22% Interest Rate On A Car Loan? (And It's Underwater!)
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- เผยแพร่เมื่อ 28 ก.ย. 2024
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I don't know where to get 1500 dollar car that's even going to make it home 😂
Junkyard i guess
A good mechanic!
The local junkyard. I did it in the early eighties. 100 bucks. that's about 1500 today. It never did run right. It got me everywhere for several years. I sold it before college for 150. Mitsubishi Champ. The Green Machine. LOL
@@TedFarabee okay good for you! I just bought a 4000 car and thought that was the bottom of the barrel 😁
This young lady does not sound like she is handy with a wrench (if she had to pay someone to get her brakes changed, she won't be able to fix little things on the car), so a junkyard car isn't for her.
She just needs to keep the car she has and learn from the mistake and never repeat it.
A $1500 reliable car. Sounds great, I'll take three. Lol this young lady winces at maintenance costs, I can't imagine the repairs she would encounter on a $1500 car.
what a stupid advice this people giving!!!!
Have you ever heard of Civics and Corollas my dude?
This wasn't taught to her but she's trying. I applaud her
For $1,500 it’s going to have 200k miles at a minimum. I’m sure it’s possible to get lucky and find a well maintained car for so little money but you could also win the lottery. It’s not 2005 anymore. Trust me I drive cheap cars and you are just buying problems for anything less than 3-4K and even that’s pushing it.
@@jonathantaylor6926 my g, 200k is just the break in point, I'm looking at a $1500 EK hatch with some Type R goodies on it. Automatic civic sedans can go for $1500 all day, and if those are too small for you, 90s Camrys and Accords are just as cheap, though the gas mileage isn't as good.
Those weren't repairs...those were the joys of owning a car...this is why an emergency fund is important. Tires, Brakes, Oil Changes, etc...are all a part of it and when you start replacing one of them, the others will fall right behind. Pay the car off and don't finance again.
That's what I thought listening to this too. The stuff she lists is all part of regular maintenance.
Replacing old tires and fluids is regular maintenance which should be planned and budgeted, not paid from the emergency fund.
Maintenance is not what the emergency fund should be used for. Those aren’t emergencies, they are eventualities. Plan accordingly.
You can finance it if you truly want a new car and you can pay it more extra.
This isn’t even what an emergency fund would be used for, this is just a consistent maintenance expense that you need to budget for monthly
I used to sling cars in the hood at another point in my life and I can’t tell you how many car loans I gave out at 24% interest because that’s all a lot of people could get approved for… either that or they have to walk. It’s unfortunate
After about nine months u coukd possibly refi at a much better rate if she makes payments on time
Nothing a can of gasoline and a match can't fix.
I literally laughed aloud at this comment.
Rotfl!
@@v.m.4453 me too!
I did too!
This made me laugh so hard
She has gap insurance, right?
does anyone on this show not understand no one is getting a $1500 car right now
Don’t confuse maintenance or wear items with repairs.
People always make mistakes when desperate shopping.
These $1500 cars are actually an electric bicycle
We talk about teaching financial literacy in school. Loan interest rates should be at the top of the class. The amount of grown adults that don’t understand it is concerning.
@Sydnee Leah based on your pic, your onlyfans will cover any loan you could possibly take out
That car salesman done bent her over. Ouch
The fact that she said “wheels” and tires replaced tells me a lot. She really doesn’t know anything about maintaining a vehicle. Highly unlikely you need wheels replaced. Usually only bad potholes with low profile tires. You should never get another car because you have to do maintenance. And if you ruin other stuff because of lack of maintenance than that’s on you.
What planet do you buy a reliable car for 1500?
lolololol
Planet earth. In the year 1982.
@@megalodon1726 jupiter!!
Seems like anything decent nowadays is at least $5000, $3000 buys you something but lots of repairs will be needed
They’re stuck in 2005 where you could get a 1990 Camry for $1500 and it ran for 10 more years.
Get a 1500$ car lol you can tell that Rachel has never had to struggle for anything with Dave’s money
And ain’t god good for that? The goal of raising kids should be to never have them struggle like parents did.
