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Did you pay $104,000 for this? What do you think a reasonable monthly payment is for a newer vehicle? I want to talk about the normalization of these insane car prices. My front and my back brakes are also going out. Front brakes $35, $111.40. Back brakes $25, $13.96.
The average car payment in America is $741. That's for a new car. That is wild. The average used $521. It seems like the cost of a car has gone up, up, up, up. And I think $1.6 trillion worth of auto loan debt in America. This is big business. We got to talk about the plague of car loans and car notes in America. Let's get to it.
Had a lady come in the dealership. Uh, she wanted to trade [Music] her fairly new Range Rover Sport Autobiography. And I asked her why she wanted to trade it, 'cause it was so new. And she was like, "I need to lower my payments." And I asked her, "How long have you had it?" And she said, "I've had it for about a year, a year and a half." I said, "Okay." And what kind of car are you hoping to get into? She said, "I want to look at a GLE 53 coupe." I said, "You're not going to lower your payments on a GLE 53 coupe?" "Oh, how much are they?" "Oh, knew they start at around." And she was like, "Oh, well, I'm looking for uh a pre-owned one." I said, "Okay." I said, "A pre-owned Mercedes GLE coupe is in more demand than a new one. And the least expensive one, current body style, '21 or newer, is going to be around the low 60s. How much are you trying to lower your payment?" "I want to get, I need to get my payments around 800." "Where you barking up the wrong tree, sister? You need to be looking at a C-class." Um, and, you know, she looked kind of devastated, like uh clutching her pearls, like, you know, this the deal. You built your life on the most money a month you made as opposed to the least amount. Now that straight commission, se uh, real estate job, the bottom fell out of it. But your bills didn't go down when your finances went down. All right. So, you're going to have to swallow your pride, or, you know, if your image means that much to you, then suck it up and pay the the $1,800 a month you paying now. But trying to uphold that image while having sleepless nights 'cause you can't pay your bill, that don't make no sense. Pay big. I'd be driving uh, whatever could get me out of it and get my payments lowered. Um, is what I would be doing. She dropped the hammer on that agent. I've been seeing this stuff coming for a while now. Economy's going downhill. Real estate's in a in a in a complete decline. And these real estate agents are caught with their head in the pickle jar. Let me tell you, this happens to so many people. The idea of, let's get the fanciest car we can get financed or leased, and it's like my waiver that I'm rich. The mo, the amount of people I see that do this. Yeah. If you ever want to check me as a real estate agent, it ain't by my car. Okay? If you think that I have to have a fleece car or a car payment to look rich, I'll just show you my financial statement. That's the true way of being wealthy. And she just dropped the hammer. And real estate agents, the worst, followed by attorneys. Okay, attorneys, comment down below what you think on this. But I have seen the, I've seen so many agents judge each other over cars and I'm like, "Bro, I know how much you sold last year, and that's all you do is real estate. I know that's fleeced. I know that's fleeced." Okay. Our society is based upon what you got in the driveway and not how much you're worth. And most of these cars, if you knew the truth, you would know that they're uh, they're leveraged up to the hilt. There's a handful of people that I go through a neighborhood and be like, "Yeah, that's true wealth." Okay. And that's usually like a, a 2000 or 1995 Beamer. You know, it's paid for. It's in perfect shape. Still sitting in the garage with a cover on it.
We pay $800 a month for this car that I'm sitting in. And that is not the flex that you think it is. It is draining us. It is taking things away from my children. It is making it to where we cannot afford a house. Um, so how did we get here? We bought this car used a couple of years ago and we currently owe double than what it's worth. Um, we had to take a personal loan out last November to afford to buy our kids Christmas. Um, yeah. I mean, it is what it is. So, $800 a month on a car that's not even worth what we're paying on. And I understand that's how personal loans work. But it's a really big financial issue in our family right now. So, for the next couple of weeks, I am going to be posting every day trying to grow, trying to get into the creator fund so that I can afford to pay off our car. And I will put the loan amount. So, I want you, comment down below what you think about this. What do you think about car notes? Do you have a car note? Let's all learn from each other in the comments section. This is how we grow and learn.
