How Do I Get Rid Of A Car That's Worth Less Than What I Owe?
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- Опубліковано 11 вер 2024
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I used to be a car dealer. Dave’s advice is spot on.
Not really, who is going to give her another loan?
@@spankynater4242bank or credit Union
@@spankynater4242She can get a loan. It might be a high APR or co-signer.
Their whole business model is. Sell desperate people a car at a way overinflated price with a way overinflated interest rate. If they do pay everything amazing! If not, this is to be expected and we will wait for them to either turn the car in, or we come and get it and sue them for the difference. We can't usually get 100%, but we can usually get 50% or more which is an awesome profit. Plus we get the car back and we can do the process again with the same vehicle.
This should be straight up illegal. We need better loan shark laws.
it is perfectly legal. Just like payday loan. No one is forcing anybody to go in there right? Bottom line, don’t put yourself into that position to begin with.
Rinse, repeat
@@alinatamashevich3354 yep. Don’t do stupid stuff, so you won’t have to put yourself in situations like this.
@@jml9550 Sadly, millions of people do it everyday.
Dave at the his best over here. None of the other hosts could have given an answer like that
She probably didn't need $3k worth of work to begin with on the original vehicle. Sad.
Prob not. People keep digging a bigger hole with the poor decisions they make.
@@mph5896 life is hard when you're dumb
@@lerm4676 Life is harder when you're BROKE!!!!
Being broke sometimes causes folks to make BAD decisions.
@@raallen1468 it's a financial death spiral because if you make a lot of bad financial decisions, you end up broke. The only way to get out either way is to make a good decision to get that income up and stop deciding to do things that could potentially cost you for both today and the next few years.
@@mph5896 EXACTLY
Had a 5yr car loan, just paid it off in 18 months couple of weeks ago,,what a relief!!
\m/ CONGRATS !!
@@motoryzen thankyou
Nice any tips ?
@yung_sly4149 my biggest expense was eating out,,I started cooking at home,,worked as much as possible ,stopped useing credit cards for things I didn't really need,
“You is what’s known as confused” I love it😂😂
I've got a similar deal only with a dealership, Capone loan! Had a Honda crv Fully loaded, yes a payment but cheaper cheaper than I have now. It needed about 3500 in repair and so instead of getting a small loan I traded in for a smaller car, paid off the Honda ( dealership did that) and got stuck with a piece of poop, I did purchase warranty, but they can't ever get it in to fix . So, paying about 10k to much at 500 a month, 20k loan that's only went down to 19800! And want out of this.. it's value is only about 10k to 12k 😢 plus I live paycheck to paycheck and a widow!
The problem with the car buying is that it makes you believe that you are steeping into owing something very special.....
Almost 80% of people become blind eye when step into the dealership...
Its like get done with the all the formalities of signing, explanation, financing etc just to get that new car smell feeling on the first day....
And top of that if car dealership makes you wait for a week to get hold of that new car , you are basically just dreaming about having a car....it makes you impatient, emotional and happy to great extent....
But the financial disastrous decision comes only after 2 months when you get bored of all the features you got excited about in the first place.....
New Car buying is extreme dangerous for your mental health being if you are not making enough money
Dave went into the way the world works here. It was the correct advice. Being nice with a tote-the-note place would have been a disaster.
At the end of the day, the BHPH lot COULD refuse and hold her to the agreement she signed. If she agreed to that price on a car, as-is at that price and at that interest rate, it sucks but she knowingly signed for all of it. Nobody MADE her do it.
@@thomashaas5965 They might be able to hold her to it, but she could raise a stink that will keep HUNDREDS of potential customers away from this trap. Is one sale worth losing a hundred?
I was in this situation they sold me a complete lemon this was about 18 years ago I had to get a lawyer ….
Most buy here pay here car stores don't report to creditors.Go give it back to them.
They've likely already financed and repo'd that same vehicle a few times to various other people, they'd be more then happy to get it back and let the next idiot start making payments on it.
Jd by Ryder
Some of these “buy here-pay here” dealerships don’t even report to the credit bureau …so she could let them take the car and not worry having it affect her credit.
This.
There are predatory businesses and that is terrible but people need to keep their eyes wide open and take personal responsibility for their decisions. Payday loans, tote the note, rent to own, title loans, timeshare, pawnshops, and repair shops are places that should put you on very high alert. You should avoid most of those places at all costs except you do have to deal with repairs. Shopping at a pawn shop might be ok, but I just get a negative vibe knowing that desperate people were probably taken advantage of to give me the "bargain" that usually isn't much of a bargain.
