Buy Cars You Cant Afford, You Will Stay Broke - Dave Ramsey Rant

thanks for joining us America Sal is with us in America and sale there he is in Savannah Georgia hey Sal how are you I'll get a tour and Dave thanks for having me Sherman what's up so right now my wife and I are currently taking the classes and we are about to do week six tonight but just a few days ago so we have a Jeep their only vehicle but we have a $35,000 loan on it for 2012 whatever has a few days ago we traded it in to get a vehicle that was like 5500 that I was just reliable my wife felt safe in with our son and we took the hit of the negative equity which was around eighty eight hundred for us that's about a fifteen thousand dollar loan unfortunately the people who gave us a loan they retracted and said we're not going to pay the dealership this money because the from the loan to value ratio the loans way too high for the value of the vehicle so we just had to give it back and take our Jeep back so I'm just trying to figure out how because this Jeep is really the biggest thing that's killing us in our in our debt I mean it's called for six hundred and nine dollars a month so I'm really just trying to figure out what's the best way to get away from this I'm wondering if I want your house holding them for T around 42,000 okay and who's the loan with on the jeep the lawn right now is with Regions Bank and go sit down in person with Regions Bank and talk to them about signing a note for the difference of what the Jeep won't bring the $8,000 now it will be less than $8,000 because you're going to sell the Jeep personally rather than trade it in so it's probably going to be more like $5,000 all right because you can get a lot more for it selling it yourself and that's what you need to do because you can't you can't afford to take the hit on doing it as a trading I'm glad the other deal didn't work out in other words now then that's gone now what what cars do you have your two cars are just the Jeep now that's that's the only one we have it's the only vehicle you own okay then also talk to the credit union about making you a separate loan for a basic little car like you were trying to buy a while ago the $5,000 car so that's going to put you in about the same position the other deal would have put you in except a little bit less debt because you're going to sell the Jeep yourself okay and but you've got to work this out with your credit union it's going to be your best shot to let you sign a note for the difference and then let get them to give you a car loan to get you by now how many kids do you have we have one son and one on the way okay well congratulations thank you appreciate it well you do need something quote unquote safe and reliable it may be that you end up going even cheaper than five thousand because you might have to work overtime to just buy it in cash to make this deal work later and it may take you a few months to put all this together yeah I can't really work all the time now because I'm a active-duty military so it's not exactly like they let you do that I got you yeah okay alright but uh well I think you've gonna it's gonna take you a little while to whittle your way through this yeah it took a while to make the mess and it takes a while to clean the mess up yeah definitely and it was definitely a horrible decision for this from the get-go but uh hey I'm sorry go ahead just just say it doesn't work out with the credit union now do you think an option would be move my Jeep up to my number one priority on my desk no ball to pay off the negative equity as fast as possible and which other debt do you have um I have about I have two car loan to school loans out there one of them is 20 grand the other ones only around like twenty one hundred I have left on it and have like two credit cards left that have around two thousand on them as well yeah I would look at the $8,000 or $6,000 hole that you're in as the thing so before I got to the twenty thousand dollar loan I would move it up to that level okay instead of being your largest debt I'd make it your next two largest debt and look at it look at it as an $8,000 or $6,000 debt because that's paying it down to get it right side up so you can get it sold yeah okay thanks for your service to the country sir we appreciate yourself god bless open phones a triple eight eight two five five two two five all right I got a theme this hour have you heard it people buying cars they can't afford did you hear the theme I heard it sometimes God just gives us a theme we didn't even need a theme our it's just right there I mean the last two or three callers it just makes you want to go do what and yet I've done it's dumb a thing and so of you but let me give you a rule of thumb here if you want to be broke your entire life if you never want to be wealthy spend your money on cars that'll make you broke it's the largest thing we buy that goes down in value and they go down in value like a rock that's where Chevy got that like a rock Fords know better it's found on the road depreciated shut up they all go down in value the average car loses 60 to 70% of its value in the first four years you own it absolute insanity well I'm buying a Mercedes they don't go down in value crap they don't a buddy of mine bought one of those SUVs Mercedes nice one 550 GL nice one $90,000 $85,000 car you know what in 2008 you know what it's worth right now 20 he turned you just turned 80,000 bucks into 20,000 and you scratch your head you wonder why you're broke now in his case he's a multi-millionaire and he can afford to do that it doesn't even show up on his radar but you know most people did that crap all the time these people buying $60,000 worth of car loans I make $55,000 a year Sal's making 40,000 about $35,000 gee now yeah he said it was stupid he's right it was stupid so I'm not picking on Sal I'm gonna pick on the decision though I was already picked on the decision he agrees with me is stupid you go by crap that's got engines in it it goes down in value you cannot afford to do that until you have some wealth now I've got cars and I've got some nice cars and that's fine I've got the money now but when I was broke you know what I drove yeah predominant color on the puppy was bondo it was a $400 car was my car after bankruptcy but I never borrowed money again I saved up money and got $1,000 card it was a sizable increase in value listen you know you're a redneck driving a hoopty if when you put tires on your car you double the value of the car okay I've done that and I lived like no one else now I can live like no one else I drove like no one else people made fun of people have always made fun of whatever I drive now they're mad because I've got nice cars they used to be mad because I drove hoop tease can't believe you drive a piece of crap Ramsey can't believe you spend all that money on cars just hungry children somewhere there's always somebody got an opinion about other people's stuff have you noticed some of you people need a mind your own business and shut the flip up there's an idea so I mean really but the deal is this I am think about cars now I'm a boy I love cars most of us boys love cars I get that buddy mine was just in here a few minutes ago got an AMG 550 with a rentec on it sucker oh goes he wrote it that thing to take off and go the moon it's so fast it's unbelievable sweet car all I mean I I'm a boy I love cars but let me just tell you I'm also a math guy and a financial guy and I hate cars because they go down in value like a rock anybody tells you that the car holds its value laugh at them in their face I left it you you're a fool because none of them hold their value boats don't hold their value airplanes don't hold their value motorcycles don't hold the value four-wheelers of snowmobiles and sea-doos don't order their value if you put a freaking engine in it it drops like a rock in value and we spent all our money on that so putting money and things that go up in value and then we scrap and the richest society the world has ever seen and wonder why we're broke and can't retire without the government taking care of us because you spent your freaking money on depreciating assets called a car stop it $600 car payment but the flip were you thinking oh you weren't see this is how we're doing in this culture it's time to wake up you're impressing people to stop like you will never meet and if the girl is impressed with what you drive you got the wrong girl Bubba Wow think people think stuff is destroying your finances this is the Dave Ramsey show you

Channel: The Dave Ramsey Show

Views: 231,626

Rating: 4.9209752 out of 5

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Id: kZh1lUZLqb8

Length: 9min 42sec (582 seconds)

Published: Fri Sep 05 2014