as much as I agree with you about buying used, I would be surprised if many of the new cars made today last 10 years, with the increasing gadgetry and complexity of new vehicles. they will become too expensive to fix without a warranty.
Keep in mind people have been saying that since the 80's, and time has proven the gadgetry and complex vehicles do last and the common auto shop is able to fix them.
+Killer2600 simple auto shops can't fix all new cars, volvo, audi, bmw all require specialized technicians for a lot of the work. although on other cars, sure, a lot of it can be. it's just going to be expensive when the automated parking system in your Tesla fails when it's out of warranty, that's all I am trying to say.
+ThickStick I only wear used underwear on my head when I am pretending to be captain underpants. but in all seriousness, did you just compare cars to underwear?
I'm not buying that an 8 year old car is shot. Translation here, "i just got my RN and all my friends drive BMWs and I deserve it even though I did not earn a dime yet from being a RN."
It's not "shot" it's just needing repairs that exceed the car's value. You can ask Mr. Ramsey himself but I'm pretty sure he doesn't think it's wise to spend more on repairs than what the car's worth.
all of it is a mess.. selling a car that isn't hers, parents still owe thousands on a 06 fusion 3 years later, willing to pay thousands in the first place for "repairs", wants 500$ car payments, graduated nursing school but isn't seeking a job after, and still has no clue what he said.
first question is she spent $2500 in repairs and needs to spend another $3000 what kind of repairs is she downing, someone must be ripping her off, only way to spend that much is if engine or transmisson both failed
Who wants a car payment anyway. Buy a car outright and never deal with a finance company. Same thing with electronics, and those become obsolete after several years, rather than just depreciating.
500 a month toward a car pmt combined income 67k a year that's probably gross. That 500 is alot when your take home is not much for 2 people. Best is to get out of old vehicle and buy a bus pass then save for a year and buy cash 10k used realiable veh. Also you will have alot more respect for that hard earned money.
@Greg B My 2005, 14 yr old Nissan, w/ 265K miles died this year and guess what I'm borrowing until I buy a used car...? My mom's 25 yr old S10 Chevy. Go figure!
$500 car payment? Still stuck on that. then she said she was putting $6000 down? Sounds like she wanted to finance a luxury car. Whatever dealership gets her is going to have a field day.
I totally disagree I would rather buy a cheap brand new toyota corolla for 18,500 put 5,000 for 13,500 your payments maybe 250 a month .. the car has a warranty and reliability is excillent + peace of mind... pay the car off in 3 years or so and now the car will last an additional 12 years if you take care of it...
Donald king what happens if you lose your job. Get injured and can't get back to work for 6 mos in between that 3 years. The car and your money is gone.
A few years back I bought a 1999 Maxima for $900 with close to 180k miles, I spent $250 on an oil change and a good set of used tires, then drove it right away from NC to California and all around California for a week, about a 6k trip with no issues.... Still drove it for 3-4 years before having to junk it... Loved that car... Did the same thing with a similar 1993 Maxima before it that I bought for $3k and had for about 5yrs... Love how those drive
I personally think that as long as you can afford to buy a brand new car for cash and then keep it for a long time, like until the cost of a repair comes close to or exceeds the value of the car, it's fine. Works for me. Of course, make sure you are performing routine maintenance per your car manual. Of course, that wasn't the case for this caller. I know that every financial "guru" recommends buying used to avoid that big initial depreciation hit, but when you purchase a used car you are taking a chance. A car can become damaged to the point of no return in just a year or two for quite a number of reasons. Even getting a pre-purchase inspection is no guarantee. They will never tear down the car to the point where all defects can be found.
I agree with it. Though depreciation is always the focus of Dave's argument, safety and reliability might be the trade-off for buying a used car. I already saved and am going to pay cash for a nice Lexus and keep it, however long it lasts, assuming at least a safety and reliable vehicle drives me for many years to come.
My brother but a 1 year old car for way to much money. It kept breaking down and he drove my hooptie for weeks on end while it was in the shop multiple times. He spent $27,000. I spent $750.
Being a single woman and traveling a lot I buy brand new for safety reasons. So there are other factors involved than just finances, but I buy the smallest basic sedan. I just want it to run really well.
I'm confused, why does being a single woman and traveling mean you need a brand new car? A 1-2 year old car gets you pretty much everything a brand new one does but for a significant discount.
Depends on what state you're an RN in. In some states, RN with overtime pays over $180K. But other states, a nurse can make about $60K when starting with no overtime.
Been driving my $2300 car for almost 5 years, now I’m being offered $2500 for it. I’ve spent maybe around $1000 doing routine maintenance and getting a couple fixes on it. It runs great, reliable, almost 30 mpg. It’s a 1997 Toyota Camry. I highly recommend that car to people who need a cheap reliable car.
That car buying strategy is amazing. I never even thought about it but its so simple. The car you just bought wouldn't lose that much value over a year. Essentially every year you can get a better and better car. When finally you could get your dream car and totally have it paid off.
Because of Dave and me being Totally out of Debt for a few years now. I'm buying a 2017 Toyota Tacoma 4x2 4 door 4 Cyl . I have a 98 Tacoma with 251000 + miles still going strong. Which I will keep till it is unsafe or unfixable. I plan to do the same with the 17. We looked at Used but the Tacoma has such a big resale value , and most are 4x4's w/V6. It makes more sense for us to buy new . Yes we are paying Cash. Thanks Dave !
Guessing that she didn't get what he said and has a car payment and will always have a car payment. It's frightening to think of this girl being responsible for keeping peoples medications straight.
Just because she didn't correctly understand a financial concept the first time she heard it during a call-in show, in a field that is not her specialty, does not mean she isn't educated or smart or enough to distribute medication and take care of patients. Jeez.
There are people who are not good at finances, but it doesn't mean they are not intelligent and cannot do their job. I am a professor, but I was not raised by parents who cared much about money. Just like the caller, I am struggling in terms of handling my finances.
ulnvrbwhtur, we're talking about an EXTREMELY, and I mean EXTREMELY, basic understanding of 3rd grade high school math!! We're not asking her to solve problems involving differential equations, linear algebra, complex analysis and tensor calculus!! * rollseyes * Frankly, I don't even understand how she passed nursing school! Really boggles the mind, beyond belief!! Shows you the horrifying state of the education system in this country!!
I bought a used 2009 Hyundai Accent in 2012 with 20,000 miles, still under warranty and spent $7500 dollars. It's a great car and going strong. My Tundra gets to rest and not stop at gas stations.
Many times I have bought used to save money, only to end up selling at huge depreciation prices later. I have also bought new and had very low depreciation over 3 years. Currently, I have 2 used trucks and I average the price of a car payment in keeping them running. Also, it's very inconvenient to be dropping off and picking up from the mechanic all the time. I've also had mechanics rip me off and keep my vehicles for months at a time. If you can afford a car payment on a reliable vehicle, I see no problem with it. You can probably do better on a used vehicle if your willing to drive a small Asian used car though. Just my experience.
Dave gives great advice. i took and saved my car payment after i paid last one off. had a nice little chunk saved. really should have kept the Old car and kept saving for my newer vehicle that i purchased. good advice. most people that call in are terrible with money.
5k is far too much to spend on a car you plan on owning for less than a year.that's silly.a 5k car should be pretty nice and last 4-5 years with normal maintenance.cars are not built like junk 80's cars anymore lol. i think people feel the need to spend so much to get something "reliable" is simply because the price of new is so far out there.don't try and compare the price of new cars to the level of used ones on a scale of reliability to price.remember cars drop in value.......FAST! just like mobile homes. price falls off way before reliability does. side note; someone should ask Dave when the last time he bought a 5k car was.let alone sold it for the purchase price about a year latter with approx the avg of 10k more miles on it lol.remember guys,he doesn't live in the same world most of us do.
