hoopfan71 Thanks! I drive alot with my job so I've had a car payment almost the entire time. It feels good to get it paid for and put money in the bank.
hoopfan71 Luckily, I enjoy my job. My mileage is reimbursed at the IRS rate and I get a nice mileage check monthly. Going to try to stretch this car out and pay cash for my next one and get my 6 months expenses. I've been putting 10% in my Roth 401k, ready to bump that up, but going to wait...
That’s like my dad, very proud of him! He’s a doctor driving a 2002 blue Honda Civic with crank windows and no AC. Now he just bought a house in cash, great example!
My grandpa always says, "If you can't pay cash for it, you can't afford it." Nothing wrong with a used car. No dealerships and no car loans. He's a smart man.
@@michaelacosta6443his is why you make sure the car you are paying for is not a piece of trash….I’m still driving my old 2004 Honda Civic, and it’s 180k miles….my dad bought it for me for college and it was originally from a young women who no longer needed a car because she was working in the city….she kept it in great condition….I think it only costed my dad 8k, and I’ve driven for 10+ years already
The truly disgusting thing about vehicle financing is that a full 88% of those people never actually pay off the car. Instead, they trade it in, often upside down, and finance their new vehicle when they feel like they want to. That negative equity is then added onto the new car and they end up digging themselves deeper into the hole. My dad always said that if you can't pay cash for it, you can't afford it.
UTubeCorruptAntiFreeSpeechLiberalCo a car is way different than a house. A car declines in value as soon as you drive it off the lot. If you buy a house you can fix it up and the value of it can go up. A car is not worth financing.
When I used to make 25k a year I wanted an $80k car. When I made about $45k I wanted a $60k car. Finally broke the $80k mark and I'm more than happy with my 2016 Altima, which I own. Funny how things change. Thank you, Dave.
100%. Most people spend more as they make more. Why not keep your expenses the same, while taking in more money? I'm allergic to debt, so that's how I've lived my life so far and I'm happy. I may not have the $80k Mercedes or the 5,000 sq ft home, but I also don't have hundreds of thousands of dollars worth of debt.👍 I don't owe anything to anyone other than property taxes and utilities. Every other dollar is saved AND INVESTED.
In my 29 year driving career, I've owned ONE new car. Of which I spent 4 years making $400 payments plus another $100 for full coverage insurance. Never again.
My husband picked me up from work in our 1999 Dodge Caravan, bought for $5000 cash in 2004. A coworker saw and gasped, "That banged-up thing is yours?" "Yep," I said, "and you wouldn't believe the special features it's got!" My coworker was very curious and said, "What?" "Bought for cash and been paid off for a dozen years!" I said. He laughed, "That's the BEST feature of all!"
+Noah Bodhi I bought a 2000 Lexus ES300 July 2015 for $2,000, and like you my friends were like " why did you buy this old car"? Its almost like people expect you to buy a new 20-30 thousand dollar car. I really don't care what they or anyone else think or say cause not having to worry about having 500-600 dollars a month taken out of my monthly income is the BEST feeling in the world!
i bought a brand new 2500 ram in november of 2014. my payments were $877 a month plus $109 in insurance. with my job i was able to afford it but yesterday i sold it and bought a 02 blazer with cash. i will look for a good USED diesel truck when i save enough cash again. thank you mr ramsey for opening my eyes, you may have saved my financial life
wow!! $ 877 a month...in 2 years you could save and buy something nice cash. im done with payments forever i took what would have been a payment and bought air compressor and all kinds of tools so i can fix the $5,000 trucks ill buy cash from now on.
working shlub I'm right there with you. I've accumulated a lot tools over the last 15 years or so that I use to repair my cars. They've saved me literally thousands. I've told this story several times, but I got a used '99 Acura RL for $650 recently that was in great shape other than a blown engine. I replaced the engine and did a few other things to it, and it's a daily driver again. People are quick nowadays to discard things, and I like picking up their high quality scraps dirt cheap and putting them back into use.
I drive a 2001 Honda Civic with 204K miles on the odometer. I bought it new and it's still going strong 14-years later. I'm debt free, have money in the bank as well as investments. One of these days I will buy a new car. For cash of course.
+jvolstad If you can get a zero interest loan, why not keep your cash and by the car with zero down? Why have the cash sitting in the car depreciating?
The problem now isn't the price of the car...it's the maintenance...I'd love to buy a cheap used car and drive the wheels off of it BUT good luck finding an honest mechanic! I've seen TWO in my entire lifetime and I'm 59...so I understand WHY people buy cars with warranties...
You are correct, I tired to the wheels fall off with mine 2003 Infiniti g35 170k miles but it was one thing after the other. Valve cover gasket 2-3 times alternator throttle body full suspension got to the point the repairs wasn’t worth it anymore. Lord forbids if I can’t reach my mechanic and gata go to these shops 1k plus 😩 only thing I would suggest once you see your car start actin up if you haven’t already start saving up for a new one.
Everyone knows if you’re going to hold on to a car its best if it’s a Toyota or a Honda, or a diesel truck. There are plenty of other cars that are good, it’s a mixed bag though. Had a Honda Civic with 240 and a prism (basically a toyota) with 210 before selling. They kept going too
I’m really loving my car situation as I think it’s best of both worlds. I bought a used 2007 Lexus for $28k in 2010, payed it off within 2 years, and have been driving it for the past 8 years payment free and nearly maintenance free. It’s a really nice car, people say “ooooh nice Lexus”, I smile because it’s not really that expensive and it’s still going strong. Right now it’s got 125k miles and I could probably keep driving it for another 10 years.
Got a 13k loan @ $208/mo. for 72 months back in 2016, paid it off 3 years early but i still find myself watching this video and the others with dave/chris hogan telling it like it is. All i can say is never ever again will i give away my wealth!
Cars with no payments are the most fun to drive. Car is a tool. It moves me from A to B safely with air conditioning. I'm not driving a show car, it is an old truck. I haul hay, haul wood, and move myself around. Nothing needs to be fancy.
Corey Langeslay that is very true but I'm not one of those people with the "a car is just to get you from point a to b and back" lol I enjoy a nice and fun ride
I make 60-70k a year and I drive a paid for 5k car. I see all my friends who make 30-40k a year in 50k cars. It's so hard when they come show me "their" new car to not just tell them to quit being dumb, take it back and get a car they can afford. But they all think they deserve it... -_- I don't get how people don't do the math they have to work a year and a half just for a car to look cool.
For some people it's their dream to own a nice car though. Making poor financial decisions for the sake of pursuing your passions is more complicated than just a math problem. Many people would gladly work until 70 instead of 60 if that means living their dream in their 30s and 40s.
But normally you have house as investment and if you work you build up pension. Then why needing to have additional savings and not put the money in a car?
He makes some very good points but one thing he doesn't consider is that you aren't guaranteed to live until 70 or 80 or even tomorrow! I'm middle class and always owned a sports car of some kind and a driver to put miles on. Never paid full cash but I shop around for interest rates, buy cars 3-4 years old, and am very frugal in other areas of my life. But I'm not going to live like a scrub and never have fun while banking on living to old age! Like anything else, there needs to be a balance. It would be a pretty sad day if you saved every penny and ended up dying before you could enjoy what you worked so hard for. Don't be dumb and pay full price for things, go to garage sales, shop online, be frugal, and you can afford to get sweet rides and enjoy life to the fullest even at a young age!
