Here’s Why Rich People Buy Cheap Cars and Broke People Buy Luxury Cars

Here’s Why Rich People Buy Cheap Cars and Broke People Buy Luxury Cars


rev up your engine today I’m gonna talk
about why a cheaper car is often a better thing to have than an expensive
car I am the master of owning cheap cars I’ve been driving over 50 years and
those 50 years from my own personal cars I have spent less than $7,500 total of
all the cars that I’ve owned and drove myself now I’m not including my wife’s
car like this Lexus hey I bought that used for $3,000 with only 60,000 miles
on it so even there I’m careful with my money now I do have to admit most of
them were Toyotas now I did start out with an Opel that I paid five hundred
and fifty bucks for then I got a Ford Maverick that had paid 500 bucks for
then I went wild my god in 1981 Toyota Corolla sr5 hatchback which I had to pay
$5,000 for but that one lasted me almost 30 years so you know I’m happy with that
then I got my venerable solid car for about 350 bucks and it’s still running
fine now some people think it’s just a prop but watch starch every time AC still blows ice
called now I mainly buy cheaper cars cuz I’m cheap myself I don’t like
wasting on cars but there’s other reasons you can get cheap cars too some
people get bored with driving a car too long they hate me cuz I don’t but you
can keep buying different chute cars you buy a really nice used car or brand new
car the depreciation on those the first few
years of ownership is insane but a cheap car it’s already depreciated I don’t
have to worry about that and the main thing is you want to get it where
there’s still got a bunch of the lifespan left but you’re not paying much
for it no I don’t like driving Junkers around for example when I bought this
thing for like 350 bucks with text the front bumper it was jolly she had a dent
in the fender so I did have to spend 800 bucks with my paint body I fixed the
founder and to paint the car all one color even with that 800 bucks that
still kept me under 7,500 bucks for all the cars I’ve ever bought now let’s say
you’re not as cheap as me and you’re gonna buy a new car even then you’re
better off buying a cheaper one I had a customer buy bottom design Lexus and he
bought body kits bolted stuff on then he took to a paint guy to paint it to max
of paint he had a real swanky one for a lot less than if you would have bought it
at the dealer that way same thing here this is a 2002 but it’s got modern halo
headlights on it because I bought them from China and put them on I’ve even had
some extreme costumers if they wanted leather seats but the leather ones cost
so much more they looked around if salvage yards they bought leather seats
that were in good shape and bolted them in their car instead of paying
outrageous price the dealer wanted for them and of course one big advantage of a cheap cars they come pre scratched and pre dented there’s nothing worse than
buying something new and then you get the first scratch or a dent you know
what’s gonna happen in our society people are slobs they’re gonna be in a
parking lot they’re gonna open the door even worse they’re gonna bump into it
with her bumper and just take off you got a cheap car you’re not gonna
worry that much about it you worry less about your insurance costs you buy a car
to cost 50 60 grand brand-new the insurance is high cuz if it gets stolen
they gotta pay for it you buy a car that’s a cheap car you don’t have to
worry about high insurance rates I realized
an expensive car you got try to find the perfect car for all your knees a lot of
times there is no perfect vehicle take for example hey you want to haul
some stuff around maybe you want a pickup truck but you don’t want to drive
it around all the time well buy a cheap one you can use it when you need to haul
stuff like my son does outside of Boston I gave my Toyota Tacoma it was all rusty
but he’s still driving it years and years later you might not want to use it
all the time but if you’re buying cheap cars and buy more than one and maybe you
need to make a commute to work you can buy an old Toyota Corolla for a Honda
Civic and use that for you’re just not around car you no need to spend a small
fortune trying to figure out the right vehicle and then find out one of them
does not fit everything you want and of course one big advantage of cheaper cars
if you pick the right ones the parts are cheaper because when you
get older aftermarket will start making parts for
instead of you got a car that’s a year or two old you got to buy an expensive part you
can get parts from all over the place for a fraction of what the new ones cost
no here of course you want to stick to common cars that are very popular in
your area then you can get parts for I’m not a Volkswagen fan I personally can’t
stay into things anymore but in Europe they’re real big and you can get parts
water and people can fix them so buying a cheap used Volkswagens good idea in
Europe even though I’m not by your very good idea in the United States of course
another advantage of a cheaper car is parking is easy you’re not worried I
have had many customers some of them we’re friends I got to dinner with them
they driving her BMW and they’d have to park away from people but they want to
park where they can still see the car from the restaurant window and they were
always looking out the car to make sure nobody was running into it you got a
cheap car with things in it you’re not gonna be worrying about that stuff and
of course the biggest advantage of buying a cheaper car is you don’t have
any monthly payments I’ve never had monthly payments except on my house hey
after about 15 years I paid all that off anyways it sound like monthly payments
get out like monthly payments get a cheaper car take my case fifty years of
driving cars I spent less than seventy five hundred bucks on all of them if you
had a monthly payment of 300 at same period of time you would have spent one
hundred and eighty thousand dollars different than 7,500 you can certainly
get where I’m coming from here the savings can be immense realize most cars
you buy are the worst investment you’ll ever make you buy it and the value just
goes down not like a house I paid 80 grand for this house now
the Lots were more than half a million dollars you’re not necessarily go whose
money buy the house but you’re certainly gonna lose money buying most normal cars
that people drive around in connect your cheap car look nice you can always get a
fancy paint job on it make it look nice and shiny put on fancy rims whatever you
want to add on and of course if you’re like me and you’re cheap in when you do
that go to a salvage yard there’s plenty of the fancy cars already wrecked you
can take the wheels off of them stuff like that you don’t need to buy brand
new when cars get older there’s all kinds of parts available for them that
don’t cost a fortune even if they’re not brand new parts hey wheels are wheels as
long as they’re not bent they’re gonna work perfectly fine and of course you
get a good cheaper car it’s withstood the test of time like the Celica they’re
still running good that meant they were well built let’s say you buy a brand-new
expensive car that’s got a new design engine or transmission the brakes found
later you’re screwed you’re gonna have to pay a fortune these things are tried
and trued the ones that broke aren’t on the road anymore
you can get one that’s already been casted out that’s the main reason I tell
people never buy a new model of anything out there when it’s a radical engine or
transmission change body styles who really cares that doesn’t matter but
engines the transmissions you want ones that have been proven to last a long
time so now you know why buying a cheaper car can be a very wise decision,
so if you never want to miss another one of my new car repair videos, remember
to ring that Bell

