Now is definitely NOT the time to be buying a car. Average car cost $47K?! That's insane! Check your ego at the door - you need a vehicle to get back and forth to work, not to impress anyone. An auto finance rate of 7%+ is an insult to anyone with excellent credit. No thanks. Those new cars can sit on the lot and rot away for all I care.
The best course of action is to ask a consultant or investing coach for guidance or assistance on purchasing a car. Speaking with a consultant helped me acquire my car effortlessly using the best plan available without affecting my portfolio.
Found his website easily. It was like the first thing that came up when I searched his name. I'll surely touch basis with him to see what the best step is for me to take right now. THANK YOU!!!
Just had a conversation with a classmate where he showed me his new 2024 F-150. It's his 6th or 7th New vehicle in the last 11 years. He's retired, has no money saved, & lives on a monthly pension of $2,400/month. His monthly pickup payment is half of his pension. Too many people have this disease. What's worse is that he doesn't even care.
The mindset of “I work hard so I deserve to have _____” is one of the most dangerous things in our population. It’s as American as apple pie and in 20 years will result in a lot of homeless elderly people.
@@oldbloke204yeah, it’s going to take discipline. Most people’s expenses start catching up to their income after awhile. Especially with car payments.
@@jonathanandrew2909 It's very easy to go from spending little to spending more but difficult to go the other way. It will take big commitment from both parties which is unlikely imo. Hopefully I'm wrong for their sake.
I'm the same age and our household income is right around 100k and all we have is my wife's car debt. Its insane, i wish i was in HIS shoes, I'd turn it around real quick
Ballpark same income, zero car debt. I drive an 8 year old Subaru that I paid cash for. Every time I start thinking it would be nice to have a car that's a little snazzier I just watch a few Dave Ramsey videos. And that works, I drive past the Audi dealer on the way to and from work and I'm still driving the Subaru. And did Dave say "stream of payments" or "scream of payments". I like the latter.
I have a neighbor who leases vehicles for three years and keeps leasing new cars. I have a 2006 Lexus Ls 460, my only vehicle I bought used for $25,000 in 2011 paid off in 2016. I have 148,000 miles and it still runs like when I first bought it. I only had to change the transmission, and recently the radiator. I want to buy a new car, but my father tells me to wait till it runs no more. I see guys in my hood driving a new Corvette and a new Mercedes. They are both retired, and I recently retired in Sept. 2021. My father is a Korean War Vet. and always told me to save money since I was a kid. Now he has 3 rental properties in California, and they are all paid off. He is also a retired Income Tax Consultant after working 50 years.
@@parker1981xxx I went online, and I had seen it on sale at an Orange County dealership in Westminster, Cali. It was the lowest price online out of all the other LS 460 at the time. It was in 2011. Now they are a lot more expensive, and most have over 100,000 miles on them believe me I checked. Mine had 65,000 miles on it. In 2024 still runs like new. Very quiet and smooth like driving on a cloud. Now 150,000 miles.
Dave is right, I work for a captive auto finance company and when building out the account overview page, management specifically asks us to hide the lease factor “interest rate” for lease customers. However we must show the interest rate for retail customers.
I'm amazed at the amount of people that think having a car payment is just something that everyone has to have. I'm 28, never had a car payment in my life and I don't plan on having one. Cars are tools we use to get places, not toys.
Agree. I bought a basic car for 4k cash a year after i got my first job. Then 15k cash 8 years later i got a focus with 12 months warranty when i finished studying and got a well paid job. Drove that for 12 years while i bought a house and some investment properties. Just sold that car for 3k and bought a 24k (cash) 2022 fully specd suv with 5 years warranty I feel like a a queen in the new car and ive spent a total of 40k on cars IN MY ENTIRE LIFE. This car will last into my 50s. I have personal net worth separate to hubby and fully earned without help of over 3M. Including the home we live in and i still put off upgrading my car until my old one started struggling with second gear. I cant imagine having as little as this dude and having a leased car with a balloon payment of 50k! Where i live when a guy spends too much on a car we waggle our pinky finger and acknowledge hes compensating for something.
I've had car payments, but I keep the car payments low and pay them off as fast as I can. (I hate car payments.) Then I keep the car for many years and take care of it. I don't buy fancy, high priced cars either. I generally stick with lesser priced Toyotas, Hyundais and that sort of thing. It helped that my husband could repair just about anything!
The thing is, you can get really nice, reliable and/or cool vehicles for not a lot of money, you just have to make sure it has a good service history & doesn't becone a money pit as they age. I paid 6k for my used mid 2000s Lexus with 180k+ miles on it & it runs & drives better than a lot of cars half it's age
I picked up a 2000 honda prelude 5 speed for 3500$ its mint a 1998 tacoma 4wd 5 speed showroom condition for 10000$ and 2 150k mile 2010 lincoln town cars for 4000$ each thats my used car fleet i got everyting covered my dailys “town cars” go fast car “prelude” and my workhorse off road snow car the tacoma and since they old i pay like 120$ a month to insure them all and that’s full coverage on the tacoma how did americans get conned into buying 50000$ cars to save money on repairs
After listening to this show for over 15 years, I also have learned to read people pretty well based on how they talk about their financial picture without them even saying some of the big details yet, like just after their opening comments usually
Just had a back n forth with a buddy about that. He leases bc of maintenance. I explained to him the simple things you can do to self maintain your car and is very easy and low costs.
He has a contract to “rent” these vehicles likely with money on the front end. Walking away still leaves my man in need of transportation. Start saving and then pay cash for whatever you can afford at the end of the leases. Do not borrow or lease for a vehicle ever again!
Dear Brett. You have NOT made 50-60K on your house. The house prices in the area you are moving to HAVE GONE UP TOO. Do NOT think you suddenly have 50-60K to spend - you do not!!!
