👀😂
This video is refreshing to see coming from an enthusiast. When most channels are throwing out crazy car payment numbers (not accounting for gas, insurance, maintenance) it’s refreshing to see someone recommend a more realistic, and sensible approach
Being in finance/ banking, I can say this video is much appreciated. It's also VERY important to note:
If you're younger and living at home or renting, your car payment will have a huge impact on your debt-to-income ratio, which affects what kind of house you can qualify for. Try and keep your car payment as ~10-15% of your income. It's better to be invested in an asset that appreciates! Cheers Justin, congrats on being debt free and thanks a lot for the video.
your doing gods work. i was 18 when i got my first bmw. needless to say i got bent over. sometimes you need to understand your dreams till you captivate them. i promise you bro this will help a young enthusiast !
I hope so! Wish I heard this advice when I was younger
You're a good dude, not many CZcamsrs giving advice like this.
30 years old now, I've always purchased my vehicles in full (with only one exception, '13 FRS) and it is quite rewarding to have a debt-free life, however, low interest rates help you acquire high-valued items without the sacrifice of investment opportunity. As of today, interest rates are high so it does make sense to avoid car payments but when interest rates are low, taking a loan could benefit you in the long term if you know how to hold on to your cash correctly.
I purchased a '16 IS300 back in 2021 when interest rates were 2.8% for a car loan and regret buying it in full since I could have used that money for something else.
This video came out great babe! I’m so proud of the time you took to put into this and the research you did for it. You have a lot of good information and I’m proud of the work you’ve done to take care of the car loan!
💯🔥💯
I was totally expecting you to come up behind Justin and say NO when he was looking at those wheels😁😅
@@Realpreshaanb 🤣🤣🤣
I agree. Good job babe!
@@TommyLGarage 🤣😆
I'm one of the guys like your parents who bought used and paid cash. Dave Ramsey would be proud of you bro!
Heck yeah! They were also the type to drive a car “until the wheels fell off.” I’m thinking of a minivan my dad had when I was a kid. It was on it’s 3rd transmission before they finally decided to let it go 😭
This is such a good video as you've done it from a car enthusiasts perspective. Being a "car guy" isn't a cheap hobby. So trying to find that balance between being financially responsible and enjoying a hobby you love is key.
The amazing stress free laugh of a debt free man... Things you love to see😁 Big Ups Brother 💪🏽 on that topic of having to work in the warehouse, i feel that was one of the catalysts in what turned out to be the greatest step by far and bringing this channel to life😁... I relate to it on a parallel level where if my previous car didn't get totalled, my channel wouldn't have been created and our following and friendship wouldn't have been in existence 🙏🏽 here's to many more videos and growth 🙏🏽💪🏽
Yes! That all happened right around the time my channel was starting to take off. Rather than looking for another office job, I decided to grind it out in the warehouse for a couple years while making CZcams videos on weekends 😁
@@justinbuice and with that, a liability became a valuable asset 😁💪🏽
Never watched any of your videos before and this possibly came up as I’m a car person myself.
What a great advice video, there should be more people like you who are putting out relatable and important content.
We have quite the car loan crisis in Australia also.
I’ve always avoided car loans and been smart with money but I was so sick of dreaming about one day owning my beloved E63 so I did some research and got a loan out to the get the car or I felt I was never going to get it.
I can’t wait to pay it off but the smile it gives me daily when I start it is worth it.
Just bought my 335i for 12k 100k miles. All preventative maintenance done. Will pay off in 2 3 months then. I’ll modify the car aesthetically and engine wise!
Congrats on the car!
Where’d you find it?
@@876jonopthere are so many on fb marketplace, 335is go all day for like 11-14k for 70-100k miles.
Why would you buy a 335 with 100k miles
@@jaywavy5734 I bought one with 150k 😂 if they’re taken care of they will go double that distance. The reason I got mine was because I drive 36k miles a year and didn’t want something low mileage bc it would add up. Plus being in the city all the time with mine being cheaper it not really so worried ab door dings or bumper damage, plus no car payment.
