How Much Car Is Too Much? 

I'm in construction too (Plumber) and I always see guys in $50-60K trucks on the job sites I'm on. Most of those guys are only making like $60K a year too

It really is sad how fast and how much cars depreciate. Being a car lover it breaks my heart

Every time I’m about to make a dumb decision I watch these videos to change my mind. Thanks Dave

Drive the lowest priced car your ego can afford.

“When he passed away he was a multi millionaire” see that’s the part that gets me about all this. I of course want to leave money for my family, but I also want to enjoy my life.

Dave hit that mute button faster than you could say baby step 3

Dave Ramsey has never been in a 1000hp supra.

Is he talking about Scotty and his Celica?! 😂

That call quality he must be using sprint. Sounds like under water.

As a car salesman I wouldn't recommend anyone to buy a car unless they need one. But hey, I'll sell them if they want one. People trying to keep up with the Joneses, pays me very well. 😂😂😂😂.

Haven't seen many Toyotas nor Hondas drop 60% in value in the first 4 years under 1 million miles.

My uncle told me a story about my late grandfather who I loved dearly. They ran out of gas and had to walk to the gas station. They walked past the nearest gas station because he knew it was a couple cent cheaper up the street.

My car is 11 years old bought new, wife's 6 years old also was purchased new .Two great autos not selling them any time soon.

Dave would kill me, I bought a $70k car on a $80k salary but it has given me so much joy, I have no regrets. Now 4 years later, car is paid off and I doubled my income. The car makes me feel like a kid again - still no regrets.

I see many younger kids and people buying nice 70 to 80k for a BMW, and I shake my head.. cars are not investments. Buy a vehicle that suit your needs, not what you look good in.

I love how your grandpa ruined your "great" moment with some knowledge. That's some real love right there lol

I have 16 year old 275,000 truck and a guy that I know laughs and says he would not trust it to go to Walmart and back. Yet he complains that he lives pay check to pay check. He owes $26,000 on his truck and makes less than half of my income.

I make 15k a year is a McLaren okay?¿

This needs to be put out there more I just started watching your videos based on a question in my head about buying a car and coming from a young lad you made me really rethink about my money and what to do with it

I have found this channel today and I can say, thank god! I can trully learn something in life.

Is this guy scuba diving 🤷🏽‍♂️

I get what Dave is saying. 500 a month from 30 to 70 in an Roth account could reach 5.6 million. The problem with that is, you have done without your entire life. Who wants to be a millionaire in their 70's? Majority of guys don't even live that long so your life is pretty much gone by the time you could even enjoy it. Maybe I am selfish, but I think you need to enjoy your life too.

won't drop more than 10k on a car. Trucks yes because what they can actually do for work. A car is a car and gets me from point A to point B. Luckily my cousin is a car dealer and sells good quality cars for an affordable price. Has been a real blessing avoiding all the b.s. dealers and their games.

Lol I love Ramsey’s grandpa. “That’s dumb” lol

Own my own construction company. Drive a 6 year old toyota tundra with over 125k miles. Inside I cant help but shake my head at these idiots pulling into the lumber yard in their f350 platinum edition, lift kit, chrome wheels....absolutely ridiculous. Cant even work out of a truck with the tailgate at the height of your nose. 😂😂😂😂

"The commercial showing the truck driving through a mud puddle on a construction site is what gets guys buying these things..."😝💪😂

A car is a "consumable" just like a restaurant meal. You buy a brand new car and keep it for 20 years and do not care if the car depreciates or not. You get the use of the vehicle for that time period and properly maintain it and spend money on necessary repairs. Its a lot cheaper than buying new (or used) cars all the time. A car purchased new and financed for five years should be less than 20% of your annual income.

His grandpa died a multi-millionaire... Doesn't that sound stupid to anyone else? What is the point of wealth if you never use it? What is the point of any of it if you never bother to enjoy the fruits of your own labor?

Yes, my grandfather grew up in the depression and saved everything. I can't tell you how many times he'd reuse aluminum foil for warming up his dinner rolls. He'd fold it up after every use and put it in the drawer. I'm sure he basically would reuse it until it fell apart.

Dave drops the greatest gems!

