We Really Need A Car. Are Car Payments Okay?
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- Опубліковано 7 вер 2017
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Similar question to the caller. I drive a 2014 Honda civic. Heres the kicker, It already has 117,000 miles on it. It will be paid off in 2 months. And the dealer will give me 7k trade in value. I commute 4 HOURS a day, should I drive it until it dies? Or take the 7k, and get a car with 40k miles for about 3k more (paid cash)? @thedaveramseyshow
Greg, listen to Dave Ramsey. He absolutely doesn't support debt.
The Dave Ramsey Show fe
The Dave Ramsey Show ff
The Dave Ramsey Show hey Dave Gregory Arrington 5887 @gmail. Listen to your show all the time I have a 84 300D turbo diesel Mercedes-Benz already paid for the only problem needs a starter also living here in Texas the cold weather is not the diesel motors friend cannot plug car up anymore to warm glow plugs I agree with your advice I do not want to go in debt to buy a vehicle try to trade it no one wants to touch it because it's a diesel what would you suggest Dave at my age 58 years old I am on a bicycle cuz I refuse to get in debt also I need a vehicle because I cannot carry much Groceries on a bike or do much business I am 7 miles between town also when it rains cannot do business on a bicycle also when the temperature is very hot cannot do business on a bicycle everywhere I have to go it's either 7 miles one way 7 miles back which makes it 14 miles or either 2 miles one way and 2 miles back which makes it for Miles I've been doing this Dave for about 3 years now paid off a garden shed from a company called Graceland that's what I live in the garden shed cost me $10,000 September of 2019 it will be paid off I am on SSI social security I will have $530 free money besides the landlord I pay 200 a month 104 building on his property 104 electricity line and this type of situation what would you do Dave to obtain a $5,000 vehicle or less I've always heard you say get a vehicle around for $5,000 be done with it I'm at that point now so please at your convenience Dave email me back 4 solution once again what would you do in this situation back to the study
Every time I get tempted, I come to Dave Ramsey's channel so he can knock some sense into me.
Elton Lucien same 😂😂😂 every time I drive by a dealership
Same here
Gotta send this video to my relative
That’s why I’m here lol
I agree.
It was always drilled into my head to pay cash for a car! So while I drive my little 2004 camry with an extra $300 in my pocket every month , i’ve got friends in debt struggling to make ends meet driving audis and mercedes
👏🏼👏🏼👏🏼 there you go!! 👏🏼👏🏼👏🏼
I rather work harder to afford a car I love than have a older ran down car just to save money. If you can afford it why not? Live life spend money
Ehhrik a car isn’t an investment. I rather save my money and put it into investments than on something that doesn’t bring value to me. But I see from your channel that cars are a hobby, so if that makes you happy than keep doing you!
@@ErikHerrera18 I don't think you understood the point of her post. She would rather buy a car that she loves with CASH rather than finance it and live paycheck to paycheck.
Curly Visuals no you didn’t understand. She was clearly stating she would rather have an older cheaper car than a new expensive one
The only problem I have with Dave Ramsey is that people learn about him 30 years too late
KnifiNtheHeart Yep i needed him 30 yrs ago
So true. Because they didn't know to seek out his great info.
Better late than never. I'll definitely be following his advice going forward
I'm lucky. Found out about him only 15 years too late
Amen! I wish I had found him 20 years ago when I turned 8.
People that make less than 50k annually be buying cars that cost 30k+, let that sink in.
Right. Never buy anything you can't pay off in one year or less after a down payment.
My car I had saved up for Abt 2 years planning on upgrading. I dropped 10k in cash and paid the remaining off in 8 months.
I basically got a brand new car with less than 5k miles on it that's still running great 5 years later hasn't given me one bit of trouble in 150,000 miles
Ouch
Super true bro but it's not a bad thing to have a car payment if u can afford it
Let it also sink in that a $50k salary is in the $30ks after taxes!
@@mikemelino5553 if you have to make payments on a car that isn't yours (the bank owns the title) then you CAN'T afford it. Save your cash and get a reliable used car, paid in full. Then let that money you're saving from payments do the work to make you a millionaire before you're 40.
Thank god i found dave ramsey. Im 18 years old and had 3k saved going in to my senior year of high school. I wanted to. Finance a corolla s blue 2014 for 14k for 5 years. Ever since ive been watching this man my whole mindset has changed. Im 18 still graduated taking a gap year working full time to go to college to afford to pay cash for 4 years. I feel like there are many teens who graduate high school and dont know the debt there getting themselves into to . Im 18 to be 19 and now have 6k with no debt. I will pay everything cash from now on and make smart investments. Thank you so much mr. Ramsey.
