I have driving a $900 car for 2 years. Makes a big difference when you just dont give a darn what people think. Its reliable and nice. Older but clean.
@@dannynguyen1122 oh please. I do all repairs and maintence myself. Its a 2002. You have to know what to look for. You dont buy a 15 year old Volvo or BMW where they are unreliable and expenisve to fix. Stick to common proven models and engines. Do research and avoid used cars that are known for certain issures. Stick to the toyota Camry honda accords crown Vic grand marques. I bought a ford focus a few years ago for $400 with no brakes. I fixed it myself for $150 in parts and put 150k miles on until a garbage truck backed into it as it was parked. I have also had $1000 grand marques and put 300k miles on them. They will go forever. A little youtube knowledge and a decent of set tools can go along way. New cars in 10 years will probably be nightmare with all the electronics on them so who knows.
I’ve driven my $2,000 car from 2001 for 7 years now and I love it to death. It’s got 194,000 miles on and still going strong. I make more than enough to buy a mid-range “nice” car but why do that when I pay $0 for this one
Yeah that was such an arrogant comment. Everyone in SF behaves that way, they’re all trying to one-up each other. Lived there for four months and couldn’t stand it
Done with all baby steps..... Driving a $3,400 car....Honda. Paying off my moms mortgage of $26,000;in 6 months.....instead of keeping up with the Joneses. Choose well.
Deffinetly Mind boggling. However high earners really don't see any consequences to being broke. They are likely to be from a middle class background so can ask their family to bail them out. Alternatively they can take out credit cards, I'm sure the banks love lending money at 20% above the Feds rate🤑
@@johnk6749 my suggestion for one of the best valued cheap cars is a used Ford CMAX. They are so undervalued because nobody wants them. Pseudo minivan, not a lot of storage space, kind of the opposite of cool. But a 2013-2017 with like 60k miles is under $10k
Mexi Short you would need quite a bit more expensive Of a car if that was the lure to hooking the girl. If you bring her home to a small musty apartment the facade is done
@@BrendanEvan fun cars are for people with money. 😂 I drive around a 2001 Ford Focus I bought for $2,000 6 years ago as my badge of frugal living 😂 I *could* buy a “nice” car with my salary now but ol’ blue gets me from point A to point B
I predict he doesn’t take Dave’s advice. I predict he ends the lease, pats himself on the back, and then finances another car thinking he did the right thing.
His way makes sense to a point as well... Pay down 7k/25k debt. In two months, the 25k is gone. Now drive the leased car for one more month, turn it in after you buy another 10k car OR! wait two months and he gets a 20k car cash. Side steps the hassle of buying and selling a used car to buy another used car. Isn't totally crazy... But the best bet is what Dave says, turn in the lease, buy the 7k or less car and then focus on the debt/savings until you have enough for 3-6 months emergency fund - then save more for the nicer car.
He deserves to have what he wants. He can buy a new car and still save a million by the time he retires........And if he passes on before or right after retirement.....at least he would have enjoyed some of the fruits of his labor before then.
I just sold my 26k 2019 Mazda CX-5(which I loved) after owning it for 2 months and bought a 1998 Plymouth Breeze in excellent condition off Craigslist for 2k cash. Doing that will save me 2 years of debt payoff on my current salary. Funny thing is I'm having more fun driving the Plymouth than I did the CX-5. Mainly because I don't have to worry about payments everytime I got in it. Skip status freedom is way more important.
Keep the lease, use the bonus to pay the credit card down. $370 on $150,000 income is nothing, that’s only $4,440 a year. Pay the credit card off as soon as possible, then save up to buy a car.
Yeah, exactly. I'm not a fan of leases, but Dave acts as if buying and sellind used cars is as smooth as trading some treasury bonds. Given the caller's income, It's not worth the pain for him to buy a used car for 6-10 months just to get rid of the lease. 'Pay the credit card off quickly, then save up to buy a car'
Car companies and dealerships have drilled into people’s heads that if they buy a car for less than 10k that somehow the wheels are gonna fall off the car as soon as they drive it. This is why people are so reluctant to buy cheap used cars. There are so many Honda’s and Toyota’s just waiting to be bought for 7k or less and that will run for 5+ years.
I’ve watched countless videos like this and it still amazes me when people say they have 25k credit card debt. The worst credit card debt I ever had was about 5k when I went crazy on a holiday and I made sure to pay that off ASAP and never did that again. What are people buying?
I don't understand it either. They have the means to pay it off but just ignore the interest charges forever? Makes no sense to me. I got my first interest charge by accident this past month and I hated it.
Idk I bought a mattress once for $2500, no interest on the debt if paid off in a year.. Could be a few big purchases, or just tons of lifestyle that says “eh I’ll worry about it later”
@@mzstacystacks3168 car payment is fine with me The only loan i took was 1.9% interest is minimal, to a point that with or without it doesnt make a dent I bought my first car for 7k cash, when it broke down i drove a friends left over for 2 years, then i bought a 30k sti in cash which the sale gave me too much lecture i went straight to pay cash which i REGRET or else i could have atleast tripled it in the stock market, then i needed a daily car after my sti got too many mods and wanna keep the mileage low so i financed a new 20k car with 5k down at1.9% 60 months, monthly is only 273 , total interest is around 1200 for 5 years, and the chunk i left it in money market, really dont feel a different Point it, as long as interest rate is right
That 20 or 30 USD bonus for sure made you feel "essential", no ? (and I assume if the companies have a deal with certain supermarkets they get a price reduction).
I’m 20 and drive a $5k car while my friends drive $25k+ cars while I make 3 times what they make but i’m just not dumb haha. All of that money i’m saving is going straight to my 401k at work and savings !
Forget about 401k when u are 20 Just put like company match and the rest into money market, quick and high yield, putting. Into 401 means u wont see till40 years later
@@jarodsimmons2542 u will eventually, when u understand if u have a chunk of cash u can invest and get so much in return rather than paying in full with cash and the interest rate financing a car is only 1.9% or less
@@johndone8045 or I can pay for a car in full and not worry about while still making great returns on my investments, then I never have to pay that 1.8% just to drive a newer car. Why spend money on interest if I don't have to
That’s why you never tell them you’re paying cash. Negotiate the price of the car, and tell them you’d see what they can do on finance. Then tell them you’d rather pay cash when the price is what you’re after
@@Wellington205i Actually that is the 101 of "Paying cash for a car". They do instruction videos on that. The car dealership ALSO makes a profit with all the financial products and they factor that in when they tell you what they give you for you old car, or the price for the new one. If you tell them straight away you intend to pay cash, they will start out with different prices or stop at a lower discount. No need to outright lie, and you can let them tell you all about the loan and lease offers.Then ask them for the average REAL interest rate and ALL the costs incl. the hidden costs. (if it is a low interest loan, they will have hidden fees to make up for it). If the salesperson also had to get the O.K. of the manager to make you a certain offer in the middle of the process, they most likely will not renege on their offer. They WANT to close the deal. Before that they will most likely assume that such a stingy person only buys used because they cannot afford a new and shiny car. Which means (usually) Does-not-have-the-savings-to-pay-in-cash. Smart buyers can let the prejudice work for themselves, there is no need to pretend or lie. (chances are that sales person will remember you when you come the next time, if they still work there, so your game may be up the next time).
