How Much Car Is Too Much?

[@OCanadah]

I'm in construction too (Plumber) and I always see guys in $50-60K trucks on the job sites I'm on. Most of those guys are only making like $60K a year too

[@berendsen817]

a doctor in sweden makes $60k a year in sweden..

[@oldtwinsna8347]

They may be self employed so can enjoy the tax writeoff. A lot of them also use as personal vehicle so the differential is very actually not as much as you'd think. Newer vehicles are more reliable too, which is important for a work vehicle. The vehicle also serves as an advertising platform for the company, so having something professional looking creates value.

[@CoCMember]

oldtwins na Newer vehicles are not more reliable. Any well maintained vehicle is reliable. There are Toyotas and Hondas on the road with 200,000 miles and up that are more reliable than a 30,000 mile car with negligible ownership. Buying brand new is a rip off unless you plan to keep the car over 10 to 15 years and invest your car payment in an investment account after your vehicle is paid off.

[@randomvideosn0where]

Some people maybe those are true but I know a lot of laborers/operators that drive the $50-60k trucks, also lifted with wheels taller than my hood I bet they spent another $10k+ on, and they make $40-60k. On the other side of that is the guy who has to disconnect his battery every day because otherwise the lights stay on, he has to dump his blinker fluid every time it rains and has even worn through the threads of the tire.

[@WCGwkf]

GoogleMinus blinker fluid

[@daminh9245]

Every time I’m about to make a dumb decision I watch these videos to change my mind. Thanks Dave

[@Gmanautonut]

You aren’t kidding I did stupid about three times this year already on vehicles I’m selling again it’s an extra vehicle I don’t really need it and I need to get the money in the bank I’ve already lost probably 10 K this year on vehicles when I thought I was doing OK

[@michael71796]

It really is sad how fast and how much cars depreciate. Being a car lover it breaks my heart

[@V1CT0RY]

Why? If you love the car then value shouldn’t matter?

[@ST5S5]

My philosophy is that I’m super frugal with every aspect of my life but I spend money on my car because it makes me happy. I don’t go overboard, but I have to have to a car that I love driving

[@yayyareaa2997]

Dave hit that mute button faster than you could say baby step 3

[@cm01]

*drowning in bathtub noises*

[@AStanton1966]

The caller was making dying sounds like that guy Anton shot along side his accountant in the movie No Country for Old Men.

[@yaseensabrin3382]

@@AStanton1966 y me g G

[@OPP534]

Is he talking about Scotty and his Celica?! 😂

[@chriskodani2543]

Scotty Kilmer rocks! Drive it til the wheels fall off!

[@AutoMotoCha9L]

That call quality he must be using sprint. Sounds like under water.

[@NK-ke6yy]

AutoMotoCha9L lol

[@x1area51ii7]

He at parking lot using wifi calling from mcd wifi.

[@ChrisMFlorida]

He was on Cricket actually.

[@dillonh321]

Sounded like he was swallowing his phone.

[@lindaleelaw5277]

Well it's a truck or a phone .

[@vinnynunziata]

“When he passed away he was a multi millionaire” see that’s the part that gets me about all this. I of course want to leave money for my family, but I also want to enjoy my life.

[@natlocst]

all ill leave my family is a paied off house, and a large car collection. no cash. no debt. just valuable stuff.

[@MKULTRARANGER]

​@@natlocst My plans exactly!!!

[@JonBainesNY]

Would you rather take countless family vacations, pay for college funds in 20 years from now for your kids or drive a brand new Tundra for 56,000 and have your kids fund their own college. If you’re middle class this is a lot of people’s option

[@gnmarte]

At what cost?

[@gibblespascack1418]

Who said that he did not enjoy life? That is what poor people do not understand. When I started creating the portfolio, no one suggested that i was not enjoying life. When I was first building mine, I went skiing every weekend. Loved it. When my daughter was growing up, we went to Seasame Place(and Bush Gardens) during the summer(using vacation days once a week) with the Cookie Monster passes, and later during high school we got the 6 flags gold passes which let you into every park with free parking during the summer. You can have a lot of fun while building the portfolio, but you should also have a budget and a plan.

[@mattdeslauriersnc]

Dave Ramsey has never been in a 1000hp supra.

[@PacerMotorsport]

🤣🤣🤣

[@seangraffis7361]

Yes! And Mk4 Supras are going up in value

[@gokusuky253]

Because he's a smart person not idiot like us😆

[@j.3854]

Vrooom pshhhHHH!

[@berrytharp1334]

Dude seriously said his dream car was a Jaguar..no wonder his car dreams were shattered when he got it. He should of been investing it in old mopars.

[@bombpop2461]

Drive the lowest priced car your ego can afford.

[@tokuryulopez9139]

Joe Malone what if you have a massive ego?

[@MrsEyerick]

Tokuryu Lopez, that was my thought as well.

[@zunaiandre2341]

😅😅😅and Ego get bruised

[@kevinszhere1]

Nissan Maxima

[@TheRelicImage]

Tokuryu Lopez then you wouldn’t be ready to even start the Ramsey plan!!!