My first car was new and financed, and as soon as the first payment went through, I regretted that decision. That was a 0% loan over the term so I definitely could have done worse, but the depreciation hit over the next few years was definitely more than I was willing to accept. Decided then on that I'd only get a USED car now that had already taken the major depreciation hit, and that I can pay for outright, but finance should the interest rate be low enough. So far, that strategy has worked wonders!
Great video man! I used to work at several quick lube shops. One of the most frustrating things was when u would get a high end car that just wants a basic oil change. Then u have to explain to them that there vehicle takes ten quarters of full synthetic oil and it’s going to be well over 100+ dollars for an oil change then they look at u like you’re crazy. Not many people ask how much a basic oil change for this car and dose it take premium fuel. Two of the most frequent things u do for your vehicle.
Just paid off my BMW as well.
Hey, I've been watching the channel for several years now. Heck, I remember when you used to skateboard in your videos lol.
Excellent progress.
Thanks for sticking around this long! I still skate 😁
do your best to be simple and content. this is the key to be financially strong. i drive a 21 year old corolla given to me by sister who didn’t need it after buying herself a new BMW. Everyday is a temptation but I just remind myself that the car I drive now is a blessing from the Lord so why not be content and be happy with it. The corolla is so easy and cheap to maintain plus its a gas saver. 😊❤ i hope no one will fall into the trap of paying expensive car payments beyond their financial capcity.
I'll be paying off my car next month (six months early). What a relief it will be!
Congrats! That's awesome!
How much more per month do you pay off?? Congrats!
@@jasonloera3358 varied month to month, but the average was between 50 and 75 extra. Makes a big difference in the end.
I have a car loan of 16,211 at a 27% interest rate for a 2011 335i with 99k. I bought this car march of this year. I needed a car because my last one failed me and I really wanted a BMW but didn't have the money to pay in cash and I had no credit at the time. It was my first time buying from a dealer alone and when I look back, I realized how much I over paid. Their excuse was the bank needed so much down and because I didn't have that amount that help make up the extra at the expense of raising the cars price. I was also sold a 2500 warranty which I was able to cancel and get a full refund for. My payment is 495 with a 60 month term loan. I am currently sitting at 9,700 not counting acured interest and if I follow my budget plan I set up, the car will be paid off by Feburary of 2025! I have learned my lesson and next time I will either have the cash, or I will READ THE FINE PRINT ON MY CONTRACT. Lesson learned the hard way.
Much respect for you making this video!
Well done. Much respect for a video like this. It's needed, plain and simple. This topic isn't discussed enough!
Thank you!
thanks for this video. i wish i could habe watched a similar video before i purchased my forst car a while ago.
I was dumb and had started a new job making 14hr and at the time i felt "rich" because it was more than what people my age were making at the time. i went straight to the dealer and financed my "dream car". a used 2012 WRX with a 6 year loan at $420 a month. i just signed the papers because i had no idea about interest rates etc. i just looked at the monthly payment and thought, "yeah i can afford it". if you do the math, i paid $32k for a car that was listed at 20k. 5 and a half years later, i was so excited to not have a car note, and then my motor went out. (wrx of course). i was so upset because i didnt have $10k to fix it, so the same day i went to a dealer and started a brand new loan. this time i made sure i got a reliable vehicle. im a little more than halfway done with it now and ive been trying to pay off extra here and there but i cant WAIT to finish it. im done finacing cars from now on.
Truly the best English-speaking car video on CZcams. Thank you for raising awareness
I appreciate that!
Good talk Justin! Cars are a depreciating liability, fact.... Just because you can get the credit doesn't mean you should... Build wealth not debt. Money saved is money earned.
Good video man and congrats on paying it off early. I did the same as I was fortunate enough to triple my payments for most of my loan term. Best decision I made was buying a CPO over new. It was fully loaded only 3 years old and nearly half price!