I turned in my 2017 f150 costing me almost 500 a month and bought a 2003 expedition cash. Honestly I enjoy it much better than paying every month. Cash is king
Dude is acting like he's so smart- says the guy with 25k on a credit card and a leased car. A $7,000 car is FAR sufficient- it's a depreciating value. I hope he doesn’t hurt himself falling off his high horse keeping up with Jones.’
I own a 1997 Dodge 2500 12valve Cummins 5.9 and a 1999 Toyota Avalon 6c ... I spent 8 grand on my truck (250K miles) recently NEW rear end, front end, rebuilt transmission, brakes, calipers, rotors, , suspension, engine seals, oil pan, head gasket, ac, radiator, inner cooler, condenser, hoses, water pump, oil pump, dampener the list goes on and on. I just got another 20 years out of that truck. Its insanely reliable and has been that way since it was purchased for 22K back in 1997. That engine can go 2 million miles if taken care of. Same with my Avalon, spent 1k on it and its going to run another 100k miles. I wouldn't trade that truck for the world- NO computers, All mechanical, was able to do the work myself. My dad ( retired ) just went out and bought the same version of that truck but the 2020 model - 65K and its really really nice. My relationship and his friendships did not exponentially go through the roof and he didn't become the most popular guy in town because of his expensive truck. ... He started out with the one I have now. Took care of it, then i bought it off him when he was ready to upgrade. Sounds a little like this guy's friend circle is putting pressure on him to look a certain way. And he sounds a little ashamed if he is seen in a 7k car. Those kinds of people who actually judge you and look down on you because you don't drive a nice vehicle aren't your friends... you are THEIR comparison board. They keep you around to make sure they are better than you and have more than you. Dump them; fast. I don't give a rip what other people think about the way my car or truck looks. If what I drive is a problem to someone or keeps us from having a conversation/ friendship, Then GOOD! Those aren't people, they are what I like to call pathetic.
I turned in my $285 lease in May & bought a 2011 car for $5,500 only 50k miles, it looks/runs almost like new. I essentially gave myself a $285/month raise plus cheaper car insurance, I will never lease or finance a car again,
"I was playing a character I concocted in my head" I did that once at a dealership, drove up in a suit driving my father's newer Cadillac, told them I was bored with it and it turned out I didn't need something so practical, got a test drive in a sports car they don't typically test drive. Really glad I did, it was terrible.
“Well I’m driving a nicer car than that” WOW how incredibly entitled. I lived in SF for 4 months, had to leave because this is how everyone who lives there acts. Why did this guy even call Dave?
Haha I love these calls. Pretty much they should just ask, “Hey Dave, so should I do the right thing or the wrong thing with my money? Also, if I do the wrong thing that will be wrong but the right thing will be right... kind of having a tough time trying to figure this out because I want to do the right thing and I know what the right thing is... what do you think?”
If he lives in San Francisco you don't even need a car. That's an extra $500 a month in parking fines and parking fees along with bridge tolls getting in and out of the bay. San Francisco is only 7 by 7 miles so you can bike or take the Bart wherever quicker than you can in a vehicle.
That’s horrible advice to bring cash to a dealer. Dealers make all the money on finance these days. It’s best NOT to tell the dealer you are a cash buyer until after you negotiate the purchase price and have it in writing. Dealers will come down on the car price if they think there is a chance of taking you to the cleaners in the finance office. Once they know the purchase price is all they are getting they are far less likely to come down in price.
He won’t get out of that lease and buy a 7k car. Never happening. People are too focused on how they appear to people they don’t know. I have a 2011 Camry, paid exactly 7k for it and it’s pretty nice for the price. The end game is to retire with some money laying around, not look rich in my 30s and 40s.
Once upon a time, cash was king at the car dealership. Nowadays, agree on a price BEFORE you tell them you're paying cash or they'll never bring that price down. They make their money on financing now. If they know you're paying cash, they won't drop the price because they won't have the financing to make money on.
I agree, there are enough great cars such as Toyotas that can one retain their value two have very little repair costs and three will save you tons and get you from one location to another! Great advice!! Focus on paying down consumer debt!!
Same here, (working in a hospital) I get a bonus in March and it’s usually about 10-12% of my annual salary. So I’m happy for that. But I keep Doing the right thing and put it on debt. It’s not fun or flashy, but it will be beneficial in the long run. We have paid off about $60k of debt this year. Trying to live below our means. But I like my cars and will pay a bit longer to have our nice cars. But that’s my choice.....
I got my car brand new 6 years ago. I still have it, it’s paid off. I almost got a new one this year but watching Dave made me realize I should get an emergency savings first. I also love cars and do have pictures of everything one I have owned past and present
Most of the older truly wealthy people I know drive Toyotas, etc and keep their cars 10+ years until they start having real issues. I also know people in debt up to their eyeballs driving BMW's and expensive trucks struggling to make the payment every single month. People need a reality check.
I bought an 07’ Toyota Highlander with 55k miles for $7500. It was worth $10k. Still driving it 4 years later and it’s currently worth $8k (more than what I paid for 4 yrs ago)
I just got a 2013 Ford Fusion for much less than $7000 and it's a very reliable, sweet car. Love that they pointed out you can get a great car for les than $7000!!
I paid 2k for my 2003 MonteCarlo ss. I got it with 106k miles on it and it now has 110k miles on it. It’s originally a Florida car so it has no rust on it.
VP in my company should be making close to 200k if not more and he drives a beat up accord that you wont believe a person in his position would drive. I am sure he has big money in the bank. I make 150k and guess how much I pay per month, zero. The feeling you get when you don’t have any debt payments other than mortgage is priceless and frankly now that i am used to it, I can’t stomach spending any money per month on car payments. Like Dave says, it gives you financial piece of mind.
The guy makes 150k.... Just keep the lease and pay off a chunk of the debt. Buying 2 new cars within the 4-6 month time span it takes to pay off the remaining 18k, would just be too much of a headache to deal with.
