[Music] hey guys it's your host Rachel Cruz here and you're watching Dave Ramsey's Greatest Hits where we're looking back at the best moments from the last 10 years of the Ramsey Show on video so this episode is all about how to avoid expensive mistakes when it comes to cars because it's way too easy to get this stuff wrong and trust me most people do so let's look at some of the most watched car clips from the last decade starting with our friend farz who's made a total mess with his car loan farz starts off this hour in Los Angeles hey farz how are you good how are yourself Dave better than I deserve what's up um just have some um some issues with my finances like U many people are calling your show of course um so I have a um BMW car payment um that you know when I bought I thought I was U working in Congress I guess um it's a $600 car payment a month and I make about $1,200 a month and um are you Kidd no really I were you making 12200 a month when you took that car payment um when I first jumped into my first car no no no the $600 car payment on the Beamer were you making 1,200 a month when that payment was approved I was making about 2,000 and and uh who who is the lender Financial okay well we've established that their financial people are not as smart as the people that build their cars it's a fine car but these people are smoking crack to give you this loan yep I mean who gives somebody a $600 car payment with $2,000 income they're brain damage man their parents are cousins that's ridiculous wow I'm scared for you man so yeah you got to get that thing sold don't you yes and I'm negative um 15,000 I'm upside down 15,000 because I rolled in negative equity um from my last BMW before that what do you do for how many hours a week are you working um just 20 I'm a full-time student how old are you 27 oh my gosh what are you still studying uh aircraft mechanics that's good when will you graduate uh June oh good okay so there's a light at the end of the tunnel on your income going up substantially right uh right like by this time next year you you ought to be an aircraft mechanic making how much um probably about average out here is about 22 an hour yeah okay about 50k a year yeah okay okay that'll help uh cuz you you know that'll help you get out of the mess um I don't know how you're doing it I mean how are you eating and keeping this car payment up well um I don't have any um uh I live at home so I don't I don't pay rent I'm working on that um but um I also have $10,000 in credit card um yeah debt and I'm only able barely make the um minimum payment so well our first goal here our first goal is to tread water until you graduate and get your income way up the second goal is do anything you can in the interim to get your income up and still graduate in May so we're going to have to pick up more hours different job whatever and try to get more money coming in to throw at this mess as hard as we can um my guess is you might be able to clean up some of the credit card debt of course you need to get them out and have plastic surgery right right and uh uh you know get rid of them because we don't want to use them ever again but maybe you can whittle a few of those away between now and May and then when May comes June you graduate you get out get a much much better income then we start beating on this car situation maybe we can find a way to get some of the upside down amount covered so that you can get it sold but I don't I don't know if anybody's going to loan you $155,000 right now to sell this car and that's really what you need right um correct I was what do you think about making a contractual loan with family members well I I think it turns the borrower is slave the lender and I think it turns that family member into your master who are you talking about um either one of my two uncles that I think are able to do it if they're willing to do it yeah if I were your uncle I would love you enough to not do that for you I wouldn't do that for you I would make you fight through this because I because I think there's a high probability you're not going to pay them and you're going to damage that relationship or pay them as agreed not because you're not a good guy but because the mathematics of this situation suck beyond belief does that make sense and so I I don't I don't want if I'm your uncle I might give you some money but I'm not going to loan you any money because you are in a mess dude and you're not going to be able to pay it anytime soon easily you know it's just a problem so yeah I I'm going to just you know do everything you can to increase your income between now and June and then of course in June when it goes way up and let's get rid of that car as soon as we possibly can and um you know the good news is you're only 27 and you got the rest of your life to never do something this stupid again I've done stupid stuff by the time I was 28 I was broke man I was bankrupt and I had zeros on the end of the my stupid you just did one car and but dude you did it big I mean you go bigger go home you did it and uh so you got a mess on your hands but uh you'll get out of this and you will never ever look at a car payment the same way again I hope I hope you've