100%!! I bought my house in 09 for cheap, it's 4x now. That means to buy my type of house now would be 4x what I paid!! I'd be scared to death to buy right now..
I like Dave Ramsey. I think he's a real swell guy. A real guy's guy, a real life of the party kinda guy. I know I'm repeating myself a bit here, but boy oh boy, I gotta say it, man. Dave Ramsey really does come across as one HECK of a super swell guy!
Stupid car debt, no savings, AND he is moving to Florida where people can't afford homeowner insurance and HOA assessment fees... I don't think it takes a crystal ball to realize what happens next 🙄.
I agree...my bf just rents in FL and it's pretty high and I am in NJ with a high cost of living as well so that's saying a lot! i don't why people seme to think Florida has a low cost of living.
Homeowner insurance in Florida is skyrocketing. I moved to northern Wisconsin a couple years ago from South Carolina and it was the best move I ever made. Way cheaper. Way less people. Quality of life a gazillion times better. I just take one warm vacation in winter and I am good.
One of my family members has just been divorced for a third time. He's buying a car this week and it will cost him about 5000 dollars - and many of Dave's callers should be similarly frugal when it comes to choosing what to put on the drive.
He needs to quit marrying them. Rent a chick is a lot cheaper. These days, many girls are just giving it away to all and sundry for free. As long as he gets snipped so nobody can try to nab him for child support, he can quit paying lawyers if she just quits getting married.
I got 1 more year to pay my truck off. I can’t wait to not have a car note anymore. Last new truck I purchase. I luckily bought my truck new $10k below MSRP in 2019. I will be taking the money I would pay on my truck and put it towards buying a new home in the next few years.
I love cars, i just dont like the payments, so i will just admire all those pretty cars. 180k a year and no savings? 😮 he needs a budgeting lesson ASAP.
Thank you so much for adding the information at the end about why leases are priced the way they are! I’ll never forget when I was in high school my 11th grade economics teacher told us that leases were the smartest way to stay in a brand new car! Can y’all believe that?!
Apparently, leases are indeed cheaper than buying a new car (selling the previous one) every 3 or fewer years. They're not really the optimal approach for early wealth building
Lease car payments will also impact how much you can borrow as it counts as a credit payment. Paying them off or selling them before getting a mortgage will prevent this headache from happening. Lenders want to see folks with credit card, car payments, etc under 10% or so and your average lease is going to be 10% or more of monthly gross income. What this means is you qualify for a smaller mortgage meaning a smaller house.
I drive a 2004 liberty with 227k miles. Paid 18k cash for it in 2005 with 4000 miles on it. House is paid for, have investments and money in bank. First ss check comes next month which I can easily live off it. I never made more than 55k a year. Stop trying to impress others. A car is absolutely the worst purchase you can make. Keep it and take care of it. Learn to do your own maintenance. Utube will show you how. The stupidly of some of these people is just unbelievable!
2- 20 year old cars here. 02 Xtrra 4x4 full coverage ins, registration and maintenance $900. A year. 04 silverado 4x4 Same thing. $1,100. a year. We do have a continuous $8,000. emergency saving for repairs. Nothing major yet. But we are mortgage and CC dept free also. Vehicles are bad. .
I ran into a dozy yesterday. A 27 year old, renting home and driving a $110,000.00 truck while working a part time government job. She purchased 1/10th of a million dollar car and has no money for gas or food. How and why?
They are leases, you just turn them in when the lease is done and then buy a car that you can afford. You do not have to keep these cars. When this is done, if you need a truck, get a New Colorado or a Maverik for $24K, or a small Toyota truck. You do not have to buy these cars at the end of the lease. Or the car place wants to sell a new car/truck and offers an early buy out. Take it and get rid of more than half of the potential debt.
We have a Colorado and yes we have had to change the oil and replace the tires over several years. Our neighbors have a Maverick, it is less than a year old so the long term repair costs are not demonstrated yet. But the point is that you don't need to buy a $65K-110K truck, if you do not use it for work. This guy will have 49K left to pay on his truck after his lease is up. So it was expensive, and he does not use it for work. You can have a lot of repairs done for that 100% increase in price. (But never buy a new dodge truck, at any price, it is a bad deal.) @@superblump87
I'm not going to lie. I watch a lot of these videos to hear people regret their stupid choices. Then get a sense of pleasure for not making those choices.
My 2 paid off vehicles (both purchased used for under $20 grand) have never prevented me from doing anything I wanted to in say a $50k vehicle. I have since taken all my extra money and paid off my mortgage 23 years ahead of schedule. And all that extra money now is going into investments and not a new car. Maybe when i reach $2 or $3 million net worth I will buy new.
I will ride a bicyle before i take out a car payment. I also save 30% of my income. Its about priority. Becoming rich is more important than acting rich
Probably better off continuing to make payments and then hand the trucks back at the end of the lease. Guy has put no thought into this, other than moving to Florida and getting another VA loan to skip the down payment.
People getting into big car debt is tied to depression I have no doubt and low self esteem. They feel down about life want to be respected and figure an expensive car will buy respect not thinkinvg of what they will have to pay.
Hopefully they also did some research on Orlando and recognize if you make 170k in the northeast You will be Lucky to scrape maybe 90 to 100. The wages in Florida are Half of what they are in the North East,.......
Why is anyone surprised by this? Regardless of whether someone can or can't afford "the car", American's identity is tied to what they drive!! I had that identity crisis when I was in my late teens, early twenties but fortunately I came through it. The car I drive gets me from point A to point B and all I care is its functionality. Most speed limits vary between 45 to 75 and every car will go those speeds. I don't need heated seats or heads up displays. I don't need a truck that I could go up the side of a mountain but I'll never go up the side of the mountain. I don't need a vehicle that seats 8 if I only need 4. People's self esteem should not be tied to their vehicle. I've been able to put my money to better use by not being addicted to the car I drive!