And the predatory customers frequent these places. Keep your personal finances in order and you will only deal with places you want to deal with.
Personal responsibility is a lost art today.
@@jimroscovius Exactly. No amt of legislation trumps someone hellbent on stupidity and irresponsibility.
@@noshrinkingviolet007 Agree 100%. You can't legislate away stupidity.
Can you elaborate on the issue with “repair shops”? I’m curious how they fit with the rest of the examples as Iv never heard this before?
"If you need to rent your washer and dryer you don't need to buy a washer and dryer. Period." You tell em, Uncle Dave 😜
😊😊😊🎉
We are over estimating this, that car probably only Needs $500 in work, shop around and make sure she's not getting ripped off. Because all we is the car to run and be safe on the road.
Dave is spot on! I know people that own the used car lots. It's in the business layout to actually re-posses the car and have the buyer give you a few thousand dollars to make the problem go away and then the dealership can resell the car to the next person. Everything should work out for this woman.
@@nchinth Well...here again...that's their bad. The govt. shouldn't have to make a law for what common sense could take care of. I understand desperate and no money. However, I also learned basic math as young adult when we signed a car loan under a 3rd party finance company with a "real" car lot. Interest rates, having your loan bought by another bank, etc never entered my mind, until I almost lost the vehicle that was 3/4 paid off. Math is important and so is, telling yourself, "I can't afford this".
Dave was way off. And I don’t know if you missed the part where the sister has always been irresponsible with money, so no, she’s not going to be fine. And even in this specific case, what credit union is going to give her a loan.
There is a good chance that the car lot doesn't report to the agencies anyway. I would just take the car back and keep my $2K. Just MY opinion. NOT financial advice..
...silence..."she's screwed"...lolll...BHPH is the car equivalent of payday loans..
If her brother ever shows up and does what Dave said. The very first thing I’d ask him is, where were you when she needed a co-signer? Where were you when she needed the help, before this happened?
You either don't watch/listen to Dave much or you aren't paying attention.
@@UnderDog1911 Trust me I get it totally. Never a car payment etc etc. However the world DR lives in, and the world this girl lives in are two different planets. His advice for her is horrendous. Telling her brother to go in there and bully her way out of it, is equally terrible and Non-Christian. The Christian/Dave thing would have been to be generous, give her a $3000 car, and never be in this situation.
@@DioguardiAS exactly the dealer is not gonna take the car back. And he going in there creates more drama. Sometimes people need to learn from their mistake and never do it again. This is that case.
@@jml9550 The dealer *is* going to take the car back. It's a churn business. They get the down payments, a couple of monthly payments, then they get the car back and repeat. I knew a guy who had one of these small lots. His cars all had a trailer ball on the front bumper, so the repo man could hook it up and tow it off.
Dave also says never cosign. We have relatives like this. It’s impossible to help them because they do things like moving without a job etc. They can sign their on contracts. You cannot control peoples bad decisions
The pause at the beginning is priceless
"If ur watching TV & ur investment is n same place as a snuggie n walk n tub, u probably don't have a good investment. Uncle Dave's hilarious closings 🤣
This is the first time I've ever heard Mr. Ramsey recommend that somebody get a loan. Had to stop what I was doing for a minute....
Would love to see hidden camera video of Dave actually talking this way to a crooked car lot. Easy to say, not so easy to do.
I agree but he is over it and has the knowledge to do it. That is why you always go in with researched facts and a plan before hand. There are not a lot of people with the immediate confident aggressive attitude that Dave is saying to use but it you know you are going into a lions dens and you know what to say and what you want you can start with the right attitude and at least see through the intimidation and have a script to follow. Taking your time and only accepting exactly what you want is a big one so they do not try to pull another deal on you. In this case they should be fine w letting them off since they have plenty more easy targets and already got some profit from them.
it takes confidence, knowledge and verbiage. Dave has at least 30 years under his belt, it would be too easy for him, no doubt about it.
It’s really not that hard 🤣
lol....I would love to see it.
The car lot is in no way crooked. They sell cars to risky buyers who screwed everything up so badly that this is all they can afford. If they didn’t operate the way they operated, they go out of business and irresponsible people would not be able to get cars.