Well, Dude. You are not guaranteed to live at any age since you were born. Again, age is a number. You are more than likely to have more health problems in debt compared to debt free
Nah. I'm 28 and have a paid off house, no debt, and a wife and daughter with college and retirement savings started early. I own all of my income. The bank gets none of it. I'll take that accomplishment to my potential early grave with a smile on my face. To each their own. I found that living like a "scrub" in my 20s has taught me about life. And now I can enjoy the remainder of my life living and giving like noone else.
@@lovefunkrockmusic One can own fun vehicles without being owned by the banks. I bought a Suzuki DR650 with 8K miles for $1900 in FL, then used it as my commuter all year...50MPG, $10-$20/mo full-coverage, cheap reg., under $100 for a sand/mud-capable tireset that lasted 6K+ miles, and I had recreation when I wasn't working. A 250-450cc dualsport moto could be even more economical, but I still have that DR650 almost 10yrs later. A Del Sol, MR2, Metro, Celica, Paseo, etc. are affordable convertibles, among many others.
Dave is incredible. We don't always agree on everything but I do agree that car payments are what hold people back. Since listening to Dave's sound advice, my wife and I downsized and paid off both of our cars and trust me no more car payments in the future!! We're not wealthy but it feels so good to not be paying for something like that monthly.
Thank you, Dave, for all the great information you provide. I have something to add to this video... Years ago, before I got my act together, I found myself about to have a car repossessed. What I did was call the dealership where I bought the car new and told them my situation. I asked them if they had anything at all on their lot they'd trade for my car. I ended up with an eight year old Blazer they were about to wholesale out and I drove that vehicle for seven years, at which time I paid cash for a car I bought off Craigslist I negotiated down for $2400. Drove that car for four years till it was totaled in an accident and paid cash for another car off Craigslist. No car payment for the past 13 years and it's great!
Amber Nelson I buy a “nice car” because its fun to drive, I love taking my car to back roads and tearing around corners its what I do instead of going to the movies or going out to an expensive restaurant
lady i work for owns 478 apartment units free and clear that she inherited from her father....she drives a 2008 ford explorer and her husband drives a 2001 lexus...never would guess they are millionaires.
What's your point? Grant Cardone started with $0, has a net worth over 100M and leases a car for over 4K per month. My mom is worth over 5M and drives a 72K SUV. Whoop de do....
My last new car that I bought on credit was 17 years ago and I regret it. Never bought a new car again. I bought used car in cash. My investments grew faster, got my mortgage paid in seven years. Thanks to Dave Ramsey for a great and common sense advise.
@@jconroy102 I think the problem is that people are financially irresponsible or incompetent. I myself make car payments, but it's nothing fancy or high end. It's something I can afford and within my worst case scenario margins. If I were to get laid off or fired, I could always just pick up a part time gig and still pay it off. However, I will never buy a new car, in full or financed, because that's definitely a waste of money.
"We're all gonna die anyways so it doesn't matter if we're up to our eyeballs in debt." This is the mentality that is responsible for the $3 Trillion dollars Americans owe in car debt.
Back in my younger years, my at my first job, working at a country club, one thing I came to realize was that the members driving the cheaper American cars were the best tippers. The ones driving the expensive imports ......I was lucky to get tipped a dollar or two.
This comment section is the only place I see people bragging on how old their car is and how many miles it has🤣🤣 It makes me feel bad that I want to buy a 5 year old car
I always bought cars cash n I finally financed a car this year n I’m loving it .. I did it for me n my kids n proud of myself.. I’m still me with a new or old car 🤷🏼♀️ I didn’t do it to impress anyone but myself.. n I don’t regret making this choice and no one will make me regret doing so 💕 so go for it hun
My new car was recently totaled, and I took that as a blessing. After the insurance paid it off, I went and bought a cash car. 11 years and 15 brand new vehicles over that time period. I’m done with car payments as well.
someone on TH-cam recommended you, I searched you up and glad I did. Thank you ! This is exactly what I need to be listening to and I need to stop being stupid.
Actually, if it gets you from A to B, and the overall annual cost is cheaper than other options... your friend is absolutely right in driving the beat up car.
@@carultch the lease gets you into a better car for less per month but as you only rent car you must keep very good care of it or you pay for all dings and scrapes at end of lease term. also if you want to get out of lease you must find a dealer willing to buy you out. some dealers may have too many if those models and not be inclined to. A finance has higher payments typically for less car but you have more options to get out of it early by selling it to nearly any dealer, individual friend or family member at any time.
@@tjmichael8773 Thanks TJ. So it sounds like leasing a car is generally less money per month, but it comes with strings attached. Like mileage restrictions, and the onus to always repair after any accident. Whereas with a financed car, the dealer doesn't care about you maintaining its residual value for them to buy it back, because your underlying intention is to eventually pay it off and keep it, so you don't have those strings attached.
I don't blame him. I'd you want to see the best cars out there, just go a Sunday morning to Church where African Americans go. You will be Amaze!!!! The latest Cadillacs Scalade, Mercedes Benz, BMW, Teslas (not the cheap series 3) and ladies with expensive hats. (Disclaimer: this is not a racial comment, take it as a good joke) For just in case (just look a my profile pic) 😎
There's plenty of shame going around a church, you gotta be ashamed of this that and the other. We like to judge even when we tell ourselves everyday that scripture tells us not to judge. Aint that strange
I agree with this but you shouldn't be embarrassed by your friend driving an old car. A car does one thing, gets you places. That's the status symbol culture rubbing off on you.
My family is convincing me to put a down payment for my first car (3rd year college student & need a vehicle for internship). I got $5k saved up and needed Dave to wake me up. No one in my family has paid off a car. They trade them in for a newer one. I can’t handle being trapped paying for a car for the rest of my life.
Musa I of Mali yeah, China bribing our African leaders as soon as you left to buy out our beautiful morther home land Africa. In sacred for our continent
Sure, but most people don't care about sports cars, so Ramsey's advice is 100% valid. Even old sports car can be had for super cheap if you are willing to work on it yourself!
I had a Mazda 626 I believe year 94. It was my grandmother car and the mileage on it when I received it was 65，000. and my insurance was $80 and gas $30 and no car payment. I miss that car someone totaled my car and I've been without since 2013. I'm praying God works on my behalf where I don't have a car payment on my next car.
Just discovered Dave last month and I’m a huge fan. I have no debt other than a car payment but he’s making me rethink my decision to finance the car. I make 61k and bought a new Camry for 25k but I only put 2k down. I had the mindset of “I can afford the payments” but I know now I probably couldn’t afford the car. I’m way ahead on the payments and nowhere near upside down but I wonder if I should sell it and pay cash for an older vehicle. Camrys are great cars but listening to Dave everyday is making me feel foolish for financing a car.
22yrs old, Finally paid off all my credit card debit. Been making bi weekly payments on my car note and now will add 100 extra on principal only to speed the process. Then my mortgage is next!
My car was recently deemed a total loss by geico. I was paying on the car for 3 years. I only had like 8 months left on it. I feel like a weight off my shoulders has been lifted now that the car is paid off and out of my hands. I will never do a car note again in my life. I rather walk or ride the bus. My next car will be a cash used car.
Had an $18K balance for another 6 years on a used car. Monthly payment was $400 + $125 for full coverage insurance. I got sick and tired of paying for it, so I sold it and bought my friend's 10 year-old beat up car for $1,000 cash. That's the best financial decision I've made so far. No credit card debt or mortgage. Only debt I have are my $33K in student loans which I will pay within 2 years.
+Nihil2005 If you buy online you should get a cc but pay in full. You are not protected with debit card purchases. It is as simple as that. Plus, you do need a FICO score to get the best interest rates for a mortgage. Just saying.
