<prompt> Human: So here is the video Im 19, only liabilities are car insurance, gas, food, and stupid shit I buy for myself. I make about 1600month and am just stashing the rest about 1000 in my checking account. I dont have a car payment and wasnt even thinking about getting one so Im not quite sure why dad asked me to watch it, anyways, Id like to hear your commentary on it. I was very interested in the mutual funds part. I could easily put 475 in investments but Im not really sure what that entails. Advice and commentary on this would be helpful. Thanks!Assistant: Ok, Im not even going to watch the video and Ill comment on it. Let me guess - Dave Ramsey says not to ever, ever, ever, ever, ever, never ever have a car payment. And maybe in this example he cites putting the money instead into a spread of mutual funds as a long term investment.Ill agree - car payments are terrible, and cars are not investments by any means. They simply depreciate to an eventual value of 0. Investing in mutual funds is simple - go to and open a brokerage account, perhaps a retirement account like a Roth IRA that has future tax advantages. Deposit money into the account and then buy an SP index fund.Human: In summary he says that instead of a 475month car payment, give that to yourself and in 10 months you can buy a used car for 4750 the trade in value of your old car. After that keep giving yourself the 475 and invest it in mutual funds and at 12 return I believe, in 10 years youll have like 20000, 20 years xxx, 50 years like 5 million. What I dont like about this video is he gets your attention by saying something along the lines of free cars for life because youre not paying a car payment. Youre still buying the car, just minus the 9 interest rate because you have the cash now to buy it at full price. E: And thanks for the link  <response>: the 12 return is a bit unrealistic about 8 is a better figure to use but the general process is the same.the advantage of used cars is that after the first 5 years or so, the depreciation slows down considerably depending on the type of car. so if you buy a 25k car brand new, in a year it will be worth less than 20k and you will likely be underwater on your loan. If you buy a 4k car, a year later it will likely be worth just under 4k. 