Thankfully i spent many years as a mechanic, and can always fix my own truck. Because honestly, it's hard to find reliable & affordable used vehicles here in the rust belt. Most of them aren't worth the price of frame they're rotting away from.
I bought an '06 accord in 2016 with 31k miles for $10k. Now it's 14yrs old with 87k miles. Might as well be new except some cosmetic rust. Probably worth $7k now. No repairs that weren't regular wear and tear.
I feel like I'm missing something here. Why would Dave recommend getting rid of the lease, spend the bonus on a temporary car, then pay down the debt, then in 8 months sell the car again and buy a new car? Why not pay the credit card debt down faster and just hold on to the leased car until he can afford to buy a more long term car? I get that Dave doesn't like leases, but its only $365/m. And Dave doesn't like credit card debt either. He didn't ask what the interest rate is on the credit card debt. Buying a 7k car usually costs some money. The chances of not having to pay for anything on that car are slim to none. You also can't bank on the fact that you will sell it for close to the same amount. Keeping the lease for another 8 months would only cost him about 2k. And it makes a pretty big impact on his quality of life now: 1) The money lost on the car buying and selling (plus any maintenence). 2) The time and effort needed to find the right car (he'd have to do it twice). 3) Driving a worse car for X amount of time. 4) Whatever the interest rate is on his CC The guy is making 150k. I know people are making fun of him here about "keeping up with the Joneses", but Dave isn't saying to never buy a decent car. I just don't understand this. Pay off your CC debt ASAP and agressively save. Spend whatever you want on the used car you are getting next. If the guy was making a 1k/m car payment, thats another story. Or if the guy had a massive amount of debt and the 7k wasn't going to put much of a dent in his other debt, get away from the perpetual payments. But in this case, it seems to make more sense to hold on to the lease for X number of months.
3 года назад+6
I’d love to watch an Undercover Boss episode with Dave on it ❤️
Showing up with cash doesn't work with nearly all dealerships, person to person yes, but dealerships cut deals with banks to drive buisness to them for car loans. They are well incentivised. Not only do they get money for the car they get a kickback from the bank.
NEVER use the cash buyer strategy at a car dealership. It will hurt you. Dealers hate cash buyers and will refuse to budge on price the moment they find out you're paying cash. It will certainly work when buying private, though.
Just a reminder to everyone: he is making 150k a year in San Francisco CA. That is equivalent to a 55-60k salary in Philadelphia or another *cheaper* area. I could easily be making 150k+ out west but I would be paying 3k+ a month for my apartment instead of 900 on top of all the other increased expenses. Salary isn't everything.
My '09 Civic is around $7-8k and is running smoothly, with proper maintenance. That car is a huge reason my husband and I are going to be rich someday. We're letting our other assets grow, and when we have a ton of money in 10 years, we can buy a brand new Tesla if we want. It won't matter then. But if we bought that new $30-60k car now, we'd be stuck in the middle class forever. That's what people don't understand. It's so hard to go back in lifestyle once you inflate it. Slow down
I live in some nice luxury apartments, have nice top of the line furniture, buy quality groceries, and invest in my health. While saving up for a down payment on a new home. But I drive an 07 Hyundai Sonata with 160K miles. It doesn’t blend in too nicely with the majority of the cars here. If you saw me in the streets you’d never guess that I live where I do. But it gets the job done, plus no monthly car payment, and $34 liability insurance. 😏
That's kind of backwards, do you not think? One should not have a luxury apartment and top of the line furniture if they want to become wealthy. O_o Unless the point you are trying to get across is that, you purposely invested in assets that appreciate and paid off things that depreciate.
@@wewhoareabouttodiesaluteyo9303 Well I’m married with no kids so I have some room to save money. Being debt free it’s kind of hard not to splurge on myself a little. Plus being at home is my favorite place, so I want to make it as enjoyable & relaxing as possible.
People need to realize it’s about safety and reliability not show and fancy options. I have a 91 dump truck that has heat and that’s it. I LOVE IT because it does a job! It saves (or makes) me money vs costing me money!
It’s the truth. Go into a pawnshop looking for jewelry with cash. You’ll get the best deal ever. I love jewelry and I found out the used diamonds wear just as good as new. Was in Jackson, MS & went to a pawn shop and saw a beautiful ring. Long story short I gave him $850 cash for the ring (asking $1200). Started a Google search & found the ring on Macy’s website. The price fluctuates on it but on average it’s a ridiculous $5000. The mark up is criminal really. It’s the Pear Diamond Cluster Ring on the Macy’s website.
My wife and I agreed when we got married we would NEVER have a car payment and it's been awesome...Every car paid for in cash and we often got the deal of the century!
I was lucky because my grandma gave me her car. I have been driving it for over 4 years now. 2009 Hyundai Sonata- just put 52k miles on it not bad for being 11 almost 12 years old. I refuse to get rid of it- low cost and I am also emotionally attached. Everyone says just buy a new car, heck no! I dont want to be even more in debt and I am getting closer to paying off my student loans and thats it! I even got a good nest egg.
Not sure waving cash at a car dealer is the right strategy, nowadays, as most car dealers are more in the business of selling car loans than they are of selling cars, I'd wait pulling out your cash until the deal is signed. With civil forfeiture rules, I would also make sure I have a perfect excuse to have so much money on me, it's very hard to prove you are not involved in any criminal activities, if the police wants to take it, the burden of proof is on you... I still love cash, and would still buy cash for something in a private setting if possible, but those are things to watch out for.
Praying for a good bonus at our house, would love to kill some debt. The problem with buying/leasing a nice car is you never want to go back to a less nice car, people just hate to move down. Now we'll be living with our nice car until a slightly nicer car is less money than this one.
All the cars I've ever owned (I'm 30) might be worth seven grand together. Seven thousand will buy you a KILLER car. But I am in the car business, and can pick a good one. If that's not you, you may want to ask someone you know who works on cars to keep an eye out for you. Maybe offer them 5% for a finder's fee. So you would buy a 6,000 dollar car, and give your mechanic a 300-dollar bird-dog fee for finding you a good vehicle you can depend on. Use the rest to tag and insure it. You're in a good spot to get out of a lease and into owning your own machine. Just don't get excited because you want a nicer machine right NOW.
Nothing better than paying cash for a vehicle. I own 5 and have paid cash for all of them but my daily driver was by far the cheapest at 700 and its reliable. It doesn't look nice or do everything all the others do but it does what I need it to. One of the smartest purchases I have made
My dad got me and my sister all cars that were under 6000. My favorite cars were a 1990 Infiniti Q45 and a Hyundai Elantra that was a 2002 that I had from 08 to 15.
Great advice. He might end up liking his 7k car as he pays off debt and then begins to save more and more. Drive it until the wheels fall off and save save save.