I have a very good mechanic friend! I asked them if I should buy a car with over a hundred thousand miles and it would come out rather cheap. He told me that in the long run it would may come out real expensive because you never know what the owner did with it. I have the money and a good job, I bought a new used car under a hundred thousand miles with a warranty and gap insurance. He told me this was the best thing I could have done.
Nothing wrong with buying a new car if your going to drive it till it's not worth fixing I always worked on my own cars replacing engines transmission and so on but now that i'm older I would rather not keep doing that so I did buy a new car back in 2014 it's a Honda Civic which should last me the rest of my life now days the interest to buy a new car has such a low interest rate or sometimes zero interest so the banks don't make that much money as they use to it's and it's about paid off since I been paying extra on it.
Killer2600 I drove used cars my whole life replacing engines,transmissions or what ever went wrong now that my house is paid off with low interest rates and some times zero I went for it and now only owe around 7000 and it only has 8000 or less miles on it so it should last a long time I'm not losing because it's not going to be sold beside my time has value as well more then Dollars any day.
To me, any car that doesn't have any payments and everything isn't falling apart is a car that is worth keeping. Long as you are keeping up with the repair work and even more worth it if you work on your own car. It's pretty hard once you get into the more serious repairs but long as the car is in good shape it's worth keeping. Resale value doesn't mean anything if the car works! I'll drive mine until i can't find parts for it! :)
In 2012 bought a $5500 truck... 6 years later sold said truck for $5700... Certainly not the norm but not impossible either. Some vehicles will deprecate to a point but will hold a certain value until you just slap wear it out. 10 months and a few thousand miles you’re not losing money with a decent popular used vehicle.
I always drove old cars until 3 years ago when the GM card gave me $3k in "earnings". That along with $2k in "incentives" enabled me to write a check for just over $17k for a Cruze Eco. It has been great. Gets over 40mpg/ hwy. and 37 around town.
I bought a used toyota for 8k cash (55k miles) and have been using it for past 6 years. I believe that finding a low mileage car is even more important than how old it is when you are buying used cars. He didn't mention it but there are many benefits of owning an older car like - 1. cheaper maintenance 2. you can decide to get liability only insurance. Just the cheap maintenance and liability only car insurance alone can save thousands over years.
Be careful only doing liability only insurance. Someone knuckle head hits you without insurance and you end up in the hospital with major medical bills.
Maybe I got lucky or something. In 2016 I spent 2000 dollars on a 2000 volvo s70 and it has given me two years of trouble free driving. I have spent less than 1000 dollars on just routine maintenance. All you need to do is figure out what make model and years are good, and find one for a suitable price. There’s lots of used junk out there, but there’s also plenty of used treasure too.
I financed my truck new at dealer cost at zero percent. Its completely paid off this coming July. Truck is still mint and in gonna drive the wheels off it.
When u live in Miami and its like BEYOND HOT AND HUMID AND YOU LITERALLY ARE DRENCHED IN SWEAT EVERY DAY!!!..i think its a wonderful investment. But the essential need of a car is reliability and convenience and maintenance is amazing.
I agree with Dave Ramsey on not getting in to car debt. I also think you should not get in debt at all. In a perfect world we should all be using cash to buy everything including houses (there are countries where there is no financing at all). Things work a lot differently here and if you ask me buying a new car lets say a Honda or a Toyota with a MSRP of 18k with 5000 down and 0% or 0.9% interest rate would be a wiser choice. On a brand new car you do have peace of mind for 2-3 years of no unexpected repairs. What if she is not able to sell that 5k car or has to shell out more money on the car?
Haha I guess that's too much math for her to take and I see Dave didn't have patient to her. But how come you can sell or trade in a 5K car 10 months later worth the same 5K, the car should have depreciation and will be worth less than 5K.
Dave never mentions the hassle and cost to buying and selling cars. Private sales can take months, and the difference between the trade in and retail cost of the same car can be enormous. And then there is sales tax.
or she could spend $3000 to get her car fixed which saves her $2000 more over $5000 initially recommended by Dave Ramsey than getting rid of the car and spending $5000 then have $7000 for down payment.. I think I'm smarter than Dave Ramsey..
+Anthony Abelardo the point is to NEVER have a down payment for anything . NEVER make payments to a bank . Idk if u were being sarcastic but if you weren't well then I sir are a fool .
Paulina Vasquez I mean.. unless you started out with massive amounts of money and never need credit/cash advances for anything it's wiser to work with the bank or else nothing important would get done unless you are doing things that involve no money like a priest or something. Things and technology require some sort of cash. I learned many things I would have never learned if it wasn't for things. But, your perspective works for you then it's great but I feel is people like me actually give things information that you need when you need it when you have no idea what to decide.
buy a $2000 corolla (pay a mechanic $100 to thoroughly inspect it before handing over the cash). do routine maintenance on it. save up for a down payment on a house, and diversify
Dave Rocks Have not had a car payment in 15 years. Bought oldest son a car for $1200 bucks three years ago...still going. Bought second son car $2,800 bucks two years ago still going...
I bought a 16 year old Nissan for $5000. Drove it for 3 years. Within those 3 years I probably put $1,500 in repairs to it. It blows my mind that people are willing to make $6,500 in payments for a whole year to drive a new car with at least a $5000 down payment.
1st tip to buying a car:get a Toyota, I daily a 2004 camry with 250k miles, still runs like a clock, bought it for 3k when I started my college, graduated in summer of 2020 with $3800 in cc debt, I am gonna drive it till the wheels fall off.
one more comment. I brought a 2009 dodge ram Laramie powertrain warranty lifetime $40,000 new. 4 year 0%Apr pay off in 2013. 2017 still running strong and still looking new. 130,336 miles today. I'm planning on keeping this truck as long as I can or someone hits me really bad. the value today is ,14,000 trade in. I think what I'm doing is great. 4 years from here I'm going to buy a new truck
It would be better for her to fix the car drive it until she pays the loan on it. In the mean time put the $500 away each month until the car completely dies.
Exactly, because she's taking a hit on paying off the car, THEN she's gotta spend the time to find another $5k car in reasonable condition, THEN she has to hope that car is reliable and do whatever maintenance it needs (usually tires, brakes, battery, etc) THEN she has to try to sell it at almost what she paid for it (probably not going to happen after a year of owning it)... THEN she has to try to find that $10k car and hope it's reliable and what not. I'm sure after whatever major repairs there's not going to be much more wrong. My dealership gives 12 month warranty on repairs. You can go places and get certain things done for cheaper, go to dealership for repairs you don't want to risk getting done poor (unless you know a good mechanic).
This is where I slightly disagree with Dave on cars. To many people a car is more than just a point A to B machine and there are certain new features that a lot of people want. The caveats to buying a new car if you need to finance some of it should be that you do NOT have any other forms of debt aside from a mortgage, the total purchase price of the vehicle is LESS than 3/4 of your annual income (payments can be spreadout for
Ford--------> Fix or repair daily!!!!!! My last and current car is a Nissan. I did a four your car loan, it's been 7 years and counting. And the car still runs like a champ. No engine leaks or tranny leaks.
You forgot depreciation on the $5000 car which in 10 months will probably be $2000-4000 depending on the car and she will probably have $500-1000 in repairs in that 10 months. If you're not paying a bank you're paying a mechanic. Like a diamond car payments are forever.