Dave Ramsey, I wish I new you 5yrs ago! You would have saved so many problems. Only thing that is left is learn from the past, take it as a loss, move forward. Thank you so much, I will be so much better in my 30's. I have learned so much from you.

I think this should be mandatory watching for everyone who gets an enlistment bonus from the military. Too often you see enlistees spending their bonus on an expensive car.

Just remember that everyone's interests and priorities are different. Many people are indifferent to cars. Some people's lives revolve around their love for cars. I'm passionate about cars more than anything else so for me I'm comfortable spending a bigger piece of my pie for one. I don't buy boats, motorcycles, jet skis, etc. or engage in any other hobby except weight lifting. People that spend a lot on these other things need to allocate much less for a car. Point is, for many like me, cars aren't merely a transportation device and that's not all I'm buying. So there's no one correct ratio for everyone.

I work part time food delivery....i have to use my own car so buy £300-£700 cars...even if I have to get a new one each year its not a big deal...

Love the Kia ad I just saw on this channel. The algorithm knows its audience.

The story of your grandpa is my grandfather to a T! I can hear him saying it to me now... Haha!

This guy must be at work while making this call because he clearly sounds preoccupied.

I am a over the road truck driver and every time a car or pick up passes me I wonder how much in payments they have with that vehicle

I had a problem with used cars I had an old BMW only paid $500 then It starting having problems so I got rid of it, then I bought a pre-Owned MINI with only 69000miles and thought that it would last me a long time, spent 4000 a year later to fix the problems it had, and I got rid of it six months later because it started having more problems. I ended up buying a new Toyota Corolla with the hopes of it lasting me a long time, I understand that cars are not worth it as an investment, but I cannot deal with the fact that you run the risk of buying a money pit of a car when buying it used, thats why I drive a new car

Most important thing to consider when buying a car if you work construction is that once your on that jobsite unless you get a specially insurance plan you are not covered for anything

The bottom line with cars is don't buy needless luxury or more car than you need (i.e. a big SUV when you aren't towing or hauling). Used vs. New is a complicated question and just because a new car depreciates doesn't mean it's the worse option. Used cars can be all over the place in terms of history (beyond the CarFax) and it could be a ticking time bomb that blows up right after you sign the paperwork. A new SENSIBLE car that is properly cared for and kept until it's truly worn out and unreliable can be a better investment than constantly trying to navigate the often shady used car market where problems are covered up just enough to get you through the sale and then cost you a fortune you'll never get back to fix.

My grandpa always said “don’t invest in anything that rusts.”

28 years old, no debt (thanks mom and dad!), make about $4500 per month after tax, I can't wait to get a used honda civic in a couple years.

I work in the construction industry as a manufactures representative and some of the trucks these business owners and General Contractors drive have to be worth well over 50-70K... I make more money or about the same as they do and I drive a $3000 ford focus with 180,000 miles on it. All that little car does for me is make me money. Anyone care to tell me why a car is such an important status symbol for so many of these old white construction dudes?

I know somebody with a ford 150 ranch edition with 450,000 miles on it

Save and sacrafice all your life to die a mult-millionare. anyone see a problem with that? Saving is good, but you gotta live while you are alive as well...

My car is 30% of my yearly income and even that’s a lot for me.

Why did you by a 20k truck? Cuz thats what they cost to find one under 100k miles.... 10k full size truck costs you more in repairs than just paying for the 20k truck, found that out the hard way by buying the 10k truck

I need this guy sitting on my shoulder all the time!!!

I have 3 cars (I'm in the UK). Currently I have a VW Polo (a small Golf, it's not sold in the US), a Honda HR-V and a Audi S5. And my Audi has depreciated £7,000 In 9 months (excluding the £5000 I got off list price). My VW has lost £3,000 In value in 1 year (it was £13,000 new). However, my Honda has only lost £4,000 In nearly 3 years! £25,000 new, now worth £21,000. And I ordered the Honda BRAND NEW, the other two are ex dealer demonstrators.

I found a hack with my Minivans, I have bought 2 that were 9 years old at purchase time and extremely low miles for that year (1st was 44K miles, 2nd was 14K Miles). These cars were a little high dollar for the year, but 10K - $15K less than the same model with equivalent miles on the odometer. After I got them I discovered they were government fleet vehicles, the first owned by a state agency and the second had US Navy documents in the glove compartment. Super reliable cars that were parked in a garage somewhere for nearly a decade before I started running the wheels off em.