Dude makes 160k needs to pay off 25k. So he’s going to go through the hassle of buying a car just to sell it and buy another in 6 months? Gtfooh, just keep the lease, pay off the credit cards, and then save up for a car.
He could easily now buy a 7 k car or even a 10 - 12k car (with a loan of a few thousand USD). Ramsey can get off his high horse, his rules (guidelines) are not the gospel. The 3 - 5k debt (instead of the much higher debt (lease) for the new car is nothing in the grand scheme of things. it would be _new_ debt but not _more_ debt (on the contrary less debt). The reason is that there may be a significant difference between a 7k and a 10k car (miles, optics as it is important to him, good cars that age well hold their price). Much more important is the mindset of the guy: he still thinks a nice car gives him more value / appeal and still wants to impress other people (or not BE inferior car-wise) Dr. Delony: a woman recently hit my car door (unintentionally, small damage). I saw the color drain from her face. That is why I drive a 10 year old car.
I'm trying to sell my 2015 Chevy Sonic because I can't drive a car anymore (nothing to do with the pandemic). The car is in excellent condition, 65k miles, KBB value for a private sale is $5000-6000. $7000 is plenty.
Look at it this way, if I buy this lower end but reliable car with cash and don't have a car payment. I'm paying myself $500 a month just to drive it. Or fill in the blank of your normal car payment. Same goes for that $6 morning coffee and eating out to lunch every day, if I brown bag it and make coffee at work, I'm paying myself $200+ a month that can go towards things I REALLY want to do in life.
I just hopped on craigslist while listening. You certainly can get a very decent car for 7k. For example, I see a nice 2011 Camry with 87k miles asking 6995. My current daily driver is only worth $2,000. I'm putting the miles on it just to keep miles from building up on my "fun" car (Mustang).
Not true! I brought cash to buy a honda accord for my daughter this summer (off fb market place). Sellers didn't disclose car had bald tires, cracked windshield, & few other things wrong with car. I offered $400 less and they wouldn't accept! Can't believe they would lose a sale over $400!! Smh
@@yaboijuan4052 His salary is in San Fransisco though, that's like 60k anywhere else. He isn't really making that much when you factor in cost of living.
Cars are a status object. The fancier car, the more you think people applaud your success. Consumer Reports that Hondas and Toyotas are the most dependable and have good longevity. Not as fancy as a Mercedes but it will get you to and from and you'll get the most out of your buck
Caller is perfect example of .....it’s not what your income is.......it’s what you do with it.
It is San Francisco, so he's paying a lot for a residence or he's paying a lot for commuting
yup 150 in san fran or LA is like 60k in a lot of the country.
@@jeffmorse5599 San Fran is CRAZY expensive.
Nowadays, 150K is an entry level salary in SFO. One needs to earn 2x that in order to live comfortably and pay off the debt.
💯 Not how much you make, it’s how much you keep and what you do with what you keep.
I have driving a $900 car for 2 years. Makes a big difference when you just dont give a darn what people think. Its reliable and nice. Older but clean.
What year and model is it? Be careful driving it on the highway (if you do) as safety features aren’t standard on older model of cars
Honestly. No shame in driving something old, you can laugh at all the money it’s saving you!
@@dannynguyen1122 oh please. I do all repairs and maintence myself. Its a 2002. You have to know what to look for. You dont buy a 15 year old Volvo or BMW where they are unreliable and expenisve to fix. Stick to common proven models and engines. Do research and avoid used cars that are known for certain issures. Stick to the toyota Camry honda accords crown Vic grand marques. I bought a ford focus a few years ago for $400 with no brakes. I fixed it myself for $150 in parts and put 150k miles on until a garbage truck backed into it as it was parked. I have also had $1000 grand marques and put 300k miles on them. They will go forever. A little youtube knowledge and a decent of set tools can go along way. New cars in 10 years will probably be nightmare with all the electronics on them so who knows.
I’ve driven my $2,000 car from 2001 for 7 years now and I love it to death. It’s got 194,000 miles on and still going strong. I make more than enough to buy a mid-range “nice” car but why do that when I pay $0 for this one
(2001 Ford Focus ZX3) for anyone looking for a cheap reliable car
"I drive a nicer car than that..."
Antonio lives across from the Joneses. He needs to stop hanging out with them.
Yeah that was such an arrogant comment. Everyone in SF behaves that way, they’re all trying to one-up each other. Lived there for four months and couldn’t stand it
This guy could comfortably afford almost any car he wants if he'd just take a step back and humble himself for 3 - 5 years.
That's the first mistake buying a car No Roi on a car
Done with all baby steps.....
Driving a $3,400 car....Honda.
Paying off my moms mortgage of $26,000;in 6 months.....instead of keeping up with the Joneses.
Choose well.
God bless you your mom raise you well
That’s awesome you’re helping your Mom
You only have $26000, on mortgage to pay off!! 😮Very few working class or middle class in that situation. Congratulations.
@@rkt81 It's her mom's mortgage
BRAVO!!! 👏🏽👏🏽👏🏽👏🏽
Makes 150k, yeah he's not driving a 7k car, he's too worried about keeping up with the Joneses.
It's pretty mind boggling how broke some people with high incomes are.
Honestly
And quite great that some are rich with a low one.
Deffinetly Mind boggling. However high earners really don't see any consequences to being broke.
They are likely to be from a middle class background so can ask their family to bail them out.
Alternatively they can take out credit cards, I'm sure the banks love lending money at 20% above the Feds rate🤑
@@luisasterioquerubin6829 You, sir, NAILED IT.
Could have simply just started his career
Do you have debt? YES
Do you have money? YES
Pay off the debt.
Woah Jared slow down with your fancy plans 🤣
@@BrendanEvan you gotta attack the debt! 😂
No
@@dabd8175 thanks for the feedback! Keeping debt low is the quickest way to financial security.
@@DrJaredNelson wallstreet bets would disagree 😎
Just by the title I’m gonna say ABSOLUTELY YOU SHOULD PAY OFF DEBT WITH ANY EXTRA INCOME
He was totally not going to buy a $7,000 car! HAHA
Ha! That’s what I think too
He sounded like his ego wouldn't allow him to drive a $7000 car. I bought a $7000 car ten years ago and I'm still driving it.
@@johnk6749 my suggestion for one of the best valued cheap cars is a used Ford CMAX. They are so undervalued because nobody wants them. Pseudo minivan, not a lot of storage space, kind of the opposite of cool. But a 2013-2017 with like 60k miles is under $10k
I have 1 a 1000 dollar car and I'm stupid
Mexi Short you would need quite a bit more expensive Of a car if that was the lure to hooking the girl. If you bring her home to a small musty apartment the facade is done
People really have an issue living within their means when it comes to cars. Incredible.
