When you read deeper about how debt from private banks works, you find that the availability of the debt increases the house prices, it's not really a matter of people not being able to afford houses. Banks make people compete with each other to get loans from them, so the people can outbid each other for the house they want. If people couldn't take out massive loans to buy a house from profit-focussed banks, then the house prices would start to drop to levels that were affordable for people without the need for a loan.
It’s the same with having a phone on contract. Why you wouldn’t just buy your phone outright (unless you can’t afford it but there’s enough on eBay that work great still). I do not understand phone s on contract it’s so much more expensive
predator capitalism… don't expect the government to bail you out, that's only for banks and wallstreet, the very people pushing this. but yeah. put billionaires in charge, that'll change things… you know, because trump and elon are "outsiders"… hahahahahahahahaha.
For the last few years I've been serious wondering why anyone actually buys cars when leasing is a thing. It makes more sense to just lease cars than to buy a new one. The average car lease is $487 while the average car payment is $548. Even if you pay off your car completely, you're still stuck with a car that loses value, while requiring more and more maintenance. Meanwhile, you can keep swapping to a new lease every few years, drive a brand-new car every 6 months to two years if you want to.
Oh, I also remember Buffet, Gates, and Dave Ramsey saying don't buy a new car till you have a million dollars. So, pick you poison, new car or lease.
A car loan is perfectly fine. Having a safe reliable car when you most likely need it to drive to work and earn money in the first place is reasonable and it’s not realistic to have the money needed to buy one outright at the start of working age.
Im never going to finance a truck again. Im paying myself a car payment every month then when my current truck bites the dust I’ll get a new one with cash. No more stupid debt.
Saved up? Yep, that's what I learned from my parents. Also: always balance your checkbook and pay off credit card (only one!) right away. And never, ever overdraw.
I'm glad that as a kid I watched some American TV show of a financial advisor helping people in debt. The first thing was destroying their credit cards and teaching them about the trap of borrowing. Now I'm 33 yo and never had a credit card. Never took a loan and I'm doing just fine. Thank you, TV show, that I don't recall its name 😂
Like this is new? Been doing that for like 40 years. Now it's worse with 84-96 month loans LOL. Who'd do that? 80K and 84 months at 6% or more. Still there's more, evil sales people pile in with "add ons". Low Jack trackers, so they know where to repo the car that you can't afford. Best of all they get you to pay$1200 for it. Nearly all of it is a mark up. You don't need it and you don't have to take it even if it's already installed. Then the warrenty that is over priced. Keep turning it down and watch the price go down. Most are worthless anyway. A $2995 warranty is really just $995 to $1295. The rest is pocketed by the sales people. How about the ceramic coating protection. Don't even think this is something valuable. It's only worth $150 not $995.
The premise of this video is flawed. Loans are for buying assets you can't pay cash for right now, NOT for things you can't afford. If you can't afford a house or car, you will end up defaulting on the loan and that's bad for the bank.
34 comments
It hurts me, but I watch them anyway 🥲🥲🥲
Those of you with $80,000 trucks 😬
I’ve never taken a loan to buy a motor vehicle in my life. Why would anybody be that stupid?
Good thing I did not listen to that "Rich dad, poor dad" guy.
When you read deeper about how debt from private banks works, you find that the availability of the debt increases the house prices, it's not really a matter of people not being able to afford houses.
Banks make people compete with each other to get loans from them, so the people can outbid each other for the house they want.
If people couldn't take out massive loans to buy a house from profit-focussed banks, then the house prices would start to drop to levels that were affordable for people without the need for a loan.
It’s the same with having a phone on contract. Why you wouldn’t just buy your phone outright (unless you can’t afford it but there’s enough on eBay that work great still). I do not understand phone s on contract it’s so much more expensive
I'd never buy a new car. The more electronic controls – the more expensive it becomes to fix when they are broken.
"nobody's gon borrow a loan for a depreciating asset."
say less. about half of the people on the planet have no idea what that means and will immediately buy into the idea regardless
I was in the Army, and had a new Private by a used Saturn with 19% interest!
I love you!!!!!!!!
What's funnier is most of the time you still don't even own the car once you've paid it all off
predator capitalism… don't expect the government to bail you out, that's only for banks and wallstreet, the very people pushing this. but yeah. put billionaires in charge, that'll change things… you know, because trump and elon are "outsiders"… hahahahahahahahaha.
Yep,
They buy it to impress the neighbours
My dad actually gave a good reason for getting a car loan. Boosts your credit if you pay it off on time
This is the best !😂😂😂😂
For the last few years I've been serious wondering why anyone actually buys cars when leasing is a thing. It makes more sense to just lease cars than to buy a new one. The average car lease is $487 while the average car payment is $548. Even if you pay off your car completely, you're still stuck with a car that loses value, while requiring more and more maintenance. Meanwhile, you can keep swapping to a new lease every few years, drive a brand-new car every 6 months to two years if you want to.
Oh, I also remember Buffet, Gates, and Dave Ramsey saying don't buy a new car till you have a million dollars. So, pick you poison, new car or lease.
A car loan is perfectly fine. Having a safe reliable car when you most likely need it to drive to work and earn money in the first place is reasonable and it’s not realistic to have the money needed to buy one outright at the start of working age.
Im never going to finance a truck again. Im paying myself a car payment every month then when my current truck bites the dust I’ll get a new one with cash. No more stupid debt.
this shouldnt exist. regulate it away
Saved up? Yep, that's what I learned from my parents. Also: always balance your checkbook and pay off credit card (only one!) right away. And never, ever overdraw.
I'm glad that as a kid I watched some American TV show of a financial advisor helping people in debt. The first thing was destroying their credit cards and teaching them about the trap of borrowing. Now I'm 33 yo and never had a credit card. Never took a loan and I'm doing just fine. Thank you, TV show, that I don't recall its name 😂
Saved up.. What are you, six-year-old? xDDD
That forward lean with “I think they might” 😂
Like this is new? Been doing that for like 40 years. Now it's worse with 84-96 month loans LOL. Who'd do that? 80K and 84 months at 6% or more. Still there's more, evil sales people pile in with "add ons". Low Jack trackers, so they know where to repo the car that you can't afford. Best of all they get you to pay$1200 for it. Nearly all of it is a mark up. You don't need it and you don't have to take it even if it's already installed. Then the warrenty that is over priced. Keep turning it down and watch the price go down. Most are worthless anyway. A $2995 warranty is really just $995 to $1295. The rest is pocketed by the sales people. How about the ceramic coating protection. Don't even think this is something valuable. It's only worth $150 not $995.
College education also depreciating asset people go into debt for. What you learned becomes less relevant as new development/knowledge comes out.
People been going into debt for depreciating asset forever now especially America
Bro, you are the best person on social media! Ever!
I never understood that mindset.
Why do people try to buy stuff they can't afford?
First save up, then buy what you want.
It's delayed gratification but way more responsible.
This of course excludes housing.
Do you want a new car? A question no one has ever answered no to.
too real 💀
In the US and Australia, the vast majority of the population are dependent on a car.
The premise of this video is flawed. Loans are for buying assets you can't pay cash for right now, NOT for things you can't afford. If you can't afford a house or car, you will end up defaulting on the loan and that's bad for the bank.
And that’s how it happened kids.
These clips are so great. So spot on.