+David C patently false. you have the SAME protections using a debit card as someone using a credit card. the law says so. regarding a mortgage the same is also false, though it may require more money down. anyone financing more than 15 years and not putting 20% down is being foolish anyway.
+Hi I'm Shane It is not false. If you use a debit card , even authorized by VISA or whomever cc company, it is much harder to get your money back . This is a fact. I stand my ground about cc rating. I do believe people should pay their cards in full as it is a convenience to carry less cash. If an adult is dumb enough to keep a high balance on a cc or any balance for that matter, then yes you would be correct. I enjoy my cc's and I enjoy the freebies I get like statement credits or whatever when I reach those bonus point thresholds. Again, I reiterate, I never pay the cc companies a dime interest or fees.
Something doesn't add up, a 1978 Caddy 30 years ago would have only been 7 or 8 years old. How in the world could a 7 or 8 year old car have 478,000 miles?
Michael Atchison I work at a car dealership and had a lady come in with a 2005 4Runner with 500k miles on it... Her job took her all over the country which she drove the 4Runner. Its not impossible...
He’s full of it but has helped countless people get out of debt, and is worth millions, by doing the exact same thing he has helped others do. Makes sense.
What doesn't add up would be how you graduated elementary school. 478,000 miles divided by 8 years is around 160 miles per day. You do know that some people drive an hour and a half to and from work each day right? 2 1/2 hours of driving per day on a highway is all it takes. There are truck drivers that drive that much in 3 years. People who drive for a living. Or travel to and from work.
@diziamonddave one of the guys from my high school days just got a 100k luxury car it's about $2500 a month, and he's actually thinking of trading up to a 175k car.... at that point he should just get a house tbh.
Herfirstmate very sad truth. i have always had to do car loans but I always keep payments under $180 a month. I am working on paying off my current car and then try to save so I can buy next vehicle for cash
Yep mine's $455 a month. Never again will I buy new. Before this, I had a 2004 ford escape, I bought it cash for 4,000. Had 100,000 miles on it, long story short, my mom needed a car, I gave her mine. 4 years later the Ford is running like a champ and my mom has no payments while I'm kicking myself with 11% interest, 455 carpayment and 150 insurance
I needed this Dave! I really wanted to buy a new car. I'm 23 y/o and my car sucks lol but it's paid for aside from 1 repair (200, just waiting for the part in the mail) and maintenance. I'm just sick to death of old cars that need constant fixing. I assumed if I saved up enough like 10k I could buy a 30k car and be ok. But I'm not ready for 20k of debt lol! I'll save up all the money and buy the car cash!!
I work for the subways in New York City as a supervisor. I started as a train conductor 12 years ago making $54,000 a year. Now, I make about $82,000 a year, which in 4 years will rise to $103,000. Here's how crazy this gets. The people who started with me 12 years ago all went out and bought (or I should say, fleeced) new cars. Their logic was that we all have these "well paying" jobs, and we should be able to buy a new vehicle. I didn't. I still don't have a car. AND... our employer gives us a pass to RIDE THE SUBWAYS AND BUSES FOR FREE!!! It's not like the car is particularly necessary in this city. I'm only now starting to think about buying a car, but I'm saving for it, and buying it in cash. I absolutely refuse to be suckered into a car payment. I can credit you, Dave, for your teachings about money. Thank you for that.
Some people just like cars because they are fun to drive and bring you from A to B without having to transfer or having to check for the last one going. What is wrong with that?
I love David Ramsey because you can just tell that he’s not just giving you a speech about anything or noting he’s giving you something he’s really passionate about .👍 and for that I say thank you
Thing is, not everything needs to be an investment. A car is an appliance that serves a purpose like a washing machine. Do you care how much value your washing machine loses when you take it out of the store? Do you care how much it will be worth five years later? No. Same for cars. That said, cars are expensive, don't go overboard.
Actually you should care because a car is one of the fastest depreciating goods on the market. It's also one of the most expensive of such depreciating assets. That magnitude cannot be ignored since that even for well-to-do people it's a huge dent in the pocketbook. A washingmachine by comparison does not depreciate as fast and is far less costly. So it's a false equivalency fallcy on your part
The moment your wife is asleep and can't talk sense into you....so you watch this, Not once but 3 times cause you know better then to finance a brand new car at 1:30am in the morning.... Dave ramsay....thank you. You have saved my head from being cut off in the morning
Haha I just recently started watching this channel. This is amazing. I love how frank you are. So many people around us have that mentality of "i can afford it" while getting a loan.
Everything Dave says is true. 1981, when I was 20, I bought a used 1973 Mustang. Paid it off in a year. Had it 16 years. Then I bought a used 1996 Dodge Neon in 1997, paid it in 4 years. Had it for 13 years. Then I bought a new 2010 Chrysler PT Cruise. Paid it off in 5 years, still have it 5 years later. Just paid for repairs and kept my insurance rates low. Didn't care what people thought of me. I HATE CAR PAYMENTS.
I could afford to pay cash but I chose not to... the dealership offered me a 0% loan for 60 months and on top of that they offered me a $1000 financing rebate. I am now taking that chunk of money and putting it in the bank so now I earn the interest and get the rebate too. Paying cash is not always the best course of action, it depends on the situation.
Having a 0% loan is not so bad as long as you SAVE/INVEST the money you would otherwise have spent paying cash. The trouble is most people are stupid and if they are offered 0% finance they will just spend their cash sum on top and then end up in debt. If you cannot clear any debt in cash tomorrow you should not be holding it. Sometimes cheap finance can be used profitably by freeing up cash to invest at a higher rate of return, but very few people do their sums when deciding whether to pay cash or use a loan. Most people are financial cretins.
Brent Hardy that's not how it works. New cars have invoices... Which are viewed by a simple Google search. The msrp doesn't change based on the person who is viewing it credit worthiness.
The thing is, it’s more of a status symbol to have a cheap car these days than a nice one. Any idiot can get a $0 down 72 month 20% interest loan on a bmw. Keeping something that is reliable and costs you nothing is a much bigger flex.
Wish I listened to this before I went and leased a car and traded in my perfectly running car that was paid off with cheap insurance. Really regretting so much right now.😞
I have made a stupid mistake a few years back by purchasing a turbo charged Mazda CX-7 from Carmax. What a pit of money that was. Eventually, I got tired of throwing money at it and sold it as it started having major engine problems. I am upside down on that auto now and still have some remainder to pay off, plus I have purchased another "more reliable" vehicle from Honda dealership 2014 Honda CR-V. Now I have two payments :( Some people may think that its plain stupid to have two car payments, but I did what I could to avoid any further problems with my transportation and get some type of money for the dying Mazda (while it was still running); as my car is my bread, that is the main tool for me to make a living. I am sharing this because I want people to understand how important that is to make a good choice right from the beginning. Mazda was a beautiful car but only from outside and not making an educated choice right from the start, cost me more down the road. We all pay for our mistakes; some pay more and some pay less but there is a price for everything. Rich are getting richer because they make educated smart decisions, they put the time and effort into research and then act. Its all about the choice we make.
