Being Patient Pays

I found this video on YouTube and found that it makes some good points about buying cars. There is very little financial sense in purchasing a brand new vehicle. A better idea would be to purchase a slightly used vehicle (around a year old, with under 15K miles) for 20-25% less than the original price. This video below has a similar idea.



The part that is glaring to me is the average car payment of $464, which is slightly more than I pay for rent each month. The video also makes some assumptions, such as getting a 12% return on your money that you've invested in mutual funds. Yes, statistically the stock market has averaged around 12% in the long term, but saving for 10 months, 20 months, or even a few years hardly seems very long term to me so you might be looking at lower returns on your money in the short term. Other than that, it's a solid idea that would do wonders for most long-term budgets.