I understand the sentiment, but also really can relate to people who love a nice car. Well, not a nice car, a fun car.
@@BrendanEvan fun cars are for people with money. 😂 I drive around a 2001 Ford Focus I bought for $2,000 6 years ago as my badge of frugal living 😂 I *could* buy a “nice” car with my salary now but ol’ blue gets me from point A to point B
@@AMK544 They are good cars! I had a 2005 Focus for 9 years! Loved it. Also modified it and did track days so it didn’t save me any money 😅
@@AMK544 ford focus is far from a boring car
I learned the hard way... will never buy new again
I predict he doesn’t take Dave’s advice. I predict he ends the lease, pats himself on the back, and then finances another car thinking he did the right thing.
His way makes sense to a point as well... Pay down 7k/25k debt. In two months, the 25k is gone. Now drive the leased car for one more month, turn it in after you buy another 10k car OR! wait two months and he gets a 20k car cash. Side steps the hassle of buying and selling a used car to buy another used car. Isn't totally crazy... But the best bet is what Dave says, turn in the lease, buy the 7k or less car and then focus on the debt/savings until you have enough for 3-6 months emergency fund - then save more for the nicer car.
@@spcysos I mean $325/month is not a very expensive rental. I'd sink the cash, bury the debt, save up, and buy another car.
I agree with you !
He deserves to have what he wants. He can buy a new car and still save a million by the time he retires........And if he passes on before or right after retirement.....at least he would have enjoyed some of the fruits of his labor before then.
I just sold my 26k 2019 Mazda CX-5(which I loved) after owning it for 2 months and bought a 1998 Plymouth Breeze in excellent condition off Craigslist for 2k cash. Doing that will save me 2 years of debt payoff on my current salary. Funny thing is I'm having more fun driving the Plymouth than I did the CX-5. Mainly because I don't have to worry about payments everytime I got in it. Skip status freedom is way more important.
@@matthewkoch6937 yes it is my insurance went from 90 to 50
Scoffing at a 7,000 car makes me feel like he hasn’t really felt the pain of debt. Hopefully he doesn’t go jump into more.
He's going to get out of the lease and buy a $40k car on credit.
He did not want to hear what Dave said.
He makes 150k🤣
Keep the lease, use the bonus to pay the credit card down.
$370 on $150,000 income is nothing, that’s only $4,440 a year. Pay the credit card off as soon as possible, then save up to buy a car.
Yeah, exactly. I'm not a fan of leases, but Dave acts as if buying and sellind used cars is as smooth as trading some treasury bonds.
Given the caller's income, It's not worth the pain for him to buy a used car for 6-10 months just to get rid of the lease.
'Pay the credit card off quickly, then save up to buy a car'
Translation: I drive a nice car and want to keep it. My eyes rolled out of my head at his reaction to driving a 7k car. Not even finishing this video.
Car companies and dealerships have drilled into people’s heads that if they buy a car for less than 10k that somehow the wheels are gonna fall off the car as soon as they drive it. This is why people are so reluctant to buy cheap used cars. There are so many Honda’s and Toyota’s just waiting to be bought for 7k or less and that will run for 5+ years.
I’ve watched countless videos like this and it still amazes me when people say they have 25k credit card debt. The worst credit card debt I ever had was about 5k when I went crazy on a holiday and I made sure to pay that off ASAP and never did that again. What are people buying?
I don't understand it either. They have the means to pay it off but just ignore the interest charges forever? Makes no sense to me. I got my first interest charge by accident this past month and I hated it.
Idk I bought a mattress once for $2500, no interest on the debt if paid off in a year.. Could be a few big purchases, or just tons of lifestyle that says “eh I’ll worry about it later”
Every time I think about getting a new car with a payment I just pull up Dave Ramsey videos and put myself back in check.
same bro LOL
i paid my car off 5 months ago, best thing i ever did. End of the month comes around and o yea i dont have to make a stupid $500 car payment.
I guess u had a HIGHHHHHH interest rate huh?
If its 0.9% u feel no different
I can’t wait to have that same feeling when I finish paying off my student loan! My plan is to be done within the next 12-14 months.
Did the same this year, vest feeling ever taking that $300 and dropping it into stocks!
Yes the feeling of having a paid off car loan is priceless once you do that you never want to go back to car payments
@@mzstacystacks3168 car payment is fine with me
The only loan i took was 1.9% interest is minimal, to a point that with or without it doesnt make a dent
I bought my first car for 7k cash, when it broke down i drove a friends left over for 2 years, then i bought a 30k sti in cash which the sale gave me too much lecture i went straight to pay cash which i REGRET or else i could have atleast tripled it in the stock market, then i needed a daily car after my sti got too many mods and wanna keep the mileage low so i financed a new 20k car with 5k down at1.9% 60 months, monthly is only 273 , total interest is around 1200 for 5 years, and the chunk i left it in money market, really dont feel a different
Point it, as long as interest rate is right
Well my Xmas bonus for working thru the pandemic as an essential service was a $20 gift card. I think I will blow it in groceries!
😂😂😂😂😂😂
Haha, mine was a $30 gift card to one of the local supermarkets and it can’t be used for gas...groceries only...lol.
That 20 or 30 USD bonus for sure made you feel "essential", no ? (and I assume if the companies have a deal with certain supermarkets they get a price reduction).
Yes sir 😂😂🙏
Correction $20 Canadian so $15.70 us. from a multi millionaire company.
1:01 Ken smiling at what Dave's response is about to be made me chuckle.
Ha, I was thinking the same.
I’m 20 and drive a $5k car while my friends drive $25k+ cars while I make 3 times what they make but i’m just not dumb haha. All of that money i’m saving is going straight to my 401k at work and savings !
I wish you was my son.....
Forget about 401k when u are 20
Just put like company match and the rest into money market, quick and high yield, putting. Into 401 means u wont see till40 years later
Good on you. Im 22, make 80k a year and still drive 6k car. Cant imagine going into debt for a car
@@jarodsimmons2542 u will eventually, when u understand if u have a chunk of cash u can invest and get so much in return rather than paying in full with cash and the interest rate financing a car is only 1.9% or less
@@johndone8045 or I can pay for a car in full and not worry about while still making great returns on my investments, then I never have to pay that 1.8% just to drive a newer car. Why spend money on interest if I don't have to
$7k can get you a solid Camry, maybe a 2010-2011.
11 years ago, I bought a $2500 car and am still driving it.
SWEET. i got a 2010 ford ranger that looks good, drives well, no issues. No power anything on it except for steering and brakes - less to fix.
I love cars like that.
