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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

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100 thoughts on “Here’s Why Rich People Buy Cheap Cars and Broke People Buy Luxury Cars

  1. ⬇️Scotty’s Top DIY Tools:

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  2. The problem up north is finding something cheap that isn’t rusted out. They can be found, it’s just difficult versus buying used in Texas.

  3. This guy can buy crappy cars because he can fix them easily, i know how to out gas in a car and change the tire so I cant do that so I buy a new car every year or two and put a full warranty on it, you can keep doing that and always have a new car…the key to all this is fixing your credit

  4. I used to work as a mechanic at a second hand luxury car dealership. My favorite type was "I'm your local frat boy. I just bought a sports car, and I rotate between missing my insurance bill, and missing my car payment".

  5. 0:32 "Now I'm not including my wife car like this Lexus, but hey I bought that used for 3k with only 60k. So even there I am careful with my money." I see what you did there Scotty!

  6. You know what, I like cars and driving nice new cars. I work hard, make a healthy mid-6 figure salary plus bonus and spend less than 15% of my income on my house. I’m gonna drive whatever I want. Life is short, live a little.

  7. My mom pays $1.87 a month on insurance cause of the way we cheat the system. Yes its legal and yes that is correct $1.87

  8. You never know what happened to a used car, and it's history. It can be a former wreck, without knowing. Even best car inspectors may not be able to catch everything. I personally prefer leasing! If you have that much money, kind of sad that you can't afford a $400-500 a month payment for your own safety. Plus having a warranty is always nice. Don't be such cheapskates, it's your life and safety at stake when you drive such an old car.

  9. My opinion is buy what you know you can pay for. May it be new, used old and cheap whatever. The point is it depends what you make and if you can pay for it. Make sure you have money and don’t waste it all in one place because you have to live. Money is not everything. Do what you enjoy but never let debt own you.

  10. The mental picture of a younger Scotty driving a Maverick made me chuckle!
    The Corolla SR5 is a fun little car if you can get your hands on one.
    1:13 – That sounds BEAUTIFUL.

  11. Does the $7,500 figure account for inflation? If he paid $5,000 for that Corolla 30+ years ago, that alone is equivalent to almost $11,000 today.

  12. You know what’s worse than seeing a scratch on your new car? Buying a used car and the transmission dying two weeks later. 😂

  13. One thing you fail to mention Scotty is the overall safety of modern vehicles. In my opinion this is the most important reason for a wealthy person to purchase a new vehicle as it will better protect themselves and their family.

  14. Not entirely true a lot of rich people I’ve seen buy very expensive cars All the time otherwise luxury dealers wouldn’t exist but only Toyota’s Dealers 😂

  15. Did you forget about your Vega? My first car was a Vega, loved it and I have been buying cheap cars ever since (mostly Subarus).

  16. Don't get me wrong, I'm fully on board with the Scotty Kilmer school of thought..but up to a point. One thing I don't hear mentioned is SAFETY. Yes, you can buy a 20 year old Corolla for peanuts and I'm sure it will run great if it was looked after. If you are absolutely strapped for cash and you can only afford $2,000 for a car, then that's the reality
    BUT safety wise they will not measure up. Here in Australia about 3 years back ANCAP (Australasian New Car Assessment Program) released a video to highlight the safety of an older car with a newer one. They choose a 1998 Corolla hatchback and performed a head on crash with a 2015 Corolla hatchback…well, the end result was frightening, the driver of the 1998 probably would have died or been very very seriously injured at least..the 2015 driver would have survived with a few bruises.
    So I don't think being cheap is always a good thing. You can be smart and you can use your purchasing power effectively and Scotty goes through this. I always buy 3-5 y.o low mileage Honda Accords or Nissan Maximas (Camry will probably be next!), because they are still up to date with the latest safety features, comfy, practical, luxurious and all about 1/2 the price of new. So I may spend between $15k-$22k AUD or about $10k – 15k USD, but I'm getting A LOT of car for the money (I buy sedans, I don't go SUV's and pay what I call the silly 'SUV tax' – the extra you pay for buying something popular in the market place), but it's money well spent IMO, esp with two school aged children.

  17. I bought a 72 Toyota Corona in the 70's with 60k miles for $1200. I believe they were the forerunner of the Camry. I asked the Chevy dealer if he had any trade in cars he was taking to the auction Since it was 5 years old new car dealers would not sell anything that old as a used car. I drove thea car for two years and sold it for $1500. Sorry I sold it.

  18. Hey Scotty I'm looking at buying a 1997 Lincoln Towncar with 96,000 original miles on it, the car seems to run great the interior is almost like new the only thing negative I can find is that the paint is a little faded The owner is asking $1,300 for it. Do you think this would be a good buy? Thanks in advance.

  19. …what if you enjoy your car as a hobby. Basically any hobby requires money. Time working = money, portion of that time = money that goes toward something I enjoy. I'd prefer enjoying my car than partying. If a car is simply a car to you – good advice. If you enjoy cars and driving – consider it an expense like virtually any other hobby.

  20. I would agree with this but Teslas offer an entirely different experience from the rest that make them worth the extra money. The instant torque and quick acceleration, the silent cabin, the keyless entry and start up, flush door handles, less maintenance, etc. if we were talking about ICE cars, then yeah don’t spend more than $40k and always buy used. I would never buy it to impress people. The car itself impressed me a lot.

  21. JESUS! Scotty, you've made more money on youtube than you ever made as a mechanic. Take your wife on a cruise and clean up your garage.