@@zyzzuschrist3410 that’s not the point, the point is the Ramsey’s are out of touch with working class Americans
Buy a Toyota and not Chinese junk from American car companies
I find them all over. Make it a Honda or a Toyota and you’re set. Have a good mechanic.
@@zyzzuschrist3410...no...the American economic system is good for that...
Paid $28k for a $14k car, that’s just so sad.
I don't understand why the caller couldn't get a personal loan with a lower rate and pay off the car loan? Cause there's no loans currently that will be 20%.
Ramsey would never recommend that, but I would. Or even a 401k / TSP Loan
@@Christfollower89 absolutely not!!! do not touch your retirement... be patient and consistent
@@tylergraham4472 you realize that if you take a TSP Loan, you are paying in addition to the money you already contribute right? You just lose the shares on that amount until you buy them back through paying the loan off
I agree there has to be some creative finance option to help the process. However a lot of what Ramsey is preaching is more about self discipline. Essentially don’t mess with the finance games. Just work hard and get it paid off. In theory you could do both. However would a relief refinance take the grit out of her. Delay the pay off in 12-18 months plan to 3-4 years.
A 1500 reliable car doesn´t exist anymore where I live. She should keep it i think
There's no such thing as a $1,500 car thats reliable. Prob not less than 10k lol.
1.500 bux you are buying someone elses problom lol
It sounds like the car is just fine but she has an emotional dislike of it because of the terrible deal that she did.
That is just normal maintenance for a vehicle. Keep it and try to pay it off ASAP
These poor kids have no guidance and get in way in over their heads at such a young age!!!
Gave her the old Army Private Special
I was gonna say the same thing. Saw it a few times during my service.
Back in 2019 I was in a similar situation. I needed a car and agreed to the loan terms knowing what it was about. About 12 months later, I refinanced the loan for 5% and paid the car off in 4 years total instead of the 6 that I agreed to. I was paying a bit more per month than the original loan so I went ahead and paid that same amount to the new refi loan. It can be done. Sometimes you have to make the best of a bad situation. But do your homework and find out what you can do and when you can do it and you'll get out of a mess. The car was a great buy and runs and looks new. I won't need another car for years.
No she doesn’t need a extra job she’s already got two ! Every car has maintenance costs, with 45000 income she should be able to pay for the car fast , that’s the maths
There is literally no such thing as a reliable and safe $1500 car. Our iPhones are almost that price! This advice sometimes from Ramsey is so bad
Its based off of Dave's experience when he was broke in the 80s lol
@@ryankeels4661 exactly, so now it's more like $5K. Also his $1000 emergency fund is more like $4K, or what I tell people is to keep at least a month's expenses for their starter emergency fund.
It's like when he suggests that delivering pizzas (I guess in that super reliable $1500 car) will make you tons of money.
That's not underwater, that's deep sea diving! Hope you can figure this out.
Another option is to refinance.
John is right!...Rachel is wrong!
what the problem with refinance / take a different lower rate loan ? is the interest already baked in ?
$1500 car LOL
Would it make sense to take out a loan with a much better interest rate if possible?
New wheels?? Tires, I understand. Wheels??? Something's not right here. You can get steel rims for dirt cheap.
With that interest rate, it sounds like she got a vehicle at a buy here pay here dealership.. terrible idea! Also, $1500 cars with no problems dont exist anymore. Shes a little out of rouch like her daddy dave
She upside down on her car cause she been doing gig work and putting a lot of miles on it.
Terrible advice. Pay the dumb car off. Unless she’s a mechanic she has no business buying a $1,500 POS that will just break down constantly… maybe 20 years ago $1,500 could get the job done but I’m todays money you’re just buying problems.
That’s robbery that they charge that much interest. Messed up and they shouldn’t allow it
Nice of Aubrey Plaza to call in
No
60 hours a week is INSAAAAANNNEEE!!!
You do know there is 168 hours in a week right
Doctors sometimes do 80 hours weeks ,so it's possible
I thought that was funny too. Rachel saying 60 hours a week is insane, LOL!
Yeah but 70 is needed for sleep at a a minimum.