The only difference is I would NOT give them the 2k I would just give them the car take the 2k and add it to the purchase of the new car
Some people should really not do any car deals till someone else approves it for them...what a mess.
Yeah, but have you ever talk with someone who is half your age? Most of the time they don’t listen.
@@jml9550sorry, what 😂
@@jhrielly exactly. You want to hear what you want to hear. ;)
@@jml9550 I’m 62 and a Ramsey Preferred Coach.
She won't be able to get a personal loan I doubt if she was resorting to a buy here pay here lot for a car.
I was saying the exact same thing when I was listening to the podcast. I don’t get Dave’s logic on this one.
Agreed. She is in a bad situation. I would still hand the car back but her credit is already awful. Credit unions are very conservative (and we love this). My son is in college in EE. He got a summer job. Has a lot of cash in the credit union due to being a very frugal person. He has 20k easily stashed at that same place. They still would not give him a real Visa card. His sister they did because her part time job was at a year mark. He is going to have to do a share secured visa for his credit establishment. They already have a lift because we added all our kids on our chase visa so they picked up to 720 the day they turned 18.
being a mechanic sure is satisfying
Landmark clip for me. First time I’ve heard Dave recommend taking out a loan.
He has recommended taking out a smaller loan to get rid of a bigger loan many times before,you must be new. It just makes sense,just like taking out a lower interest loan to get rid of a higher interest loan but that he doesnt care because be beileves people may not pay it off as agressively or even pay it off but they really should either way its still a loan at the end of the day and ALL loans are bad except mortgages and maybe student loans if the returns are there.
@@kelvinpang438 Also when the loan is from family, he always recommends taking out a loan from a CU to pay them off.
I need to call him. I love the straightforwardness.
By here pay here don’t report to the credit bureau
I love how Dave argues with people
I knew a dealer once, the down payment covered the cost of the car that he spent.
This is exactly why it's best to buy a new car. Even if you have to take out a loan, at least you have a reliable car.
This is why you shop at reputable businesses
no, it is not a good Idea, to by a new car. you lose about 30% of the value on the first day.
@@MusikCassette If you can't get to work because you have a piece of garbage car, then you lose 100% of your income. 100% is more than 30%.
@@deanalbertson7203car you still loosing money
@@kjthomas4553 Apparently you don't know how to spell. Buy a dictionary, and then let's have a discussion.
Love the silence the first 5sec. 😂
Great information I have never heard of tote the note.
You don't live on that side of town. Most all businesses there cater to the "note" crowd. You can rent to own chrome 24'' wheels for your ride!
Currently in this exact situation except we went to a very reputable dealer… 😭
Same 😢
Me too, is there anything you could do to get out of the loan?
Same. Paid it off none the less. Did we all buy in summer 2022?
Take out full coverage & park in ghetto.
No,insurance will pay out book value.Not what you owe.
It's not the 80s.
@@jl4091 Unless you got GAP insurance.
@@blackworldtraveler3711...and do you not think ghettos exist...?...how's it been under that rock on the moon with your eyes closed and your ears plugged...?...
First time I've ever heard Dave telling someone to get a loan
...it's about the only way out of these situations...
Lemon law
Only applies to brand new cars. Won’t help her with a used car bought as is
I talked with someone once whose strategy for self employment was to take pictures of her child's sports team and print calendars of them to sell to other parents - with a camera and computer from a rent-to-own store. *sigh*
As soon as you drive off a new car from the dealership lot, it’s worth 10% less than what you paid. As for still owning money on a car and taking another loan for another car is double bad.
What credit union is going to give her a loan? And “that“ is the only kind of place that will sell her a car. They are not the bad guys, their rates are so high because their customers are very unreliable.
Yea credit union got low interest.
But any creditor will settle with a cash offer as long as it’s not lower than the original amount given because a lot of people leave these creditors hanging that’s why they spend so much money on people calling you and trying to find you saves the money for you to settle
Dave ain’t tell no lies 😂😂😂
If she was able to get a personal loan, she would have never been in this situation.
I paid off all my toupees and I sent dave one.
Childish comment.
Toyota Corolla CROSS 2023, $625.00 month, insurance $171.0₩......80 months ......6k miles ...my son said I could have been paying for an ESCALADE.....I'm retired , had to get a job ...my life is 😢 destroyed 😢😢...
Oh yea, happens often. American Car Center in Lexington KY. I fell into the trap. I got out financially within 6 months.