Buying a car is tricky. I used to commute through out Corpus Christi on a bicycle. I just couldn't catch break being I worked at Walmart full time and part time at Taco Cabana to make rent and utilities and prospects for finding a new job with better pay and benefits were coming through. I was advised by a friend that I was not going to get anywhere unless I was able to cover longer distances in a shorter amount of time, best advice I ever got. While riding my bicycle I passed by a parking lot where someone was selling an old Ninja motorcycle for 2400. I called the guy and we negotiated and he let it go for 2100. Took the money out of my saving account and after throwing in a smelly old helmet and jacket along with a crash course on riding a motorcycle I was out easily going from one end of the city to the neighboring towns. I was able to apply for jobs further out that paid better. It was a risky but I had to have some form of transportation that would allow me to travel to further destinations with minimal gasoline consumption. After 2 years I stopped at a small dealership and ended up getting a certified used single cab Ford ranger that I paid 270 a month on with great gas milage. I was able to travel even further more comfortable and with more ease along with safety. I was able to get better job offers and gradually move up. A vehicle can be an investment that helps you get ahead and no I'm not one to pay thousands of unnecessary dollars on an unnecessary vehicle.
My headcanon: Dave’s friend is Scotty Kilmer and the car is his ‘94 Toyota Celica.
Lol It might be. Scotty is definitely a millionaire
Andrew Gutmann i as well think his friend is Scooty. 😆😆😆😜
@Carol Howard I can't agree with you more! GOD Bless! :)
Andrew Gutmann yesss!
I wish i had Scotty's 03 Lexus.....
Proverbs 13:7
One person pretends to be rich, yet has nothing; another pretends to be poor, yet has great wealth.
Love it
That's a great verse I never heard it
So true
True rich people dressing like poor but with great wealth, what a shame..
@@ugutierrez55 I think you missed the point
I paid mine off this week. No car payments feels awesome!!! Working on saving 6 months of expenses feels much more useful than a car payment.
hoopfan71 Thanks! I drive alot with my job so I've had a car payment almost the entire time. It feels good to get it paid for and put money in the bank.
hoopfan71 Luckily, I enjoy my job. My mileage is reimbursed at the IRS rate and I get a nice mileage check monthly. Going to try to stretch this car out and pay cash for my next one and get my 6 months expenses. I've been putting 10% in my Roth 401k, ready to bump that up, but going to wait...
brandonmc01 congrats brandon
@@brandonmc01 do 15 percent and save for a house if you haven’t yet
@@ryanthepianoman27 one year from having mortgage paid off :-)
That’s like my dad, very proud of him! He’s a doctor driving a 2002 blue Honda Civic with crank windows and no AC. Now he just bought a house in cash, great example!
Tell him to spoil himself and get a car with ac.
Yeah, no ac is a deal breaker lol
1996 Toyota Tercel, I paid cash for it just over a year ago. It had about 59,000 miles on it. It might be the last car I buy.
My grandpa always says, "If you can't pay cash for it, you can't afford it." Nothing wrong with a used car. No dealerships and no car loans. He's a smart man.
Except when you have to constantly pay for brand new parts because the piece of garbage used car keeps breaking down a new engine isn't cheap!
@@michaelacosta6443 Olympic level mental gymnastics eh
@@michaelacosta6443his is why you make sure the car you are paying for is not a piece of trash….I’m still driving my old 2004 Honda Civic, and it’s 180k miles….my dad bought it for me for college and it was originally from a young women who no longer needed a car because she was working in the city….she kept it in great condition….I think it only costed my dad 8k, and I’ve driven for 10+ years already
@@ajseb people don’t take care of cars
Not everyone wants to live that way if you can make the payments yes you can afford it
I have not had a car payment in like 11 years. My old toyota is still driving strong.
Me too. I have a 2007 Subaru and it is going strong. I haven't had a car payment for 15 years! I am saving 80% of my take home pay!
kinny78 I got a new jeep as a gift because my family got nervous that i would actually drive till my cars wheels fall off.
Wrx sti or gt spec b ..you don't need anything better
Same as me , I save about $1500 a week
When you are in the car scene , you don't go out clubbing anymore
My dad who's a dentist drives a Honda Accord with 200,000 miles on it. And he's happy with it.
Contentment is the key
Different mindset from this generation
Typical dentist very boring person.
The truly disgusting thing about vehicle financing is that a full 88% of those people never actually pay off the car. Instead, they trade it in, often upside down, and finance their new vehicle when they feel like they want to. That negative equity is then added onto the new car and they end up digging themselves deeper into the hole. My dad always said that if you can't pay cash for it, you can't afford it.
Yeah and you look at the lease garbage, "only #299.00 a month, plus $3,250 due at signing" and then you don't even OWN it!
crazy!
Yeah that's pretty gross
@@HobbyOrganist leasing a car is a ripoff a and waste of money.
Your dad sounds like a wise man.
UTubeCorruptAntiFreeSpeechLiberalCo a car is way different than a house. A car declines in value as soon as you drive it off the lot. If you buy a house you can fix it up and the value of it can go up. A car is not worth financing.
When I used to make 25k a year I wanted an $80k car. When I made about $45k I wanted a $60k car. Finally broke the $80k mark and I'm more than happy with my 2016 Altima, which I own. Funny how things change. Thank you, Dave.
Getting one in a couple weeks paying cash. So excited. Been saving for a while for this one
@@smeak9246 great job!! Enjoy the new ride. No payments is the way to go. Future you will thank you so much
100%. Most people spend more as they make more. Why not keep your expenses the same, while taking in more money?
I'm allergic to debt, so that's how I've lived my life so far and I'm happy. I may not have the $80k Mercedes or the 5,000 sq ft home, but I also don't have hundreds of thousands of dollars worth of debt.👍
I don't owe anything to anyone other than property taxes and utilities. Every other dollar is saved AND INVESTED.
Thank God I just paid my Nissan Altima off earlier this month. I will never finance a car ever again! Cash only!
My nissan 2013 went out oct 2020. Ughhh....
@@MM-ng5wc there's the main issue financing..having that happen later on
In my 29 year driving career, I've owned ONE new car. Of which I spent 4 years making $400 payments plus another $100 for full coverage insurance. Never again.
Boat I’m in right now lol one of the biggest lessons I’ve learned. It was a blessing for sure made me get my head on straight.
How’s your car holding up?
Never again
You have to have full coverage
My husband picked me up from work in our 1999 Dodge Caravan, bought for $5000 cash in 2004. A coworker saw and gasped, "That banged-up thing is yours?" "Yep," I said, "and you wouldn't believe the special features it's got!" My coworker was very curious and said, "What?" "Bought for cash and been paid off for a dozen years!" I said. He laughed, "That's the BEST feature of all!"
+Noah Bodhi I bought a 2000 Lexus ES300 July 2015 for $2,000, and like you my friends were like " why did you buy this old car"? Its almost like people expect you to buy a new 20-30 thousand dollar car. I really don't care what they or anyone else think or say cause not having to worry about having 500-600 dollars a month taken out of my monthly income is the BEST feeling in the world!
I dont ever worry about what people loaded in debt think about what I drive.
+MrJimmy3459 $500-600 every month for a car would just make me ill. too much.
Noah Bodhi and it's completely unreliable. Jeopardizing safety daily
Dozen years and its very unreliable! You're an idiot.
i bought a brand new 2500 ram in november of 2014. my payments were $877 a month plus $109 in insurance. with my job i was able to afford it but yesterday i sold it and bought a 02 blazer with cash. i will look for a good USED diesel truck when i save enough cash again. thank you mr ramsey for opening my eyes, you may have saved my financial life
seriously what this guy was saying should be common sense for everyone.
hoopfan71 $877 is more than the note on a maserati
wow!! $ 877 a month...in 2 years you could save and buy something nice cash. im done with payments forever i took what would have been a payment and bought air compressor and all kinds of tools so i can fix the $5,000 trucks ill buy cash from now on.
working shlub I'm right there with you. I've accumulated a lot tools over the last 15 years or so that I use to repair my cars. They've saved me literally thousands. I've told this story several times, but I got a used '99 Acura RL for $650 recently that was in great shape other than a blown engine. I replaced the engine and did a few other things to it, and it's a daily driver again. People are quick nowadays to discard things, and I like picking up their high quality scraps dirt cheap and putting them back into use.
hoopfan71 I used to do that. Got burnt out from it. Started hating life. Took out a loan for a CPO 1 MY old truck. Much happier. MUCH.
