How Much Should I Spend On A Car?

[@JustinCase780]

He's calling from the CarMax bathroom. 🤣

[@mathewpemberton5407]

😂😂😂

[@theskyisblue567]

🤣🤣🤣👌

[@Themoomabides]

This comment wins the Internet today!

[@deeplife9654]

😂😂😂😂

[@genxx2724]

We already did that one, about a year ago.The person actually was calling from the CarMax bathroom. I said CarMax should install a red phone in the bathroom.

[@Mr_Fairdale]

The mood is so different when Dave is gone. Like a substitute teacher who just puts in a movie and lets everyone eat in class kinda vibe lol “yeah buy a car, you deserve it” 🥳

[@knighthawk3559]

So right!

[@harishrp4449]

yeah the show is total crap without The Brave Bull

[@Teutoburg09]

Yeah, I don't think Dave would agree with the advice these two are giving. I'm pretty sure Dave would not recommend spending 37.5% of our income on a car when the current car is in great condition, just because we're embarassed to drive an '06.

[@johnwilburn]

@@Teutoburg09I have seventeen cars and none are that new 😂

[@jackolantern22]

@@Teutoburg09upgrading from a 17 year old car with 150k miles isn’t exactly living extravagantly.

[@underfiremaf8307]

An 06 Corolla with 150k miles is the perfect car. Still has years of usable reliable life left and is no longer depreciating. Selling it now would be silly

[@WinningFinancially]

Exactly, drive it until it breaks. Hold off lifestyle inflation.

[@frankbaars1880]

Keep riding it, if you don't need to replace it. During these times, don't replace it. When everyone wants it, it's more expensive. In a few months or years, nobody wants or can't afford it then you buy what you want. In case you need it, because it's done. You've got the opportunity to do so.

[@AnimeBeefRandoms]

He can afford it.

[@genxx2724]

It’s important to have up-to-date safety features, depending on where you’re driving. But now isn’t a good time to buy a car.

[@AnimeBeefRandoms]

@@genxx2724 anything modern (2000's and newer) is up to date...

[@karenc6334]

“It takes a lot of swallowed pride to drive a 06 Corolla at 27” Me in my 05 Corolla at 36 👀

[@unfairsanic5089]

Me in my 2013 corolla 😢

[@Xspeedspec]

Ouch! Cause at this point you must have accumulated some wealth to upgrade…if not then you been doing it wrong

[@shauns06rubi]

2001 Tacoma at 30

[@foxybrit3075]

Me in my '94 Carolla at 30.

[@FrankS111]

You got me and my 08 Nissan beat at 37.

[@thenewwayhome]

As long as it runs, it works. This caller seems to have a good head on his shoulders though. Choosing to drive around in an old car for his future. You deserve that new car, man! You do.

[@suen5006]

I love having an older reliable car with no payments. For me that's what feels the best, especially now as it's a hybrid with 46 mpg!

[@bradh7472]

I love having no payments too. 2019 especially for 5 years.

[@tonypreston7278]

The real question is, when will car prices start to come down to “normal” again? Seems like it will never happen.

[@lot2196]

I agree. I see video's saying repos are off the charts and the dealer auction lots are overflowing. I haven't seen it. Even if it's true there are plenty of people who saved and are waiting to buy. That will keep prices up, plus manufacturers are going to start transitioning to electric so new ice cars are going to be getting more scarce.

[@eggsinsideme]

Inflation. Same reason houses won’t go back to $100k again. Once prices on things go up they generally stay there.

[@ytr8989]

Scotty said used car prices are about to drop like a stone.

[@Matt-ix6ne]

As soon as people stop paying inflated prices.

[@charlessnyder9684]

Yes because demand is being destroyed in part because of rising interest rates (I know you shouldn't finance a car but most people do)

[@betterthanemril988]

Don’t ever finance a car. A house can at least act as a return on investment, but financing something that heavily depreciates in value will have you feel cheated. It’s one of those deals that are tempting and feels good in the moment but you feel the long term consequences the longer you are in the term. From the payments, interest, penalties, the required amount of insurance, the maintenance, the unexpected yet always expensive repairs to make to the car, and by the end you will be lucky to even still have the car functioning in the end.

[@wyattb3138]

I grew up in an upper class house and my parents are super loyal to GMC and our local salesman because he’s my dad’s high school friend. However, I got my first job and my parents already ran a credit report to get a $50K!!!!! GMC Canyon. I don’t like it but we live in a rural off-road area where 4WD is needed. My dad called me a few days ago to ask if I would like a Canyon and I said I like it, not knowing how much it would cost. Then he came back with news saying that he got pre-approved for a Canyon and we got a credit check. I didn’t know about the credit penalties 😅. So now we have to either finance a $50K car which will end up costing $71K for me, since it will be in my name or wait 9 months or so to find a used out of warranty small truck that I can buy outright for $35K.

[@scotchbudmeister9018]

I was in a similar situation. It hurt to write the check. I stared at the ceiling for about a week wondering what I had done - lol. Two years later I still like the new (not any more) car but sometimes I wish I would have just kept the old one a while longer to increase the savings etc. Your tag fees and insurance will definitely go up.