But the first thing I heard there was, "We had to finance Christmas." I mean, growing up, I never got a lot for Christmas. Christmas was about giving gifts that you wanted to give to somebody. And and it was never really a, a crazy, "How many presents did you get?" And when you're in a financial situation, the car note, a large car note, is one of the quickest ways to stay poor. It is one of the largest extractors of wealth out of your life. But that being said, I think we overdo car notes in America. I don't think many of the people that have the cars they do need them. I mean, many people I know now have one car. You know, back in the old days, you only had one car. I know sometimes, you know, you work in two different directions. It's not feasible, but maybe you get there early, you take one car there, and then you go to the other job, then you carpool back or whatnot. But I see the stress that car notes put on families. And for the average car payment for a used car now to be $521. I mean, a new car $700. It's the cost. It's almost half the cost of a mortgage. You factor in insurance and taxes and things like that, and you're at the cost of a what used to be mortgage. I just think we got to re-look at what we're doing here with cars. I don't know. I just feel like a $500 plus car note is absurd. But also walking, not having a car, and not having transportation is even more absurd. So, like, what do we do in this economy? Because you need a car. There's no way around it. Everybody can't go to a car place or dealership and just drop down cash. And I'm not even sure that's something that you should or would need to do. How much are y'all paying for these car notes? Like, how much are y'all spending on car notes plus car insurance? Because it's honestly getting even more ridiculous. But I lowkey can't even be mad at people for paying that much money because what do you do? You need a vehicle. People who don't have a car will tell you just how annoying and how hard it is not having transportation, not having a vehicle that you can just count on to have 24/7, or even having a reliable vehicle. Having a vehicle that's not reliable, that's always breaking down and and and causing you problems, is just as worse as not having a vehicle. So, what do you do if you need reliable transportation?
You're talking to a person that had a 1981 GMC truck. I drove cars across country four times. Yeah, I had to learn how to work on it. In the old days, we had to learn how to work on our cars. But now, there's 100 million people in the United States with a car note. That's big money. They created this layouts of cities, interstates, things like that. So, we must buy a car. There's a reason why we don't have high-speed transit. We don't have subway systems in most cities. And I mean, where I live, we don't have railways to get you from Pensacola to Mobile or some of these smaller cities. They wired the infrastructure against us. Therefore, we must have a car. I don't believe that you have to have a car note. There are many people I know that have an older used car and they just don't drive as far. They find jobs that are closer to where they need to be. And I honestly long for the world where I could just bicycle to work for a while for the most part. I mean, y'all going to hate me on that, but actually electric bicycle that can that has a 100-mile radius now. You can get a lot of places. And I know people go like, "Well, you can't take your kids on those." Yeah. Well, you got to pick and choose your battle. If you don't have the money for a car, then, you know, maybe we don't do as many things and then we work on getting a car. But these car notes are going to keep you in poverty. You cannot have them. You got to pay cash for cars or you have a car note that you can afford and it and it's in your budget. You got to stay within your budget.
I can't be taken serious at this moment, y'all, before I start crying. So, just got my battery done, right? My front and my back brakes are also going out. Front brakes $35, $11.40. Back brakes $25, $13.96. I could have those backwards. All in all, $5,500. I want to rip this up. So, I guess I won't be going anywhere that requires me to use my brakes. Come on, baby. See you. See you. See you. Just get in. Just get in. Just get in. Y'all, they playing today.
Here's the thing about luxury cars. Nobody wants to talk about how much it cost to maintenance these bad boys. My buddy has a Porsche and we have to drive all the way to Destin once every, you know, four or five months to get the oil changed at the Porsche dealership. We wind up having lunch over there in Destin and on the way back. But the maintenance on luxury cars is astronomical, plus the payment plus the insurance is astronomical. And I, I feel like just my my thought that if the maintenance is a question mark in your finances, that you shouldn't have a luxury car because it is crazy expensive to get the spark plugs changed on a Porsche is astronomical, or on a BMW, or any type of of luxury car, or for the most part, just the new car because you have to take it to the dealership. They're gonna soak you and come up with nine other things that's wrong with your car just so they can get you to upcharge. When in doubt, upcharge.
What do you think a reasonable monthly payment is for a newer vehicle? I'm not talking about you go down the street and go to the dealership. That's a mom and pop shop. No offense to the mom and pop shops, but I mean a newer vehicle, lower miles, under 40,000 miles, newer 2021 and above. What do you think a reasonable monthly payment is? A lot of people be like, "Oh, this is too high." Oh, wow. I want to see what you think a reasonable monthly payment is. I got the number in my head. What number is for you? What do you think a reasonable monthly payment is for a newer vehicle? I'm not talking about you go.
So, I think the average car note in America is like $41,000 for like a new car. That's excessive to me. I paid $27,000 for my 2011 Toyota Tacoma. It's got 130,000 miles on it. I bought it brand new. Has 131,000 miles on it. Still going strong. I'll drive it until the wheels fall off. I don't know why we need $40,000 cars. If money is the question, and affordability is the question, then you don't need a $40,000 car. You need to go find you an $8,000 Nissan, $5,000 Nissan, Honda, Toyota. And that's just your get me to point A to point B. We're not trying to impress anybody. I really think we got to start taking values into our finances.