Good luck getting out of those leases without losing a ton of money. When you try to buy them out you’re going to get hit with sales tax. And on a couple of $40k vehicles that’s a bunch of money.
I would sell both cars get two inexpensive used cars pay off all your debts build up your emergency fund of 6 months of expenses and then save for at least a 20 to 25% down payment on a house. Do all of that in that order only. You're welcome.
I laugh at people who say my truck is only 2 wheel drive and only a 2 seat truck. It's been paid off 6 years now, almost 15 years old (i bought it used with low miles). It did cost me a lot last year, mostly maintenance. It also has a new frame and suspension all around as of 2021. Maybe it has power nothing, no cruise control, all the toys..but it still starts every day
As Americans we need to stop being so STOOPID. Dealerships have NOTHING to do with it. Personal greed does. loan this loan that, all adds up people live beyond their means. BAD parenting and educational systems not teaching people
My car debt is 10% of my income, and it's just a high trim Mazda. 0% APR so I have no incentive in paying it off early. Others can drive around in nicer cars and drown in debt and have less for retirement if they want. Not me.
Must have good transportation, Must pass smog, No one wants to break down on freeway and be towed, Most people are not mechanic, Repairs are not Cheap, Often monthly payments are no Choice. No one wants thier car in the shop for 2 weeks. owning a Car is no longer cheap.
I BOUGHT A BRAND NEW PICK UP IN 2007 AND I STILL DRIVE THE SAME VEHICLE AFTER 17 YEARS, SO FAR I HAD TO FIX THE A/C, BRAKES AND BOUGHT A NEW BATTERY THREE TIMES IN 17 YEARS, BOUGHT NEW TIRES AND OF COURSE I HAVE TO KEEP UP WITH MAINTENANCE LIKE OIL CHANGE, BALANCE AND ALIGNMENT, BRAKES, TUNE UP ETC. SO FAR I THINK I HAVE SPENT ABOUT $7,000 MAINTAINING THIS VEHICLE DURING 17 YEARS. I WILL NOT PURCHASE A NEW VEHICLE UNTIL MY MY CURRENT VEHICLE FALLS IN PIECES. I ALSO HAVE A TOYOTA COROLLA IS 26 YEARS OLD I BOUGHT IT BRAND NEW WHEN MY SON WAS BORN, THE CAR IS STILL RUNNING AND I USE IT WHEN MY TRUCK IS IN THE SHOP FOR ROUTINE MAINTENANCE.
My 4Runner is 34 years old now. Things are starting the break so I am selling it to purchase a new car. I purchased it for $9000 back in 1999 and I am selling it for $4000 in 2024. I put 190,000 miles on it.
Do not spend more than 20% maybe 25% of your annual earnings on a car. NEVER. A last few year has been so skewed. My car payment is at 3% interest, and my CD is paying 5.2%. So I have decided not to pay off the car at this stage; I am making a car payment. This is about the only time I would say stop paying it off. A situation like this will rarely happen. When you have a depleting asset like a car, try to pay off unless you can make more money with the money.
I’m confused, why is he tied to the cars? He said they were on lease? He should just let it go back and buy something not so expensive. It sounds like the buyouts are more than what the cars are actually worth.
For me, it's always interesting how interest rates are completely different on the other side of the pond. The last vehicle I leased (we've bought it now) was at 2.49% interest. How are people going for 15+%?
People driving around in a brand new car/truck for maximum status but basically renting it. A decent 2nd hand car that you own is the way forward. Unless of course you're rich then it doesn't really matter
You can work hard and still have a nice car. I got a 2016 Lexus IS that looks brand new with 90k miles for $18k cash. Less then most new cars that nice
before covid leasing was worth it you could get a brand new Honda or Toyota and have a payment under $200 and have a new car that works and no issues for 3 years . also, if you liked the car after the 3 years you can keep it and drive it forever. having that low payment will let you stack cash for other things . having a hoopty all the time will be more trouble in long run
You ignored everything stated in the video. Leasing is still the most expensive way to drive a car. Not only are you paying for depreciation you are essentially borrowing money at a ridiculously high interest rate and because the Federal Trade Commission has determined that this is not a debt, there is no federal disclosure involved. This is why the 'buyout' never equals the original price the minus all the $ you paid.
$50ish k profit with a house isn’t a lot right now, unless he bought it last month. Where is he planning on living?! Surely you need that equity for your next place. Why is he trying to pay off these silly leases?
I love my beaters, no need to carry collision, they are owned free and clear and even if I have to spend money on a repair, it is always cheaper than buying a new asset losing means of transportation. I could afford a new vehicle but why make the banks rich, besides I only drive 30 miles a day round trip and I have 5 different beaters to choose from.
If you don’t have enough money to buy a used car outright, you can’t get a car. You get a job that’s walking, biking, etc from your home. or ask friends/coworkers for rides. You Uber days you can’t do that. It’s supposed to suck because you’re broke. You can tough that out for 4-6 months and save up to buy one. It’s wild people have $0 in savings and think they deserve a $20,000-$30,00 car
This just illustrates how dumb and reckless Dave's "half your income in cars" limit is. Especially for higher earners. Making 180 and paying 90 in cars is so stupid. We make over 200 and I'm sweating having to pay 25k in cash for a used car.
don't people save first then budget for a vehicle ? I mean that seems the most logical common sense approach. Yet people don't they just enter into a financial agreement and then buy now pay later option approach. That is scary.
am I the only one who gets so frustrated at people....who call to get ADVICE.....and then just wont stop talking!!! I know it's due to nerves, but wow its frustrating.
I would have liked to hear if he had any other forms of debt. Then mentality he's displaying sounds like any increase in income equals an increase in lifestyle. How does your income go up by $20K and you still have zero savings. If you get an increase in income, find something you do without.