learned your lesson I hope this is you know that's the problem with pain you know it it's it's a great teacher it's a thorough teacher but it's pain and um I don't like to learn that way and I'm sorry you're learning that way but dude you're getting hammered and it's all cuz you set yourself up to be the nail and it's just wow ouch I'll tell you what dude dude let me do this uh hold on I'm going to have Kelly pick up I want you to go through Financial Peace University our class as my guest I wish somebody had given me that when I was your age and shown me how to not ever do this again and and so I'll walk with you and get you out help you get out of this cuz man you got a mess uh hold on Kelly will pick up and we'll get you signed up for that I you know yes that young man has made a really stupid mistake but I got to tell you BM W Financial ought to be ashamed of themselves I mean that's just corporate misbehavior right there when you give a 27y old guy a car loan of $600 and his income is $2,000 you're a freaking con artist I mean that's morally corrupt is what that is so BMW Finance you ought to pick up the phone there's not probably not a lot of guys in Los Angeles named Faraz it's f r a z I don't know his last name but you ought to pick up the phone just forgive this loan because you guys are absolute Crooks I mean you're absolute Crooks that's just ridiculous and you know what every everyone that dad gum Finance divisions of these car companies does this stuff and all they see is a you know meat hanging in front of them and and they're Rocky baloa in the meat locker and they just punch it out man you know it's just but it's just a reminder that you know when you're doing business you have to do good business with people you and I can disagree about whether a car payment's a good idea but no one with half a freaking brain cell thinks that car loan was morally okay that was not okay it's fr's fault too he sat there as a grown man and signed up for that crap but man BMW you ought to be ashamed of yourself this is the Dave Ramsey Show Eric is with us in Olympia Washington hi Eric how are you hey I'm doing well sir how are you better than I deserve what's up hey I'm have a little bit of a disagreement with my wife I was hoping you could tip the scales and give us some outside perspective I want she wants to move up in car I'd like to save up and pay cash for the vehicle however she thinks that having a larger savings is okay she she wants to finance the vehicle and she's okay with having a car payment if it means we have a larger savings and I tried to explain to her about you know depreciation and tell her why it's stupid to get debt um but I think she needs to hear it from somebody else so I was hoping you could speak to that a little bit okay um the thing I've noticed after 30 years of doing this is that uh different classes of people regardless of race different socioeconomic rungs on the ladder do different stupid things um poor people the rough end of town play the lottery more often than anybody else lottery tickets are almost all sold in poor zip codes um PID lenders 800% interest uh rent to own title pawning you don't see these places in the rich end of town you know why because rich people don't do them that's how they got rich okay in the middle class um middle class struggles with credit cards with student loans with car payments and with whole life life insurance and they give their money they give their money the middle class ensures that they're never going to be anything but middle class by being in debt to credit card companies and car companies and borrowing and using Whole Life policies which are complete ripoff and um and credit cards and so the and then you look at the upper class and go okay what do they do well we want to mimic that because uh 90% of millionaires in America started with nothing and became millionaires they didn't inherit their money they're not Crooks and they're not uh professional athletes or regular people they just did things different so what do they do when I'm interviewing people on the millionaire theme hour for example I asked them how many new cars have you bought before you were a millionaire they almost always told me one or two and it was the worst mistake of my life how much did debt cause you borrowing money cause you to become wealthy they almost always say oh no I I never borrowed any money that was a blessing every time I borrowed money it held me back from Building Wealth and so that's what rich people say and what your broke brother-in-law thinks or what some journalism student with $882,000 in student loan debt writes on market watch I couldn't care less about or is a you know a guest contributor from mle fool and they meant fool for sure I mean you know I don't care if you're broke what your opinion is about money you follow me so we follow the money here show me the money it's a Jerry McGuire moment and and if rich people say the best way to get out of best way to become wealthy is stay out of debt then we do what rich people say cuz that's how they got there and you you can't you know there there's just no disputing that and the bottom line is this the average car payment America now this month