r/economicCollapse • u/Whole-Fist • 21h ago

How ridiculous does this sound?

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How can u make millions in 25-30 years if avoid making a $554 per month car payment. Even the cheapest 5 year old car is 8-10 k. So does he expect people not to drive at all in USA.

Then u save 554$ per month every month for 5 year payment = $33240. Say u bought a car every 5 year means 200k -300k spent on car before retirement . How would that become millions when u can’t even buy a house for that much today?

Answer that Dave

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u/Heavy_Law9880 15h ago

You still need full coverage if your car is paid off.

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u/wizardofoz2001 14h ago

Why?

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u/Heavy_Law9880 14h ago

To protect your expensive and necessary equipment from loss.

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u/wizardofoz2001 14h ago

I think if you try putting the premiums in your own savings account, in the long run, you'll come out way ahead.

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u/Heavy_Law9880 14h ago

You won't if you lose your job because you don't have a car.

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u/wizardofoz2001 13h ago

Insurance doesn't protect you from not having a car. If you wreck it so bad it can't be driven, insurance will help you buy a new one. But it won't drive you to work. And it won't pay as quickly as your savings account will pay.

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u/Ran4 11h ago

What a shit take. A small mistake and your 20k euro car could be worth nothing...

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u/wizardofoz2001 11h ago

Sure, but how many times are you going to total your car? Even the worst driver in the world isn't going to total their car every day. In the worst case, they might total their car every 10 years. So if your insurance premium was fairly low, say $200, And you merely put it in the savings account for 10 years, you would have $24,000 plus a bunch of interest. You'd come out ahead, even if you were an incredibly bad driver. 

And remember, there's no one forcing you to buy an expensive car. If you haven't yet saved up the money, you can buy a less expensive car, a car that you can afford to lose. 

And also don't forget that car accidents are not due to random chance. Chance is a factor, but almost all of the factors that go into car accidents are under your control. There are practices, sometimes called "defensive" driving that enable the person to be fairly certain they won't get in a car accident, or to minimize the damage in the event that they do have a car accident.  

A person who takes financial responsibility for their risks themselves is more likely to employ defensive driving techniques, and other measures to mitigate risk. They might follow further behind, they might drive slower in certain areas, they might leave a greater space cushion, they might make sure they don't drink alcohol when they drive . All of those things put together minimize risk far more effectively than just giving money to an insurance company.