It's not just that an amount half his annual income is tied up in cars, it's that they are leased or financed. If he paid cash the 50% formula works for most people. There is NO reason for individuals to ever have a car loan or to lease (though maybe leasing might make business sense for certain situations)
$180k and no savings? Guaranteed cars aren’t the only thing he’s wasting money on. He’s mortgaging his future to fund his current lifestyle. Good luck with retirement later.
I made the mistake of upgrading cars over the last few years. Thing is- I never financed over $12k and always paid them off within a year. I have no debt now and investments have been getting stronger
Average car is $32-40k, imagine having that in cash. Would you still exchange all that cash for set of 4 wheels that u can get for $4-6k & keep the rest.
People don't realise, you can save/retain money having a leased vehicle, many don't negotiate a suitable APR on their chosen vehicle, causing them to overpay. With the correct lease agreement you can pay a small deposit, small monthly payments as well as avoid losing money on a depreciating asset. Paying cash for a premium vehicle (meaning expensive) is not clever, unless it's a vehicle that will appreciate. For example, my payments for my Aston Martin DB11 are more than affordable, I will exchange my vehicle within a couple of years or less to avoid taking on the depreciation on the vehicle, this takes place on the new plate licencing year (time in which the number plates for the newly registered vehicles are released for example a 24 plate for 2024).
It always amazes me how most of America has their retirement and kids college fund and financial freedom sitting in their driveway
If they'd drive more modest cars AND learn to keep them maintained themselves, this would be far less of a problem.
I hope people like their cars. Many will end up living in them.
How did you come up with "most"?
So true!
you gotta enjoy your life too
dude is shy of a 200k yearly salary and has no money in the bank. absolutely crazy.
He likes to make it rain. Good on him.
But he's so smart right....
He can get out of debt quick though. He has the income to pay everything off.
That’s what happens when neither you are you spouse think about savings
Oh. He makes 200k. He has money in the bank! His money is just owned by the bank.😅
Now is definitely NOT the time to be buying a car. Average car cost $47K?! That's insane!
Check your ego at the door - you need a vehicle to get back and forth to work, not to impress anyone. An auto finance rate of 7%+ is an insult to anyone with excellent credit. No thanks. Those new cars can sit on the lot and rot away for all I care.
I'm with you. I don't care how much it costs to keep my current cars running.
I'll drop new engines and trans if necessary I refuse to buy a new car.
Yeah, Im glad I keep seeing this message because I want a new car, but man these prices are crazy
The best course of action is to ask a consultant or investing coach for guidance or assistance on purchasing a car.
Speaking with a consultant helped me acquire my car effortlessly using the best plan available without affecting my portfolio.
Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with this person
Found his website easily. It was like the first thing that came up when I searched his name. I'll surely touch basis with him to see what the best step is for me to take right now. THANK YOU!!!
Just had a conversation with a classmate where he showed me his new 2024 F-150. It's his 6th or 7th New vehicle in the last 11 years. He's retired, has no money saved, & lives on a monthly pension of $2,400/month. His monthly pickup payment is half of his pension. Too many people have this disease. What's worse is that he doesn't even care.
@ronolson2024 - That was painful to know this guy has such an expensive truck!
Damn that might be the dumbest person alive. Including Biden.
Really depressing
Irresponsible is an understatement. Goodluck to him lol
The mindset of “I work hard so I deserve to have _____” is one of the most dangerous things in our population. It’s as American as apple pie and in 20 years will result in a lot of homeless elderly people.
"We bought this house with no money down"
Dave: "yeah i can tell" lmao
Yeah that was funny.
Dave has good one-liners
I love when one of the hosts ask “do you have any money saved” 99.99% of the time it is a no
Does it make you feel better about yourself?
@@jonathanandrew2909 I bet that 99.99% of the time, it does 🙂
Sex!!!!!
@@jonathanandrew2909yes it does , any other stupid questions?
@@koreyg8552 just one: why u so gay?
guy is 35y old. still young to turn around the mindset and with a nice income, he can quickly turn it around. thanks for sharing.
I would put money on that never happening.
Yea indeed😊
@@oldbloke204yeah, it’s going to take discipline. Most people’s expenses start catching up to their income after awhile. Especially with car payments.
@@jonathanandrew2909 It's very easy to go from spending little to spending more but difficult to go the other way.
It will take big commitment from both parties which is unlikely imo.
Hopefully I'm wrong for their sake.
I'm the same age and our household income is right around 100k and all we have is my wife's car debt. Its insane, i wish i was in HIS shoes, I'd turn it around real quick
Ballpark same income, zero car debt. I drive an 8 year old Subaru that I paid cash for. Every time I start thinking it would be nice to have a car that's a little snazzier I just watch a few Dave Ramsey videos. And that works, I drive past the Audi dealer on the way to and from work and I'm still driving the Subaru.
And did Dave say "stream of payments" or "scream of payments". I like the latter.
I am sure your financially responsible lesbians. Congrats
@@integralx1988 Whose "financially responsible lesbians"? Yours or mine?
Congrats?
@@integralx1988 you are stooppid
I have a neighbor who leases vehicles for three years and keeps leasing new cars. I have a 2006 Lexus Ls 460, my only vehicle I bought used for $25,000 in 2011 paid off in 2016. I have 148,000 miles and it still runs like when I first bought it. I only had to change the transmission, and recently the radiator. I want to buy a new car, but my father tells me to wait till it runs no more. I see guys in my hood driving a new Corvette and a new Mercedes. They are both retired, and I recently retired in Sept. 2021. My father is a Korean War Vet. and
always told me to save money since I was a kid. Now he has 3 rental properties in California, and they are all paid off. He is also a retired Income Tax Consultant after working 50 years.
That LS460 is the one of the best Lexus ever. Surprised you had transmission issue. Please change your trans fluid every 40k miles.
