In this video I break down how much I actually paid for my 2015 Toyota Camry.

Hi everyone and welcome back to my channel in my last video i paid off my car and for this video i want to talk about what i actually paid for that car i’ve been on this car journey since june of 2015 and i have paid a lot more money for this car than i should have considering what it actually costs so i do think this will be helpful for anybody who is working

On running the numbers for leasing a car versus financing a car versus buying a car in cash the numbers are pretty shocking that i’m about to run through so i broke this down by basically just my story my whole car journey so i will explain it as we go i’m not really going to offer any tips for paying off your car fast in this video i did pay my car loan 27 months

Early so it was supposed to be completed in june of 2023 so i you know 27 months early is pretty good so that did save me some money but honestly there’s no big secret it is no different from any other debt you just pay more to the car and obviously you’re gonna be paying it off sooner and it’s just with anything else you start budgeting you reduce your expenses

You increase your savings you increase your income so then you’re able to pay off more debt so there’s no secret to paying off your car early it’s the same as with any debt of course you could refinance your car which is something that i did and i’ll talk about that and that saved me money as well but at the end of the day it’s just about making extra payments

Like i said my journey goes back to 2015. so at the time i was 21 22 and this was june of 2015 i was driving a 1998 toyota camry and i was ready for an upgrade the reason for this was because i was commuting to school and i lived in the suburbs and had to drive to the city of atlanta and it was traffic all the time and honestly i was very scared to be driving my

Car because it was very high mileage i know at that point i had over two 000 miles on my car possibly over 250 000 but i know that car could have run for longer but i truly just wanted to feel safer in a car did i need to get this new car no uh that’s probably something i should have like you know obviously thought about at that time but being it was my first

Car i did get a new one now the initial plan in june of 2015 was that i would purchase my car not lease my car however the only thing that they could offer was just too expensive so i went with my father and we were trying to negotiate and haggle the price down they did lower it but it was still something that i could not afford at the time when i was 21 22 i

Was still in grad school so i was not making that much money i was just going to school and working part-time and i would not have been able to afford a payment much higher than like 350 bucks probably not even that so the other option was leasing i did not drive any used cars i didn’t look at any used cars it was just this 2015 toyota camry in i think it was

Called ruby flare red and it was the sport edition the se model and i specifically wanted this one because i drove the model lower than that and it just didn’t feel the same so did i make poor decisions picking this car yes and no because the toyota camry is a very reliable car and obviously i could have purchased a used toyota camry but at the end of the day

See also  Who Holds Title In Seller Financing?

This is what happened so eventually after all the haggling to finance the car we ended up haggling to lease the car and got them down to two hundred dollars a month with a two thousand dollar down payment so i put down one thousand my dad put down one thousand this agreement was for three years with fifteen thousand miles per year which is higher than what they

Typically allow for a lease because i wanted more mileage because i was actually commuting a lot every single day and then that was with a 200 monthly payment which honestly i don’t think is that bad that’s not horrible the other thing is when you lease a car or at least when i lease my car you don’t pay any maintenance fees so i did not pay for a single oil

Change i didn’t pay for anything for that car in regards to maintenance so again we put 2000 down and then i paid 200 a month for three years for 36 months i think that was maybe like 35 but we’re just gonna say 36. so then when we got to that three year mark of june 2018 i ended up i wanted to purchase the car wanted to just buy my car outright not continue to

Lease with a different car i just wanted to buy it but i found out that you cannot negotiate the price down so the way that you can negotiate the price is select the exact car and model that you were driving like assuming you know you want the same car which for me i did i still wanted my 2015 toyota camry sport edition so i just selected a white one in the lot

We checked out the carfax it was good to go so i was able to negotiate that one down and get a better deal compared to what i would have had to pay for the other one so with that i had to turn in that lease and that has a fee so that was 350 and then they’re gonna inspect it and the wear and tear cost me an additional 320 so the lease itself those three years

I paid a total including the fees and all that of 8 870 and then in june 2018 when i purchased the car that i currently have now the white toyota camry that i have i went into this with my dad because at the time my credit score was quite low if you don’t know my story i actually was co-signed on another car with somebody else and that completely destroyed my

Credit i have a video for it i will link it down below i also have a video about leasing a car which goes into a little bit more depth and i’ll put that down below as well but anyways june 2018 i purchased this car and went on that loan with my dad but the rate still wasn’t that good it was about 6.8 if i remember correctly maybe a little bit under that and that

Is pretty high and the monthly payment was 315.73 and so from june of 2018 through april of 2019 that is what i paid so i actually i believe i put a thousand down that day an additional 1 000 down and then paid the 315.73 for the next 11 months 10 months whatever it was when i purchased this car it was about 18 600 so that is the amount that we negotiated it down

To uh honestly i don’t know the exact numbers the looking at the paperwork for this i tried to look at the breakdown it’s honestly so confusing but it was about eighteen thousand six hundred and i put the one thousand down so during that time that was a total of four thousand one hundred seventy seven dollars this does not include any maintenance fees obviously