How did you get out?
@@KicOfficial they showed me some grace. I signed a contract but I was honest and explained to them “corporate office” that I COULD NOT pay for the car and was in a position that I absolutely had to return the car to the dealership.
I wouldn’t give the 2000. It was a lemon and car dealership knew it, they don’t want to go to court and create bad business
Owing more money on a car than it’s worth in today’s environment shows how dumb people are.
Thank god there are dumb people in this world, what good is it if we are all equal?
Interest
Park it downtown Overnight with the windows shut down.
This is def my situation. I owe 22,000 on a car worth 7500 at best though Santander. I’ve paid over 16,000 to the bank and have put $2000 in repairs. Idk what to do.
Wow. How is your credit? If it’s not bad you may be able to refinance with some less sketchy place
I’d be making a deal with the dealer before getting a loan. What if they say no we won’t take the car back
No way a credit union is giving her 5k unsecured. If she’s at BHPH she’s rock bottom
Some ppl go buy here pay here when they are not rock bottom because they don't know anywhere to go because everybody they know tells them to go. Mom goes dad goes someone they grew up with goes cousin went. Some think they are binding thier credit smh
Concur
If you have gap insurance you could cartwheel it off an overpass. I certainly don't recommend it. But outside of that there's no way to get her out of this financially.
That’s how my BiL cleared his upside down Durango. Wasn’t his fault but he was t bones hard by an uninsured driver and then hit a second time after the car spun out. He was so happy. No injury and insurance paid the loan off
Toss the keys through the window and keep walking are things that bad in America? Lol tote the note. Lol love the saying the advice he’s giving is true 👏🏾👍🏽
Dave didn't say, "better than I deserve" when the caller asked how he's doing. 😮
Great advice
Easy. Depending on what is wrong with the car get it fixed. Then Subto the car note to someone else with down that will cover what you paid to fix, charge interest, charge more for the car. Boom!
Don't pay the buy here pay here dealer, let them take the car back, go buy a 150cc scooter and you will never have a car payment again
Smart move, not super fun in the winter though
@@Ink30Texas.
Even in the winter you can still dress accordingly to stay warm. Good advice to me. Save a tone or money and she could save up a good down payment and get a real car. IE... something reliable
Hope that sister of his doesn't tell him to stop "mansplaining" to her when they're at that crooked dealership.
Dr John is such a yes man !
I seriously doubt she will be able to get a credit union loan
Unless the BHPH dealer sold a lemon car they are not crooks IMO. They facilitate high risk lending and in order to make that worth it those loans are high interest.
That is ALL they sell! POS
What if I got ripped from a well known scam dealership? I didn’t know until 3 months gone by after bought the car from that the dealership was all fake even the reviews and car prices. My car as they claimed that is worth 18k which actually it worth only 14-15k then I paid 3k down payment, after that they added bunch of unnecessary add ons which make my loan goes up to 24k. I want to get rid of the car by just pulling to their parking lot and leave the key to them. What are the consequences will I face if I do that ? Cause I have already got a loan from the credit union for 24k. Is there any chance that I don’t have to pay the $6,000 gap ?
Great Advice.
If the buy here pay here doesn't report to credit bureaus take the car back drop off the car and leave.
Sell the kids
4:30, sure thing tough guy. Let me know how that works out for you.
I've done it and it works.
Especially in Texas!
It works. These lots are not really into drawing attention to themselves...they are shady shady...and will take all they can get as long as they can get it.
And you can open carry in Texas
Iowa too, but why do it? You're just drawing attention to yourself. We conceal carry.
And how does that help you?!
@@conquistador2 An obvious bad attempt at sarcasm
😂😂
Wonder what part of Texas? I am a Texan and these lots are on every corner...rule of thumb: Just keep driving. These guys are loan sharks and crooks.
So you recommend these high-risk borrowers just drive by these kinds of lots? Who else do you think is going to give them a loan.
Ah, a minimum payment gal, not a keeper.
When you buy a vehicle you need to pay it off before buying another vehicle
That is what happened
I remember the part of the Bible where God said, "intimidate those who intimidate you!" Be careful who you listen to, those who choose when their core beliefs are convenient are two sided.
I don’t remember the part where they spoke about car negotiations either. Your implication that Dave is sinning for combating unfair business practice, is wrong.
@@XxTheGreatDestroyerx I didn't imply that.
