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

⬇️Scotty’s Top DIY Tools: 1. Bluetooth Scan Tool: amzn.to/2nfvmaD 2. Mid-Grade Scan Tool: amzn.to/33dKI0k 3. My Fancy (Originally $5,000) Professional Scan Tool: amzn.to/31khBXC 4. Cheap Scan Tool: amzn.to/2D8Tvae 5. Basic Mechanic Tool Set: amzn.to/2tEr6Ce 6. Professional Socket Set: amzn.to/2Bzmccg 7. Ratcheting Wrench Set: amzn.to/2BQjj8A 8. No Charging Required Car Jump Starter: amzn.to/2CthnUU 9. Battery Pack Car Jump Starter: amzn.to/2nrc6qR ⬇️ Things used in this video: 1. Common Sense 2. 4k Camera: amzn.to/2HkjavH 3. Camera Microphone: amzn.to/2Evn167 4. Camera Tripod: amzn.to/2Jwog8S 5. My computer for editing / uploading: amzn.to/2uUZ3lo 🛠Check out the tools I use and highly recommend ► goo.gl/rwYt2y 🔥Scotty Shirts and Merch ► goo.gl/pTAeca Subscribe and hit the notification bell! ► goo.gl/CFismN Scotty on Social: Facebook ► facebook.com/scottymechanic/ Instagram ► instagram.com/scotty_the_mechanic/ Twitter ► twitter.com/Scottymechanic?lang=en

For most people, looking cool to strangers is more important than staying debt free.

"No monthly payments" is one of the keys to early freedom.

Whenever i feel the need to spend money on my car I watch a Scotty video and I immediately calm down 😂

This is not being cheap. This is being a wise man.

I'm grateful for people that buy new cars even when they're broke. They're the reason I scored great deals on a used car.

Scotty is so cheap he uses his Neighboor internet to make his videos.

“Biggest advantage of buying a cheaper car is YOU DON’T HAVE ANY MONTHLY PAYMENTS”. -Scotty. Yes💯‼️

Imagine living your whole life trying to impress other people you dont even know... sad.

this video should be mandatory viewing for all High School & College kids

It's not all about a cheap car, finding an honest and dependable and affordable mechanic is like hitting the lottery

This is part of why I'm debt free with no car payments. Thank you Scotty for common sense and advice for wisdom. I have a 2009 Honda Civic and it's running good, it's got 206k miles on it now and looking to drive another 100k or even greater. I love my cash car!

Scotty is so cheap, that when he dies, he'll probably walk towards the light and turn it off

If Scotty ever needs a new heart valve, he'll use a valve from an old Toyota.

Bought a ‘98 Camry with 280,000 miles on it 3 years ago, and I retired it this year with 405,555 miles. Best $500 ever spent.

I feel you Scotty I've had my 1996 Avalon for about 5 years now with 215,000 miles on it and I'm still using it for food delivery lol

I wish my dad gave me an old rusty Tacoma. That is the greatest gift I can imagine! Scotty is a good father.

I ended buying a bicycle thanks Scotty for your advice

Scotty is not just a Master mechanic also a Senior Financial Consultant.

After 22 expensive years with BMW I finally saw the light and currently enjoy back to basics in my 2001 Camry. Thanks Scotty 😊

I am 60. In my life I have owned 8 cars, 3 of which I own now. Part of that success I owe to this channel.

Shoutout to all the people who drive their beat cars with pride

they come pre-scratched and dented!!!! best selling line ever

We own a 12 year old Town and Country with 245,000 miles. Its been one of the best vehicles we have ever owned. It holds our cargo, our grandchildren, and has taken us on many vacations and daytrips.

I have not had a car payment in over 5 years and love it.

Scotty, you always make us Cheapskates proud about ourselves.

If you mute Scotty, it looks like he is conducting Beethoven's 9th.

