I'm $96,000 in Car Debt, but That's Not All! 

Dave always says he doesn't care how nice of a car you buy. As long as you pay for it in cash and it is less than half your total income "includes everything you own with a motor."

"but but on instagram they have....me want shiney things too. I'm a child." Propaganda machine just keeps going.

$100,000 in car debt is INSANE!! They should have known that even without reading Dave's book!!

People just want to drive something flashy.... in my area everyone drives luxury cars, suvs and trucks

But how else will people think you're rich??

Hopefully someone that can afford it.

People who make 90k w/4 kids and 150k in total debt.

You’d be surprised. Aspirational marketing works and US is proof of this.

A doctor's wife!

I remember I worked with a woman who bought a new suburband for over 40k in 2004. Just check and see how much you can buy one of those for now lol. Almost all these SUV type vehicles lose their value FAST.

💕💕

I really needed this, I really appreciate the positivity

Thanks for sprinkling this love, same to you

thanks, man.

Thanks bro needed that!

As they say, when you drive off that lot, put your head out the window and listen. That's the sound 5-10 grand or so disappearing instantly.

I used to work for a dealer. You'd be surprised how many people don't know what depreciation is

Even a Lexus drops in value, albeit just slower than most.

Americans love affair with car finance amazes me. I speak with Chinese friends and they are taught to always pay cash for vehicles

My understanding is the new generation of Chinese coming out of school are using alot of debt similar to western counterparts.

She's pretty dumb for that

I know people who think that driving a mini-van is beneath them, so they go for the more expensive car/SUV. Can't figure out the logic there if it's difficult to make the payments.

@@jeanneplymette411 they may not be pretty but their so comfortable and functional.

Probably around$ 210. I watch this man fill up an Escalade and I thought he would never stop pumping.

Nope just get a cheap 10000 van

@@leadnsteel1428 Yes, you can get a nice bulletproof reliable 10 year old Toyota Sienna for around 8K-ish

It is beyond me how my parents got by with a 1960s eight passenger station wagon with four of us kids. Surely they needed one of these loaded truck wagons that cost as much as a modest house.

JDave Foster - I didn't WANT a new car while my 4 kids were growing up. I drove a Dodge Caravan when they were still at home. I knew that there would be the inevitable food/drink spills, sickness (yes, my kids got sick in the van a couple of times), and dirty shoes/boots from rain and snow. I didn't care what others thought about what I drove.

@@waterheaterservices Oh yes! The venerable STATION WAGON!! Brings back good ole memories!! 😁 They were the de facto mode of transportation for all self-respecting families, all the way through the end of the 80s, when I was a kid. _1984 Chevy Caprice Classic Station wagon_ anyone?

Im looking at used Porsche's, at 150 thousand. Many are over 200 thousand, I'm writing a check for it. No, never read Mr. Ramseys books.

This didn't age well

@@WIentertainment yes it did. Why pay 64k for a used car. You can by a brand new car for the same amount. Most people smart with their money would never buy a car where if the car were totaled couldn't get back at least half of what they paid for it

@@michellerichardson3090 no it didn’t stupid

She drives a Chevy truck! Who knew that would be chic!

ThatDoll25: GM's marketing team is brilliant.

@@TeeroyHammermill rebadged Tahoe is 100k Escalade. Bingo

For a big family, I really like the Suburban. That said, you can a get a nice used one for $18K.

@@justinacase2623 definitely not the case with the 2021 escalade.

yes and this line seems to be common in the US of A

Exactly. Whenever someone in America is struggling financially, it almost always has to do with their own stupid choices. Period.

For real. Like the kids didn't not ask for that car

Plus it’s a Chevy. If she leased, which is bad enough, the money she put in it is never coming back. And if she is buying it, it will have many problems in the first 5 years.

@@dannyv2230 Exactly , smart people will buy reliable - Foreign. No one will pay 60k for a Chevy

Status is far more important than progress for so many in this country so I'd have too say your on the money here

Yup you’re definitely right. It’s better for people to think you’re poor when.......... you’re actually poor! 😂😂😂 That’s it!