Almost pulled the trigger on a a car loan on a 2015 f150. Thank God I found this,,, I'll keep my paid off 06 ranger a few more years 😂
Same buddy same buddy. Good thing the car was sold this morning when I was abt to pick it up
Yup i bought used cars all the time, now have 4 houses debt free.
I get the itch to buy a new car every so often and I force myself to watch this. Works every time.
Ranger is super solid.
@@LOS_016 mine has been great! Has a little lift, headlight retrofits. Not too bad lol
I paid off my car 2 days ago. Best feeling ever :)
Me too. I walked outside and the sun was a little brighter.
I bet the car drives a lot smoother now
Paying off your house will feel infinitely better!!
Yay!!!
I drive a 2001 Honda Civic with 204K miles on the odometer. I bought it new and it's still going strong 14-years later.
I'm debt free, have money in the bank as well as investments. One of these days I will buy a new car. For cash of course.
I have the same car it run great only problem is the oil leaking.
Where is it leaking?
+Jim Volstad I don't know. It's fine i just add some oil every two weeks. So far not a single problem. Honda is great car.
+jvolstad If you can get a zero interest loan, why not keep your cash and by the car with zero down? Why have the cash sitting in the car depreciating?
+Andrew Emmings if you have a loan than you have to buy the full cover car insurance.....
It's an anti gold digger maneuver.
I've been debt free for about a week and it feels great! I'll never go into debt again!
Still debt free?
@@tylerparker1333I’m wondering too lol
@@tylerparker1333 was there ever a response ?
Make sure you get full coverage bc liability will f u up
🙏🏼
The problem now isn't the price of the car...it's the maintenance...I'd love to buy a cheap used car and drive the wheels off of it BUT good luck finding an honest mechanic! I've seen TWO in my entire lifetime and I'm 59...so I understand WHY people buy cars with warranties...
JJ Grey - unless one has a bumper to bumper warranty with their car it won't help.
@Dante Garcia only if you buy them extra. New cars already have a warranty on them
You are correct, I tired to the wheels fall off with mine 2003 Infiniti g35 170k miles but it was one thing after the other. Valve cover gasket 2-3 times alternator throttle body full suspension got to the point the repairs wasn’t worth it anymore. Lord forbids if I can’t reach my mechanic and gata go to these shops 1k plus 😩 only thing I would suggest once you see your car start actin up if you haven’t already start saving up for a new one.
Everyone knows if you’re going to hold on to a car its best if it’s a Toyota or a Honda, or a diesel truck. There are plenty of other cars that are good, it’s a mixed bag though. Had a Honda Civic with 240 and a prism (basically a toyota) with 210 before selling. They kept going too
@@BEATRICEOTIE Meaning?
I’m really loving my car situation as I think it’s best of both worlds. I bought a used 2007 Lexus for $28k in 2010, payed it off within 2 years, and have been driving it for the past 8 years payment free and nearly maintenance free. It’s a really nice car, people say “ooooh nice Lexus”, I smile because it’s not really that expensive and it’s still going strong. Right now it’s got 125k miles and I could probably keep driving it for another 10 years.
Paid $2500 cash for my 2000 buick lesabre a couple years ago and she's running strong 👌
Payton Kaiser cutie
Those are real realible cheap cars and comfy too, just do the maintenance on it and you can keep it going for a long time
Beau Hatch thirsty 🤦♂️
When I pull up in the Buick you know what am doin
We have a Park Avenue and had a Regal, both excellent cars.
I get a kick out of people who say they “own” their financed vehicle. No the bank “owns” it, you’re financing it. Your paycheck is their collateral.
I tell them to show me the title for the car. That shuts them up real quick
Just like a house with a mortage..???
@@Zee06 right😂
No the car is the collateral... do you not know how loans work?
That really depends if it is a car loan or a lease. Car loan you do own the car.
Whenever I get the itch to finance a brand new car, I watch this video. Thanks Dave
Real talk, lol! SAME!
Got a 13k loan @ $208/mo. for 72 months back in 2016, paid it off 3 years early but i still find myself watching this video and the others with dave/chris hogan telling it like it is. All i can say is never ever again will i give away my wealth!
I always come back and listen to this every time I get tempted to finance a truck
Cars with no payments are the most fun to drive. Car is a tool. It moves me from A to B safely with air conditioning. I'm not driving a show car, it is an old truck. I haul hay, haul wood, and move myself around. Nothing needs to be fancy.
Corey Langeslay that is very true but I'm not one of those people with the "a car is just to get you from point a to b and back" lol I enjoy a nice and fun ride
I have three Mercedes-Benzes and a Volkswagen.
Yoni I have 4 Mercedes and 2 volkswagens
Why?
@spirals 73 well ur a woman no offense.
I make 60-70k a year and I drive a paid for 5k car. I see all my friends who make 30-40k a year in 50k cars. It's so hard when they come show me "their" new car to not just tell them to quit being dumb, take it back and get a car they can afford. But they all think they deserve it... -_- I don't get how people don't do the math they have to work a year and a half just for a car to look cool.
Those are the people who complain about capitalism.
Agree
For some people it's their dream to own a nice car though. Making poor financial decisions for the sake of pursuing your passions is more complicated than just a math problem. Many people would gladly work until 70 instead of 60 if that means living their dream in their 30s and 40s.
But normally you have house as investment and if you work you build up pension. Then why needing to have additional savings and not put the money in a car?
He makes some very good points but one thing he doesn't consider is that you aren't guaranteed to live until 70 or 80 or even tomorrow! I'm middle class and always owned a sports car of some kind and a driver to put miles on. Never paid full cash but I shop around for interest rates, buy cars 3-4 years old, and am very frugal in other areas of my life. But I'm not going to live like a scrub and never have fun while banking on living to old age! Like anything else, there needs to be a balance. It would be a pretty sad day if you saved every penny and ended up dying before you could enjoy what you worked so hard for. Don't be dumb and pay full price for things, go to garage sales, shop online, be frugal, and you can afford to get sweet rides and enjoy life to the fullest even at a young age!
👍
Well, Dude. You are not guaranteed to live at any age since you were born. Again, age is a number. You are more than likely to have more health problems in debt compared to debt free
Nah. I'm 28 and have a paid off house, no debt, and a wife and daughter with college and retirement savings started early. I own all of my income. The bank gets none of it. I'll take that accomplishment to my potential early grave with a smile on my face. To each their own. I found that living like a "scrub" in my 20s has taught me about life. And now I can enjoy the remainder of my life living and giving like noone else.
@@lovefunkrockmusic One can own fun vehicles without being owned by the banks. I bought a Suzuki DR650 with 8K miles for $1900 in FL, then used it as my commuter all year...50MPG, $10-$20/mo full-coverage, cheap reg., under $100 for a sand/mud-capable tireset that lasted 6K+ miles, and I had recreation when I wasn't working. A 250-450cc dualsport moto could be even more economical, but I still have that DR650 almost 10yrs later.
A Del Sol, MR2, Metro, Celica, Paseo, etc. are affordable convertibles, among many others.
Right on
Watching this in 2023. Dave Ramsey is still right ❤
Dave is incredible. We don't always agree on everything but I do agree that car payments are what hold people back. Since listening to Dave's sound advice, my wife and I downsized and paid off both of our cars and trust me no more car payments in the future!! We're not wealthy but it feels so good to not be paying for something like that monthly.