Darth Vader is back!!!

So it really should be everything with motors AND everything electronic.

I have to say....I was saving just like I learned from Dave Ramsey. I was driving a 20 year old Corolla (I put a rebuilt engine when it needed it for 1,499 plus $900 a rental car for 2 weeks, this was bcuz i opted to keep saving). But who knew my 3 year old cat would get sick and cost me $9,000!!? I had emergency money but it was far more expensive than any cat I have ever we had. He swallowed twine!! Who knew a cat can swallow twine!??2 surgeries later... (one was to redo infected surgery!). A month later timing chain goes out on hwy in 104 degress heat...it needs alternater now broken door handle. I had to buy a reliable car...so i chose new Toyota knowing I will drive this new Toyota into the ground.

I heard $40K per month and I was wow,, then I realized $40K per year and I was wow

That story with your grandpa reminds me of that song, "Daddy Never was the Cadillac Kind".

This dude has metro pcs

Wanna ask his thoughts on this in relation to using your car for business/ airport livery etc

Ok that’s it. I got the answer I was looking for. Not paying no more than £17,500 for a car, half of my income, and its got to be cash. Car finance?? NEVER AGAIN 😅 Thanks Dave

A spare car is a good idea some thing like a corolla, I drive a 1995 Holden rodeo ( Isuzu pickup ) it is a good car but every month or so there is a part or a problem to fix, I keep them until they have half a million on the clock

200k miles? Why upgrade? I have 2011 camry with 250k miles, not even thinking about upgrading anytime soon

Cars are my hobby but my monthly car payment is only 10% of monthly income. It's hard to comprehend non-car people are spending this much money on their car.

It's unbelievable how many people go bankrupt and lose money because of a car purchase!!

There’s a fine balance of buying an overpriced car, and buying a car with the comfort of knowing it has a good warranty. Sure, you can buy a $5000 car, and you have to worry about breaking down and repairs and whether the airbags will deploy if I’m a collision or not, or a $24,000 car knowing it has a bumper to bumper 120,000 mile warranty and it’s as safe as can be. Dave is obviously not wrong if you’re pushing to be a millionaire. But there’s a reality and practicality of getting a better car to ensure your family is safer. I’ll take the $24,000 peace of mind, and live with the extra cost.

My spouse and I make about $180k yearly combined. We live in metro Atlanta. We will not be raising a family and therefore have no reason to leave a ton of money behind. We want to live comfortably while we are younger (I'm 32) but still invest enough in our retirement to be ok.

Dave, Good Afternoon, I have purchased a Honda CRV 2017 during the Honda Salethon paid 24000 for a 27000 CRV with 3750 Off paid 22500 plus close expense final total was 24600.00. The good news is I rideshare and have a full time job making about 45000 a year on rideshare and 70000 on my full time job. So I am doing well paying off the car down to 15000.00 within one year also paid off 30000.00 in Stupid credit cards, with another 10K in credit cards and 15000 K on CRV. 25000 more and I am done transferring credit card to 0% interest Discovery and will be making 1500 to 2500 payments on card and CRV should be done by May 2019...

That right there is a great story.

That’s great to save all your money, but it sounds like your grandpa never got to enjoy it. I’m all for saving money and living below your means but also people need to enjoy the short lives they have.

20k for a truck is reasonable, he's in landscaping business, having a nicer truck gives a person more pride. Should look in to how to increase income

Grandparents...gotta love them. Wisdom

If you can't get to work you can't pay your bills. You just need to get there safely and reliably, you don't need to get there extravagantly.

Mr. Ramsey : I gross 65-70K per year have $1400 house payment and average an additional $2k in 'must pay' expenses (insurance, gas, food etc). I have $20k cash for a vehicle, have $15K in emergency savings and a well funded retirement. My question: The car I want is about $35k , I want new because used are so over priced it is almost as bad as buying new. I would only need to finance $15k, should i just go on and buy a used in cash or is financing that extra $15k a bad idea?