I want to talk about the normalization of these insane car prices that we are seeing in the modern era. And every time I talk about finances or I do sort of a breakdown to help people understand just like why they're feeling so stressed and strapped, there's always somebody that's like, "Well, why do you even have a car payment? Why don't you go buy an $800 car?" They don't really exist anymore. And if you found one, congratulations, but that's not a real thing. Or why don't you just save up $10,000 and just buy a car? How are you supposed to get back and forth to work? You can do it. I do it. Samantha does it. My friends and family does it. I We never had expensive cars growing up. I always had an old vehicle that I, yeah, I did have things break down on it. I, I will say this, my old '81 GMC left me one time when I was 16 years old. It limped where I had to go if there was a problem, but it always got me there. And I learned how to work on it. I learned how to do a spare tire. I learned how to take spare parts on me. I remember one time I was driving through Atlanta, I was probably like 25 years old, coming back from the army, and my headlights went out. Had to pull over in a rest stop in my army uniform. Fixed the light. Got going again. I grew up like that. I learned how to make do. And I know a lot of people are going to say, "Well, I don't know how to work on a vehicle." Well, we're going to have to start working. If you don't have money to afford these vehicles, you got to start learning how to work on them. Considering all of the variables that would make that difficult while you're saving to go buy a car outright.
These videos that people are posting, and I'm going to go ahead and start one. These videos that are normalizing these insane car prices and then car payments. People, when your car is paid off, drive it until it burns into the ground. Right? People want to feel nice. They want to have nice things. And they already feel so pressed and they feel so destroyed in this economy that I understand the desire to want to go have something nice. But spending what is clearly a third of your paycheck on a car note is not the way to do it. And these videos are trying to normalize these insane car prices. Now, I want you to look at this sheet. Okay, this sort of demonstrates why car payments, even for like an entry-level car, like why car payments are already so insane. The average price of an out-the-door car in this country is almost $50,000, right? After all of the dealer shenanigans that go on, the out-the-door price on a car is pushing 50 grand. Entry-level cars are $30,000. And these dealerships are trying to normalize you coming in there and going like, "Hey, don't get the one that's already hard to afford. Get the one that makes you feel like a superstar." And these videos always have somebody in it that like has their. Yeah, they are normalizing it. And there is a banker involved in the propaganda machine of getting us to just think we got to have these vehicles. Just like houses, everybody thought we had to have a house. You thought, you know, as the price values went up, you were just talking to 200,000, 300,000. Now, we've normalized 400,000 and they do do that. But I will say this until the cows come home that you don't have to have a car payment. If you're a young person, you learn to make do until you can put a good portion down and you have a normal car payment, or you don't buy as nice a car. Save up cash and you pay for it. The wealthy people I know that have cars, they don't have these. The car payment is not a question in their life. If you, the car payment is hurting you, you got to get rid of it. It's the only way to build wealth in this world is to not have these payments, these credit card payments, these car payments, these crazy house notes. You'll never be able to afford a house if you're struggling with the car payment. And if you're renting and with a massive car payment that you can't afford, you will never grow wealth. This is how you stay poor is these car payments.
Car outright, or they have somebody that has like a legacy car note from 7 or 8 years ago that's paying $300 or $400 on it. But these people that have $450, $500, $600 car notes, those are entry-level car loans in today's economy. These people that are trying to normalize these $1,500 car payments to make you feel better about getting a car that's that expensive. Please stop letting these dealerships normalize this stuff. And if you can go get a used car, if you can make other arrangements, but more importantly, if you can just, once your car is paid off, don't fall into the trap of like, "Well, now what if it breaks down?" Yeah, if it does and you got to pay $600 for repair, that's better than paying $600 to $1,000 a month for a car loan that you already can't afford. Imagine being able to put away that $600 every single month instead. Please stop letting these dealerships normalize you coming in there and walking out with a $1,000 car payment in this economy. I agree with him on that. That that is the game.
I went to look at a brand new Toyota Tacoma, just like mine, four-wheel drive. You're looking at $50, $60,000. I'm going to shock you on this. I paid $67,000 for my house. And I know everybody's going like, "That doesn't exist." Well, it was an old house. It was in rough shape. I talked about it on this channel numerously. I've vlogged the renovation. I had to swing hammers. If I didn't have the money, I had to learn how to work on it. I had to swing hammers. Same way with a car. You get a car. Yeah, it it's got 150,000 miles on it, 200,000 miles on it. That's the one you can afford. Yeah, you might have to learn how to work on it. There used to be garages, service stations all over the place. Now, the only place to work on a vehicle now is to take it back to the dealer and have them service it. And that's how they make so much money. Most of these car dealerships make their money on the services and the car notes, not necessarily the vehicle itself, but the car note gets more expensive, more expensive, more expensive. And right now, interest rates are pretty crazy on them. So, you're seeing like the trifecta of stealing your wealth. We've got to learn how to get around this. We've got to learn other ways.