LS 460 is a budget grocery vehicle, how did you end up paying 25k for it??? 😂😂😂🤣
@@parker1981xxx I went online, and I had seen it on sale at an Orange County dealership in Westminster, Cali. It was the lowest price online out of all the other LS 460 at the time. It was in 2011. Now they are a lot more expensive, and most have over 100,000 miles on them believe me I checked. Mine had 65,000 miles on it. In 2024 still runs like new. Very quiet and smooth like driving on a cloud. Now 150,000 miles.
I watch ramsey in the morning now instead of politics i feel better 😊
Cutting out politics every morning did more for my mental health than therapy ever could
@@willfunderburk6240 your smart. Thanks for the reply
Good point!
Ofc🎉🎉🎉
Dave is right, I work for a captive auto finance company and when building out the account overview page, management specifically asks us to hide the lease factor “interest rate” for lease customers. However we must show the interest rate for retail customers.
Wow that's wild
Thank you for that information!
Had a guy tell me there was no interest on leases and I didn’t understand them. Lmao
I had them try saying no interest just a finance charge each year. "And what is that charge?"..... no answer
Money factor what?
$90k worth of cars with no savings is definitely a red flag
Sure...that the guy who entered into a deal like that is a financial idiot.
red flag of how stoopid and greed take over???? i agree
people are stoopid....
if you cant pay for a car, you CANT afford a car
This guy is nuts.. wow
If this dude puts together a budget, he will be SHOCKED at how much money he’s spending.
Crazy how Dave didn't even ask where all his money was going to. Yes his cars and mortgage, he has alot more money going elsewhere as well
I'm amazed at the amount of people that think having a car payment is just something that everyone has to have. I'm 28, never had a car payment in my life and I don't plan on having one. Cars are tools we use to get places, not toys.
I didn't until I was 33. Made sure I took care of other things first
Agree. I bought a basic car for 4k cash a year after i got my first job. Then 15k cash 8 years later i got a focus with 12 months warranty when i finished studying and got a well paid job. Drove that for 12 years while i bought a house and some investment properties. Just sold that car for 3k and bought a 24k (cash) 2022 fully specd suv with 5 years warranty I feel like a a queen in the new car and ive spent a total of 40k on cars IN MY ENTIRE LIFE. This car will last into my 50s.
I have personal net worth separate to hubby and fully earned without help of over 3M. Including the home we live in and i still put off upgrading my car until my old one started struggling with second gear.
I cant imagine having as little as this dude and having a leased car with a balloon payment of 50k!
Where i live when a guy spends too much on a car we waggle our pinky finger and acknowledge hes compensating for something.
I've had car payments, but I keep the car payments low and pay them off as fast as I can. (I hate car payments.) Then I keep the car for many years and take care of it. I don't buy fancy, high priced cars either. I generally stick with lesser priced Toyotas, Hyundais and that sort of thing. It helped that my husband could repair just about anything!
@@twovirginiacats3753 same here. I've always been a minimalist with vehicle purchases, more gadgets just means more problems down the line
Buy a good used fuel efficient Toyota or Honda. Pay it off. Enjoy the ride.
They owe more in cars then most Americans make. Dang.
The thing is, you can get really nice, reliable and/or cool vehicles for not a lot of money, you just have to make sure it has a good service history & doesn't becone a money pit as they age. I paid 6k for my used mid 2000s Lexus with 180k+ miles on it & it runs & drives better than a lot of cars half it's age
I’ve never paid more than 8 grand for a car in my life, and never had a repair over $500.
I picked up a 2000 honda prelude 5 speed for 3500$ its mint a 1998 tacoma 4wd 5 speed showroom condition for 10000$ and 2 150k mile 2010 lincoln town cars for 4000$ each thats my used car fleet i got everyting covered my dailys “town cars” go fast car “prelude” and my workhorse off road snow car the tacoma and since they old i pay like 120$ a month to insure them all and that’s full coverage on the tacoma how did americans get conned into buying 50000$ cars to save money on repairs
yes, mid 2000 Lexus are the best used car to buy. ES300, ES330, ES350, GS350...
@@fisephalnoxtI got a 2015 NX in 2018, been 5 years no issues. They’re great cars too.
@@BlueStreak706 Yes!
Love how Dave knew he had no savings before he even admitted it 😂
After listening to this show for over 15 years, I also have learned to read people pretty well based on how they talk about their financial picture without them even saying some of the big details yet, like just after their opening comments usually
Makes 180K a year. Flat broke. Zero money in savings. Gotta love it.
The American way!
One of my friends just leased a 2024 Yukon Denali for $1,300 a month. Insane
Let your friends live the life they want. The Yukon makes them happy
@@JuniorCastro-i8dthis is like watching someone doing heroin and saying whatever makes them happy
What an idiot
No need to judge. Let them live tied in debt. As long as you're making wise decisions that's all that matters.
I've lived in the Orlando area for over 30 years. Married with children. Oviedo, Winter Springs, Longwood and Chuluota have great public schools.
That's crazy. I never thought have a lease was a good thing. Yet that was when I thought living for a credit score was the thing to do!
Just had a back n forth with a buddy about that. He leases bc of maintenance. I explained to him the simple things you can do to self maintain your car and is very easy and low costs.
He has a contract to “rent” these vehicles likely with money on the front end. Walking away still leaves my man in need of transportation. Start saving and then pay cash for whatever you can afford at the end of the leases. Do not borrow or lease for a vehicle ever again!
Dear Brett. You have NOT made 50-60K on your house. The house prices in the area you are moving to HAVE GONE UP TOO. Do NOT think you suddenly have 50-60K to spend - you do not!!!
100%!! I bought my house in 09 for cheap, it's 4x now. That means to buy my type of house now would be 4x what I paid!! I'd be scared to death to buy right now..
Haha,making $180k with $89k car loan is funny! Also no saving is ridiculous! 😂
not bad he can make it
Better than that debt making half
I see 89k as a big chunk of the worth of a house, what a waste
@lionheart93 you sound like a broke person. He should be buying cars with cash.