[@jonitalia6748]

Haven't seen many Toyotas nor Hondas drop 60% in value in the first 4 years under 1 million miles.

[@coldflu]

Same with Raptors

[@bluesky5384]

I love my 17 Corolla XSE. Extra features but still a Corolla so not fast. All good with me.

[@kevinjtimothy]

The point = autos lose value. Semantics?

[@seespotride]

@@coldflu yup. U bought a raptor. Drove it for 40k miles. Sold it for price I bought it for. No real loss there.

[@mrbriceno3949]

I love how your grandpa ruined your "great" moment with some knowledge. That's some real love right there lol

[@suzum.9713]

Oy. One of those, "mmph- Grand-daddy was right," moments we all hate.

[@allenmacdonald24]

This needs to be put out there more I just started watching your videos based on a question in my head about buying a car and coming from a young lad you made me really rethink about my money and what to do with it

[@tinawelch2545]

Welcome to the Dave crew! 😊

[@mammoth123.]

My car is 11 years old bought new, wife's 6 years old also was purchased new .Two great autos not selling them any time soon.

[@stickjr.3715]

As a car salesman I wouldn't recommend anyone to buy a car unless they need one. But hey, I'll sell them if they want one. People trying to keep up with the Joneses, pays me very well. 😂😂😂😂.

[@Doors067]

They still keeping up with the jonseses

[@dunnestgaming1415]

😂😂😂Im a salesman too pays well

[@Kevin-gq2kj]

How are sales during pandemic, I was curious because I’m considering doing sales

[@hennore]

Can you find a reliable minivan under $10k?

[@Coliocoliocolio]

I’m a car salesman too I’m in the same boat. Sometimes I close people on some high payments when there incomes low and Dave Ramsey’s in the back of my head like these people are out of there minds. I can’t stop them from it they want the car and are always happy. Even when it’s a 1000/mo 84mo loan with a 7.9% apr. it is what it is they want the car

[@vinnie2033]

I see many younger kids and people buying nice 70 to 80k for a BMW, and I shake my head.. cars are not investments. Buy a vehicle that suit your needs, not what you look good in.

[@computerscientist5953]

may be they just enjoy the brand, don't be so judgmental

[@everyonewasstealingmynamea919]

Vini 70 of 80? Cmon that’s a steep number...

[@Corn_Fed_Beef]

I drive a ten year old corolla. Could not be happier.

[@xpertvanoss261]

Vini well I’m buying a 20k Mustang the look is nice but pretty cheap

[@ReleasePain]

I bought my 5 series for 18k and it’s a 2014, I would never pay 50k for a car that lost 32k worth of its value in 4 years. It’s been nothing but smiles though and gets great mileage.

[@evaramirez910]

Dave Ramsey, I wish I new you 5yrs ago! You would have saved so many problems. Only thing that is left is learn from the past, take it as a loss, move forward. Thank you so much, I will be so much better in my 30's. I have learned so much from you.

[@kcapt96]

I have found this channel today and I can say, thank god! I can trully learn something in life.

[@theinevitableend9412]

My uncle told me a story about my late grandfather who I loved dearly. They ran out of gas and had to walk to the gas station. They walked past the nearest gas station because he knew it was a couple cent cheaper up the street.

[@outdoorsnevada4138]

won't drop more than 10k on a car. Trucks yes because what they can actually do for work. A car is a car and gets me from point A to point B. Luckily my cousin is a car dealer and sells good quality cars for an affordable price. Has been a real blessing avoiding all the b.s. dealers and their games.

[@fanoftoast]

Isaac Spencer have any tips for someone who does have a cousin who’s a car dealer??

[@matthewboadway406]

Go on craigslist, find what you want, take it to a mechanic you trust before purchase, and if it's good to go, you'll save a lot off the purchase price. I've bought all my vehicles save one, for under $3000 and they've all lasted me years and years virtually trouble free. Cars like an older Civic, Corolla, subaru (with head gaskets done already.. haha) will hardly ever leave you stranded, if ever.

[@kaibaskywalker2725]

yea that sounds great... i want a vehicle that can take me to point A, B, C , D all the way through F and back to A. can a lexus ES 350 do that?

[@Josh-179]

Just remember that everyone's interests and priorities are different. Many people are indifferent to cars. Some people's lives revolve around their love for cars. I'm passionate about cars more than anything else so for me I'm comfortable spending a bigger piece of my pie for one. I don't buy boats, motorcycles, jet skis, etc. or engage in any other hobby except weight lifting. People that spend a lot on these other things need to allocate much less for a car. Point is, for many like me, cars aren't merely a transportation device and that's not all I'm buying. So there's no one correct ratio for everyone.

[@jamie49868]

It's all about balance. You only have so much money to spend, so spend that money on what you like. If you want a nice car, then maybe you have to give up cable and $5 starbuck coffee. The difference between an 18 Focus and an 18 Mustang GT (Cagurus) is about $17,000, or about $300mth with 2K down. Of course insurance will add a few $$$ to that. So if your car is your hobby, then why not? If golfing twice a week and the 19th hole is your hobby, then no.