Did you pay $104,000 for this? A 2025 Yukon Denali XL. It has a starting price of $83,500, but then it has multiple add-ons which come out to a total of $14,430. Then you have a destination fee of $1,995. You do get a $750 discount, which brings a total MSRP to $99,175. But this dealership in particular has more add-ons that they have added, which comes out to a total of $13,962. Of course, it is the Denali, so you have a lot of features. You've got the power mirrors. You've got the power running boards. You've got the 24-in alloy wheels. Of course, it is the XL, so you do have the extended size. It's four-wheel drive. And it comes in this Summit white color. What do you guys think? Do you think that this GMC Yukon Denali XL four-wheel drive is worth $104,000? No, I don't. I, I don't think it's worth any of that. The only way, two ways I see you build, you buy this car. One, you can buy it in a company name as a company vehicle and you can take the tax write-off. #notataxprofessional. I just know that's how you do it. Okay, you take the tax write-off. It's over 5,500 lb, whatever the rule is now. You buy it in a business and it's a business vehicle. Two, you have excess, excess of $1 million net worth, probably more like $5 million net worth to pay this $100,000 and it be a depreciating asset. That's the only way I see somebody buying this. If you're buying this and you are a young person and you don't have a million dollar net worth, you're throwing your money down the toilet. Like, you need to be investing in other things. There's other cheaper ways to get from point A to point B. And and if it's a business expense, okay, I got it. Even if it was a business expense, you don't need half that stuff. That's my opinion on that. What do y'all think? Comments down below.
I want to give you guys a realistic example of what payments look like on a $75,000 car. So, in this case, we're going to use this M8 Competition that I have in stock. This car is damn near exactly $75,000. Crazy thing is, I have an S-Class that's right next to it. This car is probably in the same range, too. You guys peep the 50 over there. Now, keep in mind, when you borrow $50,000, that means your payment is going to be in the ballpark of $1,000. Now, this car is $75,000. Let's see what the payment looks like. So, we have everything plugged in. $75,000 car financing for 72 months. 6 1/2% rate. Paid off early if you want. No money out of pocket. Your total payment amounts to $1,377 a month. And this is with no money down. And even at a 6 1/2% rate, if you were to keep this car for the entire loan, you'd be paying $17,000. $80,000 out. Am I seeing this right? And you're financing this. The only way I would ever do this is with cash and I really wanted it. And I would ne, even if I triple the amount I was worth right now, I would not buy this vehicle. I, I don't, I don't understand how you do this. Please correct me. Comments down below. Love y'all.
You know, I pulled up to a stoplight the other day and I saw this young man next to me in a car that was three times as much as my vehicle. Brand new F-150, you know, to the nines, Raptor, the whole nine yards. And I was like, man, that's like a $70, $80,000 vehicle. I was like, and I'm over here in my old Tacoma, probably worth five times what that person's worth. And I'm just like, how are they doing it? I don't understand. Like, the thought of that payment just makes my mind melt. I, I, the, the largest robber of wealth in our society, besides insurance policies, is our cars. And I see one of the first things people do when they get their job is get them a car. I remember in the army, there was a commissioning loan. The moment they commissioned, USAA would give you a 20 or $30,000 commissioning loan to go buy a car. And that's what they got all their BMWs with. See all the flight guys with their BMWs, their their hot cars. And I'm like, right off the top, there goes your wealth. If you could just not buy a new vehicle until you're about late 20s, 30, you're going to be set. You're going to have money in the bank probably for a house. You're going to have the ability to pay for the car you want. I, what I did, I drove my old red truck. It's on this channel. Beat up red truck. I learned how to work on it until I was about 30 years old. No, no, no. Until I was 27, I think, somewhere in there. Came back from Iraq. I paid cash for my truck, my Tacoma sitting right out there. And I've driven that truck ever until now, and I'm 40. Okay, that thing's still ticking. I've taken care of it. And I've created wealth with the money I didn't pay a bank in a car note. I bought a house. I bought multiple houses. It allowed me to become an entrepreneur. Allowed me to do things by not having car payments and credit card debt. Always have an emergency fund and figure out a way to continuously increase your income. That and life's easy. Don't drink too much. Pay for stuff in cash. Always have an emergency fund and who you marry is so important. That's all I got, everybody. That's life. I enjoyed this video. Comment down below what you think. I know this is a hot topic, but in America, we really got to talk about these car notes. And sometimes you don't even need a car. Maybe you find a place you live close enough to work that you can carpool or not have a car or bicycle in. Or in some of these places now, golf carts are everywhere. People are golf carting to work. Heck, I've sold many houses on my golf cart. That's all I got. If you happen to be looking for a real estate agent on the Gulf Coast of Florida, Alabama, my email is down below. I'd be happy to help you. And if I can't, if if I can't help you, I'd be happy to find an agent that can. If you're anywhere in the United States, I can help you find a real estate agent.