That’s what I call a money maker.
In 2008 I bought a $5k tundra for cash still driving.
Impressive. I bought a 1700 euro car in 2021 and it's a 2010 car. Gets me from a to b
You’re awesome
I got a 2003 honda civic really good condition everything working for 1k no need to be gets me to the same place a bmw would
Come again?
@@beeezeee1783 ya i found it on offer up for 1600 talked the buyer down to 1100 and in person talked them to do just 1000
lol "It could happen"
Dude sounds like he drives a Mercedes in Glendale.
USE ANY EXTRA INCOME AND THROW IT ONTO YOUR DEBT
Car dealerships no longer like cash-only offers, as they want to nickel and dime customers with high APR & additional warranties...
That’s why you never tell them you’re paying cash. Negotiate the price of the car, and tell them you’d see what they can do on finance.
Then tell them you’d rather pay cash when the price is what you’re after
Sounds like someone has bad credit. Because that only happens to people like that.
@@Wellington205i Actually that is the 101 of "Paying cash for a car". They do instruction videos on that. The car dealership ALSO makes a profit with all the financial products and they factor that in when they tell you what they give you for you old car, or the price for the new one. If you tell them straight away you intend to pay cash, they will start out with different prices or stop at a lower discount.
No need to outright lie, and you can let them tell you all about the loan and lease offers.Then ask them for the average REAL interest rate and ALL the costs incl. the hidden costs.
(if it is a low interest loan, they will have hidden fees to make up for it).
If the salesperson also had to get the O.K. of the manager to make you a certain offer in the middle of the process, they most likely will not renege on their offer. They WANT to close the deal.
Before that they will most likely assume that such a stingy person only buys used because they cannot afford a new and shiny car. Which means (usually) Does-not-have-the-savings-to-pay-in-cash. Smart buyers can let the prejudice work for themselves, there is no need to pretend or lie.
(chances are that sales person will remember you when you come the next time, if they still work there, so your game may be up the next time).
Great content Dave, keep it up!!
I turned in my 2017 f150 costing me almost 500 a month and bought a 2003 expedition cash. Honestly I enjoy it much better than paying every month. Cash is king
Caller: Should I use my christmas bonus to pay off debt?
Dave: Sell the Car. Beans and Rice. Rice and Beans.
Sell the kids.
“What’s your household income?”
The man with a PhD in D-U-M-B
Dude is acting like he's so smart- says the guy with 25k on a credit card and a leased car. A $7,000 car is FAR sufficient- it's a depreciating value. I hope he doesn’t hurt himself falling off his high horse keeping up with Jones.’
I own a 1997 Dodge 2500 12valve Cummins 5.9 and a 1999 Toyota Avalon 6c ... I spent 8 grand on my truck (250K miles) recently NEW rear end, front end, rebuilt transmission, brakes, calipers, rotors, , suspension, engine seals, oil pan, head gasket, ac, radiator, inner cooler, condenser, hoses, water pump, oil pump, dampener the list goes on and on. I just got another 20 years out of that truck. Its insanely reliable and has been that way since it was purchased for 22K back in 1997. That engine can go 2 million miles if taken care of. Same with my Avalon, spent 1k on it and its going to run another 100k miles. I wouldn't trade that truck for the world- NO computers, All mechanical, was able to do the work myself. My dad ( retired ) just went out and bought the same version of that truck but the 2020 model - 65K and its really really nice. My relationship and his friendships did not exponentially go through the roof and he didn't become the most popular guy in town because of his expensive truck. ... He started out with the one I have now. Took care of it, then i bought it off him when he was ready to upgrade. Sounds a little like this guy's friend circle is putting pressure on him to look a certain way. And he sounds a little ashamed if he is seen in a 7k car. Those kinds of people who actually judge you and look down on you because you don't drive a nice vehicle aren't your friends... you are THEIR comparison board. They keep you around to make sure they are better than you and have more than you. Dump them; fast. I don't give a rip what other people think about the way my car or truck looks. If what I drive is a problem to someone or keeps us from having a conversation/ friendship, Then GOOD! Those aren't people, they are what I like to call pathetic.
I turned in my $285 lease in May & bought a 2011 car for $5,500 only 50k miles, it looks/runs almost like new. I essentially gave myself a $285/month raise plus cheaper car insurance, I will never lease or finance a car again,
"I was playing a character I concocted in my head"
I did that once at a dealership, drove up in a suit driving my father's newer Cadillac, told them I was bored with it and it turned out I didn't need something so practical, got a test drive in a sports car they don't typically test drive. Really glad I did, it was terrible.
“Well I’m driving a nicer car than that” WOW how incredibly entitled. I lived in SF for 4 months, had to leave because this is how everyone who lives there acts. Why did this guy even call Dave?
That's why he can't get out of debt. Making him a debt donkey 🤣
Haha I love these calls. Pretty much they should just ask, “Hey Dave, so should I do the right thing or the wrong thing with my money? Also, if I do the wrong thing that will be wrong but the right thing will be right... kind of having a tough time trying to figure this out because I want to do the right thing and I know what the right thing is... what do you think?”
I would LOVE to watch Dave Ramsey do the "Undercover Buyer" episode haha. Lets make that happen!
I love all of your advice and all of your content, keep up the hard work!!
Cash is no longer the deal for dealers, aspecialy for car dealers as the making most of money on financing.
If he lives in San Francisco you don't even need a car. That's an extra $500 a month in parking fines and parking fees along with bridge tolls getting in and out of the bay. San Francisco is only 7 by 7 miles so you can bike or take the Bart wherever quicker than you can in a vehicle.
It is only 49 square miles big. O_O
That’s horrible advice to bring cash to a dealer. Dealers make all the money on finance these days. It’s best NOT to tell the dealer you are a cash buyer until after you negotiate the purchase price and have it in writing. Dealers will come down on the car price if they think there is a chance of taking you to the cleaners in the finance office. Once they know the purchase price is all they are getting they are far less likely to come down in price.
It depends on If it’s a buyers marker or not tbh. It’s been a seller’s market for so long it only appears this way.
Awww, bless his heart.
He won’t get out of that lease and buy a 7k car. Never happening. People are too focused on how they appear to people they don’t know. I have a 2011 Camry, paid exactly 7k for it and it’s pretty nice for the price. The end game is to retire with some money laying around, not look rich in my 30s and 40s.
Once upon a time, cash was king at the car dealership. Nowadays, agree on a price BEFORE you tell them you're paying cash or they'll never bring that price down. They make their money on financing now. If they know you're paying cash, they won't drop the price because they won't have the financing to make money on.
Both of our vehicles are less than $7,000. Dude needs to calm down lol.