[@WookieSenshi]

Well said!

[@jaredfrazier2216]

i dont even pay insurance on my current vehicle lol so im def gonna see a rise in price

[@pampa0331]

@@jaredfrazier2216 lol was this you?

[@jeretso]

When I was in his situation I traded in an old CRV for a newish AUDI. It was the worst mistake. The CRV was ultra reliable while the Audi was in the shop all the time. I am glad caller is getting another Toyota but the newer toyotas have more plastic parts and more expensive to fix. Corolla Cross is also a new design so it will have more bugs than a Corolla sedan.

[@Youtubeuser1aa]

Argh I am 41 and still have an 09 Corolla but want a truck so badly

[@Abelram1153]

2006 with 150k miles?? 😮 I have a 2014 Corolla with 125k miles. Amazing cars!

[@codys5727]

Still driving an 08 corolla with 197k that i bought brand new. Keep going till the wheels fall off

[@aygwm]

They’re ok. Camry is better

[@jameskilrain38]

Heard those were good.

[@tommie9377]

George saying (that’s what’s up) made my day lol😎 0:37

[@mandysimmons2769]

I enjoyed that too! Too much maybe! LOL but I'm driving a 25 year old car, so.....eh. LOL

[@elkellenhabla]

Lol was wondering why Rachel started laughing

[@blodus4521]

TWU

[@markg999]

You get what you can afford cash. Plenty of good used cars available under 30k.

[@dougholdem2898]

If the caller decides to upgrade to a new or newer car, he might want to then consider opening up a "car account", where he begins making a monthly car payment to so when that car needs to be replaced, he has specifically saved to pay cash for the next car and won't have to to take money out of his savings account. Saving for an expense is a lost art.

[@philipg8283]

This whole episode is just a Honda and Toyota fam club. I love my 1999 Tacoma. Rock on guys

[@njc9911]

I would buy this man's Corolla in a second if I had the cash 😂

[@hornet7288]

I am 36 with a 05 camry that has 349k miles and i love it. I do have a newer car for traveling but the camry is great for around town.

[@cb9d90]

my 05 avalon has 225600 miles as of today. still going....

[@NI-CO-LA]

Toyota for life

[@Stormy_Dawn]

My corolla died with like 280k on it. Never even did the timing belt.

[@Mkay999]

Don’t just shop around for cars in your area. It cost me like 1K to ship my car from FL to CA.

[@Stormy_Dawn]

Biggest issue with vehicles out of state is that they don't all have the proper emissions equipment that Cali needs to register here.

[@clutchlaughs9179]

How you going to buy a car without looking at it?

[@PROTLxONgame]

@@clutchlaughs9179 Hire a local mechanic for a pre purchase inspection. They are going to look at the car and spot issues much better than the average shopper.

[@sendit3251]

This guy an idiot

[@Mkay999]

I mean if you’re paranoid about it you could fly to see it yourself 🤷🏼‍♀️🤷🏼‍♀️🤷🏼‍♀️ Flights range 300-700 these days if not cheaper shipping the car 1K. It’s still cheaper than a 5 or 10k premium depending on your area

[@jh1328]

I’m 38 and drive a 2008 Saab that I bought back in 2012. It still runs. No reason to get rid of it at the moment.

[@stocksxbondage]

Bought a used ‘14 Lexus GS350 f sport for $27000. It’s been 3yrs and same year/spec cars with the same mileage are stealing for $24000 today. Some vehicles do a great job of holding value (most Lexus/Toyotas, Wranglers, Mustangs, Porsche 911s, etc.). The GS is paid off and cost of ownership is the cheapest I’ve ever experienced before so I have no motivation to sell. Probably why the resale is high for a decade old car… you can spend a decent amount on a car wisely. Car is only 1/4 of my individual annual income.

[@randomutubr222]

Just keep the car you have man. If it runs good… run it until it doesn’t run anymore and keep saving and investing the money you already have. Then get a newer car. He only wants this car as a status thing. Now good for him for at least looking at a reasonable car like a Corolla instead of a stupid BMW or something… but still. I drive a 1998 Toyota Land Cruiser that I paid 10k cash for with 210k on it, and she is still going strong. And I have significantly more money and income than him. I plan on driving this thing into the ground then getting another one…

[@kevinabernardo]

Toyota discontinued the Land Cruiser lol

[@randomutubr222]

@@kevinabernardo What does that have to do with anything? A new Land Cruiser is basically a $100k vehicle… I’m talking about LCs from the 90s lol They may be discontinued but there will be used ones around for a very long time. I’m also not suggesting he get one (expensive to drive especially with fuel prices these days; I wouldn’t recommend it unless you off road camping a lot like I do). My point is I could afford a brand new vehicle today with ease but I still choose to drive a 25 year old truck that I paid not a lot of cash for. That’s the point.

[@jfish9014]

Some 1998 Land Cruisers are as much as a new Corolla.

[@BrianMiller1973]

@@kevinabernardoIt’s back!

[@jimmyjay689]

Doesnt sound like a wise purchase

[@humble_integrity]

Big deal... I was driving at 20 year old car from 25 to almost 30, had no issues with

[@summerforever6736]

Keep the same car save your money buy a house!!