Thanks for helping me out with this vid 💪
Picked up my car last March for 30k. That same fire was lit under me so I paid it off in a year and a half. Last payment is this upcoming Thursday.
My main issue was I didn’t enjoy my monthly cashflow being reduced by 555. To me I saw that as money for savings.
Congrats on getting it paid off quickly! The last straw for us was my wife losing her job a few months ago. It's so much easier to make a budget without $414 coming right off the top each month. Now that money goes right into the savings 😎
so happy to see you loan free and it will make the car feel soo much better to drive :D
NCP club here and it feels great. Awesome video! Everyone in the US should watch it.
Being debt free is totally liberating and feels great! Too many mugs financing cars these days, if only they understood the power of compounding interest. In short you should only finance a car if you can make use of opportunity costs or have a highly profitable business and can use car payments to offset taxes. In any case it makes sense to only buy things when you have at least 3 to 5 times the value of that item in cash or assets.
Love it. I only buy things with cash! I’ve purchased two in the last 18 months. In my view if you can’t pay in cash, you can’t afford it!
Congrats on the cars! Cash is king
Not me watching this with new bmw m4s for sale in another tab…
Great video!
🤣
The car community NEEDS this message! Thank you! 🙏🏽
Beside being a very very good bmw youtuber...you are a good person...thanks for your honesty
Thank you for the kind words!
You’re so right on this one! I don’t have my BMW’s anymore but I still like watching your content. Thank you for being real 🙏
Thanks for sticking around!
Thanks for making this video! I just sold sold my mustang that I was paying $500 a month for and paid cash for a work truck. A HUGE relief!
Damn I got 4.9 interest on a brand new Mazda CX-5 premium plus and the payments 439.
I thought that was high af but you made me feel a lot better
As a car guy that can't seem to keep a car more than three years (at maximum), one thing I like to consider, as you mention, is depreciation. Paying enough on the loan to ensure the car's worth more than the loan amount left helps with the mental aspects if you can't pay off all at once. So, if I decide it's time to move on, I'll have "equity" in the car trade-in. Great vid!
My last few cars were paid with a check $100% mine when I drove off the lot. Yes new cars. I saved for a few years putting some money away each payday. And before long I have enough for that new ride.
My last car i bought was an 05' BMW e46, cost $6000, down payment was $2000, monthly payment was $200. I paid it off in a year & a half. Had the car for almost 7 years. Unfortunately a car rear-ended me. Took the insurance money & got a BMW e30. This one was $9000. No monthly payment on it. All I pay is insurance. My wife bought a brand new Toyota back in 2014 & just paid it off not too long ago. 10 years of monthly payments for her, I could never but she says it finally feels good to get rid of that bill. I told her keep that car for a while & enjoy not paying for it.
Great video! Nobody in the car industry is talking about this, they only show luxurios cars drag races.
Thanks for sharing your experience. We know you are a passionate bmw enthusiast, just like us, but this bring us more hinsight to the reality that cars are not everything in life.
Incredible video! I tell people I know all the time to avoid financing a car if possible. You see so many people finance cars they cannot afford and it often puts them in dire situations. I bought my car for $11k in full and pay $100 for insurance. Having a car I love without having an intrusive car payment is such a blessing.
i paid mine off early and im sooo happy
Congrats!
You Rock Justin! I started watching you because of My 2011 LCI E93 M3 😁. I have always enjoyed your “presence”, delivery, content, intent and passion. You seem like a really cool Dude, and to do this for the”Community”, how cool! Great info yet again. If you have anymore E9X stuff…let it roll. Seriously 🙏🏾 Thank you.
3:48 I went through the same mentality. Wanted to buy a WRX so bad, but I know the debt is gonna destroy me, so I bought some wheels for my old car😂
Here in the UK, I had a 5 year loan on a black convertible e93 which I crashed in year 4. My insurer payed out, but instead of clearing the loan, I bought a top spec Msport e92 with the money & let the loan run out on its own... Ive been Loan free for 2 years. It was the bank who told me to buy another car than a loan.. Rare, that a bank would be ethical..!!
