3Vjohnny reacts to Doug DeMuro Why You Should Finance Your Car (And Not Pay Cash)

Ahh yes, the polarizing discussion of to pay cash, or not to pay cash for cars. That is the question.

What’s going on guys welcome back to the channel today i’m gonna talk about one of my favorite youtubers and that would be doug demuro famous for the quirks and features videos that he does on a lot of vehicle reviews over the years and i love doug he’s such a regular guy got a lot of really neat cars that he’s owned over the years especially that ford gt but

He put out a video talking about financing and he thought that most people should finance their vehicles and he kind of gave a case for why oh admittedly myself i am pretty dead averse i have zero car payments i have only ever had one car payment but i actually haven’t owned a lot of vehicles either i own the same truck when i bought when i was 17 and i’m now

30 and i have my mustang outside that i’ve wanted for a long long time and so that’s the only two vehicles i own at the moment and i only have only ever had one other one which was my daily driver 2015 ford taurus which i sold in order to get the mustang it was it was time it’s what i wanted to do so i am not into car payments personally i do not have any it’s

Something that i definitely prefer to minimize because i think it’s just this constant money you know every month you’re paying and quite frankly the average car loan is up near 600 a month now which is a lot of money for most people if you’re making you know fifty thousand dollars a year that’s going to eat up quite a bit between that and your housing let alone

Insurance fuels and all that other sort of stuff so car payments have become a very large portion of our life and just the society we live in they’ve gone from like a 36 month loan and then i remember when i was younger i mean i was born in 91 so i’ve seen a lot of this it was a lot to see a 60-month loan and now it’s nothing to have 70 was it 72 and 84. so i

Mean it’s changed a lot in just the past decade and it really speaks to how expensive vehicles have become and in my opinion how much people have been over extending themselves in not just vehicles but most purchases in general oh i love doug and doug makes a lot of good points he is kind of like the voice of reason i think in the car world on youtube he runs

Kind of a tight ship from what i can see and he seems to make a lot of very good financial decisions he’s not over the top he talks about not buying a lot of crazy cars like a lot of people and he’s done his cars and bids website which seems to be doing well and his whole point was he wants to have a career beyond youtube at some point as he says very reasonably as

Well and not everything lasts forever and so he is definitely someone that i do admire and appreciate his input and so when i saw this video on why he thinks that most people should finance their vehicles i wanted to go in with an open mind even though i’m more dead averse and his case was basically just kind of dumbing and oversimplifying this he was basically

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Saying that you can make more money right now in other investments and why tie up x amount of money in a lump sum going off to what a is a depreciating asset vehicles are not investments other than a select few just if you call your vehicle an investment that is incorrect it is a depreciating asset they go down in value and so that’s what his point was he goes

Why would you want to tie up 50 grand in that when you could put some down finance that for such a low percentage rate he used the example of i think 199 which was actually the interest rate i had on the taurus years ago and then put the rest in some sort of investment and in my opinion you want to have it be readily accessible so whether that’s a money market

Account or something like that you really want to be careful about being too aggressive and losing your money the other thing that he said was that he felt that if it allowed financing if that was the difference between having an older car so he can use the example of like a 90s honda which is not the most safest vehicle just because most vehicles have come

So far since the early to mid 2000s in technology he was basically saying you know if that’s the difference between you getting something in something much safer then it makes a lot of financial sense but he also said that he didn’t feel that people should be saying i make 50 grand and i’m gonna buy a 50 or 60 000 vehicle he’s not saying that and that’s what

I appreciate he’s not saying using financing as a way to overextend yourself he’s saying use it instead of paying cash for the vehicle take some of that put it down towards it and then invest the rest in some other way so that you’re making more in your money and in a lot of ways it’s hard to poke holes in that logic he is correct and i will say if my youtube

Channel does go somewhere i would love it to in the coming years as i kind of grow and kind of show you what i’m all about here you know it would be really cool to have a vehicle that i purchased as a business expense and say i’ve talked about the ford maverick that would be a wonderful daily driver for me especially in the coming years when i go to do an i’d