[@MrAdhiSuryana]

Just tell me when you grow your money by buying a new car that is off your income, I will follow..

[@geraldtisch1007]

Are you paying cash or financing your car passion?

[@GR-uc1gq]

@Adam Pagenkopf saltwater tanks. Especially if buying coral

[@spencershipley4349]

@zaxx19 I love cars and I buy rentals. Not everyone makes so little that they can only choose 1

[@GR-uc1gq]

I make 15k a year is a McLaren okay?¿

[@MyKonaRC]

buy two!

[@bruce5868]

Swallow your pride and get an Audi.

[@thatguymichaelhtx]

To cover the maintenance yearly? Sure!

[@samhaokip9126]

Only the Senna or the P1 will do

[@z32PureHardDance]

You got 1 life, might as well. Just dont forget to keep working hard and striving for a higher paying position in your job or learn new skill for a higher paying job.

[@senorbautista6143]

Is this guy scuba diving 🤷🏽‍♂️

[@kaohsiung99]

He's walking on the moon.

[@caseih-pz9vp]

I have 16 year old 275,000 truck and a guy that I know laughs and says he would not trust it to go to Walmart and back. Yet he complains that he lives pay check to pay check. He owes $26,000 on his truck and makes less than half of my income.

[@outdoorsnevada4138]

caseih 5130 Trucks are pricey. Sadly most want the newest year out with all the features. I buy used and run them until they die. They buy their 50k truck... drive it for 3 or 4 years and sell it/lose it. I buy it and drive it another 10+ years. I'm not having a payment the size of a house lol

[@christopherhiggins4249]

You my friend are a smart man. As long as it is reliable. That is all the matters.

[@tez_foe4382]

@@christopherhiggins4249 , Right On Brother

[@Ka_Gg]

Hey man, I have a 2001 Silverado with about 265k miles. Man I have driven that thing everywhere. It's my work truck. Had to pay about $800 on an upgraded trans rebuild, but it's been a great truck. Even if it breaks, it'll be cheap to fix. Plus I use my truck as an actual truck. If it gets a scratch or dent, oh well. My cousin accidentally ran into the fender and dented it with a 4wheeler. If it were a 50k truck, I probably would have cried. lol

[@БиггиСмолс-ю6ь]

I get it. He makes 15k a year and you make 35k. Now do you want a cookie?

[@marybetheby5184]

"The commercial showing the truck driving through a mud puddle on a construction site is what gets guys buying these things..."😝💪😂

[@samiradanesh2726]

Lol I love Ramsey’s grandpa. “That’s dumb” lol

[@johnazhderian5734]

A car is a "consumable" just like a restaurant meal. You buy a brand new car and keep it for 20 years and do not care if the car depreciates or not. You get the use of the vehicle for that time period and properly maintain it and spend money on necessary repairs. Its a lot cheaper than buying new (or used) cars all the time. A car purchased new and financed for five years should be less than 20% of your annual income.

[@suzum.9713]

Thankyou

[@faradaysage15]

why would you finance anything? that's just stupid.

[@pkdude5334]

but the greatest depreciation comes within the first three years, so wouldn't it make more sense to let someone else absorb those first three years of depreciation and then drive the car for 17 years?

[@drillingig2368]

@@faradaysage15 just pay cash for everything is better

[@deadbolt91765]

Love the Kia ad I just saw on this channel. The algorithm knows its audience.

[@dapperdanny2957]

In watching the video a year later and still all I see is car commercials...

[@hurt1704]

I get what Dave is saying. 500 a month from 30 to 70 in an Roth account could reach 5.6 million. The problem with that is, you have done without your entire life. Who wants to be a millionaire in their 70's? Majority of guys don't even live that long so your life is pretty much gone by the time you could even enjoy it. Maybe I am selfish, but I think you need to enjoy your life too.

[@hunttyp5845]

There should be a fine line between enjoying life and becoming wealthy while you can. You don't want to be at 70 and finally get to buy a new car that doesn't fall apart. At the same time , you don't want to be at 70, but still washing dishes because you have bills to pay.

[@andreasamudio7272]

You don’t need a brand new car and a 500 monthly payment to “enjoy life”. This mind set is just wrong

[@johnoa1146]

I am in my 70s. After two divorces I had to start over. I ended up with major debt out of the second marriage failure. I worked like a dog... Paid it off in a few years. Found things I enjoyed that were either free or not expensive. Enjoying your life and spending money are two different things. I recall an all inclusive southern holiday, it included free alcohol. 80% of the other guests lived in the bar. Great life????? Not for me ...I toured, saw the ocean etc. point being ... Enjoyment in life and fiscal prudence are NOT mutually Exclusive.

[@meandthexj.2500]

I thought the same thing. He uses an extreme example to make a point. It further proves that he makes his money by talking but not by anything that makes sense.