Capital one lives ex prisoners y'all. Then when they can't pay the card bill they tac on late fees and before you know it---- you owe more than actual charges on items you purhaced
Fine print, fine print!
SURRRRRRE he's calling for his sister.
Yeah, but you wouldn’t know her, and she’s not from around here, she’s from Canada.
I knew a guy in same position who had and excavator dig a hole and put car into hole and covered it up with dirt. To.d insurance it was stolen.
His sister needs to call dave.
Yes, historically, car dealers treat single women & widows like 'carp'. But they are idiots for doing that because (as an example) at end of 2017 there were 11 MILLION widows in the US alone. Get a brain business owners, help widows and watch your business increase substantially...plus you'll have a customer for life AND women love to share with other women about where they are treated kindly... GET THE PICTURE?
Reality Check: Don't buy a $10k car (even one that is truly worth $10k) unless you are prepared to put several thousand dollars into repairs and maintenance. There are no bargains. If you don't want to have any big maintenance or repair bills for a few years, you have to buy new. Generally speaking, the lower the cost of a used car, the older it will be with higher mileage. With age and mileage comes repair bills.
Those lots are junk cars. They get them from legit car lot trades. Most would be scrapped. They never pay more than 1K , more like 500 or less.
my Corolla is pretty cheap on maintenance. ofc i do it myself too
@@illuminerd3757 You have learned skills most thumb their nose at.
it is worth less then you owe? sell it.
Andrew from LA to Indiana and his wife is in Texas
it was his sister
Buy here pay here Lots are car loan sharks
is there an update, for how this turned out?
How can I get on this show?
...dial a phone number and wait for someone to answer...
Thats the same situation im in but only with a 2020 civic that at the time i bought for 26k BASE MODEL now its only worth about 16-18k😒 I HATE THIS CAR!! IT IS VERY RELIABLE BUT ITS JUST NOT WHAT I WANT. I DIDNT EVEN KNOW IT WAS FRONT WHEEL DRIVE TILL AFTER I BOUGHT IT
..."I didn't know a Honda Civic was FWD until after I bought it"...
...imagine saying that and thinking you'll be taken seriously...
@@user-mf4gz3sp1q imagine buying a car before your into cars and simply buying the car because you need transportation & later find out you enjoy transporting but realize you dont like your transportation. Not everyone who NEEDS a car is asking about Drivetrains. Or other performance parts. Nor does everyone have knowledge of what drive trains are in what cars or what drivetrains companies use the most etc. imagine getting into cars because you realized what you dont like about one car. Its not like i was informed it was fwd. i simply made a purchase on the base of NEEDING something NOT ‘wanting’ something.
What's wrong about fwd
@@AlexRamirez-gs1de really no problem just not my preference in drive trains. I prefer over steer not understeer.
@@wetbred6677can you explain
She should just drive it down the river bank and collect the insurance money.
She probably paid way over book value. Unless she has GAP insurance, she will be in the hole.
If you ever buy a used car get a pre-purchase inspection
You people need bigger down payments or get a Mazda. I never owed more than it's worth.
They have high rates because they work with people who can’t pay . Hence his sister. I’m sure they never want to see her again since she can’t pay. “Christian “ Dave call them bad when she stiffs them . Bible says pay your debts. Maybe you should read it sometime
Neither a borrower or lender be....
You gotta sell and pay the difference between what you get and the loan balance
People are completely stupid
Burn it
how to get out of a lease? please help
Sell it
@@AZ_TONY please explain.
just a little. if you can
Either buy it out, or sell it, hope you can cover the buyout. If not come up with difference. IE: buyout $10K, sell the car for more...pocket that money. Less,? pay the difference! It is just math
Well, if she looks decent, she can start selling her assets.
Take it to Moxie Auto Sales. Dump that clunker and drive away in a newer car today!!
Years ago My husband and I bought a buy here pay here car. I guess we were fortunate. Paid it off in 2 1/2 yrs. Never had any major issues with it. Now we just pay cash for our cars.
Debt reduced to Zero Dollar 📌
⬆️👆⬆️👆⬆️👆⬆️👆
😎✌👍👌🖖🤓
Where are Dave’s principles? I think he’s the crook for not advising her to keep her word..she promised to pay that and signed agreeing to it but he’s telling her to not keep her word. Where are your values Dave? Where are your Christian principles? Repulsive