Transcription
[Music] What's up, YouTube? Listen, family, hey, don't finance another car until you watch this video. But first, let me know how many of you guys love your car. Do I have any car enthusiasts? Do I have anybody that just, I don't know, if you're the type to just take your cars to the car wash one or two times a week, or if you get a little bit of splatter on it, you're headed to the car wash to clean that up? Vacuum a car? How many people are car lovers? I want to know.
Okay, I got a small word for you on today that I want you to take heed to. Okay, but listen, do me a favor, please make sure you like and subscribe. Help this video get at least 1,000 likes, and without further ado, let's go ahead and dive into it.
Now, check it out, guys. We're going to kick it right off with the fact that the average car payment right now is around $726 a month for a new car. How many of you have a new car? Let me know down in the comments below, and let me know if your car payment on your new car is more or less than $726. I need to hear, guys. I got a lesson for you today.
Now, the average car payment on a used car, check this out, is $533 a month. Let me know down in the comments below if you have a used car and if your payment is higher or lower than $533. I want to set the stage for you guys because when it comes to what we do around here and building wealth, you need to know why we often say that a car is one of the number one wealth killers.
Think about a new car being $726 a month. If you got a 39-month lease, you're paying almost $30,000 for something you don't even own, for something that's not even an asset. If you have a $533 a month used car, guys, these things get expensive. They get pricey when you start adding 36-month leases, 39-month leases onto the deal.
But check this out: the new car interest rate is 7.18%. Think about that. If you got a new car, the average interest rate on a new car is 7.18%, a little over 7%. But on a used car, the interest rate is almost 12%. It's nearly 12% interest on a used car. Think about these payments: $726 with a 7% interest rate, $533 a month on a used car with nearly a 12% interest rate. These things add up, okay? These things add up.
But check this out. The difficulty in that is the fact that you got these payments of $726 a month on a new car, but less than 28% of Americans have $11,000 in their savings account. Less than 28% of Americans have $1,000. And that's why, if you haven't been with me from the long haul, guys, I solely started this channel for two reasons: one, to share my debt freedom journey with the world, and two, because people didn't have $1,000 in their savings account, and most people can't afford a $400 emergency. Those were two statistics that have always caught my eye, on top of my other passions around financial literacy, being debt-free, financial independence, and a wealth-building journey.
But less than 28% of Americans have $11,000 in their savings account, and on top of that, nearly 4.2% of car payments are currently delinquent by more than 90 days. So that means you guys that fall in this category are in repossession territory. How many of you guys have ever had a car repo? Okay, when you are over 90 days delinquent on a car payment, you are in repossession territory. That means they're coming to get that joker. For those that don't know, they're coming to get it, guys. You don't need your credit taking that kind of a hit.
You don't need your credit taking that kind of a hit. But listen to this, man. My message is this, guys: don't have more money in your driveway than you do in your investment portfolio. Y'all ain't listening. Y'all don't hear me. Don't have more money in your driveway than you do in your investment portfolio. Don't have more money in your garage than you do in your savings account at your bank. We got to make sure our priorities are in order, okay? We got to make sure our priorities are in order, guys. You work too hard to give so much of your money and so much of your paycheck back to the bank in the form of car payments. You work too hard.
I talk to too many of you guys on a day-to-day basis via one-on-one coaching. You guys work absolutely too hard to give the majority of your money, the majority of your paycheck, back to the bank in the form of a car payment. Share this with somebody that might need this, man. We cooking today. You guys need all of these wealth lessons, personal finance lessons that I can give you, and I'm going down through there today.
Check this out, guys. You work too hard, but on top of that, student loan debt and car debt is catastrophic to life satisfaction. If you got student loan debt and you got car loan debt, guys, it is catastrophic to life satisfaction. It is one of the things that keeps you down, and it's one of the things that keeps you on the corporate plantation. This is why I tell you guys my story so much. This is why I share that with you guys because a lot of people are in over their heads and are scared right now.
How many of you know somebody that's scared right now because they're one emergency or one job loss away from losing everything? They're just one moment away from losing everything. And that's why I tell you guys so openly, yep, I'm debt-free. Yes, I've done these things on my financial journey to put myself in a position to be a thought leader in this space, to be one of the young people that has done right by money because I've seen so many people do wrong by money.