[@meandthexj.2500]

I thought the same thing. He uses an extreme unrealistic example to make a point. It further proves that he makes his money by talking but not by anything that makes sense. Most people can’t think for themselves. This is where guys like him come in. Listen to what he says. “Just dont have money invested in things that go down in value if you wanna build wealth!” Yeah easier said than done but you feel good “Knowing” this. Then he tries to relate to you by saying “See, I did this kind of stuff y’all. I was 23 just like you.” It’s all about communications and getting you to believe what he is selling.

[@beet4416]

Dave would kill me, I bought a $70k car on a $80k salary but it has given me so much joy, I have no regrets. Now 4 years later, car is paid off and I doubled my income. The car makes me feel like a kid again - still no regrets.

[@brianjonker510]

What are you compensating for that a top of the line auto makes you feel young and foolish

[@beet4416]

@@brianjonker510 probably because I grew up dirt poor wearing other people's junk. Now I can afford whatever I want, and feel however I want.

[@brianjonker510]

@@beet4416 No you cannot afford whatever you want @ less than 100k. Now as I would guess you have no debts and live within your budget then yes go for some luxury. If your choice for luxury is a car then good for you. Terrific if your luxury budget is enough to trade it in every three years.

[@beet4416]

@@brianjonker510 When I bought my car, I made $80k, plus I had to pay mortgage on a $400k house. Pretty easy when you know how to budget. But now I make $200k year so I think I can afford it.

[@brianjonker510]

@@beet4416 Read that wrong....thought your income had expanded to 80. and nothing wrong with luxury you can afford but you know as well as I most people lie to themselves about what they can afford

[@Plazthespaz3]

His grandpa died a multi-millionaire... Doesn't that sound stupid to anyone else? What is the point of wealth if you never use it? What is the point of any of it if you never bother to enjoy the fruits of your own labor?

[@outdoorsnevada4138]

Lee Yarbro Good point. Always extremes on both ends. Avoid debt 100% agree with. But still enjoy life. It is ok to buy nice things. Just don't go into debt up to your eye balls for them

[@exothermal.sprocket]

You can share that wealth with your family so it's not all blown at death. Obviously.

[@Artchred]

It’s not done as long as he invested it to the family. My dad always preach to me that Humane money and save money so we could do better and in between the Saints and the kids can live better

[@user-hd8ej8yx9p]

who said he didn't enjoy it? he had so much that he died with a LOT... this is the poor person mentality that will keep you poor.. let me enjoy it now now now, end up only enjoying a couple thousand per year for their whole life rather than millions down the line... he didn't live in his car, i bet you anything he had a beautiful home(s) and had plenty to enjoy and give and to spare

[@paulvalenciano7967]

Thats why i live on paycheck to paycheck 😁

[@Zach-hm6ky]

I work in the construction industry as a manufactures representative and some of the trucks these business owners and General Contractors drive have to be worth well over 50-70K... I make more money or about the same as they do and I drive a $3000 ford focus with 180,000 miles on it. All that little car does for me is make me money. Anyone care to tell me why a car is such an important status symbol for so many of these old white construction dudes?

[@sweetnesisbeast]

Zach Pez a lot of times cars and trucks are people’s passion. Men like their toys

[@Zach-hm6ky]

That is a good point. I am glad I don't have a hobby that ruins me financially!

[@victorhinojos3050]

Its about telling others what wonderful people they are trough their trucks and other possessions. Its just the american way.

[@D1Junk]

Theres nothing wrong with splurging and enjoying life a little too. Would i spend 70k on a truck? No. But there are def things i would spend 70k on because i enjoy them. Like a boat or cabin up north.

[@Zach-hm6ky]

No one is saying you can't enjoy life. Live within your means and understand the opportunity cost of buying large items.

[@Robjohnnetwork]

Dave drops the greatest gems!

[@jay-rus4437]

Own my own construction company. Drive a 6 year old toyota tundra with over 125k miles. Inside I cant help but shake my head at these idiots pulling into the lumber yard in their f350 platinum edition, lift kit, chrome wheels....absolutely ridiculous. Cant even work out of a truck with the tailgate at the height of your nose. 😂😂😂😂

[@Riverbend1752]

I think this should be mandatory watching for everyone who gets an enlistment bonus from the military. Too often you see enlistees spending their bonus on an expensive car.

[@darrellhart8129]

Yes, my grandfather grew up in the depression and saved everything. I can't tell you how many times he'd reuse aluminum foil for warming up his dinner rolls. He'd fold it up after every use and put it in the drawer. I'm sure he basically would reuse it until it fell apart.

[@coldflu]

Oh yeah same here 😀

[@jjjjjj428]

Dont sell the car drive it till its junk..

[@freeravenadventures6925]

Save and sacrafice all your life to die a mult-millionare. anyone see a problem with that? Saving is good, but you gotta live while you are alive as well...

[@dillonh321]

I just want to save enough to retire well but not save so much that I never lived while I was younger.

[@likkletomtom1684]

Exactly. I want to live life, but try my best to make smart decisions.