Thank you, Dave, for all the great information you provide. I have something to add to this video... Years ago, before I got my act together, I found myself about to have a car repossessed. What I did was call the dealership where I bought the car new and told them my situation. I asked them if they had anything at all on their lot they'd trade for my car. I ended up with an eight year old Blazer they were about to wholesale out and I drove that vehicle for seven years, at which time I paid cash for a car I bought off Craigslist I negotiated down for $2400. Drove that car for four years till it was totaled in an accident and paid cash for another car off Craigslist. No car payment for the past 13 years and it's great!
I don't understand why we need to care so much about what others think of our car.
If you buy a sports car, it should be because you actually love cars and love driving.
Yep! It's an addiction. I don't care about what others think, I'm just so enthusiastic about cars that I love sharing them with everyone!
Forget about others, all about me.
You're boring
Amber Nelson I buy a “nice car” because its fun to drive, I love taking my car to back roads and tearing around corners its what I do instead of going to the movies or going out to an expensive restaurant
My dad has a net worth over $2.5M and drives a 2012 camry
That's how he is rich , my dad lives the same a civil construction owner
The Future thats a nice car!
lady i work for owns 478 apartment units free and clear that she inherited from her father....she drives a 2008 ford explorer and her husband drives a 2001 lexus...never would guess they are millionaires.
The Future That's the same car my wife drives.
What's your point? Grant Cardone started with $0, has a net worth over 100M and leases a car for over 4K per month. My mom is worth over 5M and drives a 72K SUV. Whoop de do....
My last new car that I bought on credit was 17 years ago and I regret it. Never bought a new car again. I bought used car in cash. My investments grew faster, got my mortgage paid in seven years. Thanks to Dave Ramsey for a great and common sense advise.
3:48 "Avg car payment $386" ..... fast forward 8 years "avg car payment $729"
my car payment was 376 and it was tight for me, I cant even imagine paying 700-1000 dollara on a car payment now
dont be too cheap. if driving good cars makes you happy then go for it. in the end it doesnt even really matter
Exactly I don’t spend money on much but I’ll spend it on a car
@@jconroy102 I think the problem is that people are financially irresponsible or incompetent. I myself make car payments, but it's nothing fancy or high end. It's something I can afford and within my worst case scenario margins. If I were to get laid off or fired, I could always just pick up a part time gig and still pay it off. However, I will never buy a new car, in full or financed, because that's definitely a waste of money.
"We're all gonna die anyways so it doesn't matter if we're up to our eyeballs in debt."
This is the mentality that is responsible for the $3 Trillion dollars Americans owe in car debt.
Dave you are one the most entertaining, financial gurus out here. I appreciate your wisdom, humor and your books are incredible.
"You're driving the college fund!!!" 😂😂 I love Dave
Back in my younger years, my at my first job, working at a country club, one thing I came to realize was that the members driving the cheaper American cars were the best tippers. The ones driving the expensive imports ......I was lucky to get tipped a dollar or two.
This comment section is the only place I see people bragging on how old their car is and how many miles it has🤣🤣 It makes me feel bad that I want to buy a 5 year old car
I always bought cars cash n I finally financed a car this year n I’m loving it .. I did it for me n my kids n proud of myself.. I’m still me with a new or old car 🤷🏼♀️ I didn’t do it to impress anyone but myself.. n I don’t regret making this choice and no one will make me regret doing so 💕 so go for it hun
That guy is totally me.
the top settles. tsh tsh tsh tsh!
Lol 😆
Didn't expect to see you here, Cody.
Because you'd rather buy a car made of solid mercury?
Cody!!!
people laugh at me when I say I don't do car notes....
Then you should laugh at them and say, "you do car notes?? You Sucka!!!" hahaha.
No they don't.
Me too, but I swear it just confirms how dumb down this Society is lol
Decatur GA my ex boyfriend said you ALWAYS will have car payments! No need to save for one! I knew then it will never work.😆
Elizabeth L lmbo!!!
After watching several of your videos, I am on my way to be debt free, sold my boat and paid off my 2015 pick up, now working on the house.
My new car was recently totaled, and I took that as a blessing. After the insurance paid it off, I went and bought a cash car. 11 years and 15 brand new vehicles over that time period. I’m done with car payments as well.
In my country, having a car is a dream, keeping one running is a miracle, and we're thankful if we're able to drive at all.
You from India my man?
someone on TH-cam recommended you, I searched you up and glad I did. Thank you ! This is exactly what I need to be listening to and I need to stop being stupid.
Actually, if it gets you from A to B, and the overall annual cost is cheaper than other options... your friend is absolutely right in driving the beat up car.
I used to work for Honda Finance. I learned never to sign a fleece or finance agreement after that. God Bless you all!
I take it the,'fleece' word was intentional?
What ultimately is the difference between leasing a car and financing a car, in terms of factors that make one a better value to the customer?
@@carultch the lease gets you into a better car for less per month but as you only rent car you must keep very good care of it or you pay for all dings and scrapes at end of lease term. also if you want to get out of lease you must find a dealer willing to buy you out. some dealers may have too many if those models and not be inclined to.
A finance has higher payments typically for less car but you have more options to get out of it early by selling it to nearly any dealer, individual friend or family member at any time.
@@carultch both can be bad deals, also lease has yearly mileage restrictions
@@tjmichael8773 Thanks TJ. So it sounds like leasing a car is generally less money per month, but it comes with strings attached. Like mileage restrictions, and the onus to always repair after any accident. Whereas with a financed car, the dealer doesn't care about you maintaining its residual value for them to buy it back, because your underlying intention is to eventually pay it off and keep it, so you don't have those strings attached.
“I was embarrassed to drive it to church”. And that’s the problem with church
Or this is the person's own insecurities. Can't blame the church for everything
Church isn’t shaming anything at all......
Get out of here and solve your dad issues.
I don't blame him. I'd you want to see the best cars out there, just go a Sunday morning to Church where African Americans go. You will be Amaze!!!! The latest Cadillacs Scalade, Mercedes Benz, BMW, Teslas (not the cheap series 3) and ladies with expensive hats. (Disclaimer: this is not a racial comment, take it as a good joke) For just in case (just look a my profile pic) 😎
There's plenty of shame going around a church, you gotta be ashamed of this that and the other. We like to judge even when we tell ourselves everyday that scripture tells us not to judge.
Aint that strange
2007 Honda Accord with 165k. Riding that until my debt is paid off. 🙂
That’s actually a really nice car!
Honda’s are the best!
One of my coworkers has an 09 Honda Accord, 360,000 miles and still going strong
I’m driving a 98 Accord with 311,000 miles on it. Bought it for 4,500 6 years ago.
Garett Horner that’s awesome! I got mine for 3,750 with 140k.
Maybe the car has sentimental value to the guy...
LttlCndn he could still buy another car on top of that....
@Carol Howard if that's the case then can you send me some cash? I'm in deep need atm. If you are willing then let's exchange emails
@Carol Howard my kids aren't getting Christmas presents this year
I agree with this but you shouldn't be embarrassed by your friend driving an old car. A car does one thing, gets you places. That's the status symbol culture rubbing off on you.
My friends use to be the same , then I educated them that are 10 year old car is all you need .
The only problem is that shopping for cars is akin to getting a root canal.
Yeah, but the point Dave was making is that it does cut into half of his income
I'll never do a car note. These banks and dealerships are crooks.