She can say it was a rental.... unless she screamed "I bought a new Suburban "!!...

That 2005 Caravan will be a money pit and cost 2k a month in repairs ..LOL

😂😂😂

Smart woman if u were single I would marry u

60-90k is gross negligence. 10k-15k on a used car is typical. This caller is an out lier

@@JK20239 $10k to $15k debt on a car is not typical. That's the problem, people don't mind getting in debt because of cars. That's what keeps them broke. Just save up and pay cash, no matter how much you make you can always buy a car with cash, relative to your income and people need to realize that. Stop trying to impress others and wake up to reality.

And that’s exactly what DR and AO were telling her.

@@ilikelittlejimmys yea it is typical. The price of used cars have gone up significantly. Think about it. If folks stop buying new cars, wouldnt that drive up demand for used cars and the price? 🤔.( economics 101, supply and demand, demand greater than supply means more for product) Even used toyotas and hondas are 10-15k without 500k miles on them and not dumping 5k in repairs

@@ilikelittlejimmys so true.

Ooof

I think he’s sad that they qualified to buy those cars. It CANT be at a good interest rate. Which is even scarier.

I thought they said they brought home 9500 per month. Prolly got an 84 month loan....under 800 with decent credit. Bet they got that True Coat rust proofing too:)

perotal Dave is honest

😂😂😂

She practically did throw it out in practice

I thought the same thing! Lol

🤣🤣🤣🤣🤣🤣🤣🤣🤣

thought the same thing! 🤣🤣

Lame excuse all of them use to get into car loan.

I saw a meme online once that said “people will tell you college is too expensive but will have a ton of kids like that’s not financially draining either” lol.

Wow, speaks volumes. Need to prepare now to be pretty embarrassed - after balling in posh cars and now turn up with old bangers. 😏💰🚘🚛

@Lua Dipa Minor correction... "mama" needs to look fresh when she drops off the kids.

Also, I should clarify that I am NOT criticizing the caller for having 4 kids (I don't think she's an idiot for that)... my criticism is using the fact that she has 4 kids to buy an expensive vehicle. The husband is also definitely out of line with that truck.

They need to find someone selling a 20 year old Lexus that is in pristine condition for it's age. Pay $2,000 for it. My Lexus is 26 years old and runs better than $20K brand new junk cars.

@@Answers721 how is the maintenance btw? Is it true that its better to bring it to the mechanic for cheaper price than the lexus dealership?

@@unfairsanic5089 Always cheaper to bring to a mechanic than dealership for mainstream cars.

Agreed. Dave would probably say being 10k in debt is a lot better than 65k in debt.

I took a 6k loss in 2008 when i started Nursing school. I later negotiated to pay 3k out of that. Since then, i swore not to do car loans. I go to dealers auction to by agood used car. I pay the dealer i go with 10% and no monthly payments. Thank God.

Schadenfreude

Everytime lol

I listen to them to remind me of how I used to be.

Right haha

What a horrible thing to say.

Rey Kennedy - I wish my take-home pay was $9500 a month. Sounds like these people are trying to impress others.

High income doesnt fix financial irresponsibility. You need a brain for that

Many of us live, and live well, on a fifth of that.

@Captain ObviousPerhaps. But they called Dave Ramsey because they felt differently.

I've had new and used. Can't tell the difference. Cars are very well made, generally.

You aren't part of any car clubs on Facebook that you might want to share your excitement with?

BMW = Broke My Wallet

@@leadnsteel1428after doing a ton of research I found BMW to be the value option. Best in class performance with best mpgs and good interior (Merc does interior the best) and reasonably affordable with 10-11% off msrp. Porsche was the wallet destroyer. It takes like an hour to configure a porsche. Everything is an option and none of it is cheap.

What about Volvo, Audi and Volkswagen? Might as well forget about the Asian made cars.

