Americans Are Buying Luxury Vehicles They Can't Afford And Are Going BROKE

[00:00:00]If you got to get a loan for that truck or that car, you cannot afford that car and you don't need it because you just got a interest loan on a [ __ ] depreciating asset, okay?

[00:00:08]>> Don't be scared of that repo. Repos don't mean [ __ ] I've had three repos.

[00:00:12]They'll finance you every single time, babe. That [ __ ] is not real.

[00:00:15]>> I walked in that I said I want that car. He said how much you putting down? I said nothing. And he gave me them keys and my APR went all the way up through the roof.

[00:00:23]>> I used to pay my car note, but I'm down to my dick and balls. God damn.

[00:00:28]>> Americans are purchasing vehicles above their means and going broke. And everyone, including the victims, know exactly why. If you enjoy videos about the car economy, truck market, and the financial trends impacting everyday Americans, make sure to like and subscribe and help the channel reach 1,000 subscribers. But, with that being said, let's get back into the video.

[00:00:51]>> 750 a month and then 200 dollars for full coverage insurance, you know? Like the truck is nice, guys, but I my anxiety is [ __ ] going crazy.

[00:01:01]750 like a month.

[00:01:03]That's doable, too.

[00:01:06]100 and under 130,000 miles.

[00:01:11]>> These expensive vehicles are keeping people broke, robbing them of their money, and then still leaving them with nothing. Let me break it down and explain to you. I don't know I've seen so many videos over the last week of people who have eight, $900 car notes.

[00:01:27]It do what it do. They're paying these high, expensive car notes. And then, unfortunately, they fall on hard times and then they lose the car. So, the car gets repoed.

[00:01:36]But, you're still out of the money that you were already given them on top of the fact that can we admit that car payments, having a car period that's financed, that's not just one bill.

[00:01:47]You're paying two bills in one. So, not only do you have the expensive car note, you know, the car payment, you've also got the insurance. There's people out here an $800 car payment vehicle with almost a $400 insurance to go with it. Altogether, people are driving vehicles that's costing them a thousand plus dollars a month. On top of the fact that rent is already expensive. I don't care how you put it, rent or a mortgage, few thousand dollars plus a month on the vehicles and the living. Not including the utilities, the groceries that got to go in the refrigerator. Like all these other miscellaneous things that are like necessities to live.

[00:02:30]But the car notes and the rent.

[00:02:33]>> Don't be scared of that repo. Repos don't mean [ __ ] I've had three repos.

[00:02:38]They'll finance you every single time, babe. That [ __ ] is not real. That is a matrix [ __ ] setup. They make you think that all these things are inaccessible if this stuff happens, but it's not [ __ ] true. Get that car, make the payment until you can't anymore, let them [ __ ] take it. Stack up for six months, take a bus, go buy another car. Just like that. Just like that. After my most recent repo, my credit actually went up like 80 points.

[00:03:04]And it never went back down. Like, what?

[00:03:07]I'm like, all right. This shouldn't [clears throat] be real.

[00:03:10]>> What's one bad financial decision that you're going to make in your life?

[00:03:12]>> Financing a vehicle zero down just cuz I could. I walked in that I said, "I want that car." He said, "How much you putting down?" I said, "Nothing." And he gave me them keys and my APR went all the way up through the roof.

[00:03:23]>> What was your APR?

[00:03:24]>> Like 20%.

[00:03:26]>> And what was that monthly payment looking like?

[00:03:27]>> 700.

[00:03:28]>> 700?

[00:03:29]>> To this day, I've been paying for 3 years.

[00:03:31]>> You paid 700 for 3 years on a car. What kind of car was this?

[00:03:33]>> This is a Honda.

[00:03:34]>> Honda what?

[00:03:35]>> Honda Civic Sport Touring. It's [ __ ] >> What year? What year?

[00:03:38]>> 2017.

[00:03:40]>> What did your parents have to say about that?

[00:03:41]>> They just looked at me and was like, "Damn."

[00:03:44]>> [laughter] >> You were You were ready?

[00:03:46]>> Hell, yeah. I could have just I could have just got I could have just got a used vehicle.

[00:03:50]>> You got a luxury sports car.

[00:03:52]>> Well, I could have got a Range Rover, like bro, you know what I'm saying?

[00:03:54]>> Yeah.

[00:03:55]>> I'm cool with my little Honda.

[00:03:56]>> It's getting you around?

[00:03:57]>> Yeah, yeah. It's You know, they last a long time. Bulletproof.

[00:04:00]>> Yeah.

[00:04:01]>> Tough.

[00:04:02]>> Okay, if you go back, what kind of car would you have really gotten?

[00:04:05]>> If I could go back knowing what I know now?

[00:04:07]>> Yeah.

[00:04:09]>> I probably wouldn't even buy no car from the dealership. I'd probably just go get a used vehicle. A used Honda or used Toyota, you know.

[00:04:16]>> Like a like a beater?

[00:04:17]>> Yeah, you know what I mean? Something that Something I could pay Something I could take care of, you know, like a little old Toyota, 2007, 2008, little Honda or something.