we got last month we got data that it it's now $51 a month is the average gosh okay $500 a month invested from age 30 to age 70 in a decent growth stock mutual fund in a Roth IRA is over $5.6 million that's what a car payment costs you it's 5 million bucks over the scope of your life and so that that's why you know rich people don't have car payments because that's how they got rich and so you're you're the point is your most powerful wealth building tool is your income and you can't make middle class mistakes with money and be anything but middle class and there's nothing nothing uh immoral or in Noble about being middle class it's a matter of if you if you eat the same food fat people eat you're going to be fat right duhh you know and if you want to be skinny find out what skinny people eat and eat what they eat I wish I could do more of that I don't do enough of it myself but I mean it's still it's great example right find out somebody's been married 50 years and they have a fabulous marriage and they can't keep their hands off of each other so what did you guys do CU other people I know about kill themselves and I want to know how you get a marriage like that you know and so I'm going to talk to people who are winning at something and do what they do and not somebody that's just got a feeling or an opinion uh but because that'll make you broke your whole life so all of that is how I came to the conclusion that and through the faith lens the borrower is slave to the lender and I can't find anywhere in Scripture it says to get a car payment although Jesus did say they were all in one Accord right bu okay okay ah so all of that to say there's no possible way you should ever buy a car with a car payment I would ride a bicycle before I had a car with a car payment and it's not for forever I'm just going to save up and pay for it but it sounds like you have the cash to pay cash for the car you want we're not far off we have about $7,000 above our emergency fund and I would like to spend a few more months saving up the additional amount uh but she's I I guess a little anxious doesn't want to work or doesn't want to wait she commutes an hour each way to work currently and so I can understand being anxious it's her car car what is she driving now she drives a 2001 Mustang right now how many miles on it uh just about 200,000 I would move up in car now I agree with her but I would do it with a 7,000 in cash and then save up and do it again next year okay so both of you get your way I want her to have the nicer car she wants but I'm with you she waits till next year to get it in the meantime you can move her up about three times as good a car as she's in now or four times as good a car as she can now with that car plus s Grand right right well you know honestly I didn't think of it that way and uh that's a good idea I sure I sure appreciate your help Dave yeah but the big thing here is if you get the why that whole diet tribe I went on if you get the why behind why you don't do car payments then it's not a matter of if I do them because I'm not going to do them but how do I work around it and still accomplish some of the goals once I take car payments off the table other creative answers start you know like staging it like we're talking about start coming up on the table but the typical person just goes I want it I'm gonna go buy it and then scratch their head while they're broke their whole life because they're giving it all a stinking Ford Motor credit or Lexus Motor credit or Toyota credit or Chrysler credit or whoever credit it is somebody's getting credit and in you you know and so it's a problem it's a real problem but just figure out a way to work around it I hey I I'm with her I think she's driving a piece of crap a an hour two hours a day and she's R rattling along road going when's this thing going to leave me stranded out here um in Washington cuz it kind of gets cold there in the winter um yeah I'm getting her a better car or give her yours and you drive the crap one of the two if you got a better car by the way that is federal law mom gets the good car um wasn't our house anyway so but I tell you what man you guys the the car payment is truly the Mantra of the middle class and we have said many times on here that you know the the credit card everybody credit cards are interesting everybody knows credit cards suck but everybody keeps using them so we're at the stage with the credit card that we were with the cigarette about 19 85 everybody was disgusted with cigarettes everybody knew they killed you but nobody did anything about it but somewhere around 1985 it became like not cool at all to smoke anymore because it kills you and it's stupid and you smell bad things same's true credit card credit card is the cigarette of the financial world and it's heading that direction it just may take another decade to get completely uncool I'm going to help I ain't got anything else to do this is the Dave Ramsey Show Susie is with us in Las Vegas hi Susie how are you hi good morning how are you better than I deserve how can I help well I have a quick question my husband and I have saved up um $30,000 that we know we want to purchase a car with wow um we're yeah we're