What if the next old car has problems? What if she just fixes that car she has... and pays herself the money. Also you can't assume she'd get all her money back after driving a car for 10 months...
right...Ramsey does seem to think you will get exactly what you paid for it back, maybe she will, maybe she can even get more but there's a chance that she wont, although the chance is better then debt
It's not worth fixing the car she has. She's better off looking for a 5k car she can get buy with for 10 months, but making sure that car is reliable by having a mechanic check it out for her.
+Whispered “Metsutan” - what's the point of spending another $5k on a car when she has a decent car that probably needs less than $2k of work. Who knows what problems this next car
Jaguar7444 well if that car wasn't having issues it is worth keeping. However the car she was talking about in this video was falling apart and was not worth fixing. If you have to do car repairs on the regular basis and then needing to spend another $3k it's better to trade it in for something more reliable. Dumping money into a car that has a new problem every few months isn't worth it. If she was only spending maybe $500 a year on car repairs which is the limit anyone should be doing. And that's only for stuff like replacing tie rods, bearings or whatever. Brakes, batteries, belts, hoses and tires are usually the only things you'll have to regularly replace but if you are are replacing more than that on a regular basis like a new alternator or starter or engine gaskets then that's a problem vehicle. I probably spend about $400 a year on abnormal repairs and that's pretty good, if i was spending more than $700 then i would either need a second vehicle and use the main one as a project car (which i plan on doing) or like in her situation she needs to replace a car that has become a money pit. Putting more money into a car than what it's worth and it's not even paid off yet. If she sold the money pit car for a $5k one and replace that one in 10 months when she has another 5k she can then upgrade to a newer one.
I work in the Oilfeild and I gross 8-10K a month , I am still driving my 1999 Lexus while I see other guys buying 50K trucks and continue making $700-$1000 monthly payments which I think is crazy , I am envious but I don’t think I can be stupid .
As much as I agree with Dave Ramsey, buying brand new cars can be very beneficial and even cheaper. Atleast here in the uk. I’ve sold brand new cars for 149 a month 0 Deposit for a 4 year hire.
Right now,I don't want to think about a car payment, I live in NYC ,we've abundance public transportation options here.. I love to travel in the trains and buses here.. Thank God..
Personally she should buy a new car. I bought my first brand new car. Had it for 16 years, before it gave out on on 2012. Went and bought a new car. I will keep it as long as I can.
Bad advice! I bought my Toyota New in ‘08 for $14,000. It will be 10 years come April ‘18. It has 112,000 miles on it and has been a gem with proper maintenance. Telling a young girl to spend $5k on a high mileage 7-8 year old used car is foolishness. Buying used=buying someone else’s problems...
See that last part is where I struggle in life. If I was him and i heard that she didnt understand a basic concept (4:55) that a 7yo would understand I would literally get angry and call her names. How do I fixx this issue 😭
You could buy a certified pre-owned 2-3 year old toyota corolla with low miles for around $15k. She has $5k for a down payment, Financing $10k for 60 months would only be a monthly payment of $189/mo. I don't understand the premise of the only cars you can buy are a leased BMW for $500/mo or a clunker for $2000 in cash. My scenario puts her in an almost new, very reliable car with a very manageable monthly payment.
I work for a large credit union and the heads of the consumer lending areas buy 1 or 2 year old vehicles. They let someone else take the big depreciation hit. I am in my 50's and have never bought a brand new vehicle.
Which is weird because she is a Nursing student and Im a nursing student and i have standards to meet. How can she not add up money? lol I wouldnt even need to call this guy, I would just do my own research and calculations of how much i will make and whether or not i should take out a loan.
Google keep asking me to change my name. sooo annoying. You both don't have the same brain but, she not the smartest cookie. You'll be amazed how much a person don't know. We judge people based on how they look on the outside but like my mom said ....go home with them and see how they live and how they manage their finances before anything else.
Brian Ross I'm sick of people looking down on people with education that's why immigrants are taking most of the higher paying jobs and then everyone else is complaining about income equality
The question is what kind of repair is it?. If it is a bad engine, then it might be worthless as you'd get into trouble not disclosing that to the buyer.. If it is a transmission, or head job or gasket, then make the $3,000 repair and drive it for as long as it goes
if you have little to no debt, and you have good steady income in the household. i dont see anything wrong with getting a cheaper new car or a certified used car. The problem with getting into a car loan is many people often get too much car then they can afford and or have to much debt to income ratio and then have poor credit which then carries a poor interest rate. thats when you get into trouble.
I only buy new vehicles and keep them at least 10 years. I finance car for 60 months and payment is less then 13000 and is 250 per month. Many vehicles brand new with excellent and long warranties , such as kia forte , ford focus ,hyundai elantra , toyota corolla etc. Dont buy big expensive vehicles and you will be fine.
The better answer is to keep the Ford and find a better/cheaper mechanic. Don't get repairs done at a dealership, unless it is under warranty (which hers is not).
$5-6000 can get you a GOOD car! I check local listings daily.. I'm currently in the market and also tempted to just get a motorcycle. I'm that case, I can have a new vehicle for that amount. Bikes are also super easy to work on so I'd save there as well. Gas mileage is great as well.. although I doubt this girl can work a screwdriver..
Ford stands for Fixed Or Repaired Daily In Iraq my native country and most else where in the world. People don't buy American for the same reason. I'm sorry it's the truth.
SOMETIMES PEOPLE WANT A NEW CAR TO NOT WORRY ABOUT CAR PROBLEMS. SHES A GIRL THAT SEEMS LIKE SHE DOESN'T KNOW MUCH ABOUT CARS AND A NEW CAR WOULD BE PERFECT ESPECIALLY BECAUSE SHE DOESN'T Have TO WORRY ABOUT MAINTENANCE
Girl wanted to get into debt? Finished RN school with no student loan debt & $6k in savings even after spending $3k in car repairs? She got spooked with the Fusion. If the car does need $2k more in repairs then what the dealer is offering for trade in is fair. Would you pay full value for any car that needs $2k in repairs? Dave failed to ask her basic daily driving questions- How many miles do you drive per year? Where do you live? Might be working late shifts? All of those questions matter in determining her next vehicle purchase.
Michael Lawn Get a cheaper Toyota. And then use that excess funds from the lease car. If you then put 500 a month that would have been on the lease agreement into a fund at 10% interest per month you would have about 100,000 in about 10 years. If you were really ambitious you could retire with millions if you tried. I am now in my 40s and I am ready for retirement.
Michael Lawn Lease also known as FLEASE because its such a bad deal financially. Why do people keep thinking newer is always better. Sorry but i have rented just about every single stand econo too full size NEW car for weeks at a time in traveling all over and it all feels like cheap plastic and nowhere near as comfortable or reliable as my 14 year old toyota avalon(wish i didnt sell if for my NEWER JUNK CAR! NEWER DOESN'T ALWAYS MEAN BETTER.
Wow. Thank you so much Dave! I’m currently looking at my buying a car, as my current car is going to fall apart at any point now, and I’ve been trying to avoid a car payment. But this just helped me avoid a car payment! Thanks!
Bastian In 30 years, you'll still have a deteriorating asset needing maintenance to maintain its value....classic cars are quite capable of losing value in the marketplace just as much as they are of gaining value...have you ever listened to Warren Buffett?
PATTY D You have an investment that is just as much fun, joyful, and usable as it is profitable. And if you get tired of it, you sell and make a nice profit.
I live in Corpus Christi. Majority of the people want to drive brand new, loaded F150s, BMW, Mercedes and trade them in 3-4 years after. They just love to show off at red lights, neighbors or colleagues. If you go and check their bank accounts, they barely make the next month. I am sure she just went to BMW Corpus Christi dealer and got her car there.