Once again, Scotty speaks the Divine Truth about car 🚗 ownership! Love his honesty and his dedication to making his loyal viewers a little smarter every day! To wit: I found and bought a Volvo 850 for sale, 15 years old, and got it for less than $4K. Still on the road happy and healthy at the age of 24 years. Mileage close to 310K. My independent garage keeps me running for far less than dealership costs. Love ❤️ it! No need for shiny new Car- money is better placed into RSP/401K each month. It is NOT rocket science folks!

My Dad drove a Volkswagen bug from 1972 to 1985. That bug had holes in the floorboard and the foam was coming out of the seats. He was a Dr and was making 500k a year at the end of his career. He too ended up being a Toyota guy and the nicest car he owned was a Camry. Somehow I feel like him and Scotty would have made great friends. 😂

40 years driving, i have spent nearly $12,000 on cars. Now I fear i may have wasted $5,000.

My mom told me “make sure you buy a nice house before you buy nice a car.” And now the house she owned for $80,000 is now worth $250,000.

Scotty is a National Treasure. This video was especially "wisdom filled".

Scotty I wish more successful RU-vidrs where like you. You have never changed. Your a good man, which is hard to find these days.

Smart guy, I love how he talks like he just railed a line of coke. Lol

I paid $3500 for my 2003 Honda Civic. I’ve had it for about 10 years now, drives like a dream.

Nice to see others living the same way, I've owned 50+ cars and I won't pay over $5,000. I've owned nearly every major make, been driving a big old Jaguar XJ8 for the past 6 or so years that I paid $3400 for.

Scotty you are a great man to give us all this information and advice. We have four Toyotas. I paid good $ for my current car a Toyota Vanguard and fretted about getting it scratched for two years. Now it's "worn" and has character I fear nothing.

Almost went and got a loan, now im back to my senses. Thanks Scotty!

- "Damn, I hate my job..." - Why don't you leave the job? - "Cuz I gotta pay my car." - Why don't you sell the car? - "Cuz I need it to go to my job."

True words from Mr Kilmer. I have a 1999 fiat seicento "sporting" with 90 000 genuine miles - I knew the person who bought it new in 1999. It's cheap to fix and extremely cheap to run and since it's the smallest and lightest 4 seater car on the road, it drives around roundabouts like a boss, leaving meatier cars for dust. It's a go-kart.

Only if you are willing to fix cars yourself and have the space, time, and tools. Not an option for everyone but if so Scotty is right

Things that are absolute in life: 1)Babies being born 2)People dying 3)Scotty's hands all over the place when explaining things

"they come pre-scratched and pre-dented" lmao!

Except rich people don't buy cheap cars. They very often by Tesla's and Porsches

You got to listen a mechanic that has 50 years of experience. I have not had my first car, but this advice is really great.

I'm going to keep watching this video Everytime I have the urge to buy a new car

I hate monthly payments, especially on vehicles! I work for a bank, and you’d perhaps be surprised on how many people’s vehicle payments really hamper them from buying/upgrading their home because so much of their income goes to vehicles!

My grandpa who was pretty well off always said. Getting rich is more about saving and gaining interest on money as well as making wise investments, you have to live like a poor person and accumulate over time until it starts really paying off for you.

The biggest hurdle for people is to stop worrying about trying to impress other people with the car you have, including friends and family. Also, just because it's new, doesn't mean it's reliable. I have an '04 Pontiac Grand Am that I've had to replace typical wear parts like wheel hub assemblies, struts and tie rod ends, and the rack and pinion steering, but now those parts are fresh and should last a long time. The engine and transmission are in good shape, and it always starts. I have a fund put back for any repairs that might come up, and it sits there while the "monthly payment" money keeps building.

Funny how he showed a new Chevy as he made a reference to junkers. Lol.

My 03’ Corolla is an embarrassment to everyone but me! 300,000 miles and still chuggin’

I paid $6k for a 2014 Camry SE with 61k miles from a local one owner 2 months ago. No rust and always garaged. I had the transmission serviced to make sure it's firmware had been updated and oil changed immediately. Plus added led lights into the headlights and foglights. Love it

Thank you Scotty for making me feel good about driving my cheap car.

Social Media has created narcissists among us. I personally know someone who bought a nice house and car beyond their capabilities just to impress their friends on Facebook. His words not mine.