[@whitegoodman7465]

He's not saying save a penny on everything, be smart with the big purchases. Idgaf if I save 30 cents on apples at that grocery store.

[@likkletomtom1684]

@@whitegoodman7465 agreed

[@4Runner66]

I want to build generational wealth. I came from nothing I need to build a legacy of success

[@techblade837]

Most important thing to consider when buying a car if you work construction is that once your on that jobsite unless you get a specially insurance plan you are not covered for anything

[@sarahereach]

I found a hack with my Minivans, I have bought 2 that were 9 years old at purchase time and extremely low miles for that year (1st was 44K miles, 2nd was 14K Miles). These cars were a little high dollar for the year, but 10K - $15K less than the same model with equivalent miles on the odometer. After I got them I discovered they were government fleet vehicles, the first owned by a state agency and the second had US Navy documents in the glove compartment. Super reliable cars that were parked in a garage somewhere for nearly a decade before I started running the wheels off em.

[@regie957]

I have to say....I was saving just like I learned from Dave Ramsey. I was driving a 20 year old Corolla (I put a rebuilt engine when it needed it for 1,499 plus $900 a rental car for 2 weeks, this was bcuz i opted to keep saving). But who knew my 3 year old cat would get sick and cost me $9,000!!? I had emergency money but it was far more expensive than any cat I have ever we had. He swallowed twine!! Who knew a cat can swallow twine!??2 surgeries later... (one was to redo infected surgery!). A month later timing chain goes out on hwy in 104 degress heat...it needs alternater now broken door handle. I had to buy a reliable car...so i chose new Toyota knowing I will drive this new Toyota into the ground.

[@faradaysage15]

you think it's amazing that your cat would eat twine, I think it's amazing that you even have any in your house. Are you shipping packages in a time machine back in the 1930s or something?

[@marcelslofstra2157]

Could’ve bought another cat though.

[@Keyboardbeatz]

I work part time food delivery....i have to use my own car so buy £300-£700 cars...even if I have to get a new one each year its not a big deal...

[@davidfortes1154]

Ok that’s it. I got the answer I was looking for. Not paying no more than £17,500 for a car, half of my income, and its got to be cash. Car finance?? NEVER AGAIN 😅 Thanks Dave

[@hankfuchs8405]

I am a over the road truck driver and every time a car or pick up passes me I wonder how much in payments they have with that vehicle

[@TheSupervillain316]

Right now my truck is 14 yrs old and my wife's SUV is 10. Bought and paid for, my truck for 7 years and hers 2. At 142k and 60k miles today we aren't parting with either.

[@nunyabusiness896]

The bottom line with cars is don't buy needless luxury or more car than you need (i.e. a big SUV when you aren't towing or hauling). Used vs. New is a complicated question and just because a new car depreciates doesn't mean it's the worse option. Used cars can be all over the place in terms of history (beyond the CarFax) and it could be a ticking time bomb that blows up right after you sign the paperwork. A new SENSIBLE car that is properly cared for and kept until it's truly worn out and unreliable can be a better investment than constantly trying to navigate the often shady used car market where problems are covered up just enough to get you through the sale and then cost you a fortune you'll never get back to fix.

[@pmw3839]

Thank you. So true. I know nothing about cars, so am afraid I’ll get a lemon if I buy used. It happened to me once before. I bought my current car new in 1990.

[@acebragg5559]

Darth Vader is back!!!

[@armandol1826]

Ace Bragg indeed!

[@neilparmar5705]

He sounds stressed

[@AStanton1966]

I'm your father, Luke!

[@louismccall]

This guy must be at work while making this call because he clearly sounds preoccupied.

[@suzum.9713]

Driving maybe? That was my own impression- driving through traffic.

[@speksone]

I need this guy sitting on my shoulder all the time!!!

[@science5765]

A spare car is a good idea some thing like a corolla, I drive a 1995 Holden rodeo ( Isuzu pickup ) it is a good car but every month or so there is a part or a problem to fix, I keep them until they have half a million on the clock

[@outdoorsnevada4138]

Science I am similar. Will drive at least 300,000 miles on a vehicle before I retire it. I have my truck that I use for truck purposes and an old kia optima I drive around town in. If it goes down no big deal but I'm squeezing every mile I can get out of it. Has 290,000 miles on it as of earlier last week I should get another 10,000 miles easy

[@andreykanareyka9931]

Science you mean Isuzu Rodeo?

[@1Letter23Numbers.]

@@outdoorsnevada4138 I have a little compact with 75K miles. This is my spare car, paid in full. It's 12 years old and still going. The newer car is the one for travel and work and is safe for long driving. I hope to keep that one for 15 years or longer. I figure a new car every 12 to 15 years isn't bad.

[@michaelp.3643]

Oh boy. I think we will keep what we have. Thank you.

[@guillermozavala315]

I know somebody with a ford 150 ranch edition with 450,000 miles on it

[@independenceday3764]

Guillermo Zavala congratulations

[@isaiah9757]

My dad has a Ford F-250 with 550,000 miles on it

[@ITM95]

The story of your grandpa is my grandfather to a T! I can hear him saying it to me now... Haha!