Eric you are ahead of most of us! Keep it up!
Annalisa M thats good by the time i go to college next year I expect to have 20-30k saved and will go pay for a 2 year community college and 2 year university and get some grants to pay and have no debt after I graduate.
Annalisa M well it depends there is bad parenting in some aspects. Some people want to go to private university’s and they treat it like a competition of who gets into the better schools. Many high school graduates go to college without doing math and knowing the debt there getting themselves into to. You can easily get a bachelors degree spending 20-30 k on tuition without any aid. However there are some teens that dont listen and feel like there entitled to go places they know they cant afford
Annalisa M yes they do offer online courses. Im not sure on the cost all ik is that anyone can graduate debt free.
Eric ima work for costco. I got contacts. Skipping college imo is worth it. Alot of jobs pay above 50k with a highschool diploma and you dont have to take loans and go in debpt and wait 4 years plus another year of trying to find a job
The mansions around my town have Toyota’s on the drive ....
Think about it!
Not ours.
The help have the Toyotas. I have seen the money people they are not driving Toyotas. What they have is leased.
@@staceystrukel1917 Your vehicles paid off?
And the lower middle class homes across town all have Ford f250 and 350 trucks in their drive way and Mercedes right? 😀. Where i live I see this. Especially homes built by lgi financial requiring just 3% down but nailing you with 10% interest. I turned them to save on a real down payment and drive a Kia to help do that. Those poor folks are house poor and getting ripped off
Darlenne And, then drive through the trailer parks and see how many new cars are parked in front of trailers worth a fourth of what the car is.
Bruh... i know she made you get a car payment in the end
Especially after this call
Why u think that?
@@april_dawn envy
@@ericvega3597 Envy of all things?!
Gotta impress people at a stoplight that you will never meet.
My '96 Jeep Cherokee just passed 300k miles. It's never left me stranded.
This man is one of the reasons I still drive a 2003 Buick Lesabre with 97,000 miles. I've had the car 11 years. Hope I can drive it another 3/4 years. Just got new tires!!!! Woohoo!!
97k is nothing on that old 3.8L. Those engines are bulletproof, as long as maintenance is kept up, and the head gasket is replaced between 100k and 120. Probably closer to 100k , given the age. Good car choice! I worked on those for years before I owned one.
I've been driving a 2003 Buick Rendezvous for 8 years now. It's been paid off for like 6 years and it has 223,000 miles on it. I hope it last another 3 years as well because I hate car notes...
I get 300k miles out of all my vehicles. Your vehicle doesn't have many miles.
I had a 2000, got me to 160k and would have got a lot more if it wasn't hit 10 times which gave it holes in the frame. The only thing I did to it was oil changes, tires, brakes, rotors and a battery. On flat highway, I'd get 40mpg if I used cruise control. Those are pretty reliable cars...
I have had the same car since 2007. I plan on driving it until it dies, or until it requires a repair expensive enough to make it not worth it. I don't see any sense in buying a new car as long as I still have one that is functional and safe.
I read that somewhere. Ppl taking advice from a financial magazine. But the guy that wrote the article makes 40k a year working for Forbes and has all kinds of bad debt. Why are we taking advice from them?
Joshua Webb because its "forbes"
Joshua Webb $40k working at Forbes? More like $80k
No one else in this thread is holding you accountable so I will. Just *how* is Dave Ramsey doing the same thing? How is he supposedly conning his viewers with his low paying job and poor money management advice? I don't see that. Care to explain?
dan McClaren lol no probably more like $25k a year. $40k in media is a stretch.
Joshua Webb because people are easily manipulated and easily fooled.
This dude literally says 3 things, don’t spend money, pay or don’t get debt, buy cheap. The other 45 minutes is useless banter. It’s not hard, some people just can’t do anything for them selves which is why they need to call this random guy.
I’m still driving a 12 year old car. It feels good to not have any car payments. Sometimes I do feel the urge to upgrade from seeing my coworkers driving nice fancy cars, but I learn not to care much about what car I drive as long as it gets me to where I need to go.
20yr old lexus here..
17 year old Honda
If you don't care then no worries. But you only live once and tomorrow isn't guaranteed. As long as your income can pay the payment without too much stress then I say go for it. I was in debt for most of my working life and being debt free I actually feel more stressed now for some odd reason...
14 year old Audi, falling apart and everything lol
At that age the repair costs start to become a "car payment" tho. I would recommend buying 3y/o cars that come off lease, and selling at around 10 y/o. Dodge the terrible depreciation, and the terrible repair costs.
BUY IN FULL BABY.
Mostly because I don't like the idea of modding a car the bank owns :)
go off dad!!!!!