Thank you for being so transparent with all of your videos the internet has a lot of liars!
I try to set a good example ☺️
Been watching the channel since I was in high school. Now that I'm working full time, I've entertained the idea of a 340i, M or not.
I found the information you discussed very insightful. I did my research on the 20/5/10 rule or something: 20% down-payment, financed for 5 years or less, and less than 10% of your monthly income. I never thought about the total value of the car being less than 50% of your annual income as well.
With that said, my search has broadened just a hair 😂
Try including gas, insurance, maintenance, registration etc. In that 10% rule. Keeps you humble.
Good luck on the car search! To add to the other comment, insurance for my 340i is ~$1,700/ year, gas is $65 to fill up with premium, Michigan registration is $231/ year. An oil change is around $100 if you do it yourself using quality supplies.
Love the car enthusiast angle here! Couldn’t agree more. Currently driving a paid off MK6 Gti after selling a relatively new 2024 Honda. I would go a step further and have everyone shoot for not having your monthly expenses for your vehicle, including car payment, not exceed 25% of your gross pay.
Great video! As someone who has grown up watching a lot of car CZcamsrs and hope to get my channel big enough to be monetized. I don't think I have heard any of them make a video like this. Thank you 😊🙏🏾
Thank you! CZcams is a grind, but if you stick with it and stay consistent, it will pay off 😎
I put 40% down on my gr86. I still plan on paying over what my 5 year loan is before modding or anything. Got a 1000$ truck too paid off (old yukon).
I still add to invesments and have retirement. Currently with modern day interests rates paying your car faster is better than investing it for sure for alot of cases.
Now i love my 86. I got it in neptune blue and i have an emergency fund. With the ppf i wrapped around it and the very limited options its half my yearly income in worth
I bought my car from the original owner and paid cash. I’ll drive it for a year or two sell it and repeat the same process. I don’t take much of a hit and get to change cars often. Thanks for the video
I paid off my MK6 Gti last month. I’m in no rush to get another car payment. My monthly was $250 a month.
Now all I gotta do is modify it and keep up w maintenance. I’m so fckn happy to pocket the extra $$$.
Great topic. I love cars too. Made many financial mistakes with financing cars when I was younger. I'm 59 now. I still love cars. I own a 2009 BMW 128i Msport with a manual transmission. I upgrade with track emphasis performance parts, and service my own car to save money. the N52 is reliable and parts are cheap to buy. It is the best car I've ever owned because it is paid off.
One of the things to keep in mind when you do this is that the EARLIER in the process you do it, the more interest you save. A quick look on-line at loan amortization schedules for car loans (and home mortgages, for that matter) is that the biggest interest cost is in the first year, and the share of interest paid gets lower from day one. So if you can, double down EARLY, because by the end of the loan, all you're doing is returning borrowed capital back to the lender. So you can give yourself a break from accelerated payments as you get closer to the end and just let it run off.
huge props to bringing this issue to the Car Community. This definitely needed to be addressed.
It is always so tempting to get more car or house than you really need. I work with people who make really good money and live paycheck to paycheck because they needed a big house and a F150 that gets 13mpg to get to an office job. I have learned that pretty much anyone who says "I got a great deal" after buying a car more than likely the opposite is true.
Selling stuff around the house is a great idea. It can go a long way, especially knowing it opens up space too
LNOW WHAT YOUR GETTING INTO!!!!!! Soooo many young people want that FLASH CAR, PHONE, HOUSE, ETC, and are not willing to wait or research and know what they are getting into, I told my friend wait and know what your getting into and be ready to walk away if it doesn’t work out. He really wanted specific cars and made it happen but took some time and patience and effort on his end to do so. Others should do the same.
I follow the rule of, the max you can finance for a vehicle is 30% of your annual salary.
If you earn 100k and want a 50k BMW, you front 20k of it yourself. The second catch is, you pay that 30, like it's 50k.