[@nepatriots77]

28 years old, no debt (thanks mom and dad!), make about $4500 per month after tax, I can't wait to get a used honda civic in a couple years.

[@clearasil11]

You'd get three with one month's salary :D

[@Ka_Gg]

You are doing very well nepatriots - keep up the good work.

[@nickschneider774]

That right there is a great story.

[@jacobthompson8507]

I have 3 cars (I'm in the UK). Currently I have a VW Polo (a small Golf, it's not sold in the US), a Honda HR-V and a Audi S5. And my Audi has depreciated £7,000 In 9 months (excluding the £5000 I got off list price). My VW has lost £3,000 In value in 1 year (it was £13,000 new). However, my Honda has only lost £4,000 In nearly 3 years! £25,000 new, now worth £21,000. And I ordered the Honda BRAND NEW, the other two are ex dealer demonstrators.

[@kennethclark2425]

Dave, Good Afternoon, I have purchased a Honda CRV 2017 during the Honda Salethon paid 24000 for a 27000 CRV with 3750 Off paid 22500 plus close expense final total was 24600.00. The good news is I rideshare and have a full time job making about 45000 a year on rideshare and 70000 on my full time job. So I am doing well paying off the car down to 15000.00 within one year also paid off 30000.00 in Stupid credit cards, with another 10K in credit cards and 15000 K on CRV. 25000 more and I am done transferring credit card to 0% interest Discovery and will be making 1500 to 2500 payments on card and CRV should be done by May 2019...

[@sszhao11]

20k for a truck is reasonable, he's in landscaping business, having a nicer truck gives a person more pride. Should look in to how to increase income

[@outdoorsnevada4138]

Simon Zhao Also dependant on the needs he may need more power. Trucks are expensive so you want one that will get the job done.... not one that cost about the same and doesn't have enough power. Where I live trucks are a must and so is 4wd. That raises the price your gonna pay real fast.

[@Artchred]

I agree but I also disagree, which should give you more pride is having no debt and more money in the bank

[@jaketryban8772]

In the process of selling my 20 thousand dollar mint of a truck. Buying a 7 thousand dollar diesel that will do just fine. You don't need a 20k truck to look good doing business. You buy from states that dont get snow. Simple

[@dustywaxhead]

@@jaketryban8772 exactly. Plenty of Mexican landscapers use older single cab toyotas that work fine. All dinged up but gets the job done

[@wheelInmotion430]

It also depends on if you have a family. When we go in family trips, I want us in a safe and reliable car. If that means I need to spend 30k on a car then so be it.

[@elonmusk8667]

My car is 30% of my yearly income and even that’s a lot for me.

[@Dalopezbeast]

I had a problem with used cars I had an old BMW only paid $500 then It starting having problems so I got rid of it, then I bought a pre-Owned MINI with only 69000miles and thought that it would last me a long time, spent 4000 a year later to fix the problems it had, and I got rid of it six months later because it started having more problems. I ended up buying a new Toyota Corolla with the hopes of it lasting me a long time, I understand that cars are not worth it as an investment, but I cannot deal with the fact that you run the risk of buying a money pit of a car when buying it used, thats why I drive a new car

[@Terror1Void]

You're an idiot. You bought two used German made vehicles and expected low cost of ownership?

[@garlicgirl3149]

Grandparents...gotta love them. Wisdom

[@keyboarding5593]

Cars are my hobby but my monthly car payment is only 10% of monthly income. It's hard to comprehend non-car people are spending this much money on their car.

[@eddiejohnhurst1]

I’m not sure but I bought a $33,000 car for my business! Wanted a new work truck but they were $58,000 So I choose a awesome sports car for my business to show we are car enthusiasts, we can repair all new models, and I liked it! I REALLY WANTED A CORVETTE #1 for a company vehicle $50,000+ I use it for work, which I am lucky lol!!! Maybe if I can build my business and earn people’s trust!!!

[@ransom182]

Stop breathing into the phone bud :p

[@WCGwkf]

ransom182 I think everyone goes for a jog before they get on the phone. Must be a requirement to call in.

[@christopherhiggins4249]

ransom182 lol

[@christopherhiggins4249]

WCGwkf or calling on the treadmill

[@JulioLopez-xz5kx]

The guy is a mouthbreather

[@TheSupervillain316]

My 2010 Toyota Tacoma regular cab truck has power nothing. I bought it in 2012 with under 7k miles for $17k. Still have it at 142k and going for at least 100k more

[@SuperBabyBuffalo]

That story with your grandpa reminds me of that song, "Daddy Never was the Cadillac Kind".

[@edgehodl4832]

200k miles? Why upgrade? I have 2011 camry with 250k miles, not even thinking about upgrading anytime soon

[@OHDTX0311]

This dude has metro pcs

[@cm01]

That's literally just TMobile and TMobile is fine.