I 100% feel the same way, haha!
Well hello there
If rather buy cash or put a lot down so the monthly payments are small at the very least.
but bladed where's the miata?
"They were all in one Accord." 😂😂
TheHouseOffice LOL I had to listen that a second time 😂😂😂😂 priceless
That was funny 😂
The caller didnt get the joke
That is greaaat😂😂😂😂
Dave is the king of dad jokes.
If you have a decent car and no payments, then ride til the wheels fall off. No point to get a new car just because it looks nice or to impress those around you.
I was about 1-2 months away from selling a car that I already have paid off, to buy a brand new one that I don't really need. After only watching one video from Mr. Ramsey a few days ago, this one shows up in my list of suggested videos. A blessing? I really needed to see this.
Dave Ramsey's insights have been a game-changer for me! His practical approach to financial management has empowered me to take control of my money and work towards a debt-free life. The Total Money Makeover is my go-to guide, and I appreciate how he breaks down complex concepts into easy-to-follow steps.
I've tried to get a friend to read his book but he refuses. He calims he's too broke for a budget. He owns a 2018 Nissan Armada and is still paying $623 a month on. The car note outlived his warranty. He went to the dealer for an oil change and they had him talked into a new Armada but the note was almost 650 (his current Armada was upside down). He was upset that he had to refuse. He currently gets up in the morning, worried about his debt and swears he'll never be able to retire. It's sad to watch.
Amazing, I wanted a car but after paying attention to Dave Ima just save up & be patient to pay it in full. (:
Buy a used nissan leaf you can get one a few years old for like 6-7k with like 20k miles that will run you a couple hundred thousand miles with minimal maintenance.
morlandoemtp I was personally thinking of a Chevy Volt or Plug in Fusion
Carlos Flores you got this!!! When you're retired and traveling the world think of this vid :P :)
Cena B Will do! 👌🏽👍🏽
Carlos Flores shoot, i did it and its the best thing that happened to me. I thank my pops for teaching me to be responsible with my money over the years!
"I NEED A CAR!" - Yep, and here in Jamaica they say you don't have a choice, you have to get a loan to get a car. Well, I made MY CHOICE, I said NO. Then I looked around until I found somewhere else to live. Now live so close to where I work. I can walk there.
Michel Hanson nice job!!!! Great work. Keep it up :)
PlayerX1994 If you have cash in hand of course you can pay cash. Car dealers just like to push people into high interest loans.
PlayerX how else would they keep people down and take their money to get rich
For many, living close to work is more expensive and inconvenient for their personal life
At some point in my life I had a car payment and a mortgage payment and it really ticked me off paying it every month, now I have neither and I am so happy.
paid off the mortgage?
@@RogerPack Yes paid off mortgage
I'm all paid off too but I somehow don't feel any less stressed or free not having any payments. I've actually been more stressed since I've been debt free...can't make any sense of it other than I feel like I'm not working for anything nice now lol.
@@e5m956 I’m totally debt free to. House, cars, nice furniture. I love it! Hate loans. I’m working towards my retirement and making investments. A lot more fun especially seeing the gains and dreaming of the nicer car I can buy in the future, with cash. Maybe adjust your planning?
Fine Dave, I’ll keep my paid off 2011 Camry 🙄
2011 camry is new! Im jealous. I have 2002 camry still works :) stay away from dealerships sister! You will be driving your car til 2040.
Take vacations instead for your pleasure.
Try a 2007 civic 😔 but my my bank account says different 😅. " Broke people wonna look rich while been broke. While rich people look broke while been rich. "
@@ronijr4918 factsssssssss
@@ronijr4918 Don't stress. The 8th Gen Civics are one of the best Hondas ever made. Just take care of it with the maintenance. I have a 2006 Civic, it's still a modern car to this day.
lol same thing I said
broke people ask how much down and how much per month. wealthy people ask how much
Very true.
Wow!
judas brute just drove past a dealership that says $300 a month... But how much is it?
It’s cute saying, but you can’t lump everyone’s situation into it. It’s also easy to say when you have millions in assets. Having that mentality almost cost my family dearly. We had two paid for cars that were in need of major repair. Typically a vehicle that is suited for carrying our a family of six is next to impossible to find for $2-3K that isn’t ragged out and in need of repair. AC may seem like a luxury until you can’t roll down your windows in 90+ degree heat. However when I went into the dealership I made it abundantly clear that I was more concerned with the out the door price and not monthly payments even though I would be financing. I factored in the interest as well. I want our next vehicle to be paid for in full before leaving the lot. I did however make sure that the minimum payment would be doable if we weren’t able to pay extra during certain times.