But guys, to this day, one of the highest-paid content creators on YouTube, I still drive a used 2015 BMW that's paid for. A paid-for used 2015. My car is nearly 10 years old, and I got more money than most people and can afford any car on any lot in cash, and it won't make me blink. It won't do anything, okay? Think about that. Don't have more money in your garage. Don't have more money in your driveway than you do in your investment portfolio and then in your savings and bank account. Don't do it. We don't do that around here, guys.
I wanted to drop this message on you guys today because you need to make sure you don't finance another car until you watch and listen to the numbers and statistics I shared with you guys today, okay? Too often, we have money, we have resources, but where we are allocating our money to reoccurring payments, car notes to almost $1,000 a month, guys, this is... Guys, it's okay to drive used. If you got a used car, let me know down in the comments below. If you have a used car, let me know down in the comments below.
I don't care what they show on Instagram. It ain't a person on Instagram that can make me feel compelled to go out and keep up with the Joneses, and I probably got more money than everybody on Instagram or the majority of people that are pump faking and stunting and fronting on Instagram. But it ain't about that. I love living a stress-free life, and guess what, guys? Peace is priceless. Peace is priceless.
And so, in order to maintain my lifestyle, I live by the creed of quiet wealth. I do everything under the sun to stay under the radar. Yeah, I naturally got a little swag about myself, so if you catch it, you catch it, all right? But what I'm trying to say is I ain't never going over the top. I ain't never going and doing too much. It ain't going to never get to that level, okay?
So even when it comes to cars, now listen to this because I don't want you guys to be like, "Coach, you have always kept it humble and told us you had a used car." Check this out: I haven't driven since 2021. I'm retired, guys. So outside of traveling, I'm on an airplane, okay? I'm on a PJ. Outside of traveling, I'm not driving, okay? So I haven't even driven since 2019-2020. That's number one.
Number two, this is this, guys: my wife's car has been acting up, but it's still getting from point A to point B. But the minute that it goes out, she is going to get a new car. I am going to buy her a new car, and I'm going to get her the BMW X6. We already know what we're getting. We drive BMWs, just a heads up. But ours are used. Does that make sense? But she will get a new car, and I don't want to see another car for probably another 10, 15, 20 years. Does that make sense, guys?
So when we do get a new car, I'm going to show it with you guys. I'm going to say, "Yep, the car we got finally died. The car we primarily used finally died, so we pulled up and bought this in cash." Yep, it's going to be swagged out. We drive fly. Everything we got is fly, but I want you guys to know it's used, okay? Even if you see my BMW, you're going to be like, "Man, your stuff is killing the 2024 and all these cats," but that's a 2015, okay? You can make stuff look good. You can do some modifications to it, but you don't have to have a $726 a month car payment to do it.
Hope this makes sense, man. I ain't even mean to preach at y'all today, man. I just had to get my bag a little bit and share with you guys information you need to know, especially if you're thinking about buying a car, okay? It's one of the number one wealth killers. There's nothing wrong if you love cars, but I want you to really, really weigh: is giving the majority of your paycheck back to the bank in the form of a car payment really worth it?
Okay, my brother once told me, he said, "Man, why have a brand new car that we pay $80,000 to $100,000 for just sitting in the parking lot at your job for 8 to 12 hours a day, and you don't even get to enjoy it?" That was one of the things he dropped on me that always stuck with me, okay? Now, I was already driving used before he said it, but it probably made me not go out and get a new car because I'm looking like, "Man, this new car is just going to sit in the parking structure, in the parking garage of my job anyway."
Okay? And sure enough, my BMW did. My 2015 used BMW sat there 8 hours a day, you know what I'm saying? Not doing nothing, just sitting there, okay? And so listen, guys, I just want to put that on you guys today. It's important to understand keeping the main thing the main thing. Don't have more money in your driveway than you do in your investment portfolio. If you guys can remember that nugget and you don't remember anything else, remember that, okay?
Listen, we make videos like this every day, so if you like this one, make sure you check out the next one. Remember, most people see the end result, but if you consider the journey, do me a favor: don't forget to like and subscribe to the channel. Make sure you guys grab some free stocks using my link below, and I'll catch you guys in the next one. Peace.