looking at a Ford F-150 with that 3.5 six ler EcoBoost I don't know it's my husband's thing if it gets me from point A to point B it's good but if it gets him hunting it's even better so uh what the question I have is we have that set aside we are going to start actually going and trying to negotiate and I'm kind of confused I've looked um up different suggestions online and one uh site says don't go on a weekend go on a weekday another one will say don't tell them you're paying cash uh W negotiate the price first because a lot of times the dealerships feel like they're going to make money on the back end if they think you're going to uh Finance um and I just want to to go in get an honest price and a good deal and leave yeah I hear so I don't know what is what's the best deal to get to stretch my dollar the most um what is your looking for I'm sorry what what is your household income uh about a 100,000 good and what is your net worth about 500,000 okay and you're talking about buying a new truck no no no no no no no one year old or twoy old we're looking for the certified pre-owned okay all right yeah well uh the thing to do then is um pull the data on the truck before you go in and you need to know what the truck is worth um we've done that it's about 30,000 would be a good deal out well but an individual truck might be different because you're looking a particular truck with miles on it you're looking at a particular truck with slightly different equipment on it and that kind of a thing and so you you know in the you're in the range for sure on on that truck and it is a nice truck um so you you but you pull up you find a particular one at a dealership sitting there certified used right and you look at the exact miles and the exact equipment you enter that into kellybluebook.com and maybe look at a couple of the other sites maybe the Edmond's car guide and and start to get an idea okay this car has a retail on it of this and You' never pay retail period okay I don't pay retail period for a car under no circumstances and and you know and so let's say Kelly blew book on the thing private sale is kind of middle ground and wholesale is what they pay for the truck that's what the dealer would pay for the truck all right and so you want to be somewhere between private sale and wholesale at the most and so you go in knowing let's say private sale is 29 on the truck and Wholesales 27 on the truck then you need to be somewhere north of 27 in your mind and and you know maybe they got 31 on it I don't know what they got on it but we walk in there we go look guys I'm this is cash this is what I would do this is Cash I'm going to write you a check and I'm going to drive the truck away and I'm really not going to stand here all day and dance with you so if you if you want to do this I'm willing to write you a check right now this is a done deal it's over but the de but the price is 275 and just start talking to them that way and um I I the back the back end on a used car is not as big as it is on a new car for them if they sell if they finance it and sell the paper they make some spread on it on a new car they make more on it than they do on the car to selling the paper for payments so that site's advice would be more applicable to a new car to not tell them you're paying cash I don't worry about that buying a used car this is what the truck is worth and um boom I bought a raptor used uh which is a similar similar truck a little yeah I like those little more expensive but a similar truck had 19,000 Mi on it it was sitting on a local dealer's lot I had bought cars from that dealer before and he knows me and I walked in I said look Kelly Blue book is on at this you got too much on this truck and it's not even it wasn't even a Ford lot that it was sitting on and uh I said look you want the thing off a I'll take it off the lot today and that's how we started and I got a I got a good price on I didn't steal the truck I didn't steal it but I got a good price on it um especially compared to a brand new one because of how much that thing went down the first year because it was only a year old when I bought it so um but anyway you just you just look at it that way now if you want to steal a car I mean you want to get something thousands and thousands of dollars under you're probably looking at buying from an individual or working with some kind of a car broker and buying it uh off the line where they're where it's running down the wholesale line through the auctions let me ask you when we're kind of afraid that's why we like the Certified cars because they've already the I'm not worried about that if it's if it's listen if it's a if it's a Ford and and it's and it's oneyear old you don't have to worry about that car it's fine I mean it's just not going to be a piece of junk the other thing is is that my husband kind of afraid to because we were looking through like Carfax and everything when when we're looking online at different cars and he was saying that uh rental cars rental cars that are about a year old rental or uh leased cars a lot of them are those and he's kind of afraid about how a least car a least car a rental car would be something that would be tough I don't