Correct me here if I'm off but he said to buy a new car after 10 months with the trade of her $5000 and that somehow equates to $10k? Isn't depreciation a thing? So a $5k car in 10 months be worth $5k would it?
I buy new because 1) I don't know how well the person before drove the car. 2) I don't know how well they took care of the vehicle. 3) I plan to keep my vehicles for many years, and plus I don't drive much. My vehicles are investments, and I pay them off way before the note is over. Took a 6 year note on my car, and paid it off in under 2 years.
8 year old car is shot? Listen, my first truck (which I still own BTW) is 51 years old as of writing this. 1966 Ford F350. I purchased it for 300 dollars, pulled it out from a farm field where it had been sitting for over a decade. And with less than 2 grand and 4 weekends of really mild work (one month) I have myself a F350 with a hydraulic dump bed. Its worth a good 8 grand now. It is NEVER a good idea to buy new. EVER.
A car today costing 5k is not likely to be a great car. With a new car at least you have the security and peace of mind of a warranty. Either way you pay. I prefer the security and peace of mind of a new car. You pay either way, fixing an older car today is spend. I have a family van, low miles 04. Cost me 2500. Transmission went out, cost me 3900 for that. In the long run, car payments mostly balance out, just pay it off as quick as you can.
What about losing by paying tax every time you sell and buy a better car? In texas its 6.25% she would pay for using the car for 10 months. Or she could get financing at 4.25%- how is that worse?
My dad bought a used 2019 car dealership claims he will receive a check back $4500 after six months of paying interest on the car loan. Sounds scammy! Thought first it was through Nissan corp but was sent installments from chase with nothing mentioning Nissan. My gut says he was scammed
Buying brand new is engineered to keep you in debt, the warrantee is getting shorter because auto manufacturers know YOU the public will not take care of the investment. You won't go get routine maintenance because either you don't have time or money. You don't have money because you're either drinking and partying on weekends or spending foolishly or plain and simple are overextended by a bank that seen you coming from a mile away. If you don't have a solid financial future you don't need to spend the 50,000 on a new f150. You need to find a mechanic inspected used vehicle you can pay cash for that will save you money by allowing you to keep minimal insurance and filling for 30 bucks a week. I see people come in saying they can't afford to maintain their vehicles and they've run 6 even 10k over on their oil changes..... why did you buy a 45,000 car if you can't afford to maintain it? Now you are stuck in this and having to borrow more to pay a shop to fix what you forced yourself to neglect. Take a lesson from a professional mechanic, pick a good used car and have it inspected. Find something domestic and generic so that your repairs and maintenance are more affordable. Make sure you know your mechanic by first name and look for garages that are stable enough to pro rate your repairs, many will charge you "flat rate" or "by the book" which means that shifter cable in your Mazda 6 make book for 10hrs and the the mechanic like myself got it done in 3.... the garage got 7 hrs free labor rate for that job by charging by the book and forcing me to hide to car and move to the next job instead of saying hey, your car is done and here are your savings. You people don't even have a clue how shady many garages are today.
I dont understand how he feels giving advice like this is acceptable. What she needs is a trusted mechanic to tell her if she can fix her current car and drive it Buy a 5k car that WONT break down Or buy a 10k car and expect that to be better Its about finding makes that prove the test of time and maintenance, thats how you make your money work for you, not by just thinking a 10k car must be a good car. Idiotic and simplistic advice that could wind people up in way worse off situations. God i love the internet
buy an older car, and i mean older. there is less to go wrong with them. i have a 1996 camaro Z28 LT1. 235K miles on it. yes i had to fix some things but i was able to do the repairs myself. the car isnt driven in the winter but i daily drive it all summer. its a reliable car. i never put $3,000 into repairs. i could replace the entire engine, transmission, and rebuild the rear differential and still likely be under $3,000
The dealership isn’t going to give her 5k for a trade on a car that was worth 5k 10 months ago. Also you have to pay sales tax every single time you “buy another 10k car every 12 months.”
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No she is just an idiot who did not pay attention when he instructed her on what to do!
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Can't this woman do basic math? I don't want to be the patient of a nurse who doesn't understand basic math.
So when she sells her $5000 car, she'll get back exactly $5000? Where????
I'm glad people buy new cars, I'll have more choices for my next used car in 10 years.
as much as I agree with you about buying used, I would be surprised if many of the new cars made today last 10 years, with the increasing gadgetry and complexity of new vehicles. they will become too expensive to fix without a warranty.
Keep in mind people have been saying that since the 80's, and time has proven the gadgetry and complex vehicles do last and the common auto shop is able to fix them.
+Killer2600 simple auto shops can't fix all new cars, volvo, audi, bmw all require specialized technicians for a lot of the work. although on other cars, sure, a lot of it can be. it's just going to be expensive when the automated parking system in your Tesla fails when it's out of warranty, that's all I am trying to say.
Used cars are gross, do you buy used underwear?
+ThickStick I only wear used underwear on my head when I am pretending to be captain underpants.
but in all seriousness, did you just compare cars to underwear?
She went out and financed a new BMW.
I bet!
Chris Boulas i agree
Chris Boulas yeah she's an idiot you can just tell lol
Probably leased it instead.
Fleeced if lol
"I have a Ford fusion"
There's your problem.
This hits close to home 😂
I think ford makes faulty electronic parts so they can keep selling
Lol
I'm not buying that an 8 year old car is shot. Translation here, "i just got my RN and all my friends drive BMWs and I deserve it even though I did not earn a dime yet from being a RN."
It's not "shot" it's just needing repairs that exceed the car's value. You can ask Mr. Ramsey himself but I'm pretty sure he doesn't think it's wise to spend more on repairs than what the car's worth.
I agree with @aquatrax123 what makes you think you don't end up with a worst car after paying off the car and buying another used car.
that's what happens when you buy a ford
aquatrax123 it may be shot if it was abused and the simple fact it's a Ford doesn't help any either.
aquatrax123 you're an idiot
all of it is a mess.. selling a car that isn't hers, parents still owe thousands on a 06 fusion 3 years later, willing to pay thousands in the first place for "repairs", wants 500$ car payments, graduated nursing school but isn't seeking a job after, and still has no clue what he said.
Amen!
first question is she spent $2500 in repairs and needs to spend another $3000 what kind of repairs is she downing, someone must be ripping her off, only way to spend that much is if engine or transmisson both failed
Best comment
Who wants a car payment anyway. Buy a car outright and never deal with a finance company. Same thing with electronics, and those become obsolete after several years, rather than just depreciating.
500 a month toward a car pmt combined income 67k a year that's probably gross. That 500 is alot when your take home is not much for 2 people. Best is to get out of old vehicle and buy a bus pass then save for a year and buy cash 10k used realiable veh. Also you will have alot more respect for that hard earned money.
still driving my 96' Ford Danger Ranger and it is still going strong with over 300k miles!!!! save save save!!!!
That ford Ranger eat a lot of gas
@Greg B My 2005, 14 yr old Nissan, w/ 265K miles died this year and guess what I'm borrowing until I buy a used car...? My mom's 25 yr old S10 Chevy. Go figure!
My mum bought a car for 400 bucks, drove it for 4 years then sold it for 300 bucks. It cost 25$ a year and the gas usage was so efficient. Amazing
$500 car payment? Still stuck on that. then she said she was putting $6000 down? Sounds like she wanted to finance a luxury car. Whatever dealership gets her is going to have a field day.
lol
i wanted to put down 6000 for a 10k with the intention of paying it off in 2.5 years and possibly less.
