Charles Barkley Admits He Was an 'Idiot' with Luxury Cars: Dr. J’s Reality Check on America's Costly Car Obsession

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In a podcast interview, former NBA player Charles Barkley revealed that he received valuable financial lessons after getting a wake-up call from his mentor, Dr. J.

"I was foolish with my money when I first received it," said the 61-year-old. said Back then, I owned around three or four vehicles," Barkley remembers. "Dr. J asked me, 'How many of those cars could you operate simultaneously?' He also said, 'Why do you need four? The money has to sustain you for the remainder of your life.'

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This changed his viewpoint on wealth and vehicles permanently. Here’s how letting go of the car fixation might transform the lives of typical Americans as well.

National obsession with cars

It's not only famous people and pro sports players who indulge in buying vehicles. On average, U.S. families possess additional cars, allocate greater spending toward them, and drive longer distances compared to similar households in other economically advanced countries.

In 2022, the ratio of automobiles per 1,000 inhabitants was approximately 860 in the U.S., whereas this figure stood at around 677 in Canada and 627 in Germany. According to data from the Department of Transportation, about 91.7% of households within the country possessed at least one car, with 22.1% owning three or more vehicles. Additionally, the typical daily commute lengthened significantly stateside, reaching an average distance of 41 miles compared to just 18 miles across European Union countries.

Moreover, U.S. motorists dedicate 93 billion hours annually driving their vehicles. Given this, coupled with the cost of fuel, it comes as no shock that gas ranks among the leading regular expenditures for households across America.

A method to increase your earnings at the gas stations is by utilizing the free Upside application, enabling you to up to 25¢ cash back per gallon can be earned each time you fuel up using your credit or debit card. .

It's an easy method to stretch your dollars farther, particularly since fuel costs vary. promo code AFF25 To receive an additional quarter for each gallon as a bonus on your initial transaction.

Moreover, our addiction to cars comes at a higher price than one might imagine. During the second quarter of 2024, the typical auto loan for a new vehicle stood at $40,927, carrying an interest rate of 6.84%, leading to monthly installments of around $734.

In short, households can conserve significant funds by choosing less expensive vehicles, utilizing public transportation, or carpooling.

Dr. J also advised Barkley similarly. He mentioned, "Young man, investing in expensive vehicles isn't worth it. Given your fame, if you spent $70,000 or $80,000 on a car rather than $300,000, you could've saved an additional $200,000. That sum would be earning interest over time."

Lower auto costs

Reducing the cost of your vehicle and exchanging it for a more affordable one typically provides the fastest method to decrease your automobile expenditures. The best scenario involves purchasing a pre-owned car below market value using cash, which helps eliminate both an auto loan and additional related costs.

If this alternative does not suit your preferences, there are several other methods to decrease car-related expenditures. Transitioning to an electric vehicle (EV) might cut down your yearly fuel and maintenance bills by approximately $1,100, as reported by the nonprofit organization Coltura. Additionally, adopting a usage-based insurance plan where you only pay for what you drive, along with monitoring automobile loan interest rates and taking advantage of lower refinance options when available, could be beneficial too. As an illustration, data from the Federal Reserve shows that the typical rate on fresh auto loans decreased from 6.98% in December 2023 to 6.11% in September 2024.

LendingTree Auto Finance provides a straightforward and effective method for reducing your vehicle expenses. enabling you to contrast loan proposals from different creditors alongside each other .

When you refinance your current auto loan via LendingTree, you might obtain a reduced interest rate, potentially resulting in considerable savings throughout the duration of your loan.

This means more money stays in your pocket while you pay off your vehicle faster. You can get car financing proposals from as many as five creditors in minutes.

One of the best ways to save money might be by shopping around for car insurance to get a better deal, particularly since a recent LendingTree report revealed that insurance rates increased by 16.5% in 2024.

Thanks to OfficialCarInsurance.com , comparing various insurance providers has never been simpler.

Simply input your essential details, and immediately receive a range of options to pick from, featuring well-known companies like Progressive, Allstate, and GEICO.

In less than 2 minutes, you might save hundreds of dollars annually on your car insurance expenses

Read more: Looking for an additional $1,300,000 for your retirement? According to Dave Ramsey, this could be achievable. This 7-part strategy 'guarantees success each time' for eliminating debt and achieving wealth in America. —and anyone can accomplish this

Spend less when filling up your tank

Based on data from the Bureau of Labor Statistics, U.S. households allocated approximately $204 monthly for gasoline in 2023, which accumulates to an annual expenditure of around $2,449.

Specialists forecast that gasoline costs might increase by 25 to 75 cents per gallon should President Trump enforce a 25 percent tariff on goods coming from Canada. Such an action has the potential to tighten your budgetary constraints.

You can ease this burden by signing up for a gas credit card, which allows you to accumulate points or cashback Each time you refill your gas tank.

You can freely compare the top gas credit cards available at CompareCards.com.

CompareCards.com streamlines the process of selecting a credit card, making it faster and more convenient for you. examine and contrast the benefits system and additional attributes , such as yearly charges and enrollment incentives, aiding your choice-making process.