I'm doing 65 right now. Of course for a season (summer).
"Name a product(tangible) that increases in value with age AND use." KS
My Rolex
Godfather. 💯
@@m.687 Put more scuffs and scratches on it so the value can increase.
Retro video games👍
@@crazyjack2019 So a retro game that is unopened in box is worth less than an opened one?
Make more $$$$$
Max Pain coming to a lot of folks underwater on cars ! And houses but Dave won’t agree with me there
So are we going to point out that when she’s giving advice she sits the same way her dad does or are we not talking about that
She even went to college?
If they cannot work out anything with you the dealer I would do a voluntary repossession but this is a good reason the dealer sold her a car that’s no good and made her pay so much money especially if she didn’t have the car that long to have all these repairs
go back to the dealer and see if you can negotiate the payment. Or take the car back and exchange it for a better car
The dealer isn't going to negotiate the payment and they aren't going to take it back.
Lol, go back to a dealer that already ripped her off?
can someone explain why public transportation is not an option for people this deep? do they really need a car?
I used the San Diego Trolley and with the filth and mental people I wouldn't want any relative riding that thing.
Imagine creating a system that you think is better than paying the highest interest off............. LOL LOL
This girl clearly doesn’t know that cars require maintenance. Bet she opens the hood and smears oil on everything as calls it an oil change.
20.2% interest.
How in the world ? I got to see this
She can’t refinance that loan?
Are ppl still able to find reliable cars for $1,500?
Sad young American in so much debt
She sound like me lol
what about refi the car for a l lower rate?
Hail Omniscience of Snow flakes
This girl needs a male companion in life like boyfriend, husband, brother, father etc.
What if she doesn’t want that? Relationships are not for everyone.
She needs someone with some logic and reasoning
@@taylorsmith9629 everybody should want at least a father.
You can’t say the obvious out loud anymore
@@taylorsmith9629 bruh
suggesting jobs that will destroy her car? really, just do a voluntary repo and be done with it.
I said the same thing and if they bring me to court I will dispute it they sold her a car 🚗 knowing the car 🚗 had millions of
Issues especially she only had the car 🚘 for a short time
is she single? 😁
That's what I thought. She needs a male companion.
@@Primitive_Code Chad and Tyrone are on standby
These two give terrible advice in every way, and they talk as though their teens with all the "likes" added in
Stay away from the stealerships. Buy a Tesla and avoid the traditional auto sales scams.
Rachel enlighten me where you find a reliable $1,500 car lol.
Tires, Battery, starter, alternator, brakes & A/C kinda all go out in that order and then u got a GREAT car again !!
If she has a friend that is good mechanically u can but the items at autozone and put the items on saving u sone cash… but yes stop the snowball n make min payments on cards n get ur maintenance completed n pay the car off n then put an emergency car fund in place n then make xtra payments to principal of car loan, when u send it in make sure that u request that it go to principle, otherwise they tack it at end n on interest!
If it's underwater, they should get it onto dry land before the water ruins it.
I SEA what you did there.
Thats probably why it is worth so little
Don't hate your car, love your car. Your car is your partner on the way to becoming a baby steps millionaire. And, I agree with, John, continue making minimum payments but, temporarily, pause the snowball.
Might I suggest? After your initial emergency fund is in place, set up a secondary car maintenance fund. Every September winterize, and every March summerize, your car. Know that cheap tires, which is fine if you need tires but have no money, are only good for a year or two. Have your car balanced, or aligned, with every tire change or rotation.
New tires and new brakes are an investment. Now the car is worth more. Maybe look at it that way.
She doesn’t owe $10.5k on the car. 25 payments of $359 is less than $9000 of payments total. Something in her math is wrong. Dave would have noticed this.
Maintenance is not a repair
Thats peoples problem if they want to go into debt for getting a new vehicle and wating to show off then people wonder why they cant retire and wondering gow the rich made it thanks for the advice Mr David Lawrence Ramsey III
If she has a decent fico score she can refi the car loan at a much lower rate, and race to pay it off. Go on you tube and research reliable used cars and save up to buy one of those options and never have another car payment again.