Funny how everyone says that but we're not all rich or have $5k or $20k cash to buy a new car.
I just graduated college May of 2018. In March of 2017 I took out a 20k car loan. Worst mistake of my life. Just paid it off in October of 2018, and I will never do that again.
I waited until after I graduated and found a decent job. Luckily my other car lasted JUST long enough.
Why what happened?
Dave is spot on here, although I can't get most of my friends to agree with him. You lose so much money on a new car purchase, in the markup/depreciation, and the finance/interest charges.
Umm, yea, but when you buy a 10K car you loose tons of money with repairs! You pay either way, and I would rather have a small car payment for a couple years, and have a car that won't leave me stranded!
@@bettysmith4527 what
Just be careful with the low cost older or higher mileage vehicles. I have tried that path and still ended up paying repair bills equal to payments and got rid of unreliable vehicles at the same time. Remember you will always pay for transportation as long as you need it one way or another. It’s not like it goes away with paying cash.
True statement
That's whut i told um
This should be common sense but it seems not from all the stupid comments and Dave doesn’t help the issue.
The trick is to spend an extra 2k when buying a used car and give it a full Inspection and tune up, people buy used cars and take off like if they were driving off the lot
@@myfamilymemories5717 not everyone haves an extra 2k lying around and may need the car asap
I bought a car in December 2016, got a 5 year loan and had car payments but I paid it off in less than a year. It takes discipline.
Congrats! I purchased a new-used vehicle myself with a warranty that covers all my repairs for 20k last year and it's about paid off as well. I still managed to save about 50% of my paycheck with the car payment.
Gabster so you paid the principal+interest of 5 years in one year? Isn't that a waste of money anyway? Why didn't you get a loan for 1 year only then?
kingadello he could of thought he wouldn't have that extra money to pay it off early it's better to go 5 years and pay it off early then to go one year then realize you can't afford the higher payments and get behind
What Nathan Mulvaney said, You don't pay ALL of the 5 years interest if you pay it off early. Thats why I wanted to pay it off early: save on interest. And if you know a place that will give me a car loan for 1 year, let me know. The shortest I know is 3 years.
George Lupercio How much do you make a year?
I can't believe they called Dave (SELL THE CAR) Ramsey about this.
Obviously not an avid listener.
Dave advocates for not having a car?
@@anon4449 Dave advocates not having car payments. He wants you to pay for the car with cash.
Dave said to get a better car. Did I miss anything else?
To be fair it was the one that didn't want to buy the car that called Dave Ramsey about it. He was trying to "rub his wife's nose in" what he was sure would be Dave's response, but Dave surprised him by agreeing that with her that they should not wait to replace her car (just getting more creative with the "financing").
"I would ride a bicycle before I would make a car payment."
Hahahhahahaha. I sold my car 6 years ago and don't look back. Ride my bicycle every day to work.
how do you grocery shop or if u purchase something that can't fit on a bike ?
@@envyandgreed15 There are panniers, baskets, and trailers you can get to haul stuff around
As a bonus, you will be a fit person!
@1234fckJwTbe Heard, friend. I have endured more than a couple of years in small rural communities and metro areas that favor motors, both. It's very challenging, but yields serious savings when done carefully and intentionally. Message if you need help/tips.
30 miles to work one way, go ahead and ride that!
Had a car payment once in my life....I had the worst gut feeling while driving it the next day I thought I made a huge mistake but my mom convinced me it was okay......after I paid it off I vowed to myself to never do that again...listened to dave Ramsey and said to myself "ok I wasn't crazy for thinking that about car payments"
I never had a car payment, never will
cmiller8492 payed cash up front always!
westener83 if the interest is 0%, Would You still pay cash?
Seth B yes I would still pay cash. Would you rent a million dollars at 0 percent?
westener83 if I was in the market for a million dollar Home , had the cash to buy it and someone was going to let me use their money for free; then yes. I could invest some of my money earning a profit and pay the lender back at no cost to me .
westener83 it is dumb when people have no intention of buying that caliber of vehicle or the cash to do so and do just because it is 0%
I can just imagine how different my life would be if I discovered Dave Ramsey 10 years ago. I'm not going to make the same mistakes in these next 10 years, I can promise you that Dave and better yet I promise myself.
I tell myself the same thing, but hey, now that we know better, we can do better.
I’ve known about Dave Ramsey and his principles since I was about 10 years old. I’m 30 now. Let me tell you something.. you can listen and listen and listen to Dave.. but if you don’t actually apply the knowledge.. you will be broke. Apply the knowledge to your daily lives and you’ll get financially free someday.