My family is convincing me to put a down payment for my first car (3rd year college student & need a vehicle for internship). I got $5k saved up and needed Dave to wake me up.
No one in my family has paid off a car. They trade them in for a newer one. I can’t handle being trapped paying for a car for the rest of my life.
im naturally watching this.. its like it was meant to be for me to watch this!
"You're driving the college fund!" ....buahahahahaa...
That line is so true!
Come back we need you in Africa more than ever
@@Tttggggggg Patience, I will be back soon.
Musa I of Mali yeah, China bribing our African leaders as soon as you left to buy out our beautiful morther home land Africa. In sacred for our continent
difference is that a vehicle has a practical purpose, getting you to and from work. college degree is a useless piece of paper
I buy sports cars to enjoy , not to care what people think
Ben Chesterman right
Sure, but most people don't care about sports cars, so Ramsey's advice is 100% valid. Even old sports car can be had for super cheap if you are willing to work on it yourself!
ooooo nice GC
You got an r34 in that pic?
Agreed 🙏
I had a Mazda 626 I believe year 94. It was my grandmother car and the mileage on it when I received it was 65，000. and my insurance was $80 and gas $30 and no car payment. I miss that car someone totaled my car and I've been without since 2013. I'm praying God works on my behalf where I don't have a car payment on my next car.
Ashley B FAITH PLUS WORKS MY FREIND!# GOD BLESS
Just discovered Dave last month and I’m a huge fan. I have no debt other than a car payment but he’s making me rethink my decision to finance the car. I make 61k and bought a new Camry for 25k but I only put 2k down. I had the mindset of “I can afford the payments” but I know now I probably couldn’t afford the car. I’m way ahead on the payments and nowhere near upside down but I wonder if I should sell it and pay cash for an older vehicle. Camrys are great cars but listening to Dave everyday is making me feel foolish for financing a car.
22yrs old, Finally paid off all my credit card debit. Been making bi weekly payments on my car note and now will add 100 extra on principal only to speed the process. Then my mortgage is next!
I love how you speak the truth!!! You have inspired me to get a grip on mine finances and start continuously educating myself!
Shout out to the lady in the reflection! Behind the scenes champion.
🤣🤣🤣
she was the first person I saw lol. 🤣
😂😂I thought I was the only one that noticed that!
Lol you guys are champions for replying a year later ! Hope you all are safe and doing well.
@@dylanb4230 🤣I just found out about Dave Ramsey a couple months ago, so I’m all new to this haha
“Driving around in cars you can’t afford with car payments to impress people at a stop light you will never meet.”
Most neurotypical thing ever.
I Just started listening to you, and I love the fact that you are Honest about how you were living broke! It's rare and Very refreshing! Thank you!
My car was recently deemed a total loss by geico. I was paying on the car for 3 years. I only had like 8 months left on it. I feel like a weight off my shoulders has been lifted now that the car is paid off and out of my hands. I will never do a car note again in my life. I rather walk or ride the bus. My next car will be a cash used car.
Had an $18K balance for another 6 years on a used car. Monthly payment was $400 + $125 for full coverage insurance. I got sick and tired of paying for it, so I sold it and bought my friend's 10 year-old beat up car for $1,000 cash. That's the best financial decision I've made so far. No credit card debt or mortgage. Only debt I have are my $33K in student loans which I will pay within 2 years.
+Nihil2005 If you buy online you should get a cc but pay in full. You are not protected with debit card purchases. It is as simple as that. Plus, you do need a FICO score to get the best interest rates for a mortgage. Just saying.
+David C patently false. you have the SAME protections using a debit card as someone using a credit card. the law says so.
regarding a mortgage the same is also false, though it may require more money down. anyone financing more than 15 years and not putting 20% down is being foolish anyway.
+Hi I'm Shane It is not false. If you use a debit card , even authorized by VISA or whomever cc company, it is much harder to get your money back . This is a fact. I stand my ground about cc rating. I do believe people should pay their cards in full as it is a convenience to carry less cash. If an adult is dumb enough to keep a high balance on a cc or any balance for that matter, then yes you would be correct. I enjoy my cc's and I enjoy the freebies I get like statement credits or whatever when I reach those bonus point thresholds. Again, I reiterate, I never pay the cc companies a dime interest or fees.
how did you go about selling it? I need to sell mine but owe 6500 on it
Something doesn't add up, a 1978 Caddy 30 years ago would have only been 7 or 8 years old. How in the world could a 7 or 8 year old car have 478,000 miles?
Cause he's full of it, as we all know....
Michael Atchison I work at a car dealership and had a lady come in with a 2005 4Runner with 500k miles on it... Her job took her all over the country which she drove the 4Runner. Its not impossible...
He’s full of it but has helped countless people get out of debt, and is worth millions, by doing the exact same thing he has helped others do. Makes sense.
I drove 80k miles a year for dr pepper on my car. I love mileage pay
What doesn't add up would be how you graduated elementary school. 478,000 miles divided by 8 years is around 160 miles per day. You do know that some people drive an hour and a half to and from work each day right? 2 1/2 hours of driving per day on a highway is all it takes. There are truck drivers that drive that much in 3 years. People who drive for a living. Or travel to and from work.
I know someone with a 1 million dollar net worth driving a 4000$ car
E Ahlers more than most have.
That’s a savage. I’d do the same
A person with a 1 million dollar net worth has already made it to the 1%
Icarus I believe because thats the way he got the 1million net worth because he/she a cautious spender
My VP has over 20 million and he drives a Tesla.
“I deserve a nice truck because I work hard”
I love that voice Dave uses.
"I drove that car for ten years one three-month period"
What?
I replayed that part 10 times to ensure I was hearing that correctly
Ten miles? Or it felt like years??
He’s basically implying that it felt like 10 years driving that old hoopty.
Who in the world finances a car for 84 MONTHS?
Patrick Tuggles you'll be surprised
Very dumb people who think they are "saving money" by having the lowest possible payment with the most overall interest regardless of term length
idiots :)
@diziamonddave one of the guys from my high school days just got a 100k luxury car it's about $2500 a month, and he's actually thinking of trading up to a 175k car.... at that point he should just get a house tbh.
I did at 1.95% and I paid off the car in 5 years without penalty.
The average car payment today is almost $499 now. & that's a figure given very recently from Dave. Yikes.
Herfirstmate
very sad truth. i have always had to do car loans but I always keep payments under $180 a month. I am working on paying off my current car and then try to save so I can buy next vehicle for cash
I assume more people are getting loans for new cars rather than used, leading to a higher average payment.
Yep mine's $455 a month. Never again will I buy new. Before this, I had a 2004 ford escape, I bought it cash for 4,000. Had 100,000 miles on it, long story short, my mom needed a car, I gave her mine. 4 years later the Ford is running like a champ and my mom has no payments while I'm kicking myself with 11% interest, 455 carpayment and 150 insurance
11% interest on a car loan? lol
@@user-eq3uk6ye4w holy shiet 11%?
I needed this Dave! I really wanted to buy a new car. I'm 23 y/o and my car sucks lol but it's paid for aside from 1 repair (200, just waiting for the part in the mail) and maintenance. I'm just sick to death of old cars that need constant fixing. I assumed if I saved up enough like 10k I could buy a 30k car and be ok. But I'm not ready for 20k of debt lol! I'll save up all the money and buy the car cash!!