Call Dave Ramsey.... Ask for advice on getting into car payments 😂😂😂😂😂😂😂😂
Thomas Washington 😂
Pena ajena
“THAT MONEY IS RAW” lol
thats funny
I totally disagree I would rather buy a cheap brand new toyota corolla for 18,500 put 5,000 for 13,500 your payments maybe 250 a month .. the car has a warranty and reliability is excillent + peace of mind... pay the car off in 3 years or so and now the car will last an additional 12 years if you take care of it...
Donald king Why buy new just get a 3 year old one for like 12k saves you like 6k. Toyota is reliable your not going to have 6k in repairs trust me.
Mark G why would you buy a 3 year 12k old car when you could have gotten a brand new car for only 1,500k more? That makes no sense
Mark G For the peace of mind of not getting into a used car that you don't know how the previous owner treated it.
Donald king what happens if you lose your job. Get injured and can't get back to work for 6 mos in between that 3 years. The car and your money is gone.
Maintenance?
Buy a Toyota or Honda.
bighands69 or a Land Rover
Maur Ice or a Hyundai excel
Beat me to it, bought a $4500 Camry and haven’t had an issue. Car before that was a Civic, no issues
Toyota Yaris 08, 4 years driving 0 problems
Yep. Toyota Camry or Avalon. Made in Kentucky. Good cars.
A few years back I bought a 1999 Maxima for $900 with close to 180k miles, I spent $250 on an oil change and a good set of used tires, then drove it right away from NC to California and all around California for a week, about a 6k trip with no issues.... Still drove it for 3-4 years before having to junk it... Loved that car... Did the same thing with a similar 1993 Maxima before it that I bought for $3k and had for about 5yrs... Love how those drive
She's dying to get in debt, you can tell lol!
aren't we all lol
The American economy is built on debt.
@@magellanmax that dosent mean we have to copy it
I personally think that as long as you can afford to buy a brand new car for cash and then keep it for a long time,
like until the cost of a repair comes close to or exceeds the value of the car, it's fine. Works for me.
Of course, make sure you are performing routine maintenance per your car manual.
Of course, that wasn't the case for this caller.
I know that every financial "guru" recommends buying used to avoid that big initial depreciation hit, but when
you purchase a used car you are taking a chance.
A car can become damaged to the point of no return in just a year or two for quite a number of reasons.
Even getting a pre-purchase inspection is no guarantee.
They will never tear down the car to the point where all defects can be found.
I agree with it. Though depreciation is always the focus of Dave's argument, safety and reliability might be the trade-off for buying a used car. I already saved and am going to pay cash for a nice Lexus and keep it, however long it lasts, assuming at least a safety and reliable vehicle drives me for many years to come.
I don't always align with him, but you just can't knock sound financial advice. Brought a smile to my face. I'm catching on Mr. Ramsey.
She doesnt understand
I think the point she made about the $5000 car is valid. And that is what she got stuck on
My brother but a 1 year old car for way to much money. It kept breaking down and he drove my hooptie for weeks on end while it was in the shop multiple times. He spent $27,000. I spent $750.
Being a single woman and traveling a lot I buy brand new for safety reasons. So there are other factors involved than just finances, but I buy the smallest basic sedan. I just want it to run really well.
I'm confused, why does being a single woman and traveling mean you need a brand new car? A 1-2 year old car gets you pretty much everything a brand new one does but for a significant discount.
She just became a nurse. She better make at least 65,000 a year by herself. I've never met or worked with a nurse that made less than 70,000 a year
That's what I said... 67000 between to people
@@marypoole1577 so is your husband not working? You make 67k as a nurse and he makes zero?
45-50k in Fl...
Depends on what state you're an RN in. In some states, RN with overtime pays over $180K. But other states, a nurse can make about $60K when starting with no overtime.
She JUST graduated. Give her a chance to find a job ppl lol
Been driving my $2300 car for almost 5 years, now I’m being offered $2500 for it. I’ve spent maybe around $1000 doing routine maintenance and getting a couple fixes on it. It runs great, reliable, almost 30 mpg. It’s a 1997 Toyota Camry. I highly recommend that car to people who need a cheap reliable car.
That car buying strategy is amazing. I never even thought about it but its so simple. The car you just bought wouldn't lose that much value over a year. Essentially every year you can get a better and better car. When finally you could get your dream car and totally have it paid off.
Because of Dave and me being Totally out of Debt for a few years now. I'm buying a 2017 Toyota Tacoma 4x2 4 door 4 Cyl . I have a 98 Tacoma with 251000 + miles still going strong. Which I will keep till it is unsafe or unfixable. I plan to do the same with the 17. We looked at Used but the Tacoma has such a big resale value , and most are 4x4's w/V6. It makes more sense for us to buy new . Yes we are paying Cash. Thanks Dave !
Guessing that she didn't get what he said and has a car payment and will always have a car payment. It's frightening to think of this girl being responsible for keeping peoples medications straight.
Drogo Baggins
Did she say RN? Coz nursing school can be nursing aide or nursing assistant. Assistants don't pass meds.
Just because she didn't correctly understand a financial concept the first time she heard it during a call-in show, in a field that is not her specialty, does not mean she isn't educated or smart or enough to distribute medication and take care of patients. Jeez.
There are people who are not good at finances, but it doesn't mean they are not intelligent and cannot do their job. I am a professor, but I was not raised by parents who cared much about money. Just like the caller, I am struggling in terms of handling my finances.
Drogo Baggins, you are so right!!!! 😂 I would be terrified beyond my wits, to go to the medical facility that this woman works at!!
ulnvrbwhtur, we're talking about an EXTREMELY, and I mean EXTREMELY, basic understanding of 3rd grade high school math!! We're not asking her to solve problems involving differential equations, linear algebra, complex analysis and tensor calculus!! * rollseyes *
Frankly, I don't even understand how she passed nursing school! Really boggles the mind, beyond belief!! Shows you the horrifying state of the education system in this country!!
I bought a used 2009 Hyundai Accent in 2012 with 20,000 miles, still under warranty and spent $7500 dollars. It's a great car and going strong. My Tundra gets to rest and not stop at gas stations.
Many times I have bought used to save money, only to end up selling at huge depreciation prices later. I have also bought new and had very low depreciation over 3 years. Currently, I have 2 used trucks and I average the price of a car payment in keeping them running. Also, it's very inconvenient to be dropping off and picking up from the mechanic all the time. I've also had mechanics rip me off and keep my vehicles for months at a time. If you can afford a car payment on a reliable vehicle, I see no problem with it. You can probably do better on a used vehicle if your willing to drive a small Asian used car though. Just my experience.
Dave gives great advice. i took and saved my car payment after i paid last one off. had a nice little chunk saved. really should have kept the Old car and kept saving for my newer vehicle that i purchased. good advice. most people that call in are terrible with money.
5k is far too much to spend on a car you plan on owning for less than a year.that's silly.a 5k car should be pretty nice and last 4-5 years with normal maintenance.cars are not built like junk 80's cars anymore lol.
i think people feel the need to spend so much to get something "reliable" is simply because the price of new is so far out there.don't try and compare the price of new cars to the level of used ones on a scale of reliability to price.remember cars drop in value.......FAST! just like mobile homes.
price falls off way before reliability does.
side note; someone should ask Dave when the last time he bought a 5k car was.let alone sold it for the purchase price about a year latter with approx the avg of 10k more miles on it lol.remember guys,he doesn't live in the same world most of us do.
Q*bert the point is to flip it.