Dave- “Give her your car if you got the better car” Eric- 😐😕
I did a car payment a few years ago, NEVER AGAIN!
Dave, we just hit our biggest goal to date & paid cash for a car we've researched & saved for for years. There were so many times we were tempted to just cave, but we stuck to the plan & here we are. Thank you for the work you're doing to change lives.
$7000 usd is more than enough to get a beautiful, used, modern vehicle with low mileage. He can just do it now.
What car?
Facts cars are cheap.
2010 civic
I agree.
There's no need to pay more than 10k
Some people need a minivan or even a full sized truck!
It can be challenging when you need to buy a vehicle made for towing.
But when were talking cars for someone with 3 or less children.
$5000 is plenty!
How about use 2k for a down payment on a new car , spend 250/ month which is 3000 a year . And at the end of the year you ended up getting a good car (2016-2020 )plus profiting 2k extra 💁🏼♀️
I like the credit card and cigarette analogy. Instant gratification for long term dissatisfaction
It is true, sad but true!
Here's the thing. I get depreciation and all that, but used (decent) cars seem to be expensive now to the point where you almost should just get a new one so you don't have to worry about repairs. We bought a new Fusions four years ago and it's STILL working great at over a hundred thousand miles. We did have payments at first but we paid it off two years ago.
I agree! Used cars cost the same as new these days
I was driving a 2022 Alfa Romeo Stelvio. Paying $530, now I drive my moms old car that sat in storage (still runs like new, and in wonderful condition). Saving is key! Following the baby steps has helped tremendously!
Everytime when I want to do something stupid with my money I hear Dave's voice screeming in my head... :) God bless you Dave!
San Dave Ramsey in you we trust
The next time I go to a dealership I’m paying cash. If they try to get me to finance it then I’m walking out.
My deceased dad used to say " in the end a car is just a pile of steel and plastic" He was right all along, it took me many Years to agree with him. We live in a society and economic system in which many of us have no choice but to own a car, the trick is to not let the car own you. Another of my dads sayings was " A car is like another family member who eats at the table with You". I think a car has the potential to cost more than an additional family member, if you don't make wise car choices. I haven't had a car payment for longer than I can remember, I'm currently going on my Third car paid for with cash. I've never owned a brand new car in my life, however I've owned pretty decent pre-owned cars that were well cared for. I'd much rather keep more of my money in my pocket than have a brand new car along with the car payments, higher excise taxes and higher insurance costs, I've been there and done that and I'm not going back again.
Paul Costa most newer cars aren’t really made to last 20 years. They are made to really last a few years before the mainstream buyers purchase another car. The more electronic the more complex, expensive and more that can go wrong.
I am taking his class now and the brainwash the industry has done is real. Look and read how people argue on here like cats and dogs! I think of how my great grandmother and grandmother lived. They told me if you didn't have the money you just did not get it. End of story but the industry has created a mindset that we need it...even if I don't have the money I need it...and we go for it. It is a way of thinking and behavior just like how we treat food and relationships. A mindset....I am still learning too. Everyday!
Paul Costa , totally agree with you on that, It seems like a lot of people just cannot live without a brand new car (and unfortunately the monthly car payments that come with having that kind of luxury), I’m probably not as old as you are but I have never leased or financed a new car at all in my life and I don’t intend to do so ever. Just think about it the average monthly car payment is about $500, And that doesn’t include full coverage insurance which will probably be an additional $250-300 depending on factors affecting your insurance rates, in a year together you’re spending on average close to $9,600, and over the course of 3 years, that would be just shy of $29K. I have bought used cars And even with maintenance cost that I have to pay out of my pocket in that three year timeframe I spend a whole lot less than that $29K.
Yup. Working to get from underneath mine. I am working to build wealth for me. Not others.
Qbeezy yes sir
My parents tried to convince me to go to a used car dealership and put a bunch of money down to start a car payment even though, I don't even make enough money to cover a monthly payment! It's mind blowing that that was their first thought when I told them I was saving up for a car. I meant, I'm going to save up enough money to buy a car from an individual that just traded up to a bigger car payment.
Haven't had a car payment in about 10 yrs. And I always have some fun money in the bank! Worse thing ever is when you have a payment and a mechanical break down at the same time!
Im on the verge of financing a car but every time i watch dave it makes me want to save up first.haha
Amen.
So glad I stumbled across this channel to help me out after almost eight years of financial Purgatory.
I genuinely mean it when I express my stress and concern regarding the market crash and high inflation, particularly in relation to my retirement. I have been experiencing losses for quite some time, and while some may argue that crises can present opportunities, I am feeling overwhelmed. However, I understand that investing is a long-term endeavor, and it is crucial to maintain focus on the bigger picture and the long run.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $760k by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
how do I get in touch with this consultant that assist?