Still driving my first car, 2007 ford taurus. 190k miles. Dont really care what anyone thinks of my car

A lot of times, "true rich" people are comfortable in their own skin and know they're doing well, so they feel no need to show off with their vehicles. Also, many of them still practice good habits, and had good upbringing and wise mentors/financial advisors. This helped them both become wealthy and keep their gains. Meanwhile, many lower-income or "asset-rich but broke" people see cars as a form of bragging rights, stemming from their own envy and insecurity. And many never learned financial management, through early bad decisions and/or bad upbringing/mentorship.

Scotty is a pro mechanic and I've had about 200 cars and I'm 35. Lol Scotty is the best. I buy cars a lot because I enjoy getting new ones moding/fixing them and trading to the next one. If you know what you're doing when it comes to working on them you don't have to worry about getting screwed or giving someone a death trap.

$3000 for a Lexus with sixty something miles man you're one lucky dude 😂

Too many people get into debt way over their heads just to look “cool”. Words to live by from Scotty K. People would be wise to listen.

Love the Toyota Tacoma . fell in love with that body style way back when " back to the future " movie had one in it . a design way ahead of its time. Truly amazing

This is truly a great financial and life lesson right here. Dave Ramsey would be proud. Little depreciation. Don't care what others say. No car payments, ever. Lots of money later in life!!

Easy to buy cheap when your the mechanic doing the repairs. 😏

The new car dealers of North america DO NOT APPROVE of this video!!!

I bought brand new '97, ordered from the factory with just the basics, and still driving it. Haven't got bored yet.

“Old cars come pre-scratched & pre-dented” LMBO 😂😂😂😂😂😂

Rich man: I didn't become rich by spending all my money.

Love this guy! Nuggets of wisdom! Thank you Sir!!

Scotty, u always go old school and I really respect that for nowadays people count on appearances and prefer to be in debts more than to be humble and keep feeding some hungry mouthes in their families. HAT OFF

I hustle back in high school. Selling used car parts, save enough to buy a use $1k car. Started flipping cars as a hobbie. Met a hard working man I respect alot. Gave me a advice to start flipping house. I took a carpentry trade and now building houses. About to get my license and work for myself.

When you get older you come to respect the guy who drives a beater corolla over someone who drives a new 3 series BMW.

I love Scotty, he’s really putting all of us on game ppl needa listen. But at the same time we need the dumb consumer so the smart consumer can exist. No matter how much money I get I’m gonna have cheap cars that will save me money.

This guy is 100% right. Nothing like being upside down on payments. I buy Hondas, Acuras, or Toyotas. I had a Range Rover once and I will never buy one again. I always buy a few years down to avoid the depreciation hit of a new car. Then I keep it for a while. Forget all that trying to look rich stuff.

15 years of driving a 2001 Saturn sl2 with 240k Miles now with no major problems and still kicking Because I have a personal mechanic like scotty

Best truck I ever had was a95 Toyota t100- 4x4. Bought out of a field for 2000. Another 1000 for rear main seal and timing belt replacement at mechanic. I then put about 1000 into paint, ball joints, alternator, starter, fuel pump (did all myself- RU-vid is great) so now I got a dope classic truck, everything works, never had a problem. Drove 4 years and started a business so I bought a new truck. Towed it to shop in less than a year(key system failure) , new transmission at 100k miles. Still owe 20 grand. The guy I sold the t100 to still having no problems out of it. Being a capable person really is a cheat code to life.

I'm a mechanic, my first car was and still is a 97 Corolla, 1.3 xli. I owned other brands meanwhile, vw, audi, peugeot.. but the Corolla, I will never get rid of it. Fantastic car, I totally understand Scotty. Japanese cars, specially Toyotas are great.

The rich man knows buying new cars is a scam. He knows this because he's the one selling the cars.

Still driving my hand-me down 97 camry. Only thing I spend money on is gas and oil changes.