[@RJ-cv2uw]

Metro ia good now, ive had a metro and the only time i realize i have a metro is when i pay monthly bills to metro

[@OHDTX0311]

I’ve been with all the companies and I would pick metro over any company except for att lol

[@aross924]

😂

[@entreptiles]

My spouse and I make about $180k yearly combined. We live in metro Atlanta. We will not be raising a family and therefore have no reason to leave a ton of money behind. We want to live comfortably while we are younger (I'm 32) but still invest enough in our retirement to be ok.

[@Josh-179]

Another point is a counter to the common point about how much cars depreciate. Almost every other consumer product depreciates faster! Much faster. Buy just about any product new today and see how much you can get for it tomorrow. Electronics, appliances, furniture, whatever. Seems like we compare cars to real estate and investments which is silly.

[@jamie49868]

That is a great point. People never mention this.

[@dean827]

I heard $40K per month and I was wow,, then I realized $40K per year and I was wow

[@dc4334]

There’s a fine balance of buying an overpriced car, and buying a car with the comfort of knowing it has a good warranty. Sure, you can buy a $5000 car, and you have to worry about breaking down and repairs and whether the airbags will deploy if I’m a collision or not, or a $24,000 car knowing it has a bumper to bumper 120,000 mile warranty and it’s as safe as can be. Dave is obviously not wrong if you’re pushing to be a millionaire. But there’s a reality and practicality of getting a better car to ensure your family is safer. I’ll take the $24,000 peace of mind, and live with the extra cost.

[@xxxBradTxxx]

my 2001 Camry works just fine

[@gr86er]

I drive a 95 Miata so it's well under 10 percent of my income 😅

[@Sedona_FD3S]

NA NB NC ND? you wont find a more fun car to drive, i miss my miata.

[@gr86er]

@@Sedona_FD3S NA Miata

[@SisyphusJP]

Wanna ask his thoughts on this in relation to using your car for business/ airport livery etc

[@1Letter23Numbers.]

If you can't get to work you can't pay your bills. You just need to get there safely and reliably, you don't need to get there extravagantly.

[@45138449]

It's unbelievable how many people go bankrupt and lose money because of a car purchase!!

[@LoamerMTB]

My grandpa always said “don’t invest in anything that rusts.”

[@suzum.9713]

Funny, that's what God said, too!

[@MissRachelMarie]

That’s great to save all your money, but it sounds like your grandpa never got to enjoy it. I’m all for saving money and living below your means but also people need to enjoy the short lives they have.

[@Salitrillo360]

Save money. Don't get into debt. But also buy things you want that you don't need. We work to live, but we also work to have some fun!

[@restalva]

i full understand grandpa s logic , but sometimes people buy things because they like them , it does not MATTER if what they buy goes down in value . especially if it is something you wanted ALL YOUR LIFE . if you have money saved , invested , and so on , then you should excerise your right to buy something just because you want it . if you can afford a jag and you wanted it for so long . BUY IT . you only live once .

[@gregc247]

Why did you by a 20k truck? Cuz thats what they cost to find one under 100k miles.... 10k full size truck costs you more in repairs than just paying for the 20k truck, found that out the hard way by buying the 10k truck

[@FireantzBlaze]

I was about to get this hellcat but I'll settle for the V6 for now

[@jardenkt2763]

Some people enjoy cars like some people enjoy stashing money away. To each their own, but I’m never in a bad mood when I smell rubber burning. 😂

[@jacquelinebarrera4430]

It’s more than just looking good in it. A lot of people who drive cheap cars are dressed in designer Italian clothes holding expensive hand bags/ wallets and spending money at nice restaurants and are doing everything they can’t afford and then they hop into an old ford. I ride around in a nice mercedes and I don’t spend so much on other things so for me a luxury car works for me because I don’t really spend anywhere else. Luxury cars will always be part of my life. My first car was a Mercedes C250 and I had no problems paying for it nor the maintenance. Everybody has their own life and runs it differently. It all comes down to your what your annual revenue is and your expenses. I personally don’t have many expenses so it works for me.

[@bluestonemetallic7]

Jacqueline B ....In the recent months, I purchased a brand new fully-loaded BMW 540i M-Sport. I personally don’t care about buying expensive luxury goods such as brand name bags/designer clothes/expensive shoes/fancy sneakers or “wine n’ dine” at the exquisite restaurants or attend various sports events on a REGULAR basis. Sometime, when I take the “public transportation”, I see folks wearing $1k designer suits with a pair of dress shoes worth few hundreds. At the end-of-the day, I don’t see folks talk about spending thousands and thousands on other areas except how bad it is buying/owning luxury cars. Why not talk about wasting money buying expensive clothing, eating out almost every other day, attending sports event on a regular basis, or how expensive it is to travel around the world every year (min. $3k-4k). I don see ppl talk about those subjects in the show.....it’s always about buying/owning car nonsense. Just sayin’.

[@nathangreen900]

And now I'm buying jaguars for $2k that are nice. New daily is an 05 XJ8-L. That's easy for me to work on.