STEPHANIE KOPP MEEKS, that's whom i work with look her up and thank me later
Thanks for the info . Found her website and it really impressive
I’m rockin a 2014 Subaru Crosstrek. Gets me where I need to go, and has only needed the occasional fix up and tire change. All payed off. Worth it people. Worth it.
A mechanic told me the motors in those need a transmission flush sooner than others; I had it done at 70k miles. Steep hill, cold climate, it's a good car.
I recently bought a brand new truck for work and took out a loan for it. I work in the middle of nowhere and needed a very reliable vehicle. I pay 4 - 5 times the stated payment every month. It should be paid off within in a year.
Sold my car today that I had a loan on. Got $9k more than what I owed on it. Just gonna drive my paid off Kia Soul. Done handing over paychecks for a car that sits in my garage most of the time. $24k of debt gone today 👍
he’s just such a good speaker every conversation just feels so unique
Thank you for this video! My husband sent me the link for this a little while ago, and I'm glad I watched it. Many great points. I'm on my second car, that has a bank note attached. She's almost paid for, thank GOD, but I don't want another car with a note attached unless I can pay for it upfront. I hate car notes. New subscriber!
Plain and simple invest all your free money and become a minimalist
Minimalist lifestyle isn’t for everyone
@@jaylaarmani3697 your correct nothing is for everybody
Dave you are like a second father🙏 I’m learning now what I wish I knew 20 years ago
Thank you I hope it’s not too late to get ahead
I've just found out about Dave Ramsey and I love his style. Thank you. About that Mustang, Eric and lady, wait a little bit until you can sell it for a decent amount (get advice from a mechanic you can trust), then buy a nice 2003-2011 Japanese car and invest/save the rest of the money you have at that point. The worst car mistakes I've made have been because I got tired of a _fairly ok car_ and decided that "I deserved" a better car. Took me a few years to get back on track financially.
“$500 invested from age 30 to age 70 in a decent growth stock mutual fund in a Roth IRA is over 5.6Million dollars”
What. I needed to hear that. I’ll have my $500 per month mistake paid off in two years at 26, I will absolutely be moving forward with that.
$500 a month
@@phoebeyang8134 That's almost half my monthly income haha.
That barely gets you half way to 5.6 million. At a 10% growth rate
That's definitely quite a bit of money to save and have by age 70. I just wonder at 70 what in the world will a 70 year old do with that much money? Lol
Bookmarking this video. I need to hear Dave's advice everyday. Great motivator to stay on track.
The Debt Trap...Once you are late on a Credit Card Payment they may raise the Interest Rate. They did that to me and when they did that to me, I went into quick payoff mode. I called to cancel it but they had some excuse not to but suggested I put a BLOCK on it and haven't used one since.
I'm 22 and I never want one. I spent $300 on a Jeep when I was 19, and it's only taken a little over $500 over three years for parts, new and used, to replace everything that was dated and near failure. Fuel efficiency is a stupid argument, too. Even if my vehicle got 10mpg on average, it'd still cost less than a car payment!
Our problem is that we're living paycheck to paycheck and can't even afford a downpay much less a whole car and where we live is either have a car or not have a job so we're force to do payments
Everyone’s situation is different. Focus on yourself and on your own life. I hope things are going good for you guys.
@@KunaevNS up yourz
Thank God for Dave. I am a single mom with an ok income. After following Dave's program for a few Months, I lost my job. I made it through the brief unemployment without touching my er savings, and I am down to 2000 in total debt. People around me, who make more money than I do, wonder how I live so well. Thanks Dave, I was prepared to take care of my boys when shtf!
Dave had taught me so much! Thank you man! I'm so careful now about CCS, leasing cars, buying whole term life insurance, even buying a house!!
The problem with Dave Ramsey is that everything is black and white with him. No middle ground or gray areas. I would never go to this man for advice. I know my circumstances better than him. I financed a new car about 7 years ago and did not regret those car payments one bit. Reliability and having a car under warranty (and an excellent one at that from Hyundai) was far more important to me. All of my prior cars were over 100k miles and constantly having random expensive issues. I use my car partly for business and having to cancel clients because of a breakdown did not look good for business. And I live in an area where taking a bus or riding a bike is really not an option.
You try to over exaggerate his point. In this video He told a man to ask WHY they want to buy a car. You needed a new car because your car was old and drained your money. It’s a different scenario from this guy.
I bought new car at 23. Making decent salary, lot of overtime, no student loans or debts.. Bought the cheapest one with minimal options (24k). I can still save up to 2500/ month, but im living with my parents. I already have the cash for a house. When you work hard you deserve something back.