This stuff is scary and pisses me off to see vulnerable girls trying to make it. I'm grateful , super grateful for the work you do. The whole organization
And for the people asking what about the guys trying to make it? It sucks but we have to accept that things aren't equal
Help her out, Pay her bills.
$39k? Dang
No more circling back.
We just got rid of her.
The new one is even worse than circle back girl.
Yup, her replacement is no better!
Circle back was at least interesting to listen to. The way somebody could spew incorrect information without even missing a beat🤣 The new one, I kind of feel bad for her. Like a deer in the headlights. 😂
Someone really saw her coming.
Why is JD on with financial questions? I have not seen a video where he provides valuable insight.
He’s annoying to listen to
Agreed. It's like he's guessing and trying to repeat what he's heard others say, but doesn't add to the conversation. I've also noticed that he has an example from his life of the exact thing happening to the caller.
25k (72 x 350) for a car worth 5k. Wow.
They do it all the time….didn’t you hear her say I didn’t look at the rate/terms,just the payment amount…there’s so many stupid people on this planet it’s crazy..if you hafta finance at 20 plus %,don’t finance more than 5-7000 on a car , the high interest rate won’t hurt you as bad…and for gods sake don’t go to a buy here pay here…
What’s the problem ? Who cares what the car is worth, just keep paying and driving it.
Exactly. Car worth is only important if you sell it instead of driving it until the wheels fall off.
Because she's making regular repairs to it, and making payments. Its a psychological thing where she's trying to justify getting a much newer and nicer car and rolling this underwater loan into that new car. She's not interested in getting out of debt, she wants to get rid of frustration.
Sounds like she got had by a buy here pay here dealer. A good dealer wouldn't sell a car like that.
Get a new mechanic.
This woman is literally me lol, altho i make significantly more than her
Only fans.
lol
Alternator isn’t a hard fix , that’s not good advice … transmission and engine ok then dump the car but don’t say alternator
You can tell Rachel wasn’t confident about the advice she was giving
We are in the smartphone era and people are not willing to use the calculator on it to multiply the months times payment amount. I just don't understand why
If you are a college graduate or are currently attending college and bank at a pay day loan , you probably need to quite college and join the military lol
Mess around and find out
Rachael, what would you look like with blonde hair?
A snowball
Work like crazy 60 hours. lol that not crazy
Ohhhhh… Rachel Cruze gave financial advice. She studied communications! Stop riding your father’s coattail!
Make sure you really need what they are saying you need where you are taking it for maintenance and maybe question who you are taking it to.
People act like just go fix the car is the easiest thing to do, what do you do with you don’t have a mechanic you can trust?
Let me guess its a woman before I start the video....
a $1500 car? girl thats a good electric scooter lol
2001 toyota corolla...get it
Dang private, why did you go and do that? Jk 😂
Since when is 60 hours a week insane hours that's normal
Insane for some people I mean it’s 20 more hours than the normal work weekend
I know right I'm doing 80.
It's normal if you live in a dump like the US. Most other developed nations have much better standards of living and a better work/life/health balance.
That's insane period. The fact that corporations and the corporate media, yes that includes CNN and Fox, condition people into thinking working 60-80 a week is anything other than normal shows the power of elite.
Make America Great Again!
So everyone can buy a low milage $1500 car again!
First
Caller sounds like she where's flip flops everywhere, still smokes cigarettes and is addicted to scratch offs. Wonder how many tats she has? She sounds like the mother from the movie "Florida Project".
That’s a lot of assumptions for a phone call.
@@1jw298
That voice. That situation. Sounds familiar. I could be wrong.
@@1jw298 He probably came up with the tattoo image because it sounds like she makes many rash life decisions without thinking of the long term consequences. She does have that raspy tone in her voice for a 25 year old. I would bet that K Roddy isn't too far base here.
I was thinking this , generally with one bad decision there’s a lot of others
Say what you will about big cities - mass transit rules. $2.75 can get you anywhere in NYC. $2.75 can get you a ferry from east 90 st. to the the Rockaways. And YES, it's safe. Just put your phone away and pay attention.