"Let me try this again..." -Dave
I️ think Dave knows more than you
Bro older cars are made better than the cars nowadays. I have a ‘90 ford ranger and never had any problems with it
I have a very good mechanic friend! I asked them if I should buy a car with over a hundred thousand miles and it would come out rather cheap. He told me that in the long run it would may come out real expensive because you never know what the owner did with it. I have the money and a good job, I bought a new used car under a hundred thousand miles with a warranty and gap insurance. He told me this was the best thing I could have done.
Nothing wrong with buying a new car if your going to drive it till it's not worth fixing I always worked on my own cars replacing engines transmission and so on but now that i'm older I would rather not keep doing that so I did buy a new car back in 2014 it's a Honda Civic which should last me the rest of my life now days the interest to buy a new car has such a low interest rate or sometimes zero interest so the banks don't make that much money as they use to it's and it's about paid off since I been paying extra on it.
Killer2600 I drove used cars my whole life replacing engines,transmissions or what ever went wrong now that my house is paid off with low interest rates and some times zero I went for it and now only owe around 7000 and it only has 8000 or less miles on it so it should last a long time I'm not losing because it's not going to be sold beside my time has value as well more then Dollars any day.
To me, any car that doesn't have any payments and everything isn't falling apart is a car that is worth keeping. Long as you are keeping up with the repair work and even more worth it if you work on your own car. It's pretty hard once you get into the more serious repairs but long as the car is in good shape it's worth keeping. Resale value doesn't mean anything if the car works! I'll drive mine until i can't find parts for it! :)
Danny Smith
I had mine for 16yrs.... once it was unfixable. Get my another new car.
Banks still make a lot of money on 0% interest car loans, they get all the interest up front...
In 2012 bought a $5500 truck... 6 years later sold said truck for $5700... Certainly not the norm but not impossible either. Some vehicles will deprecate to a point but will hold a certain value until you just slap wear it out. 10 months and a few thousand miles you’re not losing money with a decent popular used vehicle.
I always drove old cars until 3 years ago when the GM card gave me $3k in "earnings". That along with $2k in "incentives" enabled me to write a check for just over $17k for a Cruze Eco. It has been great. Gets over 40mpg/ hwy. and 37 around town.
I bought a used toyota for 8k cash (55k miles) and have been using it for past 6 years. I believe that finding a low mileage car is even more important than how old it is when you are buying used cars. He didn't mention it but there are many benefits of owning an older car like - 1. cheaper maintenance 2. you can decide to get liability only insurance. Just the cheap maintenance and liability only car insurance alone can save thousands over years.
Be careful only doing liability only insurance. Someone knuckle head hits you without insurance and you end up in the hospital with major medical bills.
Excellent advice thats how i bought a Rolex bought one for 6k saved 6 k over a year and traded up to 12k Submariner date
Maybe I got lucky or something. In 2016 I spent 2000 dollars on a 2000 volvo s70 and it has given me two years of trouble free driving. I have spent less than 1000 dollars on just routine maintenance. All you need to do is figure out what make model and years are good, and find one for a suitable price. There’s lots of used junk out there, but there’s also plenty of used treasure too.
2 days after this, she went out and financed a Merc...
I financed my truck new at dealer cost at zero percent. Its completely paid off this coming July. Truck is still mint and in gonna drive the wheels off it.
When u live in Miami and its like BEYOND HOT AND HUMID AND YOU LITERALLY ARE DRENCHED IN SWEAT EVERY DAY!!!..i think its a wonderful investment. But the essential need of a car is reliability and convenience and maintenance is amazing.
It is always wise to buy a new car cash and sell your own old car cash.
Not if you have a low apr.
Even if you have a low APR. Not a wise decision.
My car died, I didn’t have $15000 sitting under my mattress. I got a loan so I had a way to get to work!
Elitist...
you dont need $15k for a car to get to work are u serious.. maybe your ego's maintenance costs that much but thats a different story
It's never wise to buy a brand new car period.
I agree with Dave Ramsey on not getting in to car debt. I also think you should not get in debt at all. In a perfect world we should all be using cash to buy everything including houses (there are countries where there is no financing at all). Things work a lot differently here and if you ask me buying a new car lets say a Honda or a Toyota with a MSRP of 18k with 5000 down and 0% or 0.9% interest rate would be a wiser choice. On a brand new car you do have peace of mind for 2-3 years of no unexpected repairs. What if she is not able to sell that 5k car or has to shell out more money on the car?
Haha I guess that's too much math for her to take and I see Dave didn't have patient to her.
But how come you can sell or trade in a 5K car 10 months later worth the same 5K, the car should have depreciation and will be worth less than 5K.
You could potentially make money on the car if you bought the right car from the right person. Find someone who's desperate to sell.
SupraWes so take advantage of a person who's down on their luck? Good strategy
Dave never mentions the hassle and cost to buying and selling cars. Private sales can take months, and the difference between the trade in and retail cost of the same car can be enormous. And then there is sales tax.
I wish this was practical in south Africa. the cheapest cars here go for USD 11k or R 125k
or she could spend $3000 to get her car fixed which saves her $2000 more over $5000 initially recommended by Dave Ramsey than getting rid of the car and spending $5000 then have $7000 for down payment..
I think I'm smarter than Dave Ramsey..
+Anthony Abelardo the point is to NEVER have a down payment for anything . NEVER make payments to a bank . Idk if u were being sarcastic but if you weren't well then I sir are a fool .
Paulina Vasquez I mean.. unless you started out with massive amounts of money and never need credit/cash advances for anything it's wiser to work with the bank or else nothing important would get done unless you are doing things that involve no money like a priest or something.
Things and technology require some sort of cash. I learned many things I would have never learned if it wasn't for things.
But, your perspective works for you then it's great but I feel is people like me actually give things information that you need when you need it when you have no idea what to decide.
Bilal Ahmed yea
buy a $2000 corolla (pay a mechanic $100 to thoroughly inspect it before handing over the cash). do routine maintenance on it. save up for a down payment on a house, and diversify
Dave Rocks
Have not had a car payment in 15 years. Bought oldest son a car for $1200 bucks three years ago...still going. Bought second son car $2,800 bucks two years ago still going...
The way I see it, you pay a $3K major expense on a $3K car, you have a $6K car.
That might work the first time. But it won't the second time. And it's a BMW, so let's not kid ourselves: there'll be a fifth time.
Omgosh, he killed me when he said” I’m so confused, let’s try again” …. Lol 😂
Dave confused her @4:50 when he said she could drive a $15,000 car
I bought a 16 year old Nissan for $5000. Drove it for 3 years. Within those 3 years I probably put $1,500 in repairs to it. It blows my mind that people are willing to make $6,500 in payments for a whole year to drive a new car with at least a $5000 down payment.
1st tip to buying a car:get a Toyota, I daily a 2004 camry with 250k miles, still runs like a clock, bought it for 3k when I started my college, graduated in summer of 2020 with $3800 in cc debt, I am gonna drive it till the wheels fall off.
Geez, this girl isn't very bright and to think she is a nurse... I don't want her pushing my meds.
Lifeinlimbo 😭😭😂😂😭
Lifeinlimbo what she needs to do is get the boy friend involved in checking out a good used car. I'm sure that team can do the job
LifeInLimbo I wouldn't say that people just have strong points and weak points
she may know a lot more about pushing meds than being financially stable. dont judge her for not being bright.
You don't have to be all that smart to be a nurse. Just hard working and caring. Those are valuable assets too.
How do you sell a car that barely runs for $3k?