“Somebody gettin credit and it ain’t you!”
I love Dave's rants and how he goes off on tangents. Sensible tangents.
I keep hearing him say they aren’t ok.. this is the 1st time I finally see the big picture. Thanks Dave!
Amen. I’m stuck in a horrible car loan due to an impulsive decision. We are finally making better decisions( husband and I).Thank you, Dave.
Glad I found you, i just turned 19 yesterday and I’m a dad to a 2 year old, been struggling for a while now
Wishing you the best of luck with the child!
@@kevinaero5586 thank you man! God bless
Been there. Make sure you start presenting the best version of you to the world. Opportunities will present themselves.
Educate yourself financially, read the book Rich Dad Poor Dad
I get it and appreciate the overall concept, but I always hate it when people say “if you invest the money you’d have spent on a $500 car payment you’d have xyz in 30 years” because you still have to set aside part of that to ensure you have some money for a newer car
Thank God I found your channel. May God continue to bless you!
Great Advice and/or Recommendations. This video is informative. Thank you, and I’ve Subscribed to your channel
Credit cards are good if you pay them off in full every month (like I do). You can build up your credit rating.
Just make sure you absolutely pay them off every month.
I do the same. But a VAST majority of people don't have that kind of discipline.
@@Only2GendersCommonSense I have my credit card payments come out of my account by automatic transfer. So, I never miss a payment.
In this way, my credit card is almost being used as a debit card.
In the age of online shopping, I honestly don't know how you can not have a credit card. Again, they are also great for building a good credit rating which you may need if you want to buy a house/car/take out a loan.
Great video. thanks for the upload
This actually works very very different in Europe, where VAT is like ~20% . Car payments (leasing) for a company make loads of sense because you can write off the entire cost of leasing as expenses plus possibly write off a portion of the VAT on the car payment. Finally you can get a leasing plan at 1% per annum because the leasing company writes off the car itself so it doesn't declare profit that year. When you combine all that then you get the car for less than the gross value + sales tax.
You can ofc beat that 1% PA cost by paying everyting up-front but you get your VAT and company costs back after 5 or so years, which kind of introduces a different problem because you don't have your own money back fof a number of years that you could have put in an investment fund.
"Somebody is getting credit and it ain't you" LOL 6:57
Only car people get Dave's joke. It was cringe when the guy didn't get it.
It's an old church joke. Dave is showing his age. 😁
Please enlighten me--I didn't get it either! Lol
Bryan Adams definitely cringe worthy but Im assuming he didnt understand because he seemed nervous lol
Jacqueline Honda makes a car called the Accord. The topic was financing a car. The word accord can also mean agreement. When you take all this and re watch the video you will get it.
Bryan Adams yeah it took me a few seconds to get it, longer than that guy had to respond haha. He probably gets it in hindsight
Ok ok I’ll keep my paid off 2007 Hyundai 😭
I’ve got a 2015 Hyundai and it already needs a new engine. Better start saving.
This is Dave’s best video yet. He really makes it concrete
If you only have to worry about yourself then becoming a millionaire is easy, but if you have family that you have to help out financially then it aint so easy
Well at this time I only worry about myself
Family and friends show me the other side of them
Thanks for them
I'm focusing more on myself
Right my husband is Afrocan and all his family expect him to help ..... no matter what, it's hard to get ahead.
I regret buying a car on finance 😩. The worst part is that if I sell it I need to top up to pay the bank 😔
Really I'm driving around a 1996 camry and still satisfied still work perfectly
I love in Australia-Sydney, but i love listening to Dave, cause money principles does not change geographically!!
Probably my favorite video. So many good messages and guidance
Great advice provided once again by Mr. Ramsey.
i bought my car recently with a credit card for 20k. Paid it off with money I saved to buy the car a few days later after the charge went through. Now I have all these points I can use towards rewards on my card lol.
That's what I told my husband we are doing but am getting new cards to get bonus points
Just realize that the card company charges a transaction fee to the dealer and the dealer passes that along to you in a higher asking price for the vehicle. If a dealer lets you put the entire car purchase on a credit card, you’ve left money on the table from a negotiation standpoint.
KenKat64 but you do increase your credit score right? Can u pls explain this in clear. Am thinking of getting a car and making a full cash payment but after reading the above comment it made sense. Can u pls share your thoughts on it
km5658 wow. That’s stupid.