I've been looking all over for a video to match our situation; if anyone can help, it is appreciated: so, we have 2 vehicles and live out of town where our jobs are and my daughter's school and work; we owe ~$22k on both rides and under a $95k income; we are just starting on Baby Step 2 and according to Dave's rule, should we sell the vehicles? our daughter helps with more than 50% of the payment for the higher balance of the 2. anybody know what Dave recommends? like i said, I'm trying to look for this situation in the videos and re-reading the Total Money Makeover - thank you for your help!

Stop breathing into the phone bud :p

Great story at the end. Grandpa was right. I've made so many mistakes as well.

I can't get myself to spend more than 15K on a vehicle. It gives me anxiety, just the thought of it. We need a truck for our little farm, but the dag'on things hold their value so well that I'm transporting livestock and farm equipment in my Nissan LOL Reckon I'm the stubborn mule on the lot.

What if you live in the salt belt of New England? I agree with Dave about having a less expensive vehicle, but around here rust is a serious issue.

My grandfather saved and all those savings went to the nursing home.

Another point is a counter to the common point about how much cars depreciate. Almost every other consumer product depreciates faster! Much faster. Buy just about any product new today and see how much you can get for it tomorrow. Electronics, appliances, furniture, whatever. Seems like we compare cars to real estate and investments which is silly.

i full understand grandpa s logic , but sometimes people buy things because they like them , it does not MATTER if what they buy goes down in value . especially if it is something you wanted ALL YOUR LIFE . if you have money saved , invested , and so on , then you should excerise your right to buy something just because you want it . if you can afford a jag and you wanted it for so long . BUY IT . you only live once .

buy a classic car instead it already depreciated and may increase in value , i like the 71 deltal 88 oldsmobile

I make $160,000 before taxes (I think that comes out to around 100-110k after taxes) and I live in California, I want to buy a used 2016 mercedes amg c63s, can I afford it?

Is it based on your yearly income before or after taxes??

My grandpa used to collect construction nails in coffe can too...

Half your income ! Wow. That’s an extreme. We shoot for 20% max.

I drive a 95 Miata so it's well under 10 percent of my income 😅

I want you guys opinions.... I have $1500/mo in deposable income. No debt except mortgage. Full emergency funds. Should get a car now or save up? How much car can I afford. I want a $25000 Ford mustang. Making 78k/yr.

Some people enjoy cars like some people enjoy stashing money away. To each their own, but I’m never in a bad mood when I smell rubber burning. 😂

I’m not sure but I bought a $33,000 car for my business! Wanted a new work truck but they were $58,000 So I choose a awesome sports car for my business to show we are car enthusiasts, we can repair all new models, and I liked it! I REALLY WANTED A CORVETTE #1 for a company vehicle $50,000+ I use it for work, which I am lucky lol!!! Maybe if I can build my business and earn people’s trust!!!

Save money. Don't get into debt. But also buy things you want that you don't need. We work to live, but we also work to have some fun!

And now I'm buying jaguars for $2k that are nice. New daily is an 05 XJ8-L. That's easy for me to work on.

Dave what if I’m a massive car nerd and need to have fast and expensive cars in my life

A car is a tool, once people start calling their car a vehicle I know they got ripped off

is this man giving people financial advice wearing a Daniel Wellington?

I mean, I get it... don’t be over your head and over pay... but what’s the point of having money if you can’t buy something nice... I’m currently trying to get rid of debt, but it’s just so I can buy a new ram 2500 limited. I don’t just want money, I also wanna ride in comfort...

How do i get in a call?

Sparevehicle, because you can! I'm stupid as well, i want a small spare car for if my car needs to go to the garage for a couple of days.

The average price of a brand-new SUV (or crossover) in 2023 is $70,170 - 32% higher than the 2018 average of $53,160.

This theory was true until 2021 came rolling around.

i have 27k in car debt. the issue for me is that all i do in my free time is drive, clean cars, mod cars, Im a car guy. I justiy my car debt with the fact that I dont buy anything else for leasure or pleasure. and my fun car that brings debt gets 36mpg compaired to my payed off jeep that gets 8mpg... I spent double on gas for my jeep in a year compaired to my 124 spider abarth at the same miles driven.