  22. Totally agree. 11 years ago I bought a 1995 Explorer sport 2-door, 2WD for $1400. Had a 5spd manual. Fun little truck. Got 9 years out of it. Was hit twice in it, combined payouts from the other party's insurance companies were twice what I paid for it. Second time it was totalled, but they let me keep it. Got parts from eBay and Craigslist and I pocketed 80% of the payout. It was a disposable vehicle. Bought a newer almost identical one for my son for $1500, 5spd 2wd with the SOHC 4.0L V-6. That puppy has balls. I've bought a total of 3 Explorer sports (last one still looked brand new) for under $8000. Last one not only looked brand new, it was loaded (leather, power moonroof, 4×4, kickass stereo) and had only 54,000 miles on it but was 17 years old! I'm 55, never bought a new car in my life.

  23. The truth is conservative Christianity was replaced by materialism which opened up the doors of finance for consumerism. Now a half ton truck cost $80,000 and wages barely pay the interest. Capitalism will fail Communism will be the reaction and this is why Empire nation's are a bad idea.

  24. Totally agree I am the biggest car guy. Love em. Love researching about them. I'm 42 yo. Just bought a brand new 2019 Jetta S manual 6 speed. It's the last new car I'll ever buy. From now on my family will ony buy used Toyotas or Lexus with 200K miles still will run fine and last long. Scotty is correct about this video.

  25. I love my 2005 highlander. It's been backed into, it's hit animals, it's got tons of rock chips.. everything that happens to it I don't care one bit about. I keep the oil changed and talk to it nice and it lasts.

  26. Went to a polo club in Vero Beach, FL. Major money. Townhouses at this place were over $800k back in 2000. I was expecting exotic cars everywhere, but nearly everyone drove an Accord.

  27. I have a 1990 Lincoln Town Car 5.0,1977 K5 Blazer 5.7,1979 Chevy Nova with a 455 7.5 Im getting ready to get rid of my 1996 Buick Riviera 231 3.8 series 2 Supercharged i can’t stand OBD2 modern cars suck me and Scotty have the same mentality 😂 oh and I had a 1994 Toyota Camry DX 2.2 standard which I got rear ended earlier this year totaled it got rid of it in running condition so bummed out ☹️ that was a die hard car I got it with 248,000 miles on it purred like a kitten 🐱

  28. hi i have ford a escape 2002 and i have a transmission solenoid problem. is it possible my entire transmission is shot? is it worth it to fix or should i sell it?

  29. Buying used makes and models that Devalue rather quickly is actually a good strategy, I remember back when I got my first truck, a 2000 4cyl ranger for 9,500 in 2001 only had 19k miles, sold it 16 years later for $1600 with over 285k miles on it, and it was still in amazing condition inside and out, when I sold it, it was hard to find one is such good shape, I know cuz 2 years before I sold it I was looking for parts trucks and couldn't find running ones less than 1500, looking back I should have kept it, but I let it go because it was a manual transmission and 2wd

  30. Mr Kilmer, I thought your son purchased a new Tacoma cause he planned on keeping it for so long. So the price justified it self.

  31. All I drive is cheap wheels
    My current ride is an old 99 Hilux that I run for free on waste engine oil!
    There's not any cheaper motoring than that

  32. A cost fallacy: The one thing a older cheap car can not give you is your life back if it doesn't protect you in a bad crash. So if there's an argument for a later model vehicle, this is it. Crash technology, and maybe some newer safety features.
    Regardless of price, regardless of high mileage get as late model a vehicle as you can reasonably afford.

  33. all my cars from a mk2 cortina to 97 falcon were all paid with cash and never realy alot to own , i did buy a car and put over the pits (unlicenced ) and it passed but i loved that car for the 5 years i had it

  34. It's kinda funny cause a 2000-2010 BMW 3 Series is the ultimate symbol of Ireland's lower class yet you'd never see lower class Ireland drive a Toyota RAV4 or Skoda Kodiaq.

  35. I paid 7k cash for a used 09 clk 550 & I love it to death. Do all the maintenance myself. I can't take hot chicks on dates in 96 celica or honda lmao mfs need to learn how to use a wrench.

  36. Here in the philippines, some people buy new cars so they can brag it to their friends and through social media even though their income is not sufficient for paying the car monthly amortization, bills and tuiton.

  37. My dodge viper slipped off the ramp today destroying the side skirt, ruined my day, i also ran into a colvert with my old chevy, backed away and drove off, no worries

  38. So true have a old van and old car and a old pick up 36 years old but own four houses, an old school friend always wasting money on cars and he finally has bought an ex council house.

  39. Scotty is great but I can't get over the disaster zone he operates in…I would be wary if I was his customer….cluttered life, cluttered mind.

  40. I'm 33 and just now bought a car with a monthly payment. My fourth car but first car payment. Hey Scotty what do you think about the new impalas

  41. This guy would be a perfect character in the next GTA.
    He would give you missions about stealing cars and painting them, etc.🤣

  42. I drive old cars too because I learned my lesson with expensive cars and car payments. I get made fun of from my co workers because they got newer nicer cars and they call me cheap. I used to get mad but then I realized these are girly men who don’t know how to work on a car and just afraid to get dirty to maintain or repair an older car. I’m no professional auto technician but I consider myself to be mechanically inclined then most people.

  43. I agree with your basic theme but those numbers you rolled out…  $300, $500, $350….   no way man.  Are you on something?  You aren't buying anything like that in my area.  Especially a Toyota.  I see 20 year old Toyota pickup trucks selling for $15,000 with 150-200k miles.

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