See also  European Grand Tour 1884 Ralph Emerson scrapbook financial banking city plans

I’m not including car insurance or gas either this is strictly to pay for the car now throughout that year i was able to increase my my credit score pretty significantly so in may of 2019 i wanted to refinance and i wanted to do this obviously for a lower rate but also so i could have the car loan in my name myself so i removed my dad from the car loan and i

Was able to refinance at a rate of 3.85 percent but this did increase my minimum monthly payment to 382 dollars and 55 cents so that is what i’ve been paying at least since may of 2019 i didn’t put anything extra down that’s not necessary when you do a refinance so from may 2019 to february 2021 up until yesterday when i literally paid off my car i paid 17 413

And seventy six cents and if you add all those numbers up i paid thirty thousand four hundred sixty dollars which is crazy for a 2015 toyota camry uh these cars should be like 20 to 22 000 especially at the time i know lately toyota has actually been increasing their prices because they have i don’t know the tech that they’ve been putting in these cars and just

The detail is a lot more than before but i’m pretty sure the msrp of a 2015 toyota camry in 2015 was 22 000 or less i paid 30 460 and yeah so i was paying over 5 000 a year for this car and so you can see the opportunity cost there of how much i could have been paying toward other debt or how much i could have been investing instead now at the time when i was 21

22 i did not have cash saved up to purchase a car in full whatsoever obviously i could have purchased a cheaper car and financed that but i don’t think a toyota camry is awful it’s just you know with the addition of everything else it’s pretty absurd and you can see that if i had purchased a car for fifteen thousand and paid it in cash let’s say so that would

Have reduced what i’ve paid by fifteen thousand and so that means over the last six years i probably could have been investing over twenty five hundred dollars a year so who knows how far that could have gone right now if that was in investments instead the other thing worth mentioning is my minimum car payment which is actually lower than like the country’s

Average so my minimum car payment most recently was 382.55 and i plugged that into a calculator with a modest return of seven percent so if i invested 382 dollars and 55 cents every month for 20 years at a 7 return then i would have only put in like 90 000 and it would have grown to or it will grow to over 200 000 so more than double of what i actually put in

It so it’s just it’s crazy to think about you know the actual cost of financing a car and or leasing a car because that monthly payment you probably can afford it but at the end of the day you are losing out on a lot of money had you invested it instead some people have been curious about what i will do in the future in regards to getting a new car first of all

I do think i’ll have this car for quite some time assuming all goes well i am only at like 55 000 miles which i think is pretty good for 2015. that’s like less than 10 000 miles per year and it is covered in a parking garage so it’s fairly protected and i plan on taking good care of it so i do expect to have this car for several years longer and i know that

See also  Is Finance A Good Major?

It can go for a long time too because it is a toyota camry and luckily the maintenance on these are fairly affordable as well however i am expecting to probably purchase a new car in like six to seven years so i am actually increasing my savings now beginning on march 1st i will be saving a hundred dollars a month to my car maintenance fund which i’m making like a

Car slash car maintenance fund and that is just temporary because i’m still paying off my debt so i figured that from that 382 55 minimum i can spare an extra 50 to put toward my car maintenance and cars thinking fund increasing it to a hundred dollars per month until i pay off my debt and then after that i probably would start saving 500 or more each month to

That fund ideally when it comes to the time for me to get another car i would like to have about 20 thousand dollars saved to buy a car in full we’d probably be about three to four years old and i’m cool with that obviously i spent a lot more money on this card than i needed to but at the end of the day i don’t regret leasing i don’t regret everything that i went

Through i don’t get regret getting a 2015 toyota camry i absolutely love my car i’ve learned a lot from this journey between leasing and financing and paying it off early and all these things so i am grateful for my experience and i am very grateful that it’s paid off early so i was able to do that and that is a good thing in and of itself so no i don’t regret

It would i do that again probably not but uh now i know now i know better going forward and that’s the important thing we learn from our our mistakes and learn just from our experiences i will keep you all updated on whatever amount i choose to put toward my car maintenance and car fund at this point so right now it’s at 100 i will let you know when i change it

I will also keep you updated on my credit score because i know when you pay off your car it typically drops your credit score but i know that for example this past month my credit score went up 22 points because i had paid off so much of my car but that was before i actually paid it off so i’m interested to see what will happen it’s not a huge deal to me because

I’m gonna be building it up anyway so yeah if anything changes i will of course keep you updated and hopefully this was helpful for anybody who’s on the fence about what to do with a car i highly suggest purchasing a used one if you do absolutely have to finance a car again make sure it’s i suggest it should be used maybe three to four years old negotiate the

Price and make sure your credit score is as good as possible so you can get a fair rate let me know if you have any questions thank you all so much for your support and congratulating me and paying off my car i feel so special and proud all of you are proud of me so it’s pretty cool to see and as always thank you so much for watching and i will see you in my next video

Transcribed from video
How Much I ACTUALLY Paid for My Car | LEASE, FINANCE, REFINANCE, PAID OFF 27 MONTHS EARLY By Personal Finance with Leila – Debt Over It