@@front331 I was mainly looking for a balance between performance and styling. Audi is a bit too grown-up for me in terms of styling while Volvo and Volkswagen simply don't have the performance figures I was looking for. To be honest, everything else similar had quite a bit worse performance figures as well (GLC 43, Macan S, SQ5). I ended up with an X3 m40i. It's like a personal rollercoaster with a 0-60 of 4.4s

Could have caught a 2019 Suburban for 40 Gs with 50k miles on it. But this lady had to get the 2020 for the status.

She reminds me of my frd that went out and bought a new Cadillac Escalade, because she needed "something big enough for the carseat". She only had one child. That was crazy! Unfortunately, she lost her job, apartment, and SUV less than a year later.

In fact. I can live off $2k per month. So I could invest $7.5k per month and be a millionaire in 8 years. Just ridiculous to be struggling with this kind of income.

Well remember in commiefornia 100k a year has you living paycheck to paycheck

You must be single with no mortgage and no kids .. you can’t live on 2k unless you kid less, and live with your parents

@@davidespinoza310 wrong try puerto rico familys of four survive with that

@@Alztism yeah I take it no college fund .. two different senecios

Lol. Dave doesn't care. He has no sympathy for people like that.

I don't wanna make those payments. Honey, did you get the car mortgage this month?

@@front331 That's my point. She was making a bogus justification in her mind and Dave would have annihilated her if he heard her.

That’s not true for most Toyotas. Tacomas, 4Runners, tundras, etc.

Yea right.

@@righand find me a Tacoma 4Runner or tundra that has depreciated 40-50% after 2-3 years I’ll wait 🤣

@@TheGarrettZone FR. People out here are literally profiting off selling their tacomas/tundras with tens of thousands of miles several years old.

Although I agree with buying used cars I doubt you’re getting 50% off of big name cars like Toyotas or Fords. You’re probably still paying close to full price 2-3 years down the line

But we live in Athens, GA! Where there are affluent Southerners in their giant SUVs!! We have to fit in!! Bwhahahahahaha

Not even! I have a family and kids too and I would never spend that much on a car. In 2015, I bought a used 2007 Honda Pilot SUV (8 seater), fully loaded with 120K miles for $11K. I paid it off in a year and still driving it today. My car before that was a used 1992 Toyota Camry that I bought used for $2300 cash. It lasted me 8 years with no issues until that transmission started failing at 292K miles. Always buy used and Japanese cars.

I have a 04 toyota sequia with 380k miles pd 3k for it drove almost 100k now and still driving

That’s what I did I love cars but am not going to pay 40k for a Sienna

And they bought a CHEVY of all cars. If ur gonna drop that much money at least get something reliable.

Or you save up 15-20k for a few years and essentially finance half the cost which a lot of people do if they want something expensive or nice. Maybe everyone else makes that much :P

I’ll never understand why people would want to prioritize buying an expensive car other than wanting to look good to other people.

@@bluesky5384 nope, some like me, want a new car to use for 20 yrs or until it dies. My car’s remote start and heated seats/steering wheel makes my winter life easier. I can’t get that on an older 15k car.

“That’s a hard car to sell to to an individual” meaning not to a dealership

She will not get close to what she owes

She said they bring home $9500 a month. If that is net of taxes, that is over $100k. Even if it were gross, that is still six figures, but she did not say how much house they pay for, that is probably huge too!

Most of the time when I see families in cars like that I think "I wonder how much debt they have?"

Yeah and they always driving fast like crazy with their pick ups because they think they are rich

These people are clearly trying to keep up with the Jones's. In guessing 400 plus k in mortgage debt as well 500k in the whole. Like Dave said your not building any wealth

@Hugh Jazz guess you gotta open up your ears there bud

Yea I don’t understand why they got a gas guzzling suburban. So many family friendly cars out there for half the price. That was a ridiculously high amount.

Subaru Ascent all the way! Turbo and AWD!

Exactly! Shoot they could even buy a 2018 or 2019 Suburban. It wouldn’t be a smart choice but dang it’d be waaaaaayyyyy smarter than what she did...