[00:04:25]You know what I'm saying?

[00:04:26]>> Wait, so how much are you paying on insurance then?

[00:04:28]>> My insurance is 250.

[00:04:29]>> So you got almost a band a month?

[00:04:31]>> I'm paying a band a month, yeah.

[00:04:32]>> For the Honda?

[00:04:33]>> It's been 3 years, yeah. I got 2 more years to go.

[00:04:35]>> And then it's completely paid off?

[00:04:36]>> It's paid off. Pink slip. Yeah.

[00:04:38]>> Man, it's kind of worth it, I guess. I mean, you paid it off fast. I mean, you taking big risks.

[00:04:42]>> though. I'm 24 years old now. I got this [ __ ] when I was like 20. So, yeah. It's been a minute. Yeah. It's cool, though.

[00:04:59]Where y'all going to give it to?

[00:05:05]They taking it to parts?

[00:05:14]Use it for parts. Okay.

[00:05:28]>> If you got to get a loan for that truck or that car, you cannot afford that car and you don't need it cuz you just got a interest loan on a [ __ ] depreciating asset, okay? I'm no better than nobody else. I've gotten vehicle loans before, but the [ __ ] ain't smart. You can't afford it. You can afford the payment for it. You get hurt, break your neck, something happens in your life like that, you're going to lose that truck.

[00:05:47]You know why? Because you don't own that truck. The bank owns that truck till you pay that loan off. And people going to be like, "Well, if you get a loan for a house, it's the same thing." No, the [ __ ] it ain't, [ __ ] Okay? You're getting a loan on something. I'm not telling you to go get a 30-year loan.

[00:06:00]Get you a 10 or 15 on something that is going to appreciate if you take care of it. A lot of y'all don't take care of your [ __ ] I'm known to not take care of vehicles even if I pay high dollar for them. But, the fact of the matter is if you got to get a loan for that vehicle, you cannot [ __ ] afford it and you're just paying interest on something that's going down the [ __ ] no matter how good you take care of it.

[00:06:22]>> All right, Ashley, what car do you drive and what's your monthly payment?

[00:06:24]>> I drive a 2014 Altima and my car payment is 730.

[00:06:29]>> All right, what car you drive, Darren, what's your monthly payment?

[00:06:31]>> All right, I got a big boy scat.

[00:06:33]>> Mhm.

[00:06:33]>> Monthly payment $900 a month.

[00:06:37]>> Taylor.

[00:06:37]>> What's up?

[00:06:38]>> What car you drive and what's your monthly payment?

[00:06:40]>> I drive a 2023 Honda Civic Sport hatchback and my payment is 560.

[00:06:45]>> Ain't nothing wrong with having a car note. We're adults, we got to be able to get places. So, we got to have a car.

[00:06:50]And if we're not in the position to just buy the car outright, then we got to have a car note. There's nothing wrong with it. It's just for me, it's like, when the hell did these car notes get this god damn expensive? I don't have no car notes no more and I'm going to try my hardest to never have a car note again. I got two cars that run perfectly fine. We good. We don't need no cars right now. By the time we actually do need another car, hopefully I can just buy those cash the way that I did these two cars. But, for real, for real, the last time I had a car note, my car note was $332.

[00:07:19]I don't see nobody saying they pay anything less than 400 these days. I'd be sick if I went to go finance a car and they said my payments were going to be $700. I'm not doing it.

[00:07:29]>> [laughter] >> There's no way in hell. I couldn't justify that. No, I'm not doing it. What type of job y'all be having though?

[00:07:34]Because I be seeing so many people on this app talking about money and how they need more money, but y'all be having these crazy ass car payments.

[00:07:42]Something ain't adding up. Uh-uh, something ain't adding up.

[00:07:45]>> So, something a lot of Americans are starting to realize right now is that people are purchasing vehicles they simply cannot afford, and it's creating financial problems that are getting harder and harder to ignore. Because somewhere along the way, a lot of people stopped buying the vehicle they needed and started buying the vehicle they wanted. And while there's nothing wrong with wanting a nice car or truck, the problem starts when the monthly payment is so high that one unexpected expense can throw your entire financial situation into chaos. You see it all the time. People taking on huge car payments, expensive insurance premiums, high interest rates, and then acting surprised when they're struggling every month to keep up. And honestly, that's before you even factor in gas prices, maintenance costs, repairs, registration fees, and everything else that comes with owning a vehicle. What's even crazier is that some of these people are one accident, one major repair, or one missed paycheck away from being in serious financial trouble. And that's why so many financially responsible people look at these situations and shake their heads. Because from their perspective, a vehicle is supposed to help your life, not control it. It shouldn't be the reason you're stressed every month wondering if you can make your payments. And that's why more people are starting to question these decisions. The economy is expensive enough already. Food costs more, housing costs more, gas costs more, and everyday life costs more. So, taking on a vehicle payment that stretches your finances to the limit is becoming harder and harder to justify. And honestly, that's the lesson a lot of people are learning right now. Just because a dealership approves you for a vehicle doesn't mean you can actually afford it.