I work for the subways in New York City as a supervisor. I started as a train conductor 12 years ago making $54,000 a year. Now, I make about $82,000 a year, which in 4 years will rise to $103,000. Here's how crazy this gets. The people who started with me 12 years ago all went out and bought (or I should say, fleeced) new cars. Their logic was that we all have these "well paying" jobs, and we should be able to buy a new vehicle. I didn't. I still don't have a car. AND... our employer gives us a pass to RIDE THE SUBWAYS AND BUSES FOR FREE!!! It's not like the car is particularly necessary in this city. I'm only now starting to think about buying a car, but I'm saving for it, and buying it in cash. I absolutely refuse to be suckered into a car payment. I can credit you, Dave, for your teachings about money. Thank you for that.
New York City even without a car, how do you afford RENT?
Some people just like cars because they are fun to drive and bring you from A to B without having to transfer or having to check for the last one going. What is wrong with that?
I love David Ramsey because you can just tell that he’s not just giving you a speech about anything or noting he’s giving you something he’s really passionate about .👍 and for that I say thank you
You are absolutely right Sir! there is nothing better than being DEBT FREE. Great videos!
Thing is, not everything needs to be an investment. A car is an appliance that serves a purpose like a washing machine. Do you care how much value your washing machine loses when you take it out of the store? Do you care how much it will be worth five years later? No. Same for cars.
That said, cars are expensive, don't go overboard.
Agreed. Labor of love even for a car, I don't mind it
Actually you should care because a car is one of the fastest depreciating goods on the market. It's also one of the most expensive of such depreciating assets. That magnitude cannot be ignored since that even for well-to-do people it's a huge dent in the pocketbook. A washingmachine by comparison does not depreciate as fast and is far less costly. So it's a false equivalency fallcy on your part
BTDT on the beaters. Got tired of wrenching constantly and still having a POS.
That made me more miserable than this truck payment.
The moment your wife is asleep and can't talk sense into you....so you watch this, Not once but 3 times cause you know better then to finance a brand new car at 1:30am in the morning....
Dave ramsay....thank you. You have saved my head from being cut off in the morning
Just paid off my husband’s car today after buying it back in June 2020. It feels so good.
Dave: don't buy a car to impress others!
Other guy: follows Dave's advice
Dave: *surprised Pickachu face*
4:04 It’s priceless when Dave Ramsey starts screaming 😂🤣 He’s dropping all these gems & most people refuse to pick them up.
This video was great he popped off so much lol "cash on the barrel head!"
"I deserve a nice truck because I work hard"
Haha I just recently started watching this channel.
This is amazing. I love how frank you are. So many people around us have that mentality of "i can afford it" while getting a loan.
In the 1990s, decent beaters for $500-$1000 were very common, sometimes even as low as $100 to get you by short term.
Everything Dave says is true. 1981, when I was 20, I bought a used 1973 Mustang. Paid it off in a year. Had it 16 years. Then I bought a used 1996 Dodge Neon in 1997, paid it in 4 years. Had it for 13 years. Then I bought a new 2010 Chrysler PT Cruise. Paid it off in 5 years, still have it 5 years later. Just paid for repairs and kept my insurance rates low. Didn't care what people thought of me. I HATE CAR PAYMENTS.
I could afford to pay cash but I chose not to... the dealership offered me a 0% loan for 60 months and on top of that they offered me a $1000 financing rebate. I am now taking that chunk of money and putting it in the bank so now I earn the interest and get the rebate too. Paying cash is not always the best course of action, it depends on the situation.
Having a 0% loan is not so bad as long as you SAVE/INVEST the money you would otherwise have spent paying cash. The trouble is most people are stupid and if they are offered 0% finance they will just spend their cash sum on top and then end up in debt. If you cannot clear any debt in cash tomorrow you should not be holding it. Sometimes cheap finance can be used profitably by freeing up cash to invest at a higher rate of return, but very few people do their sums when deciding whether to pay cash or use a loan. Most people are financial cretins.
sbkpilot11 you ever think they add the interest on top of the “car value” and say no interest.
Brent Hardy that's not how it works. New cars have invoices... Which are viewed by a simple Google search. The msrp doesn't change based on the person who is viewing it credit worthiness.
Good idea as long as you pay it off in under 60 months. But don't put it in the bank with their 1% interest rate (on a good day). Put it in a Roth
Also got a 0% loan. Paid the car off this month and it's only got 58k miles on it. Gonna drive it for free as long as I can!
The thing is, it’s more of a status symbol to have a cheap car these days than a nice one. Any idiot can get a $0 down 72 month 20% interest loan on a bmw. Keeping something that is reliable and costs you nothing is a much bigger flex.
“ I wrote a check and paid for it... definition if you can afford it”. Thats awesome Dave!
Bondo buggy with a parachute on top. Gets me every time.
I know a guy who drives a 92 lexus he bought brand new. It’s spotless with 330k miles.
Wish I listened to this before I went and leased a car and traded in my perfectly running car that was paid off with cheap insurance. Really regretting so much right now.😞
Just lost my job, paid off my car loans for $3400, I feel free, next step is pay out stupid credit cards... Greetings from Mexico 🇲🇽
Mexico is awesome. I go to Tijuana twice a year.
How were you able to lose your job and still pay off
@@MB-gd6be moved to other side of the border, saved a lot of money...
“Reverse status symbol”, good one Dave.
“You’re driving through college fund!” wow I really liked when he said that.
If you're embarrassed to go to a church because of what they think of your car then go find another church.
Dave always brings me back to reality!
I have made a stupid mistake a few years back by purchasing a turbo charged Mazda CX-7 from Carmax. What a pit of money that was. Eventually, I got tired of throwing money at it and sold it as it started having major engine problems. I am upside down on that auto now and still have some remainder to pay off, plus I have purchased another "more reliable" vehicle from Honda dealership 2014 Honda CR-V. Now I have two payments :( Some people may think that its plain stupid to have two car payments, but I did what I could to avoid any further problems with my transportation and get some type of money for the dying Mazda (while it was still running); as my car is my bread, that is the main tool for me to make a living. I am sharing this because I want people to understand how important that is to make a good choice right from the beginning. Mazda was a beautiful car but only from outside and not making an educated choice right from the start, cost me more down the road. We all pay for our mistakes; some pay more and some pay less but there is a price for everything. Rich are getting richer because they make educated smart decisions, they put the time and effort into research and then act. Its all about the choice we make.
Olesya Williams smh
Keep positive learn from your mistakes to do better we all do it life lessons lol.
This is what he is known for
Glad to see you here ! Stay smart and keep it up !
Buying a car is tricky. I used to commute through out Corpus Christi on a bicycle. I just couldn't catch break being I worked at Walmart full time and part time at Taco Cabana to make rent and utilities and prospects for finding a new job with better pay and benefits were coming through. I was advised by a friend that I was not going to get anywhere unless I was able to cover longer distances in a shorter amount of time, best advice I ever got. While riding my bicycle I passed by a parking lot where someone was selling an old Ninja motorcycle for 2400. I called the guy and we negotiated and he let it go for 2100. Took the money out of my saving account and after throwing in a smelly old helmet and jacket along with a crash course on riding a motorcycle I was out easily going from one end of the city to the neighboring towns. I was able to apply for jobs further out that paid better. It was a risky but I had to have some form of transportation that would allow me to travel to further destinations with minimal gasoline consumption. After 2 years I stopped at a small dealership and ended up getting a certified used single cab Ford ranger that I paid 270 a month on with great gas milage. I was able to travel even further more comfortable and with more ease along with safety. I was able to get better job offers and gradually move up. A vehicle can be an investment that helps you get ahead and no I'm not one to pay thousands of unnecessary dollars on an unnecessary vehicle.
'You're embarrassing me'
That's your short coming Dave, would Jesus tell him to buy a different car because he was embarrassed? Come on Dave...