I agree, there are enough great cars such as Toyotas that can one retain their value two have very little repair costs and three will save you tons and get you from one location to another! Great advice!! Focus on paying down consumer debt!!
I probably would have focused on the credit card debt myself, that stuff is burning you way harder.
I am pretty high up in a hospital, my bonus for the holidays was a turkey. Guess They are trying to tell me something.
😂😂😂😂
Same here, (working in a hospital) I get a bonus in March and it’s usually about 10-12% of my annual salary. So I’m happy for that. But I keep
Doing the right thing and put it on debt. It’s not fun or flashy, but it will be beneficial in the long run. We have paid off about $60k of debt this year. Trying to live below our means. But I like my cars and will pay a bit longer to have our nice cars. But that’s my choice.....
🤣🤣😂😂
Please Dave Ramsey, make that show. i would love to watch "Undercover Shopper."
I got my car brand new 6 years ago. I still have it, it’s paid off. I almost got a new one this year but watching Dave made me realize I should get an emergency savings first. I also love cars and do have pictures of everything one I have owned past and present
My thousand dollar crown vic never betrayed me once. Can’t say the same for the 15K BMW
nothing more expensive than a cheap used BMW
Most of the older truly wealthy people I know drive Toyotas, etc and keep their cars 10+ years until they start having real issues. I also know people in debt up to their eyeballs driving BMW's and expensive trucks struggling to make the payment every single month. People need a reality check.
I bought an 07’ Toyota Highlander with 55k miles for $7500. It was worth $10k. Still driving it 4 years later and it’s currently worth $8k (more than what I paid for 4 yrs ago)
I just got a 2013 Ford Fusion for much less than $7000 and it's a very reliable, sweet car. Love that they pointed out you can get a great car for les than $7000!!
I paid 2k for my 2003 MonteCarlo ss. I got it with 106k miles on it and it now has 110k miles on it. It’s originally a Florida car so it has no rust on it.
Bought a 2012 small suv with 75k miles for $6,000 during the beginning of the pandemic.
Thank you Dave R.
Probably yes.
VP in my company should be making close to 200k if not more and he drives a beat up accord that you wont believe a person in his position would drive. I am sure he has big money in the bank.
I make 150k and guess how much I pay per month, zero. The feeling you get when you don’t have any debt payments other than mortgage is priceless and frankly now that i am used to it, I can’t stomach spending any money per month on car payments. Like Dave says, it gives you financial piece of mind.
The guy makes 150k.... Just keep the lease and pay off a chunk of the debt. Buying 2 new cars within the 4-6 month time span it takes to pay off the remaining 18k, would just be too much of a headache to deal with.
Thankfully i spent many years as a mechanic, and can always fix my own truck. Because honestly, it's hard to find reliable & affordable used vehicles here in the rust belt. Most of them aren't worth the price of frame they're rotting away from.
I bought an '06 accord in 2016 with 31k miles for $10k. Now it's 14yrs old with 87k miles. Might as well be new except some cosmetic rust. Probably worth $7k now. No repairs that weren't regular wear and tear.
I want that hidden camera show!! Dave waving cash in sales ppl faces and see how far they’ll bend
I feel like I'm missing something here. Why would Dave recommend getting rid of the lease, spend the bonus on a temporary car, then pay down the debt, then in 8 months sell the car again and buy a new car? Why not pay the credit card debt down faster and just hold on to the leased car until he can afford to buy a more long term car? I get that Dave doesn't like leases, but its only $365/m. And Dave doesn't like credit card debt either. He didn't ask what the interest rate is on the credit card debt.
Buying a 7k car usually costs some money. The chances of not having to pay for anything on that car are slim to none. You also can't bank on the fact that you will sell it for close to the same amount. Keeping the lease for another 8 months would only cost him about 2k. And it makes a pretty big impact on his quality of life now:
1) The money lost on the car buying and selling (plus any maintenence).
2) The time and effort needed to find the right car (he'd have to do it twice).
3) Driving a worse car for X amount of time.
4) Whatever the interest rate is on his CC
The guy is making 150k. I know people are making fun of him here about "keeping up with the Joneses", but Dave isn't saying to never buy a decent car. I just don't understand this. Pay off your CC debt ASAP and agressively save. Spend whatever you want on the used car you are getting next. If the guy was making a 1k/m car payment, thats another story. Or if the guy had a massive amount of debt and the 7k wasn't going to put much of a dent in his other debt, get away from the perpetual payments. But in this case, it seems to make more sense to hold on to the lease for X number of months.
I’d love to watch an Undercover Boss episode with Dave on it ❤️
Sounds awesome but I feel like his accent is too recognizable after being on the radio for 30+ years. Lol
Showing up with cash doesn't work with nearly all dealerships, person to person yes, but dealerships cut deals with banks to drive buisness to them for car loans. They are well incentivised. Not only do they get money for the car they get a kickback from the bank.
NEVER use the cash buyer strategy at a car dealership. It will hurt you. Dealers hate cash buyers and will refuse to budge on price the moment they find out you're paying cash. It will certainly work when buying private, though.
Just a reminder to everyone: he is making 150k a year in San Francisco CA. That is equivalent to a 55-60k salary in Philadelphia or another *cheaper* area. I could easily be making 150k+ out west but I would be paying 3k+ a month for my apartment instead of 900 on top of all the other increased expenses. Salary isn't everything.
My '09 Civic is around $7-8k and is running smoothly, with proper maintenance. That car is a huge reason my husband and I are going to be rich someday. We're letting our other assets grow, and when we have a ton of money in 10 years, we can buy a brand new Tesla if we want. It won't matter then. But if we bought that new $30-60k car now, we'd be stuck in the middle class forever. That's what people don't understand. It's so hard to go back in lifestyle once you inflate it. Slow down
Car lease (unless it's a business cost) is throwing money away.
Again, $150K income living above his means. DUH
Been driving a 3,200 dollar truck for 2 years with less than 500 dollars in repairs most of that is routine maintenance
I live in some nice luxury apartments, have nice top of the line furniture, buy quality groceries, and invest in my health. While saving up for a down payment on a new home. But I drive an 07 Hyundai Sonata with 160K miles. It doesn’t blend in too nicely with the majority of the cars here. If you saw me in the streets you’d never guess that I live where I do. But it gets the job done, plus no monthly car payment, and $34 liability insurance. 😏
That's kind of backwards, do you not think? One should not have a luxury apartment and top of the line furniture if they want to become wealthy. O_o
Unless the point you are trying to get across is that, you purposely invested in assets that appreciate and paid off things that depreciate.