Lolz😅
I like Dave Ramsey. I think he's a real swell guy. A real guy's guy, a real life of the party kinda guy. I know I'm repeating myself a bit here, but boy oh boy, I gotta say it, man. Dave Ramsey really does come across as one HECK of a super swell guy!
Stupid car debt, no savings, AND he is moving to Florida where people can't afford homeowner insurance and HOA assessment fees... I don't think it takes a crystal ball to realize what happens next 🙄.
They will always be broke. They could live in a cheaper area, like we do, and live great - lower housing prices and no HOA fees.
I agree...my bf just rents in FL and it's pretty high and I am in NJ with a high cost of living as well so that's saying a lot! i don't why people seme to think Florida has a low cost of living.
@@littlesongbird1it used to thats why. Also, compared to cali and ny its cheaper
Orlando Florida ain't cheap.
Homeowner insurance in Florida is skyrocketing. I moved to northern Wisconsin a couple years ago from South Carolina and it was the best move I ever made. Way cheaper. Way less people. Quality of life a gazillion times better. I just take one warm vacation in winter and I am good.
One of my family members has just been divorced for a third time. He's buying a car this week and it will cost him about 5000 dollars - and many of Dave's callers should be similarly frugal when it comes to choosing what to put on the drive.
He needs to quit marrying them. Rent a chick is a lot cheaper. These days, many girls are just giving it away to all and sundry for free. As long as he gets snipped so nobody can try to nab him for child support, he can quit paying lawyers if she just quits getting married.
I got 1 more year to pay my truck off. I can’t wait to not have a car note anymore. Last new truck I purchase. I luckily bought my truck new $10k below MSRP in 2019. I will be taking the money I would pay on my truck and put it towards buying a new home in the next few years.
Lease is a waste money
Hes not selling it for a profit every other house has went up the same amount
I love cars, i just dont like the payments, so i will just admire all those pretty cars. 180k a year and no savings? 😮 he needs a budgeting lesson ASAP.
Nah, he just needs to man-up and earn more.
Fleece I love that word.
Thank you so much for adding the information at the end about why leases are priced the way they are! I’ll never forget when I was in high school my 11th grade economics teacher told us that leases were the smartest way to stay in a brand new car! Can y’all believe that?!
Apparently, leases are indeed cheaper than buying a new car (selling the previous one) every 3 or fewer years.
They're not really the optimal approach for early wealth building
Love watching Dave Ramsey this is a great start to anyone’s year keep the videos coming 👏🏽👍🏽👊🏽🥂
Lease car payments will also impact how much you can borrow as it counts as a credit payment. Paying them off or selling them before getting a mortgage will prevent this headache from happening. Lenders want to see folks with credit card, car payments, etc under 10% or so and your average lease is going to be 10% or more of monthly gross income. What this means is you qualify for a smaller mortgage meaning a smaller house.
Yikes
When Sam Walton died in 1993 he was still driving a 1978 pickup.
It’s always a truck.
I drive a 2004 liberty with 227k miles. Paid 18k cash for it in 2005 with 4000 miles on it. House is paid for, have investments and money in bank. First ss check comes next month which I can easily live off it. I never made more than 55k a year. Stop trying to impress others. A car is absolutely the worst purchase you can make. Keep it and take care of it. Learn to do your own maintenance. Utube will show you how. The stupidly of some of these people is just unbelievable!
2- 20 year old cars here.
02 Xtrra 4x4 full coverage ins, registration and maintenance $900. A year.
04 silverado 4x4 Same thing. $1,100. a year.
We do have a continuous $8,000. emergency saving for repairs. Nothing major yet.
But we are mortgage and CC dept free also.
Vehicles are bad.
.
I ran into a dozy yesterday. A 27 year old, renting home and driving a $110,000.00 truck while working a part time government job.
She purchased 1/10th of a million dollar car and has no money for gas or food.
How and why?
Hes just renting the car, he didnt owe the full price of the car, ONLY owe the remaining payment of the contract
They are leases, you just turn them in when the lease is done and then buy a car that you can afford. You do not have to keep these cars. When this is done, if you need a truck, get a New Colorado or a Maverik for $24K, or a small Toyota truck. You do not have to buy these cars at the end of the lease. Or the car place wants to sell a new car/truck and offers an early buy out. Take it and get rid of more than half of the potential debt.
Colorados and Mavericks have issues that require money to fix.
We have a Colorado and yes we have had to change the oil and replace the tires over several years. Our neighbors have a Maverick, it is less than a year old so the long term repair costs are not demonstrated yet. But the point is that you don't need to buy a $65K-110K truck, if you do not use it for work. This guy will have 49K left to pay on his truck after his lease is up. So it was expensive, and he does not use it for work. You can have a lot of repairs done for that 100% increase in price. (But never buy a new dodge truck, at any price, it is a bad deal.) @@superblump87
Good luck finding those trucks at MSRP
Not a problem, go to free NYS. You can get the incentives too. @@thedopplereffect00
I wish Dave had asked the year, make & model of the car & truck.
I'm not going to lie. I watch a lot of these videos to hear people regret their stupid choices. Then get a sense of pleasure for not making those choices.
Indeed😂 yea
Haha totally
You will have endless entertainment.
Same lol
Be glad they do. The economy would be in ruins if not for auto loans .
My 2 paid off vehicles (both purchased used for under $20 grand) have never prevented me from doing anything I wanted to in say a $50k vehicle. I have since taken all my extra money and paid off my mortgage 23 years ahead of schedule. And all that extra money now is going into investments and not a new car. Maybe when i reach $2 or $3 million net worth I will buy new.
Sometimes renting costs a lot more than a mortgage right now.
Yep. But some people can't afford the down payment
Not really when you add taxes, repairs, hoa
Why people are so caught up in the expensive lifestyle?me and my woman make a lot of money,but we’re happy with the simple life..