About the Author: Michael Flood

100 Comments

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  2. Scotty – there are plenty of places that require PL&PD insurance on any vehicle you drive. This poses a problem for having one vehicle for each use. Ya can't be switching insurances all the time from vehicle to vehicle.

  3. At the beginning of 2005, I had to acquire a car. Two previous cars were acquired as used cars. I purchased a left over 2004 Avalon, new. It was already depreciated. 15 years later, I have the same car. No problems. Serviced as if it were hard-used, so still going strong. There is a possibility that it will last another 15 years.

  4. Capitalism is all about winning the money game. Give out as little as humanly possible and take in as much as humanly possible. Scotty knows the deal.

  5. The sweet spot of most cars is around 4 years old. That’s when you get the most value for your dollar….Depreciation starts to level off, and repairs and maintenance haven’t start to become significant yet.

  6. I have to agree with you Scotty. My daily is a 05 Crown Vic I paid $1000 for and it takes me from point A to point B just the same as my depreciating, garage kept, 16 Mustang. Learned my lesson.

  7. Scotty, you, I and many others are lucky suckers buy new cars. I couldn't imagine buying a new car ever! it's pretty hard to have used cars without new one's .

  8. A 1965 Ford Mustang is one of the better nicer old cars you can get. -Base model coupes are still like 1/10th the price of a new S class Mercades Benz
    -Simple pushrod design V8 engines that can last even longer once its been rebuilt with piston sleeves
    -No need for expensive electronics just to work on them. I once even had an engine issue that made it barely even drivable that turned out to be just a stuck air valve and bad points.
    -Rich aftermarket that even includes new drivetrain parts.

  9. I have been driving used Mercedes A class w168 last 8 years and i bought it for around 3000 euros. That is my first car… after this videos maybe my last😁!

  10. The best part is when you can push shopping carts out of the way without getting out. I bet your $100,000 Mercedes doesn't have that feature.

  11. I am thinking to get a cheap, used crossover with AWD for my first vehicle. What is your opinion on a 2014 Ford Edge SEL with the 3.5 L V6, which produces 285 horsepower and it has a six-speed automatic transmission with manual-shift capability.

  12. I have always had cheap cars. It just makes the most sense. They have all been 2,500 to 4,000 and I payed cash in full so no matter what happened I would not have my car repossessed. I just can't fathom paying 20,000 ( on the cheaper
    side ) for a brand new
    car ???
    What happens if you fall ill and lose your job ?
    What happens if there is an accident and insurance decides they are not obligated to pay ?
    In the real world there is no certainty or guarantee that thing's will work out no matter how hard you try so I find it best to be on the safe side.

  13. 😅 Mr Scotty has a table grinder upside down in his garage…my 02 dodge ram was owned by a construction worker before i bought it…I'm sure nobody wants to park their nice car near me😅

  14. I bought a Scion xB for 16K in 2005 and kept it for 13 years and sold it for 5K. Last year I bought a used 2017 Civic Si for 15K cash. I think Scotty would be proud of me.

  15. Everything Scotty said in this video is why my daily driver is a 1999 Toyota Camry 4 cylinder with 185,000 miles on it.