I did the same as you Scotty and save thousands buying use car for 48 years . Last truck I have now was a 2000 Ford ranger 2.5l I got it at 2006 paid $4.500 with 111.000 miles it's 2022 I changed time belt at 198.000 miles ready to go another 100.000 miles great truck great savings too! It good to know how to fix things yourself and with Scotty's help!! Thanks again Scotty!!!

If there’s any 16-21 year olds watching, buy the most reliable car you can find. It’ll save you so much money as you finish school, find a career, buy a house, etc. when your old and house is paid off then go buy all they toys you wanted when you were 18. That is the secret to becoming wealthy

3:55 “if you’re buying cheap cars, you can buy more than one” Tyler Hoover approves

When I lived in the ghetto, I saw so many more Mercedes and BMW's than in the "richer" parts of town. Of course they were all beat up and falling apart....

Man, you are so convincing! I was thinking about buying fully loaded brand new minivan for my family of three after I “pay off, monthly” for my fully loaded SUV. But now I’m not sure sure! I wont be as cheap as you though, but kudos for your honesty, man!

I’m low class and I buy used Hondas for 2k because of how reliable they are and how long they could run for. The civic has impeccable gas mileage too.

I drive around the swanky neighborhoods around my area and I always see old Toyotas and Hondas parked at million dollar mansions.

The only difference is that you know how to work on them.😁

I was lucky to start my career at a company which was making parts for almost all the back-then luxury car-brands. I saw how cheap, bog-standard parts get sold for up to 300x the price just because it is under "some European luxury brand". And so I adopted Scotty´s mindset, having a Japanese four-banger with no extras apart from AC. Don´t even know the hp.

I was making a ton of money and decided to reward myself...bought a S55 AMG Mercedes...for over $100k...3 trips to the shop later at $4,000 a pop...dumped it...bought an old Yukon...Ill never do that again.....buy things that appreciate, rent things that depreciate...

Your absolute correct , I wish my daughter would take your advice , I am still driving my HRV Honda 2005 , never broke down , have it serviced every 10,000 miles , I am sure I get another five years out of it , God bless from Ireland

Seeing Mercedes in the hood is pretty funny when I go to the nicer part of town and see Corollas and Civics.

Scotty , you're an automotive mechanic you know what to look for in buying used/ new cars and how to fix them all by yourself . Unfortunately the vast majority of us don't have that skill knowledge .

My first car was a 1993 accord. Had it for five years and probably only spend 2k in repairs that time. Wasnt the fastest or nicest looking car but it did the job. Saved a ton of money on the side.

Rich people don't BUY luxury cars. They have their LLC buy or lease them. Hides the "ownership" for tax purposes.