It's 2022 and 5k dollar cars don't exist anymore....
one more comment. I brought a 2009 dodge ram Laramie powertrain warranty lifetime $40,000 new. 4 year 0%Apr pay off in 2013. 2017 still running strong and still looking new. 130,336 miles today. I'm planning on keeping this truck as long as I can or someone hits me really bad. the value today is ,14,000 trade in. I think what I'm doing is great. 4 years from here I'm going to buy a new truck
It would be better for her to fix the car drive it until she pays the loan on it. In the mean time put the $500 away each month until the car completely dies.
Exactly, because she's taking a hit on paying off the car,
THEN she's gotta spend the time to find another $5k car in reasonable condition,
THEN she has to hope that car is reliable and do whatever maintenance it needs (usually tires, brakes, battery, etc)
THEN she has to try to sell it at almost what she paid for it (probably not going to happen after a year of owning it)...
THEN she has to try to find that $10k car and hope it's reliable and what not.
I'm sure after whatever major repairs there's not going to be much more wrong. My dealership gives 12 month warranty on repairs. You can go places and get certain things done for cheaper, go to dealership for repairs you don't want to risk getting done poor (unless you know a good mechanic).
Douglas Moran LOL! :D
This is where I slightly disagree with Dave on cars. To many people a car is more than just a point A to B machine and there are certain new features that a lot of people want. The caveats to buying a new car if you need to finance some of it should be that you do NOT have any other forms of debt aside from a mortgage, the total purchase price of the vehicle is LESS than 3/4 of your annual income (payments can be spreadout for
Ford--------> Fix or repair daily!!!!!!
My last and current car is a Nissan. I did a four your car loan, it's been 7 years and counting. And the car still runs like a champ. No engine leaks or tranny leaks.
You forgot depreciation on the $5000 car which in 10 months will probably be $2000-4000 depending on the car and she will probably have $500-1000 in repairs in that 10 months. If you're not paying a bank you're paying a mechanic. Like a diamond car payments are forever.
What if the next old car has problems? What if she just fixes that car she has... and pays herself the money. Also you can't assume she'd get all her money back after driving a car for 10 months...
right...Ramsey does seem to think you will get exactly what you paid for it back, maybe she will, maybe she can even get more but there's a chance that she wont, although the chance is better then debt
Usually you don't get more back unless you get a really good deal. It will have more miles and be almost a year older.
It's not worth fixing the car she has. She's better off looking for a 5k car she can get buy with for 10 months, but making sure that car is reliable by having a mechanic check it out for her.
+Whispered “Metsutan” - what's the point of spending another $5k on a car when she has a decent car that probably needs less than $2k of work. Who knows what problems this next car
Jaguar7444 well if that car wasn't having issues it is worth keeping. However the car she was talking about in this video was falling apart and was not worth fixing. If you have to do car repairs on the regular basis and then needing to spend another $3k it's better to trade it in for something more reliable. Dumping money into a car that has a new problem every few months isn't worth it. If she was only spending maybe $500 a year on car repairs which is the limit anyone should be doing. And that's only for stuff like replacing tie rods, bearings or whatever. Brakes, batteries, belts, hoses and tires are usually the only things you'll have to regularly replace but if you are are replacing more than that on a regular basis like a new alternator or starter or engine gaskets then that's a problem vehicle.
I probably spend about $400 a year on abnormal repairs and that's pretty good, if i was spending more than $700 then i would either need a second vehicle and use the main one as a project car (which i plan on doing) or like in her situation she needs to replace a car that has become a money pit. Putting more money into a car than what it's worth and it's not even paid off yet.
If she sold the money pit car for a $5k one and replace that one in 10 months when she has another 5k she can then upgrade to a newer one.
I work in the Oilfeild and I gross 8-10K a month , I am still driving my 1999 Lexus while I see other guys buying 50K trucks and continue making $700-$1000 monthly payments which I think is crazy , I am envious but I don’t think I can be stupid .
As much as I agree with Dave Ramsey, buying brand new cars can be very beneficial and even cheaper. Atleast here in the uk. I’ve sold brand new cars for 149 a month 0 Deposit for a 4 year hire.
Right now,I don't want to think about a car payment, I live in NYC ,we've abundance public transportation options here..
I love to travel in the trains and buses here..
Thank God..
Personally she should buy a new car. I bought my first brand new car. Had it for 16 years, before it gave out on on 2012. Went and bought a new car. I will keep it as long as I can.
E Rodriguez you convert 10k in 500$ wow congrats
Bad advice! I bought my Toyota New in ‘08 for $14,000. It will be 10 years come April ‘18. It has 112,000 miles on it and has been a gem with proper maintenance.
Telling a young girl to spend $5k on a high mileage 7-8 year old used car is foolishness.
Buying used=buying someone else’s problems...
Rent (lease) depreciating assets (cars), own appreciating assets (real estate)
I bought an old Mazda 3 for $3500. Had it for 3 years. Only have done routine maintenance on it.
See that last part is where I struggle in life.
If I was him and i heard that she didnt understand a basic concept (4:55) that a 7yo would understand I would literally get angry and call her names.
How do I fixx this issue 😭
You could buy a certified pre-owned 2-3 year old toyota corolla with low miles for around $15k. She has $5k for a down payment, Financing $10k for 60 months would only be a monthly payment of $189/mo.
I don't understand the premise of the only cars you can buy are a leased BMW for $500/mo or a clunker for $2000 in cash. My scenario puts her in an almost new, very reliable car with a very manageable monthly payment.
I work for a large credit union and the heads of the consumer lending areas buy 1 or 2 year old vehicles. They let someone else take the big depreciation hit. I am in my 50's and have never bought a brand new vehicle.
This girl is not the smartest .
it's a thing called common sense.... a lot of people don't have it
Which is weird because she is a Nursing student and Im a nursing student and i have standards to meet. How can she not add up money? lol I wouldnt even need to call this guy, I would just do my own research and calculations of how much i will make and whether or not i should take out a loan.
Google keep asking me to change my name. sooo annoying. You both don't have the same brain but, she not the smartest cookie. You'll be amazed how much a person don't know. We judge people based on how they look on the outside but like my mom said ....go home with them and see how they live and how they manage their finances before anything else.
Douglas Moran do what works for you
Brian Ross I'm sick of people looking down on people with education that's why immigrants are taking most of the higher paying jobs and then everyone else is complaining about income equality
Man, talk about a rollercoaster of emotions for Dave...
The question is what kind of repair is it?. If it is a bad engine, then it might be worthless as you'd get into trouble not disclosing that to the buyer.. If it is a transmission, or head job or gasket, then make the $3,000 repair and drive it for as long as it goes
My 2000 Toyota with 95k miles for $2500. Runs great. Probably just need axles which is easy job. $60 bucks per axle probably.
if you have little to no debt, and you have good steady income in the household. i dont see anything wrong with getting a cheaper new car or a certified used car. The problem with getting into a car loan is many people often get too much car then they can afford and or have to much debt to income ratio and then have poor credit which then carries a poor interest rate. thats when you get into trouble.
I only buy new vehicles and keep them at least 10 years. I finance car for 60 months and payment is less then 13000 and is 250 per month. Many vehicles brand new with excellent and long warranties , such as kia forte , ford focus ,hyundai elantra , toyota corolla etc. Dont buy big expensive vehicles and you will be fine.
The better answer is to keep the Ford and find a better/cheaper mechanic. Don't get repairs done at a dealership, unless it is under warranty (which hers is not).
Get a Toyota love
$5-6000 can get you a GOOD car! I check local listings daily.. I'm currently in the market and also tempted to just get a motorcycle. I'm that case, I can have a new vehicle for that amount. Bikes are also super easy to work on so I'd save there as well. Gas mileage is great as well.. although I doubt this girl can work a screwdriver..