A little struggle to buy a car cash makes a huge difference
When he said he was new to making that money, we can tell... showing off how much they make by blowing it all.
I will ride a bicyle before i take out a car payment. I also save
30% of my income. Its about priority. Becoming rich is more important than acting rich
Probably better off continuing to make payments and then hand the trucks back at the end of the lease. Guy has put no thought into this, other than moving to Florida and getting another VA loan to skip the down payment.
Callers always claim they follow Dave's program then proceed to display their incompetence.
He didn’t claim to “follow Dave’s program.” He clearly said that he was a new listener.
He didn't say that. He said he listened to some clips and now he is thinking he made some mistakes and wants to do better.
Every. Time!!!
So quick to judge you don’t even have your facts correct lol, the internet is funny.
Says you.
People getting into big car debt is tied to depression I have no doubt and low self esteem. They feel down about life want to be respected and figure an expensive car will buy respect not thinkinvg of what they will have to pay.
People trade excuses as if they're currency. Like if you excuse yourself long or big enough, it'll be okay to be ignorant
Great insight
Hopefully they also did some research on Orlando and recognize if you make 170k in the northeast You will be Lucky to scrape maybe 90 to 100. The wages in Florida are Half of what they are in the North East,.......
Dave Ramsey is right on a lot of things except for how a lease works. It goes off money factor and currently it equates to 7-9% rate
And how is that not a rip off?
Multiply the money factor by 2400 and that is the interest rate of your lease.
Why is anyone surprised by this? Regardless of whether someone can or can't afford "the car", American's identity is tied to what they drive!!
I had that identity crisis when I was in my late teens, early twenties but fortunately I came through it. The car I drive gets me from point A to point B and all I care is its functionality. Most speed limits vary between 45 to 75 and every car will go those speeds. I don't need heated seats or heads up displays. I don't need a truck that I could go up the side of a mountain but I'll never go up the side of the mountain. I don't need a vehicle that seats 8 if I only need 4. People's self esteem should not be tied to their vehicle.
I've been able to put my money to better use by not being addicted to the car I drive!
Good luck getting out of those leases without losing a ton of money. When you try to buy them out you’re going to get hit with sales tax. And on a couple of $40k vehicles that’s a bunch of money.
You’ll be better off just sending them back to the lease company and paying the early termination charge.
He should just wait until the lease is done
I would sell both cars get two inexpensive used cars pay off all your debts build up your emergency fund of 6 months of expenses and then save for at least a 20 to 25% down payment on a house. Do all of that in that order only. You're welcome.
He can't sell the vehicles, as he doesn't own them. To sell them, he would first have to buy them from the leasing company.
I laugh at people who say my truck is only 2 wheel drive and only a 2 seat truck. It's been paid off 6 years now, almost 15 years old (i bought it used with low miles). It did cost me a lot last year, mostly maintenance. It also has a new frame and suspension all around as of 2021. Maybe it has power nothing, no cruise control, all the toys..but it still starts every day
Must be nice to have that kind of money to piss away.
As Americans we need to stop letting these dealerships destroy us financially…
It’s not the dealerships fault it’s the peoples fault no one is telling u to spend 50k on a car
@@Au_blickymouse yes 💯
You sign so many documents when you buy a car if someone is in car debt how is that the dealerships fault??
“ I need a safe and reliable car, boohoo” is what these idiots always say to justify their purchase or fleece.
"STEALERships" just say no.
As Americans we need to stop being so STOOPID. Dealerships have NOTHING to do with it. Personal greed does.
loan this loan that, all adds up
people live beyond their means. BAD parenting and educational systems not teaching people
My car debt is 10% of my income, and it's just a high trim Mazda. 0% APR so I have no incentive in paying it off early. Others can drive around in nicer cars and drown in debt and have less for retirement if they want. Not me.
Must have good transportation, Must pass smog, No one wants to break down on freeway and be towed, Most people are not mechanic, Repairs are not Cheap, Often monthly payments are no Choice. No one wants thier car in the shop for 2 weeks. owning a Car is no longer cheap.
If you buy a new car- you drive it at least 10 years!
Factssss
I BOUGHT A BRAND NEW PICK UP IN 2007 AND I STILL DRIVE THE SAME VEHICLE AFTER 17 YEARS, SO FAR I HAD TO FIX THE A/C, BRAKES AND BOUGHT A NEW BATTERY THREE TIMES IN 17 YEARS, BOUGHT NEW TIRES AND OF COURSE I HAVE TO KEEP UP WITH MAINTENANCE LIKE OIL CHANGE, BALANCE AND ALIGNMENT, BRAKES, TUNE UP ETC. SO FAR I THINK I HAVE SPENT ABOUT $7,000 MAINTAINING THIS VEHICLE DURING 17 YEARS. I WILL NOT PURCHASE A NEW VEHICLE UNTIL MY MY CURRENT VEHICLE FALLS IN PIECES. I ALSO HAVE A TOYOTA COROLLA IS 26 YEARS OLD I BOUGHT IT BRAND NEW WHEN MY SON WAS BORN, THE CAR IS STILL RUNNING AND I USE IT WHEN MY TRUCK IS IN THE SHOP FOR ROUTINE MAINTENANCE.
IMO a new vehicle when maintained should easily last you 15 years. No longer is 100k miles a lot.
@@patriciaramirez3139 We do the same thing.
My 4Runner is 34 years old now. Things are starting the break so I am selling it to purchase a new car. I purchased it for $9000 back in 1999 and I am selling it for $4000 in 2024. I put 190,000 miles on it.
The funny thing is this guy called for advice but also to humble brag 😂
" poor people ask how much down and how much a month" 👍🏾
Do not spend more than 20% maybe 25% of your annual earnings on a car. NEVER. A last few year has been so skewed. My car payment is at 3% interest, and my CD is paying 5.2%. So I have decided not to pay off the car at this stage; I am making a car payment. This is about the only time I would say stop paying it off. A situation like this will rarely happen. When you have a depleting asset like a car, try to pay off unless you can make more money with the money.