[@cesmith777]

Mr. Ramsey : I gross 65-70K per year have $1400 house payment and average an additional $2k in 'must pay' expenses (insurance, gas, food etc). I have $20k cash for a vehicle, have $15K in emergency savings and a well funded retirement. My question: The car I want is about $35k , I want new because used are so over priced it is almost as bad as buying new. I would only need to finance $15k, should i just go on and buy a used in cash or is financing that extra $15k a bad idea?

[@HermannTheGreat]

You must be looking in the wrong places, used is much cheaper than new. Why would you spend 25-30% more for a brand new vehicle when you could spend %65-75 and get a nearly new car with only 30-40k miles?

[@joelcleare]

Half your income ! Wow. That’s an extreme. We shoot for 20% max.

[@Anon_Fox]

Sounds like the call reception was IN a salt late

[@zunaiandre2341]

Having a spare vehicle is not a problem as long as its name is Metro bus.

[@randomvideosn0where]

So it really should be everything with motors AND everything electronic.

[@natlocst]

i have 27k in car debt. the issue for me is that all i do in my free time is drive, clean cars, mod cars, Im a car guy. I justiy my car debt with the fact that I dont buy anything else for leasure or pleasure. and my fun car that brings debt gets 36mpg compaired to my payed off jeep that gets 8mpg... I spent double on gas for my jeep in a year compaired to my 124 spider abarth at the same miles driven.

[@BoydsBowling]

Had to get it off that number my boy

[@ChicagoBulls1984]

Is it based on your yearly income before or after taxes??

[@stevengtv]

ChicagoBulls1984 use your best judgement. Obviously keeping expenses as low as possible is best...

[@rosen380]

... or don't worry about it as if you buy a new Lincoln MKS that is 70% of your income [lets say $70k income], in 3 years when it has dropped from $50k to $30k in value, it'll only be 43% (or a little less if you got any sort of CoL increase)! DRs guidelines get handled naturally by time. FWIW-- this isn't to say that I think you should overspend on depreciating assets, just that using the current value of the car(s) and your current income as the only guides is flawed.

[@nicolaslamer7103]

I’d use take home pay, also know. As net pay. You can’t use 100% of your gross pay to pay off car loan debt

[@SuperMarioThatWhore]

After

[@MzBabsie]

I can't get myself to spend more than 15K on a vehicle. It gives me anxiety, just the thought of it. We need a truck for our little farm, but the dag'on things hold their value so well that I'm transporting livestock and farm equipment in my Nissan LOL Reckon I'm the stubborn mule on the lot.

[@jacobynoctis4825]

Buy an older truck. I paid 1200 canadian for mine and it pulls and hauls, handles offroad and rugged terrian with 4x4 and is very reliable. And it even had A/C as perk. Im a rancher and a carpenter and couldnt imagine doing my work without a truck

[@keithclark8030]

Great story at the end. Grandpa was right. I've made so many mistakes as well.

[@shawnmacwhinnie4481]

What if you live in the salt belt of New England? I agree with Dave about having a less expensive vehicle, but around here rust is a serious issue.

[@Marlon_J]

Buy out of state cars and get the under section painted with fresh layer of anti-rust. And power wash the under side every few months to get rid of salt residue.

[@outdoorsnevada4138]

Thank God for living in Southern Nevada. Never have to worry about that issue.

[@craighodgson7850]

My grandfather saved and all those savings went to the nursing home.

[@AStanton1966]

The only other outcome that is worse is dying and becoming the richest guy in the cemetery.

[@tbaxter212000]

I still don't get Dave's rationale. How exactly does a vehicle's depreciation affect ones income or expenses? I don't see that it does. If my paid-for car goes from $60K to $20K how exactly does that move the needle negatively when my income/expenses are exactly the same?

[@sebastian7539]

Because if you took that $60k and bought a $20k car, the other $40k would have grown to $70k in stocks with a 10% annual return rate after a 6-year loan. So basically, you're making $30k and saving $40k by not buying an expensive car. That is huge money to someone only making around $50k a year (almost 150% annual income). If you make one million dollars every year, $70k isn't even 10% of your income.

[@MrFuchew]

having a spare car allows you to work on your own vehicles and save a ton of money.

[@MissJami]

The average price of a brand-new SUV (or crossover) in 2023 is $70,170 - 32% higher than the 2018 average of $53,160.

[@dougyshl]

I mean, I get it... don’t be over your head and over pay... but what’s the point of having money if you can’t buy something nice... I’m currently trying to get rid of debt, but it’s just so I can buy a new ram 2500 limited. I don’t just want money, I also wanna ride in comfort...

[@matthewboadway406]

Buy a used tacoma, and it will only go down about 2% per year. Haha

[@samuelstrate134]

Matthew Boadway That’s my thing, I’m looking at buying a brand new Tacoma because they retain their value exceptionally, like it feels like it’s one of the instances where even if you leased it you would end up on top. But Dave makes it sound like it’s stupid to do so.

[@qBeYcarpet]

Sure if you have debt etc dont buy cool cars but if you have money it surely dont hurt anyone if you buy a car with a small portion of your investment money