want a car that's been on rental unless you're looking for something different but you know that's that that car has been ragged out possibly but a lease car is just an individual owned it and they turn they had it on one year lease and they turned it in that's like that's like anybody else that was driving it so just because it had been leased doesn't scare me but uh and I wouldn't want to buy one that was a rental as a personal driver now I might buy it for for something in a fleet or you know if I was doing construction work or something I need a farm truck or something but this is going to be a nice driver a nice personal driver so a lease wouldn't be bad yeah pull the Carfax on it that's fine that's fine too one one more question um when it comes to uh purchasing the like a vehicle what are some key phrases or if I go on to Kelly Blue Book can I just go on to kellybluebook.com and yeah and it'll just all pop up yeah yeah you just click on click on private sale on that and then run the numbers on that particular vehicle and you begin to get a range on the vehicles you look at and don't just don't get married to the first one you roll up on M oh I love that color oh you're screwed you're going to pay too much you know cuz you know as soon as you decide you're married to that car you're getting ready to pay too much for it um it's just a car it really is certain time of the year or a certain time of the month or time of the week I wouldn't worry about it um the the thing is the question is how long they've had it on the lot most most used car dealers will keep a car on the lot only so long and then they'll roll it through the they'll run it through the auction and wholesale it and get off their lot they'll turn their money over and and so the last I bought a a Chevy four-wheel drive that we've still got here at the office we still use it as a delivery truck I bought it many many years ago and I bought it from that guy and I said how long you had that thing on the lot he said 90 days I said you're getting ready to roll it off at wholesale anyway so sell it to me so if they're if they've been sitting on the truck a while now if it's a certified that might not be the case but if they've been sitting on that truck a while they may be getting ready to roll it out because they're not going to keep it on their 6 months you're not going to see the same car sitting on the average dealer lot 6 months they're going to roll it and turn their money money cuz that unit's not that unit's not moving for them you follow me yes yes thank you and one more question if you if we choose to kind of look into the wholesale aspect of it um how do we even do that I've never done anything like that before you'd have to find a what's called a car broker that and there are people out there that will go to the auction for you and you need to be careful that you find one that is um that that's got a good reputation and that you can get that you can check out so make sure you really do your your your due diligence and learn about the person you're working with on that and the service that they're providing and have very very clear expectations on that you're you're buying a little bit blind there and that you might not personally see the car you may see pictures of it learn all the details of it and then then it runs down the line and you're authorizing them to bid so much on that car when it goes down the line and they're you know they may be in a in a different city uh miles and miles away and then they'll ship it in I've bought two or three that way over the years you're probably buying this truck off a lot somewhere uh the thing you just don't want to do is just don't pay too much I doubt you're going to get it thousands and thousands dollars under though uh but but you know you just don't want to pay too much you want to get get your do your research and know that you've gotten a hold of something that's strong don't buy extended warranties either by the way this is the dayve Ramsey Show Shelby's with us in Corpus Christie Texas hi Shelby how are you hi Dave thank you for your time certainly my question is I'm a new grad I just got my registered nurse and I'm planning on going back to school today or this year um unfortunately I've had car problems in the last 6 months I have a 2006 for fusion um I spent 2500 on the car in the last 6 months and the current problems that it's having now I'm going have to spend another $3,000 to keep it going well I wouldn't do that what's the car worth what will it sell for today Telly Blue Book says 4,000 you think you could sell it as it sits for $4,000 no okay what can you sell it for the problems the dealership is offering me 2250 if I buy a car this month oh yeah I bet um but that's not the you know so so the car is probably worth as is probably close to $3,000 then if you sold it yourself on Craigslist um I might be able to get that much yeah okay and um but and it's obviously a piece of crap so you need to get rid of it I don't disagree with that you have any money I do um well here's the thing I thought the car was paid off but was speaking to my parents they owe $4,200 on it no way so it's their car well but I don't want to give it back to