I’m confused, why is he tied to the cars? He said they were on lease? He should just let it go back and buy something not so expensive. It sounds like the buyouts are more than what the cars are actually worth.
For me, it's always interesting how interest rates are completely different on the other side of the pond. The last vehicle I leased (we've bought it now) was at 2.49% interest. How are people going for 15+%?
People driving around in a brand new car/truck for maximum status but basically renting it. A decent 2nd hand car that you own is the way forward. Unless of course you're rich then it doesn't really matter
the daughter chiming in about living a hard life to gain later in life is pure comedy
You can work hard and still have a nice car. I got a 2016 Lexus IS that looks brand new with 90k miles for $18k cash. Less then most new cars that nice
before covid leasing was worth it you could get a brand new Honda or Toyota and have a payment under $200 and have a new car that works and no issues for 3 years . also, if you liked the car after the 3 years you can keep it and drive it forever. having that low payment will let you stack cash for other things . having a hoopty all the time will be more trouble in long run
Yeah. I bought my Toyota brand new ten years ago, and I’m still driving it now. It’s my only car.
You ignored everything stated in the video. Leasing is still the most expensive way to drive a car.
Not only are you paying for depreciation you are essentially borrowing money at a ridiculously high interest rate and because the Federal Trade Commission has determined that this is not a debt, there is no federal disclosure involved. This is why the 'buyout' never equals the original price the minus all the $ you paid.
$50ish k profit with a house isn’t a lot right now, unless he bought it last month. Where is he planning on living?! Surely you need that equity for your next place. Why is he trying to pay off these silly leases?
I love my beaters, no need to carry collision, they are owned free and clear and even if I have to spend money on a repair, it is always cheaper than buying a new asset losing means of transportation. I could afford a new vehicle but why make the banks rich, besides I only drive 30 miles a day round trip and I have 5 different beaters to choose from.
LOL that greeting
"Welcome to the Ramsey show!"
"...hi!"
Dave "Hi!"
If you don’t have enough money to buy a used car outright, you can’t get a car. You get a job that’s walking, biking, etc from your home. or ask friends/coworkers for rides. You Uber days you can’t do that. It’s supposed to suck because you’re broke. You can tough that out for 4-6 months and save up to buy one. It’s wild people have $0 in savings and think they deserve a $20,000-$30,00 car
This just illustrates how dumb and reckless Dave's "half your income in cars" limit is. Especially for higher earners. Making 180 and paying 90 in cars is so stupid. We make over 200 and I'm sweating having to pay 25k in cash for a used car.
Oh my goodness I live pretty comfortably on just 15 to 20,000 a year and I’m able to save about 800 every month
don't people save first then budget for a vehicle ? I mean that seems the most logical common sense approach. Yet people don't they just enter into a financial agreement and then buy now pay later option approach. That is scary.
Is making north of 100k per year and not managing it well the two pre requisites for calling Dave?
am I the only one who gets so frustrated at people....who call to get ADVICE.....and then just wont stop talking!!! I know it's due to nerves, but wow its frustrating.
Trucks are not luxury vehicles but more expensive than luxury. Trucks should be haulers and they were marketed as luxury cars.
I would have liked to hear if he had any other forms of debt. Then mentality he's displaying sounds like any increase in income equals an increase in lifestyle. How does your income go up by $20K and you still have zero savings. If you get an increase in income, find something you do without.
We make half of that and have a good emergency fund, a great savings, a paid-off house, and a nice retirement.
Agreed. I make less than that and have a 401k and regular savings.
We call it lifestyle creep, income go up 10% expense go up 20%.
Auto insurance in Florida probably triple the amount he's paying now for those ridiculous cars.
Florida's nice it's the insurance that gets you
That’s why you visit and leave
It's not just that an amount half his annual income is tied up in cars, it's that they are leased or financed. If he paid cash the 50% formula works for most people. There is NO reason for individuals to ever have a car loan or to lease (though maybe leasing might make business sense for certain situations)
$180k and no savings? Guaranteed cars aren’t the only thing he’s wasting money on. He’s mortgaging his future to fund his current lifestyle. Good luck with retirement later.
Good luck finding a good school in orlando if you dont spend nearly a million on your house.
I made the mistake of upgrading cars over the last few years. Thing is- I never financed over $12k and always paid them off within a year. I have no debt now and investments have been getting stronger
Why is Dave telling him to sell the cars? The dude said twice that they’re leases, so he doesn’t have anything to sell.
Keep the cars. Not everything is about depreciation. They make enough money to keep them.
How will he be a millionaire in 5 or 6 years?
Orlando! Born and raised!
He makes $188k a year.. he’s not suffering if he just start getting getting rid of the car.
Average car is $32-40k, imagine having that in cash. Would you still exchange all that cash for set of 4 wheels that u can get for $4-6k & keep the rest.
Everything in life comes down to a choice.
People don't realise, you can save/retain money having a leased vehicle, many don't negotiate a suitable APR on their chosen vehicle, causing them to overpay. With the correct lease agreement you can pay a small deposit, small monthly payments as well as avoid losing money on a depreciating asset. Paying cash for a premium vehicle (meaning expensive) is not clever, unless it's a vehicle that will appreciate. For example, my payments for my Aston Martin DB11 are more than affordable, I will exchange my vehicle within a couple of years or less to avoid taking on the depreciation on the vehicle, this takes place on the new plate licencing year (time in which the number plates for the newly registered vehicles are released for example a 24 plate for 2024).
And you are still losing money.
@Jenda-ld8dj Straight finance or lease deal, you lose money either way, but the main fact is, I still have money than you 😉
@@themorganator970 You need to proof read your statement first.
@Jenda-ld8dj Obviously, you must be academically challenged