@@wewhoareabouttodiesaluteyo9303
Well I’m married with no kids so I have some room to save money. Being debt free it’s kind of hard not to splurge on myself a little. Plus being at home is my favorite place, so I want to make it as enjoyable & relaxing as possible.
@@rickycastro6555 Got it.
People need to realize it’s about safety and reliability not show and fancy options. I have a 91 dump truck that has heat and that’s it. I LOVE IT because it does a job! It saves (or makes) me money vs costing me money!
It’s the truth. Go into a pawnshop looking for jewelry with cash. You’ll get the best deal ever. I love jewelry and I found out the used diamonds wear just as good as new. Was in Jackson, MS & went to a pawn shop and saw a beautiful ring. Long story short I gave him $850 cash for the ring (asking $1200). Started a Google search & found the ring on Macy’s website. The price fluctuates on it but on average it’s a ridiculous $5000. The mark up is criminal really. It’s the Pear Diamond Cluster Ring on the Macy’s website.
My wife and I agreed when we got married we would NEVER have a car payment and it's been awesome...Every car paid for in cash and we often got the deal of the century!
I was lucky because my grandma gave me her car. I have been driving it for over 4 years now. 2009 Hyundai Sonata- just put 52k miles on it not bad for being 11 almost 12 years old. I refuse to get rid of it- low cost and I am also emotionally attached. Everyone says just buy a new car, heck no! I dont want to be even more in debt and I am getting closer to paying off my student loans and thats it! I even got a good nest egg.
Not sure waving cash at a car dealer is the right strategy, nowadays, as most car dealers are more in the business of selling car loans than they are of selling cars, I'd wait pulling out your cash until the deal is signed. With civil forfeiture rules, I would also make sure I have a perfect excuse to have so much money on me, it's very hard to prove you are not involved in any criminal activities, if the police wants to take it, the burden of proof is on you...
I still love cash, and would still buy cash for something in a private setting if possible, but those are things to watch out for.
I prefer Dave on his own because Dave sticks to the point and we learn more and stay on task.
Praying for a good bonus at our house, would love to kill some debt. The problem with buying/leasing a nice car is you never want to go back to a less nice car, people just hate to move down. Now we'll be living with our nice car until a slightly nicer car is less money than this one.
All the cars I've ever owned (I'm 30) might be worth seven grand together. Seven thousand will buy you a KILLER car. But I am in the car business, and can pick a good one. If that's not you, you may want to ask someone you know who works on cars to keep an eye out for you. Maybe offer them 5% for a finder's fee. So you would buy a 6,000 dollar car, and give your mechanic a 300-dollar bird-dog fee for finding you a good vehicle you can depend on. Use the rest to tag and insure it. You're in a good spot to get out of a lease and into owning your own machine. Just don't get excited because you want a nicer machine right NOW.
I'm not buying a $7000 car to turn around and buy another car six months later. I'm keeping it!!
I was thinking the same. Why sell until it breaks?
Same here, ill keep it for 10 years
Nothing better than paying cash for a vehicle. I own 5 and have paid cash for all of them but my daily driver was by far the cheapest at 700 and its reliable. It doesn't look nice or do everything all the others do but it does what I need it to. One of the smartest purchases I have made
My dad got me and my sister all cars that were under 6000. My favorite cars were a 1990 Infiniti Q45 and a Hyundai Elantra that was a 2002 that I had from 08 to 15.
Great advice. He might end up liking his 7k car as he pays off debt and then begins to save more and more. Drive it until the wheels fall off and save save save.
People that call and argue are so odd.
Dude makes 160k needs to pay off 25k. So he’s going to go through the hassle of buying a car just to sell it and buy another in 6 months? Gtfooh, just keep the lease, pay off the credit cards, and then save up for a car.
He could easily now buy a 7 k car or even a 10 - 12k car (with a loan of a few thousand USD). Ramsey can get off his high horse, his rules (guidelines) are not the gospel. The 3 - 5k debt (instead of the much higher debt (lease) for the new car is nothing in the grand scheme of things. it would be _new_ debt but not _more_ debt (on the contrary less debt).
The reason is that there may be a significant difference between a 7k and a 10k car (miles, optics as it is important to him, good cars that age well hold their price).
Much more important is the mindset of the guy: he still thinks a nice car gives him more value / appeal and still wants to impress other people (or not BE inferior car-wise)
Dr. Delony: a woman recently hit my car door (unintentionally, small damage). I saw the color drain from her face. That is why I drive a 10 year old car.
PLLEEASE do undercover buyer with Dave in a wig & sunglasses 😂😂😂
I'm trying to sell my 2015 Chevy Sonic because I can't drive a car anymore (nothing to do with the pandemic). The car is in excellent condition, 65k miles, KBB value for a private sale is $5000-6000. $7000 is plenty.
Look at it this way, if I buy this lower end but reliable car with cash and don't have a car payment. I'm paying myself $500 a month just to drive it. Or fill in the blank of your normal car payment.
Same goes for that $6 morning coffee and eating out to lunch every day, if I brown bag it and make coffee at work, I'm paying myself $200+ a month that can go towards things I REALLY want to do in life.
I just hopped on craigslist while listening. You certainly can get a very decent car for 7k. For example, I see a nice 2011 Camry with 87k miles asking 6995. My current daily driver is only worth $2,000. I'm putting the miles on it just to keep miles from building up on my "fun" car (Mustang).
I did this a few years ago. You will be so glad you followed Dave’s advice.
Not true! I brought cash to buy a honda accord for my daughter this summer (off fb market place). Sellers didn't disclose car had bald tires, cracked windshield, & few other things wrong with car. I offered $400 less and they wouldn't accept! Can't believe they would lose a sale over $400!! Smh
The stupidest questions on this show. Basic fiscal understanding.
He called to flex his salary dude, any competent person could figure out what to do in his situation
You'd be surprised how dumb people like doctors, etc. can be with money.
Sorry bro you are the smartest guy on earth when it comes to financial questions, you know everything!
@@yaboijuan4052 His salary is in San Fransisco though, that's like 60k anywhere else. He isn't really making that much when you factor in cost of living.
I am ALL IN for some Undercover Buyer featuring Dave. Or, Purchase Nightmares with Dave Ramsey. :)
I could buy a used Lexus or Acura for 7 grand, and I would still get compliments on it from people..................
I've done that! dropped 7000 cash on the table on a 11000 finance/10k cash deal..and walked out with the vehicle. money talks
Cars are a status object. The fancier car, the more you think people applaud your success. Consumer Reports that Hondas and Toyotas are the most dependable and have good longevity. Not as fancy as a Mercedes but it will get you to and from and you'll get the most out of your buck
My 2008 subaru tribeca was 7900 couple of years ago. Really great car. Nothing sexy but reliable