Just get a Tesla

@@cap3724 Im waiting for a Toyota Highlander size equivalent EV before I think about getting one. Preferably one with 300 mile+ range

That’s what we did, but with a sienna.

I honestly feel like if you have kids you need to get an affordable car or a used one. I have 2 and I'm not buying a brand new or my dream one until I'm the only one driving in it lol

Ding ding ding you're a winner.

I think she was thinking through selling her husband on the idea of selling his truck and buying a $5k car.

@@brandonjuber3576 exactly. Doubtful her husband read the book. She knows he won't go along with it. Left to her own devices I bet she would bail out of that car in a split second. It's the reason she called in the first place.

Yes , and this is a valuable lesson to learn , just like the college tuition that they paid .

I was thinking the same ... I bet her husband won`t sell his truck ... I have a friend that has a Ford F-350 and he paid 87grand for it ... He pulls his boat with it .

If u didn't capture the run from 08 til now I believe u may be in serious trouble unless Gov't grossly inflates economy with UBI. we shall see but fundamentals say low returns for years moving forward til we clean our country up. If we get a return to sound money (rising interest rates) we are in for a real tough 10 years

Right on. I will never finance a car

Yup😅😅

We learn from our mistakes brother and we teach those who want the advice. I use to lease phones 😆 boy was I dumb

Broken Guitar lol forsure. 😆👍🏻👍🏻👍🏻

They really are!! All seem to have their own mind and as awesome and as strong of a personality that Dave has, they don't seem to cower to him.

@@ToOpen6seven they there because they are YES men.

Yeah...you can get a nice SUV used for $18K.

yeah she was speaking slowly and stupidly

Agree, 15K is our max. But more like 10K. We have not bought a new car in over 16 years. And we are still driving that 16 year old minivan and it runs perfectly fine.

You are totally right. I got a really nice used 2011 buick with a bunch of nice features for only 9,000, 11,000 after taxes. Wrote a check and was on my way. I love calls like this cause even though I don't make much it lets me know that I'm doing it right

True 🙌

I think a used 20-30k car is the sweet spot for me I would never buy a new car depreciates all the time

I WANT a Tesla SUV, I don’t NEED one. I’d rather retire earlier than drive a fancy car. Priorities are a personal thing. But even with a Tesla SUV, I neither keep that amount of cash on hand (over a years worth of my expenses), nor is it under half my annual take home wages. By Dave’s advice it’s a no go too.

Or maybe they get lucky, with doctor or business owner who can cut a check, and they only loose 5k maybe. I'd be hot on that trail.

Agreed!👍👍👍

Oh that’s terrifying...

Thats disgusting

My coworker got a 10 year loan from a buy here pay here place about 4 years ago. The interest rate was also about 10%. Her son was 18, so I asked “Imagine if you were still paying for the car you were driving when your son was 8. How would that feel?” The monthly payment and getting a new car was all that mattered.

They already have 9 year car loans.

@@k.c.marshall921 Not surprised.

Have you seen the 100k Cadillac Escalade. Slap a Cadillac logo and it sets you back tons...

They will die trying too..

I do see these small women in these big suv 🚙 from time to time.

They are the Jones's.

That’s Georgia for you. She tried to be the real housewives of Atlanta

Exactly and if you need a bigger car get a minivan. Minivans loose their value quick.

I live in a big city so I don’t own a car (and the cars are small over here anyways) but we just went to suburban Colorado and everyone had a huge truck. Is that common outside of cities?

Unless it's required for work or they bought a fixer upper home and is constantly remodeling, no one needs a truck besides aesthetic reasons.

She has 4 kids btw. So needs 6 seats. Minivan is more appropriate, but 32k truck is insanity unless he needs it for work.