Ford stands for Fixed Or Repaired Daily
In Iraq my native country and most else where in the world. People don't buy American for the same reason. I'm sorry it's the truth.
do not feel sorry for saying the truth. I'm american.
Ford trucks are some of the most reliable vehicles on the planet...
My car was 6000 and it’s a great car! If I keep up on my oil changes I’m sure I’ll have it for a long time!
Heard 3 people on here with car problems and own a Ford Fusion. I don't get what people consider when buying a car, not reliability I suppose.
Love this channel it helped me I’m not buying a car with a not just pay cash for it rn and build on what I really work hard for
SOMETIMES PEOPLE WANT A NEW CAR TO NOT WORRY ABOUT CAR PROBLEMS. SHES A GIRL THAT SEEMS LIKE SHE DOESN'T KNOW MUCH ABOUT CARS AND A NEW CAR WOULD BE PERFECT ESPECIALLY BECAUSE SHE DOESN'T Have TO WORRY ABOUT MAINTENANCE
Girl wanted to get into debt?
Finished RN school with no student loan debt & $6k in savings even after spending $3k in car repairs?
She got spooked with the Fusion. If the car does need $2k more in repairs then what the dealer is offering for trade in is fair.
Would you pay full value for any car that needs $2k in repairs?
Dave failed to ask her basic daily driving questions-
How many miles do you drive per year?
Where do you live?
Might be working late shifts?
All of those questions matter in determining her next vehicle purchase.
I always lease a car and there is no reason to drive 5k junk car.
Michael Lawn Why do you want car payments every month for the rest of your life?
Daniel B
Business expense, so get it written off at the end of the year. Plus I like driving nice car and not have to worry about repairs etc.
Michael Lawn
Get a cheaper Toyota. And then use that excess funds from the lease car.
If you then put 500 a month that would have been on the lease agreement into a fund at 10% interest per month you would have about 100,000 in about 10 years.
If you were really ambitious you could retire with millions if you tried. I am now in my 40s and I am ready for retirement.
Michael Lawn Lease also known as FLEASE because its such a bad deal financially. Why do people keep thinking newer is always better. Sorry but i have rented just about every single stand econo too full size NEW car for weeks at a time in traveling all over and it all feels like cheap plastic and nowhere near as comfortable or reliable as my 14 year old toyota avalon(wish i didnt sell if for my NEWER JUNK CAR! NEWER DOESN'T ALWAYS MEAN BETTER.
Wow. Thank you so much Dave!
I’m currently looking at my buying a car, as my current car is going to fall apart at any point now, and I’ve been trying to avoid a car payment.
But this just helped me avoid a car payment! Thanks!
A car is the worst way to invest your money, no doubt!.
Douglas Moran Ok, but that's clearly not the essence of the original post....ur just tryin to be a smart a or something
but some of us have to have them in order to get to work
Depends on the car, how long you keep it, and how you maintain it. Have you never seen how much popular classic cars sell for?
Bastian In 30 years, you'll still have a deteriorating asset needing maintenance to maintain its value....classic cars are quite capable of losing value in the marketplace just as much as they are of gaining value...have you ever listened to Warren Buffett?
PATTY D You have an investment that is just as much fun, joyful, and usable as it is profitable. And if you get tired of it, you sell and make a nice profit.
I live in Corpus Christi. Majority of the people want to drive brand new, loaded F150s, BMW, Mercedes and trade them in 3-4 years after. They just love to show off at red lights, neighbors or colleagues. If you go and check their bank accounts, they barely make the next month. I am sure she just went to BMW Corpus Christi dealer and got her car there.
Correct me here if I'm off but he said to buy a new car after 10 months with the trade of her $5000 and that somehow equates to $10k? Isn't depreciation a thing? So a $5k car in 10 months be worth $5k would it?
If after ten months, if my $5,000 car is going great what do I do with the $5,000 saved? Buy lottery tickets?
I buy new because 1) I don't know how well the person before drove the car. 2) I don't know how well they took care of the vehicle. 3) I plan to keep my vehicles for many years, and plus I don't drive much. My vehicles are investments, and I pay them off way before the note is over. Took a 6 year note on my car, and paid it off in under 2 years.
8 year old car is shot? Listen, my first truck (which I still own BTW) is 51 years old as of writing this. 1966 Ford F350. I purchased it for 300 dollars, pulled it out from a farm field where it had been sitting for over a decade. And with less than 2 grand and 4 weekends of really mild work (one month) I have myself a F350 with a hydraulic dump bed. Its worth a good 8 grand now.
It is NEVER a good idea to buy new. EVER.
bless her heart lol
I think Dave Ramsey need to do a segment where are they now ?
A car today costing 5k is not likely to be a great car. With a new car at least you have the security and peace of mind of a warranty. Either way you pay. I prefer the security and peace of mind of a new car. You pay either way, fixing an older car today is spend. I have a family van, low miles 04. Cost me 2500. Transmission went out, cost me 3900 for that. In the long run, car payments mostly balance out, just pay it off as quick as you can.
What about losing by paying tax every time you sell and buy a better car? In texas its 6.25% she would pay for using the car for 10 months. Or she could get financing at 4.25%- how is that worse?
My dad bought a used 2019 car dealership claims he will receive a check back $4500 after six months of paying interest on the car loan. Sounds scammy! Thought first it was through Nissan corp but was sent installments from chase with nothing mentioning Nissan. My gut says he was scammed
Buying brand new is engineered to keep you in debt, the warrantee is getting shorter because auto manufacturers know YOU the public will not take care of the investment. You won't go get routine maintenance because either you don't have time or money. You don't have money because you're either drinking and partying on weekends or spending foolishly or plain and simple are overextended by a bank that seen you coming from a mile away. If you don't have a solid financial future you don't need to spend the 50,000 on a new f150. You need to find a mechanic inspected used vehicle you can pay cash for that will save you money by allowing you to keep minimal insurance and filling for 30 bucks a week. I see people come in saying they can't afford to maintain their vehicles and they've run 6 even 10k over on their oil changes..... why did you buy a 45,000 car if you can't afford to maintain it? Now you are stuck in this and having to borrow more to pay a shop to fix what you forced yourself to neglect. Take a lesson from a professional mechanic, pick a good used car and have it inspected. Find something domestic and generic so that your repairs and maintenance are more affordable. Make sure you know your mechanic by first name and look for garages that are stable enough to pro rate your repairs, many will charge you "flat rate" or "by the book" which means that shifter cable in your Mazda 6 make book for 10hrs and the the mechanic like myself got it done in 3.... the garage got 7 hrs free labor rate for that job by charging by the book and forcing me to hide to car and move to the next job instead of saying hey, your car is done and here are your savings. You people don't even have a clue how shady many garages are today.
I dont understand how he feels giving advice like this is acceptable.
What she needs is a trusted mechanic to tell her if she can fix her current car and drive it
Buy a 5k car that WONT break down
Or buy a 10k car and expect that to be better
Its about finding makes that prove the test of time and maintenance, thats how you make your money work for you, not by just thinking a 10k car must be a good car.
Idiotic and simplistic advice that could wind people up in way worse off situations.
God i love the internet
buy an older car, and i mean older. there is less to go wrong with them. i have a 1996 camaro Z28 LT1. 235K miles on it. yes i had to fix some things but i was able to do the repairs myself. the car isnt driven in the winter but i daily drive it all summer. its a reliable car. i never put $3,000 into repairs. i could replace the entire engine, transmission, and rebuild the rear differential and still likely be under $3,000
The dealership isn’t going to give her 5k for a trade on a car that was worth 5k 10 months ago. Also you have to pay sales tax every single time you “buy another 10k car every 12 months.”