My repayment for my 22 Outlander is zilch as I paid 20k cash for it, but whatever I finance is never more than 30% of my annual income.
The last car I had under finance was 60k, I financed $35,000 of it and paid the other 25k upfront before realising, I really don't need a car loan as the $700 a month is much better in my investment account than it is in the banks.
What a responsible video 🧐 I haven’t quite paid off my car, but I am making it my mission to do so before the year ends. I owe $6k on my 2019 GLI. The original loan was $23k, and the rate is 2.74%. It has just over 47k miles on the it.
I made my final payment in May (6 months early). It's an awesome feeling for sure. I didn't want to make any sacrifices. But sat down and seriously reviewed all the numbers...then saw a path. Initially target was 3 months early--just make extra payments. Had an oversight, and didn't realize I had cleared the remaining balance to ZERO!!!! Discipline plays a big role also...and safafices, no matter how minor, goes a long way!!
BTW, enioy the videos (as always) Justin. 😎👍
I wanted to buy a mustang gt and I'm just going to save up a bigger bag to damn near pay it off so even if i had a payment it would be super low and i paid off old car as well.
Paid off my car loan during the pandemic I did by paying $50 or more every week before my usual car note of $405 & I've never bought a new car since the COVID pandemic. Nowadays I just go to either Copart or IAAI & I find a car with less than 100l miles with little to no damage & I fix it up & drive it for 3 to 6 months I sell it & find another one. During the pandemic I bought a 03 Lexus IS 300 with 180k miles from Copart for $1,000. The car had a big dent on the roof & it cost me $2000 to fix the whole car up including paint wheels & tires & it's my toy that I drive during the summer. I just happened to have a totaled 03 Lexus IS 300 that was rear ended sitting for 2 yrs in storage. I took that car stripped it & moved everything I had custom on that vehicle & called the junkyard to come get the shell of the totaled vehicle. So if I get bored of what I'm driving I just go to Copart or IAAI & look for something else.
Old 228i .. paid off... such a good feeling and I sleep better.
🎉 great video. My husband and I just paid off our 50k loan we had for our cars combined. I’ve got a bmw white 340 I drive and he’s got Audi s line. Both pre owned. Took us three years to do it but so happy we did. Now I can focus on the modifications I want to do. Starting with exterior. Feel like I want to do same thing you’ve got going on. Looks so sweet. 👌🏼
Thanks! And congrats in getting your cars paid off!
I didn't own a car until I was 29, and just "made do" with walking, bicycling, public transportation (mostly) or scooter/motorcycle. So when I got my first "real" job ie career job, I was shocked at how much cars actually cost. I had no idea.
And yet, in the US you are practically forced to own a car. It's a "necessary but insufficient" constraint. I would think with cars being so ludicrously high, Americans would agitate for more public transportation but so far that is absolutely not the case.
Ironically, many Americans associate car ownership with freedom, despite being in car debt.
Brother, I just payed mine off in July. Car Payment free. It feels so good. The loan company will not bother you again. And believe us if you miss a payment, it's not a nice thing when they don't stop or care.
. They just want thier money or else, the threats start with,, we can take the car. Well no according to the contract they have to get a court order first. And there you have at least 90 days to move and get back Payments payed. And boom no more harassment. But ok its there cash. They gave the car company or car dealer the cash so you could buy that car, with interest for the loan. Not a good idea. Your now stuck until you pay it off, re finance the thing, or sell it to pay back the loan because the car is not yours yet. Try to sell it for more money, THEN they have to be in on it, because they still own the car and have to agree with this sale. and that almost never happens. Not good because now in the long run🎉 you paying more money and they extend the loan at smaller payments. So now you must pay a smaller amount but at a longer re written contract and there making off with your money for a longer time. And hopefully everything go's well. And at the end you really at that time have nothing. But an old car. Depreciation and so on. Unless that car has a great resale value your done. Paying for a Manchin and end up with a shack. So ya" your right don't finance a car it's the banks that are making, or taking your hard earned money and you will never see that money again.😢 New at purchase, old paying off that loan. Just keep it. Do not sell it. As long as it's still running good. Keep it. The thrill of ownership has it's rewards..!