them but it's car yes technically okay crap and so you just graduated from nursing school mhm okay and so how much debt do you have from that I have no debt I made it through it yay good for you so you're completely debt free except that your parents owe money on the car that you're driving yes okay uh how how is your parents finances not good and what do you make a year um when me and my fiance make uh 67 okay okay um I I I would suggest working with your parents to get this car sold and I don't know what that means it probably means you guys are going somebody's going to write a check to get rid of it is what it sounds like right yeah I I don't think they're in the position to do that okay so it sounds like you're going to come up with $1,000 doll to sell this car yes okay and then you're going to have no money right well I have $6,000 that I can make as a down payment awesome you don't need a down payments you don't need a car payment you didn't call Dave Ramsey and has to go in a car on car debt did you well good I'm glad you didn't and I want a reliable one but I don't can I get a reliable car for ,000 sure oh absolutely it's not six anymore it's five because you got to pay to get out of this parents mess yes so you got a $5,000 car yeah you can get a decent car for 5,000 bucks because you're not driving this thing for 10 years you're going to drive it until you save up some more money because you don't have a car payment and buy better car correct so how much car payment were you thinking of doing before you called me uh $500 a month good Lord okay and so if you didn't if you did what I let's just pretend for a second let's say you wrote a $1,000 check and you sold the piece of crap car of your parents and got them out of their mess okay okay other words we got 3,200 or 3,000 bucks for it or whatever that leaves you about $5,000 to buy a car you buy a $5,000 car and and you pay yourself $500 a month for 10 months pay yourself a car payment okay that'd be another $5,000 wouldn't it it would 10 months from now buy another car with $5,000 cash and the trade of your $5,000 car that's a $10,000 car now we're getting into a pretty good car and that's only 10 months away in the mean time you drive a $5,000 car okay and pay yourself a car payment and you don't go into debt for a car ever if you want to build wealth okay I guess my only concern was with spending $6,000 is that I would get a hunk of junk and have the same problems where I'm spending almost as much as the car is worth you you could and you don't want to you don't want to get into what you got into there that was a piece of garbage you got into there but how long you've been Drive how long you been driving this car three years okay see I'm talking about 10 months that I would just drive this $5,000 car $5,000 car yeah okay and you save your and you pay yourself 500 bucks for 10 months and then you sell your $5,000 car put $5,000 cash with that and that's a $10,000 car are you with me yes by the way 10 months later you want to move to a $155,000 car I'm okay with that okay so put down 10,000 and then pay off 5,000 is what you're saying I'm so confused okay let try again real quick I got about 20 seconds I want you to buy a $5,000 car with no car payments and for the next 10 months I want you to pay yourself $500 a month into a cookie jar in that cookie jar you will magically have $5,000 10 * 500 right you take that $5,000 you sell your $5,000 car at the end of 10 months and with that two together you buy a $10,000 car our last call before the break was a guy that was in a couple of car leases we call them fleeces and if you don't know what that means if that means you're not from the country um if you have a sheep and you Fleet you take off its hair it's called fleecing and if you are to fleece someone it means to rip someone off it's oldfashioned terminology so if if I got fleeced means I got ripped off so we don't call them car leases we call them fleeces and Robert is on Twitter he says I listen to you every day can you discuss leasing a car as opposed to buying yes I can discuss fleecing now let's just set this up for a second let's pretend that you owned a car manufacturing company and you were going to manufacture a vehicle and you had a car that you were going to sell for $20,000 and four years later it was going to be worth 70% less or it was going to lose about $14,000 of its value and so that $20,000 vehicle four years from now would be worth $6,000 that would be the average by the way new car loses 60 to 70% of its value in the first four years it is comes off the lot and so instead of selling it for $20,000 and the individual that's driving it loses the $144,000 instead you're going to rent it to the individual that's driving it and at the end of the car lease you're going to not get a $220,000 car back you're going to get a car back that's worth $6,000 well in order to keep from losing the money you would have to rent the car monthly to that individual for more than that monthly amount of loss and so if we just took uh $144,000 and we just in our example and we said that happened over 48 months that would be $291 67 that the car is going to lose in value in our projection now you and