Tejashwini Karthik Car dealers know exactly what their cost is on any vehicle they sell and they have an absolute minimum price on every vehicle where they will not agree to the deal if the price is too low. The listing price of the car is more than this minimum price of course. They want you to pay the listing price and you want to get as close to their minimum as you can. If you put the car purchase on your credit card, they will subtract out any fees charged by the card merchant to be sure they are still making money on the car. It may incrementally help your credit score, but there are many other ways to do that as well, including just using your card for day to day purchases and making regular payments, ideally paying off the balance each month.
I've somehow managed to go through life on less than 2000 used cars. It's great, I finally get all those features that were luxuries 20 years ago standard today!
One of my favorite videos. Lots of truth bombs in this one.
Car payments are for the poor. Rich write a check for the whole car.
No they don’t they lease
@@alp.9672 you def won't get rich leasing cars!!!
When He says at the end “ I’m gonna help”. 😂😂😂
Rip credit, cause of death: Dave Ramsey
My family and friends think I am insane. It makes me deeply happy to see so many people with the same goal.
So thankful that I found out about Dave Ramsey. I wish I had known about him earlier in life, so now I just have to redeem the time.
So true when he said mom gets the new car lol my wife drives the 2016 vw Passat and I drive the 01 Jeep Cherokee lol
Car payment would be 300 plus insurance that’s about 4-500 a month you have to pay for about 3-6 years not worth it
I'm in an older car that I just paid off twice. (Bought 6 years ago, then used as collateral last year for a 4k loan) granted the loan was to obtain my commercial drivers license. My car is getting to be on its last lap. Thankfully in the half year I've been driving I've managed to save up 6k. Once I'm up around 10 to 12k I plan on buying a car that's a year or two old with cash. I've seen some pretty good quality and far more economical cars in that price range. It's nice to see some sort of confirmation that I'm talking proper steps to advance myself. Hopefully my car can make it to that point so I don't need to apply for any loan or settled for a car that's older and I'm worse shape.
That's awesome! Nice work!
Dave should get Scotty Kilmer to sit with him for when someone asks a car related question. I bet both of them would make a great team!
I doubt it... Dave is a Mercedes driver & fanboy, we know how Scotty would feel 😂
I drive an 07 ford sedan. Over the past year, I have paid for more in repairs than what I would have paid if I had car payments. And it still needs around 2k in repairs. One of the flaws of Dave's approach is he doesn't really consider the repairs closely enough. Nowadays, mechanic's labor is very expensive and a simple repair can set you back hundreds of dollars just for regular maintenance, if you're not mechanically inclined or do not have access to tools and a driveway.
Exactly! I am in the same situation. I feel like Dave's advice is more geared toward people who finance or lease expensive cars without having any serious income and means of paying them.
I see this misconception people have, thinking that a car with payments will not break because its relatively new. That is very far from the truth. All cars can break, so its not a matter of paying for repairs or payments. Its paying for Just repairs or repairs And payments.
If you dont have the money to pay for repairs without even thinking if it will set you back then perhaps if you're a man you should get inclined mechanically and perform the repairs that cost hundreds of dollars yourself. You dont need to be replacing transmissions, transfer cases or doing motor swaps in the driveway, but understanding function of the motor and doing repairs that would normally cost 200-600$ Is not a difficult task for a serious man.
It's not always about being mechanically inclined. You need to have a set of tools and a place to do basic repairs, even an oil change. Me personally, as a college student living on campus, I don't have a place to repair anything. Our main point was that Dave's logic on car payments has undeniable flaws and is somewhat outdated, since the mechanic's labor has became absolutely sky-high over the past decade. We aren't saying new cars don't break, because they do, they just have a warranty which assumes the entire liability of the repairs and maintenance. For example, BMW offers inclusive maintenance program which covers your repairs. My friend who has a nicer car than I do has paid less substantially over the past year than I have, since I had to foot all the repairs myself.
Mistake #1: Not paying for the skill. Pay someone a few extra bucks who is mechanically incline to inspect the car prior to purchase. If you are going to go cheap at least do it right. Mistake #2: You bought a ford. I personally won't buy old american vehicles. Go toyota, honda route if you are looking for reliability.
been watching a lot of ramsey lately. never had car payments then i went out and bought two new ones in 3 years. luckily one is paid off and other is 1.5 years from being paid and worth 3x whats owing. before this i never paid more than 10-12k for vehicles and kept them till they were 10-12years old i'm going back to my old model.
You're the BEST Dave 🙌🙌🙌
Best part of the video is after the 6-minute mark. Dave gives everyone a template for problem-solving that applies to just about any problem, not just cars. You first decide where you want to be (the "end state") and once you have that figured out, only then do you figure out how to get there. In this case, "end state" is better car for wife, but no car payment. And the answer became obvious - upgrade in two steps, not one.