I've been driving a four door sedan (Toyota Corolla) for years at this point. It's just a commuter car and I really don't need anything else. My daily 15 minute commute just doesn't require a larger investment. We're Texans though. And my dad has been giving me a hard time for years about how I need to get a big truck. I just don't care. I bought the sedan for cash 7 years ago and mechanically it's been probably the best car I've ever owned. It was incredibly inexpensive back then and I could sell it in a heartbeat today and still get half my money back despite putting 100k miles on it (my neighbor keeps telling me when I decide to sell to see him first).

Anyone with $64k cash to buy that thing has the $67k in cash to buy one brand new that her 4 kids haven’t farted in...

@@JamesJamersonIsAGod you don't need 64k in cash. You can always talk to a bank or credit union to help buy the SUV from them. "Auto loan " 2nd owners be saving money then buying pre own from the dealer. Dont even have to put a down payment. Thing is. Will the 2nd owner take over the total remaining balance or have the 1st owner pitch in extra money , say 4k "You want out dont you" Just takes a little longer to get somone approved for the loan. You working with one bank Where as the dealer works with a hand full of banks Anyone wants to buy thier ride, yall be savings about 10k to 15k with few thousands of miles . They desperate to get out They not gonna make money, they paying the price to be free

Daniel Garcia very true. But still if someone is going to drop all that money and go through all that trouble, they’d probably just but a new one straight from the dealer. Her car isn’t even 4 mos old.

@@ThatDoll25 yes and no. Most depreciation happens as soon as you drive off the lot. I didn't catch what she owed and what she paid. You're right, 4 months no way she can get out without owing though. True savings are found by being the guy that bails out that seller. I have an '18 Escalade. Sticker was $98k. I got it in Feb of '19 with 9k miles on it for 64.9k. CPO too. 6 yr/100k mile warranty. I was looking for a Yukon. Couldn't find one as cheap as the Cadillac. Luxury cars drop like a rock. Plus no one pays anywhere near retail for a GM anything.

@@DanielGarcia-zz9eg buyers don't pay above what it's worth just because seller is upside down. Seller needs to pony up the difference in loan payoff and purchase price. And you save way more than 10-15% on a gently used SUV, especially a GM. What she has going for her is that people want Suburbans badly.

I know right!! He always says that. He’s starting to lose touch on the lower end items since he’s so wealthy now. He knows what an unreasonable buy is but a $5-6k car can be pretty dang nice!

Right? A lot of his videos now he says to buy a 5k car, a few years ago he always said a 1k car.

It is a hooptie in 2020 dude

*Hooptie*

Yeah, Suburbans are over-rated/over-priced. You can get a couple year old Mercedes Sprinter BluTec with 40,000 miles and leather interior for like $35k and it drives better/less maintenance and more room.

"stealership"

Original.

Stack up on rice and beans

Deliver pizzas tonight!

Are you married?

There are high end auto brokers, who can handle this. They can shop it ,she may get out for less than 10k loss. Worth a shot

If you own it keep it in the garage do routine maintenance that way when the other one poops you have the other already payed off.

Ty J that’s generally the thinking just stinks that the other car is a gas guzzler . 🤗

I bought a 2017 Q7 for 40k with only 13k miles on it. New cars are such a bad buy unless you can afford to pay for it in cash, even then you’re gonna lose money. Only makes sense for people with $500k+ in net worth who can afford the depreciation.

Nope, they just paid full sticker on a new one. You are much smarter and got essentially the same car for almost half the price and what it has 20-35k miles on it? Big deal. Good job!

JamesJamersonIsAGod I bet they didn’t even negotiate for a deal. There is no way you should pay sticker for a brand new car unless there is crazy demand for that specific model, in which case dealers usually charge a high markup due to the demand, and only desperate fools pay that price.

@@JamesJamersonIsAGod almost guarantee they didn't get the new body style either 2021 model 🤭 for the same price

Cause it's so easy at the stealerships! Sign and drive! No fuss no muss, first payment not for 90 days! Full tank of gas, they will clean it up, first oil change on us. Don't worry about a thing. We are your friends in the car business.

Trying to look good to other people

I like big trucks and I cannot lie, this brother can't deny, I like big trucks!