Love to do a coyote swap on my f-150 and i want to restore a lot of this do a lot of work and the truck’s going to be down and for my life i need something with a bed because i have hobbies like camping and all this other house stuff that i’m eventually going to have that i’m going to need to be able to do stuff and i don’t i want to be able to work and take my time

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On my truck so it would be really cool if youtube was making decent money you never know to be able to finance you know something like a maverick and it would be really really neat i also think that someone like myself you know you want to make sure you have the bunny for the vehicle too and that was something he was really trying to get at is you know if you had

The money to pay for it outright or very close without draining your account right yeah i can see the case for financing it because if the money is available and something happened and you really needed to get out of that monthly payment pay the vehicle off you know you could do that so i do agree with it in that sense and that’s the way a lot of businesses will

Work is you know some businesses keep a lot of cash on hand and they would rather finance something go through that whole depreciation cycle and then have their money work for them in other ways so i do kind of agree with that but i will say on the flip side it’s kind of nice not having loans i mean it’s a hell of a feeling you know i i had student loans i paid

Them off in three years i mean that was and it wasn’t a tiny amount of money bit of money either i mean it was a few tens of thousands so you know it’s i prefer not having payments um but i think the more money you have available if you really skyrocket your income and you are good about saving i think i am you know yeah i would consider financing a new vehicle

If it got to that point and i’m just using the maverick as an example i would consider financing it if i had you know an income source that was far and above it it was comfortable for me to pile up money then yes i would do that because it does make sense when you can have more of a return on your money because i’m the type of person that would actually do that

The thing that i see is a lot of people don’t they use the oh well i can invest my money but then they’re not the ones that invest the money they just buy more crap so you know it’s kind of one of those things where it’s hard to make that blanket statement of you should do this because you can do this with your money because the fact of the matter is most people

Don’t do that and when again the average car payment in the united states is i think it’s almost 600 now that’s a ton of money and i’m sorry that talks about how excessive people are buying vehicles they’re putting very little down they’re overextending themselves and i would suspect most people’s cars are near as much as one year of salary that is insane to


Me but again that’s the world we’re living in right now so in some ways i agree with doug i think that there is a time and a place and for some people it can make sense to finance but on the other hand i think that with how debt burdened our country is and businesses are debt burdened and i think that’s a whole other thing which i’m not going to go into but i see

Something happening in the coming decades where there’s going to be a big collapse of some sorts because of the debt you know when you have when you owe someone money you are always in debt to them it is another bill you need to worry about and with no loans no debt you are much more relaxed because you don’t have you know someone breathing down your neck that

You have to write a check to every month so i don’t know that’s just my thoughts i i can see the benefits to his video in the right situation like i said i would do the same but it for a lot of people it’s it’s a really tough one in in the case that i would say is if you are financing please don’t be excessive you know the average new vehicle is somewhere in the

In like 30 35 000 that’s a lot of money but you also have to weigh the cost to use because use can be almost as much as new right now and i know we’re in a crazy time but that’s one of the biggest issues with trucks is they cost with 80 000 miles they cost as much as a new one so you know again i can kind of understand why some people would jump to a new vehicle

And finance it and it’s it’s kind of hard to poke holes in it because why are you going to buy a 15 year old truck for 15 grand that’s not a made up number either but you can see them all day long for those kinds of numbers so you know again it can be i just don’t like blanket statements and i i didn’t think doug made one but that’s what i mean it’s there’s a

Time and a place to do loans and pay cash and depends on the person and your money habits so what do you think are you someone that believes in financing your loans or you would you rather you know kind of like me right now rather pay cash and maybe under the right circumstances like a business or whatever you know you’d end up with a loan let me know down below

Guys i always appreciate everyone watching feel free to hit the like button it really helps me out i’m telling you this helps me and i’ve seen a pretty big growth on the channel the past few weeks here and i always appreciate everyone who subscribes really appreciate it guys so for now that’s it hope you enjoyed this and we’ll talk to you in the next one take care

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#3Vjohnny reacts to Doug DeMuro "Why You Should Finance Your Car (And Not Pay Cash)" By 3V Johnny