Great video! Excellent you made this video as not many CZcamsrs open about this!
I bought my F30 out right and genuinely its the best
Thanks! Congrats on paying cash for yours, not many people do that nowadays.
I paid $7000 in cash for a 2011 yaris with only 24,000 miles 3 years ago. best thing ive done in my life. I’m making $108,000 a year. win win.
I payed off my WRX back in 2020 and I payed it off early too. I am done with car payments. I'm now saving the money that I used for car payments. I'm going to drive my car until the engine shoots out of the hood. Next time I buy a car I will pay straight cash.
That’s great! Congratulations to you and your family!
I bought my first car, a 6MT Corolla SE, last July shortly after graduating university. Car payment, insurance, gas, and maintenance is
Thank you! Congrats on getting the student loans paid off, that's huge! I think we can find a balance between the Dave Ramsey approach - no debt under any circumstance, and "average" - $700+ payments while making $40k a year. If car payments cause someone to have to work overtime, get a second job, or prevent them from saving, it's not a good deal.
Finisnced an Audi s3. Paid 27k after taxes and interest at 7%. Just sold it 2 weeks ago and sold for 12,700. Never making that mistake again and never putting 16,000 down on a higher milage S3. I was 18 at the time now 21 with a much better understanding of my finances . Paid off the car in 2 years and my credit score did go up a ton. From a fellow car guy, make smarter choices than I did and rethink that decision before buying that nice car, rather invest your money and thank yourself in a couple years .
I drive a 2015 Acura TLX with 76k on it I bought in 2019 with 33k I also use to be a technician so I save myself money on most of the maintenance. I payed the car off in 2022 so I have been car debt free for 2 years. I’ve invested the difference within those years and it feels great having a good amount of savings and money invested. At this point I do want to buy a new car but I rather save money for a good downpayment and not have a huge loan
You’re right I’m thinking about buying a new car now,and the payments are expensive.I don’t want to owe nobody money.
I just bought an E92 335i for 20k CAD. I wouldnt have bought it if i couldnt afford it atleast 2 times over. Im 22. Debt just doesnt make sense any more. When cars were 0.99% interest I might have considered it, but now with 6% on new cars and 9-12% on used cars its insane. I am lucky i will say that because I have good income and the money but i couldnt imagine sleeping at night when you dont know if you can afford even a single month of car payments if you lose your job.
The lighting and production value of your videos is fantastic! Nice work!
Thank you!
Keeping it real, been a subscriber since back in the E90 days!
Thanks for sticking around this long! 🤝
I really like your videos, Justin. Big fan of your channel and a BMW enthusiat. I hope to get the 340i soon.
Love from Nigeria.
I traded my E90 328i in at the place I used to work at and got a mint F01 740 and only payed a 300 sales tax….. living debt free is the best, and it’s good to network to make things go smooth too.
😭 Less than 3 years and I’m car payment free, $400 monthly does suck but at the end of the day I’m happy with what I drive. I think another thing that helps is appreciate the car you have, I see people trade in their cars between 2-5 years because they want something new not knowing they just putting themselves in further debt chasing new.
That’s a great point. For a lot of people, no matter what car they are driving or how expensive it is, they aren’t satisfied for long.
If you have a PCP (in the UK, not sure what it’s called in the states) a car loan is more financially viable. You can get into a really nice car (sometimes ones of your dreams) and over a fixed term of 36-48 months, drive it for what it would have cost post depreciation, sometimes even saving 2-3 months worth from what you would’ve paid if you did it all outright, and sometimes still hold equity within the car in the 2/3 or 3/4 period of the term. The equity can then be used towards another car. HCP (which is what this video sounds like) isn’t a good option, as you pay off the total value with interest for you to keep, whereas PCP is up to you. PCP with its guaranteed balloon payment that is optional, is up to you to pay, you either hand the keys back, or you can go to any dealership and sell it and use that money towards progressively upgrading cars over time. It’s not logical to pay £50k outright to buy the car of your dreams (unless you’re loaded, then it’s logical). But this all only applies if you’re not already tanked with other debt, if you will struggle with taking the payments, you shouldn’t sign on for a loaned vehicle.