  16. Like boat owners know, the two happiest days for a sports car owner are the day you get it and the day you get rid of it! I'm the happy owner of an old Honda. Have a little more caffeine Scotty.

  17. right had a long bed T100 ran like a clock 4cyl. w/stick….standard cab it was 100% economical but not 100% ergonomically correct hey Scotty

  18. I recently had a coworker ask me where to get a good deal in a new bmw since he now makes 13$ an hour. I asked another coworker if he knew, since he made 1.7 million last year. He said I don’t know I drive a 2006 Nissan Sentra. I drive a 12 year old corolla myself. Paid cash. Low insurance. Low maintenance. High mpg. Who wants payments?

  19. This reminds me of something Dave Ramsey says: “People spend money they don’t have on a car they don’t need to impress people at a red light they don’t know”

  20. New cars are a HUGE waste of money. Poor people want new cars, because everyone needs reliable transportation, and it makes them feel "less poor" when they drive a new car. New cars are not practical. You park it in a store parking lot, and some douche-fukker runs a shopping cart into it. Or some screwfuk backs into it.

  21. 1:18 The a/c in my old 2008 Astra and 2008 Outback simply blows 😞

    2:58 So damn true. I'm paranoid about where to park my brand new Corolla. The way people park is scary. The best cars for parking lots were the original Saturn SL models with the polymer door skins and fenders. I had two wagons and they didn't get scratched nor dinged.

  22. Driving Volvo's for 50 years
    Buy em with a hundred thousand miles drive em for another two hundred thousand… works for me

  23. For daily drivers I’ve always driven used Toyota and Ford. I know a lot of people say Ford stands for “Fix Or Repair Daily” but I’ve fortunately had really good luck with them even when they were pre-owned with over 100,000 miles. And well… I just find Toyota to be freakin bullet proof!

  24. I know an old lady with 4 million in the bank and she drives a 2003 GMC Sonoma and has lived in the same ranch house for 48 years

  25. My family and roomates always comment because of my age that I should do monthly payments and get myself "a nice car thats newer and looks nicer" and i always tell them theyre idiots and its a waste of a monthly payment when ive driven my $750 beater car more than 27K miles and 4 road trips. I've only spent $750 on my car still while my family spends over $3K a year just to keep theirs in the driveway.

  26. Mechanic 👨‍🔧 always buy cheap cars. In my opinion mechanics really don’t like cars really all that much. With you not spending the money on cars when you and your wife die you kids are going to be REALLY RICH!!!!! I do believe you need to upgrade your garage door thou lol. It looks really BAD SCOTTY 😉

  27. I don't why people worry about the depreciation on a vehicle. You're not buying it as an investment like shares in a company for example. Unless, it's for your business. Then leasing might be a better option.

  28. Driving since1968, with exception of good Plymouth Valiants i (and family) owned, and a great used 72 Plymouth Satellite – rest of used were junk.
    Dad's 63 and 68 Chryslers (from new) were great.
    Gf bought junky (new) 88 Nissan, head gasket, blown @70K – financed 7K with high interest, cost 18k!
    All 3 of my (fm new) Toy trucks great (85, 89, 94), with 89 (basic) best.

  29. Broke people wouldnt be allowed to finance their luxury car due to poor credit.

    I get the idea. But reality is different, quite frankly.

  30. i drove used corrolla's and camry's for years, then bought a new rav4, first day i park in a walmart parking lot, and got 2 dents from doors slamming into it

  31. Would love to do this but it just wouldn’t work in the UK. had an old £800 car and the UK weather and salt roads chewed that thing up. It worked out cheaper for me to get a 5 year old car on finance with the amount of money I was spending on repairs each month/ couple months. Especially with MOT’s (annual inspections) it works out more cost effective in England to get a good deal on a good value slightly new car that’s already depreciated nut still has 5-8 years left. That’s what I found anyway.

  32. But how much time did you spend fixing those cars?….jk, seriously though, not everyone is a mechanic who can tell whether a used car is a good deal or fix it for cheap when it breaks.

  33. “Hold fast, then, to this sound and wholesome rule of life—that you indulge the body only so far as is needful for good health. The body should be treated more rigorously, that it may not be disobedient to the mind. Eat merely to relieve your hunger; drink merely to quench your thirst; dress merely to keep out the cold; house yourself merely as a protection against personal discomfort. It matters little whether the house be built of turf, or of variously coloured imported marble; understand that a man is sheltered just as well by a thatch as by a roof of gold. Despise everything that useless toil creates as an ornament and an object of beauty. And reflect that nothing except the soul is worthy of wonder; for to the soul, if it be great, naught is great.”

  34. Rich people are good with their money some don’t even wanna spend it or spend it responsibly they know cars are a bad investment.

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