As someone who does lending for a living, let me give you my take on it: I noticed when I was working in the most lower income areas, people had the nicest, newest cars. They had BMWs, Mercedes and Cadillacs when I was driving around in a Corolla. Most of this is because they like living under the illusion that they are rich, when they are actually pretty poor. While in the early 2000s people were able to buy houses they can’t afford, recent regulations and financial institutions not wanting to lose money anymore, put an end to a majority of that. The difference is that hasn’t caught up to the auto industry lenders at this point, so while people can’t really buy houses beyond their means anymore, they can still do so with cars. I’ve seen people spend more than half and up to 2/3 of their income on monthly payments for a luxury car, when they’re making about 2000/mo gross. They then come to the place where I work because they realize they can’t afford a 29% interest loan and I tell them we can’t help them because their debt to income ratio is too high and that a sub-prime lender fed into their sense of entitlement by giving them a car they can’t afford. The other thing lower income people do that screw themselves, is that they always finance the entire vehicle (plus taxes and fees) meaning they’re typically over 100% loan to value (LTV) on their vehicles. This alone isn’t inherently bad (as long as you know that it typically comes with higher rates, and fast depreciation meaning your car is going further and further upside down), but you combine this with having to have the newest car and you have people trading in their cars owing more than the car is worth (called a negative equity trade-in). For example: Buy a car worth $30,000 putting no money down. Taxes and fees bring the total to $34,000 so you now owe $34,000 on a $30,000 car. You are already upside down at the get go! But guess what? You were also late a bunch of times on you credit cards which are maxed out because you also needed the most expensive clothes to show off, so your credit score isn’t that great. You don’t get approved for the advertised 1.99% from the dealer and they say “let me see what we can do”. Boom, you’re approved by Santander! Great news for every one! You get your fully loaded Accord, the dealership sells a car and they aren’t dealing with the risky financing and Santander gets a 29% interest rate, but your so excited about your new rims and interest ain’t nothin’ but a number. You also get the longest term of 96 months because you want your payments to be lower. A year passes and guess what? The newer Accord is out, all your friends are getting them and this one even has a wireless charger built in! So you go to the dealer to trade in your “old” Accord and that’s when the number *should* hit you. Your trade in value is now 17,000, because car depreciate the second you drive them off the lot. You argue with the dealer that your sick tints and rims should increase the value because you put at least $1,000 on your credit card to make these “upgrades”. Well anyway at least you’ve paid 12 months of you 96 month loan, which is like a lot, right? So you contact Santander and get your payoff letter and the balance is about 32,750. So you flip out because based on your knowledge of high school math, your balance should be much lower, but you don’t realize that loan payments are set in a way where you are not equally paying interest and principle together but you are paying mostly interest in the beginning. So you then realize you barely paid off any of the principle of your car, but you still really want that new Accord, so your dealer says “no worries, we can roll that negative equity into the new loan”. So just like last time, you don’t put any money down, because your payments are so high that you haven’t saved anything, and so your new car is again $34,000 with tax rolled in, but now you have the old loan balance of 15,750 that needs to be rolled in so your total loan is for almost 50,000 on a car worth only 30,000, but your payments are A LOT higher, almost 1,400 a month, but you can finally show your friends who has the best car, but now you’ll have to put your groceries on the credit card because you don’t have any cash. A few months go buy and you finally realize you are getting crushed under the payments of this car. You see that another financial institution is offering a MUCH lower rate so you go inside to apply. So you do the application hoping for a low rate, but since your credit cards are maxed out from not having any extra money, and you’ve been missing payments, you don’t get the lowest rate, but hey 6% sounds better than 29%. So now you’re “pre-approved” you just have to give them the vehicle information. You go to your car and grab the VIN and mileage so they can pull a value. The loan officer enters the information and the shock on his face is palpable and they say “I’m sorry sir, but you owe 49,750 on a car only worth 22,000, we can’t let 226% of the value of the car”. So you leave and decide “this car is too expensive, so you decide to just not pay it. After 90 days you see a tow truck taking your sweet ride away. The bank sells it at auction for 10,000, but with a loan of 49,000 plus all the large fees, repossession fees and auction and storage fees, the 10,000 they recoup from the auction, so now you’re left with a balance of 42,000 and no car. No point in paying that money, so it becomes a charge off. Months of you taking the bus to work go by and now you decide your ready to save up and finance a couple of thousand for your car, but all that lenders see is that you still owe 42,000 to another institution in a charge-off so now you can’t get a car at all. You complain that the world has it out for you and life is unfair and that you were discriminated against. So you go home and do the only thing you can do: drink until you pull out s .45 and shoot yourself in the head. All because you had to have the newest car.

Its like you took the words right out of my mouth I preach this same stuff all the time. I'll never understand how people waste so much money on cars. Buy cars that are 10 years old and low mileage you'll save a ton of money and there will be plenty of info on the cars you're interested in.

I bought a 2013 Prius when it was 4 years old - no accidents one owner like new condition 136,000 highway driven miles for $7,200.

We have a saying back home that goes like "the less you own, the less you're owned"

I'm darn near 40 and I'm still driving my high school graduation present. I'll pay cash when I finally purchase my 1st vehicle.

1 huge downside of buying a cheaper car is safety. Older car might be much less safe by design. It might have safety equipment broken or missing.

If you need to pay for a car monthly, then you can't afford it.

I just love my 2007 f150 pick up. Has 250 thousand miles and drives great and will keep it as long as I can. Would rather have cash in the bank then debt in the driveway.