I saved up for 5 years, since my first job and trust me it’s worth it. Still got my first ever car (the daily) and my weekend car
I completely agreed with you I just gotten rid of my 2010 BMW 328i with 65,000 I Feb this year. I bought a 2024 Toyota 4 runner. Initially I signed up for a loan with 1.99% Int. I put 50% down and was panicking about a car payment. Three days later I contacted Toyota Fin and paid off the balance the car was over $50,000 but what a great feeling to not have any payments. PS . I didn’t pay any interest on the vehicle!!!
Congrats! Even though that was a big chunk of money, it feels great to be debt free!
that pound on the head when snoring was hilarious 🤣🤣🤣
😆
I love cars but I’m scared to go in to a bunch of debt to afford my toys and then to want to modify my cars too, just feels like a nightmare.
Honestly in my opinion. Its best paying off a car rather than having a monthly chip on your net income. Specially if you’re a car guy if you plan on modifying a vehicle its best to sleep at night knowing that you don’t share with the bank. I always live by my mom’s saying “dont go broke trying to impress people that won’t help you” as these cars tend to fall into issues over time and maintenance.
Love that quote. Your mom is wise!
Great video Justin, I think the young generation need to realize you don’t need an expensive/new car to get through college or early career phase. I never owned a car while through school and was able to buy my dream G30 540i used with cash about 3 years ago. I personally tend to stay from all kinds of debt and stay a debt free life.
That's the way to do it. People nowadays have such a casual relationship with debt, and perhaps don't feel the weight of it like older generations. Congrats on saving up and buying a 540i! Enjoy it!
Never had a car loan, as I always bought used in cash (foxbody,SC400). Good information to know and advice tho. Don’t go broke trying to drive.
I target a car payment that is less than 5% of my gross monthly income. This way it’s not too much of a burden and I don’t feel rushed in paying it off.
I’ll also add that I’m investing towards early retirement so most of my excess funds after expenses are going to that.
Love your videos boss I bought a 2013 BMW 535I. PAID 11,000 cash and thank God that it is in great shapes.
Congrats on paying cash for it, that's the way to do it!
I recently moved to the US and I couldn’t believe when I learned your credit score gets a hit when you PAY your loans. Nuts. Ppl here also don’t realize how cheap you can get used cars. Just got an N55 for less than 12k in pristine condition, paid it cash, loving being debt free.
The banks want people to stay in debt forever, so they have to penalize you when you finally get out. Congrats on paying cash for your car!
Regarding that finance friend who made the negative comment. It irritates me when ever I open up to my manager (I work in finance) how I want to get another car, and he immediately starts laughing at me how I’m dumping money into a depreciating asset. My take on this is that If it’s an ordinary commuter car or a basic luxury commuter (e class, s class or a4) yes it’s dumb af. I want to get a 997.2 c4s. Like dude I’m a car enthusiast, and this brings joy to me.
Bro I just bought a challenger scatpack in march and I wanna pay it off quickly asap this helped a lot thanks bro
Glad I could help!
Amazing video Justin Keep it up man!
Thank you!!
an easy thing that I do is make payments every 2 weeks - not monthly. I split the payment in half, round up a little, and by paying every 2 weeks, I actually may 26 payments a year. It adds up quickly. it has done wonders for my mortgage. nice video.
I’ve read about people doing this. I’m going to start paying my mortgage this way as well
@@justinbuice it definitely works and hurts less by paying every 2 weeks. I schedule on my pay day which is every 2 weeks. Good luck!