I would you own a car manufacturing company and so you're going to rent a car to someone that's going to lose $291 a month in value and so it stands to reason that you're going to rent the car to them for more than $291 right because you at least have to cover how much it goes down in value in the payment in the rent payment does that make sense of course it makes sense then the other thing you know is that if you own a car manufacturing company you probably also have a financing arm to your car manufacturing company and um if you were in the car manufacturing business and you had General Motors credit or Ford Motor credit or Lexus credit you would know that you make more on the financing when someone uses your financing company and pays you interest to borrow money from you that you make more on that than you do on the actual profit on the sale of the car and so you also are in the finance business the banking business the car payment business and you make a good profit on that and so if you rent this car to someone they're not going to be paying you interest so you're going to lose out on the car payment business side of your equation and so not only would you want to collect $291 plus a profit you'd also want to collect interest on the 20,000 ,000 that basically they're driving around your $20,000 bill right here right I mean you gave somebody $21,000 bills and they're carrying them around for four years so you'd want to charge them interest on that wouldn't you and so you would take the drop in value monthly you would take a interest rate which in the leasing business is called cost of capital an interest rate and you would take a profit and you would put all of those things into what is now a new payment and then you can go rent a new car for a rent oh I'm sorry lease a new car rent it is renting isn't it so when you rent a car when you lease a car you are paying the loss and value monthly you're paying the profit and you're paying an interest rate the cost of capital the only thing is the interest rate's not disclosed to you because this is not technically a loan and so the Federal Trade Commission disclosure sheets that you get on a loan are not there because you're technically just renting and so when you rent at Herz you don't have to get a disclosure on the cost of capital and when you lease from Lexus or BMW you don't have to get a cost of capital so unless you're pretty good with a calculator you really don't know what your cost of capital is you don't know what interest rate you're paying I'm pretty good with a calculator though and a lot of other people are too that have done research on this and we're finding that the average car fleece out there is charging you an effective interest rate a cost of capital around 14% so you're paying around 14% interest plus you're paying the loss in value the depreciation plus you're paying a profit and if you go over on your miles they're going to charge you more and if there's more than normal wear and tear on the car they're going to charge you more because if you bring me back a $6,000 car that's dinged up and got a bunch of miles so it's really only worth 5,000 I'm going to charge you the other th000 if I'm the car manufacturer cuz my goal here is not to lose money my goal is to make money and so there is no possible mathematical way unless the car manufacturer made a mistake that leasing a car is cheaper than owning a car by definition it has to be more expensive or you have a car manufacturer that's what's known as stupid and let me tell you those guys are a lot of things but stupid is not on the list most car manufacturers these days make a really fine vehicle I drove one of the new Fords as a rental this weekend an expedition and it was an incredible car the technology is it's absolutely incredible the new BMWs the new Mercedes the new Chevrolet they're absolutely phenomenal the new Lexus they're Phenom the cars that we are putting out in America and around the world right now are absolutely incredible Vehicles they're excellent at manufacturing really good cars I mean compared to I've got a I've got an old Corvette from 1979 model they don't make them like they used to well thank God I mean it's kind of cool but let me tell you compared to the new Corvette it's a piece of crap these are fine Vehicles these manufacturers are creating you work for a car company you should be proud of the product you're putting out these Nissan really good cars they're also very good at crunching numbers in math and they're 100% sure they're going to make money on your butt as the consumer so let me tell you about fleecing a car 100% of the time it's more expensive than owning the car it has to be by definition it has to be by definition okay you guys I want you to remember the purpose of a car is to get you from A to B and as tempting as it is to hit the road in a car that you can't afford it's more than likely going to be a burden than a blessing especially if it's not in your budgets and it's just not worth it make sure to catch the next episode where we're looking at Dave's teaching on investing Dave even breaks down his own investing process in one of the clips so make sure you're subscribed so you don't miss it