[@ddennis2430]

As much as I hate making car payments, it is nice to drive something that doesn't leave me on the side of the road constantly

[@jeretso]

Corolla is one of the most reliable cars in the world. 06 Corolla does not leave you on the side of the road unless you run out of gas or oil.

[@MSG685]

I bet that corolla has never left him stranded and has started every single time he put the key in. It's not a hyundai. I even bet the interior is still in great shape and there aren't any broken switches or lose trim.

[@theskyizblue2day431]

@@jeretsoI ran my 03 Corolla without oil when I was just done with it and wanted to upgrade. A cylinder failed but it just kept going. It simply would not die.

[@jeretso]

@theskyizblue2day431 My corolla is burning 1 can of oil per month. Previous owner skipped oil changes and dipstick was blackened. Hard to kill 😆

[@Youtubeuser1aa]

Buy a toyota

[@AMScotty]

The corolla was just broken in at 150k. That thing could have lasted to a million if properly maintianed. Toyota reliability is no joke.

[@Love2Banime]

Keep the car you have until it runs into the ground. I got mine with a great deal and i was able to pay it off fully in a year. My first car, too.

[@thetruth5635]

That car is great!! I have a 07 maxima and I want to upgrade to a nicer car to but then I hear Dave saying he drove a Barney looking car and the cloth on the top flew around

[@analyticalchick3064]

I had an 89 Maxima back in 2001 and 2002.

[@thetruth5635]

@@analyticalchick3064 i have 195,000 miles on my maxima i will probably just drive her to the ground

[@edy5082]

Keep the 06 corolla until it dies, it serves as a backup if anything happens to the new one, or daily drive the corolla and the new one as a weekend toy. I have an 06 honda accord with 258k daily drive 100 miles

[@grumpybulldog19]

I would never sell a car like this. They don't do like this anymore.

[@malikking7047]

I have a 2007 Camry sport with 200k miles and I make more then this guy but I could never imagine spending 30k on another sedan… I think the situation is different if you are coming up on your third kiddo and need a minivan

[@Youtubeuser1aa]

Minivans aren’t cheap either. Sienna is around 45

[@ralphabreu5022]

Keep driving the Corolla till the wheels fall off. The best car is no car payment...

[@metaltera86]

Just keep the car, the way house prices are going and interest rates he will want as much liquid cash as possible for a down payment

[@Georgemorales5559]

I’m feeling really good about driving my O6 Tacoma and saving and investing money at 26 years old 😅

[@iamkyleclimer]

What are saving up for next?

[@Georgemorales5559]

I’m saving for a my next truck as well

[@iamkyleclimer]

@@Georgemorales5559 Sounds like a plan, can’t have too many trucks!

[@clarencewoods4920]

Toyota babyyyyyyy…. I had a Corolla, Camry, now a Highlander 🙌🏾

[@sendit3251]

Sinking in debt

[@Abel_Girma91]

Yessuh

[@Robert-ep7ps]

Keep the car. When it breaks, fix it.

[@jameskilrain38]

That all depends on the cost of the repair and the condition of the car.

[@martinezbiz]

There is no reason to buy a new car unless you are a millionaire. you are literally losing 35%+ value driving off the lot

[@thesuperdingos]

A car made of rice and beans

[@Mr_Fairdale]

A different kind of ricer 😂

[@melescobar8328]

@@Mr_Fairdale 😂😂

[@Jeffreymaxwelll]

Can’t forget beans and rice

[@DDoubleU8001]

In other words, designed in Japan and made in Mexico.

[@sashavenka]

I work minum wage and I drive a Porsche 911 can't let the boss have a nicer ride than me No sir 😃

[@open_ckt]

What the hellll

[@wwhite2958]

2015 legacy 3.6 with 243k. Drive way to much

[@MetikalMan]

Corolla Cross is a fantastic car. Sell the Corolla for $5k and the new Cross will be under 30k out the door.

[@summerforever6736]

It has a stupid CVT!

[@jeretso]

CC is a new design. Just wait a year for Toyota to get the bugs out.

[@allanp3065]

My 2005 vehicle only has 135k on it... Just picked up a 2018 for $11k

[@todd2456]

Rachel kept saying "new car". Dave says no new car until you have a million dollar net worth.

[@coachbeam3600]

To each their own.

[@bane3991]

But Dave also says that no more than half your income should be spent on a car. So if he makes 80k, he can get a brand new 40k car. Dave's advice can contradict itself sometimes.

[@feiwong70]

Hope his decision to buy a new car is not because he’s now dating. I’d see a girl who has no problem sitting in his ‘06, she is a keeper. Not because of a Maserati.

[@samuelkoshy8520]

No need to change the car… you got a freakin Corolla… if you got a Toyota or Honda, keep the car if it runs fine.

[@johnnydoe9969]

150k miles is low. I’m at 200k and still keeping it til it dies

[@abdulaliakbar1175]

Smart

[@WeBeatMedicare6969]

It’s not low man

[@johnnydoe9969]

@@WeBeatMedicare6969 u don’t know about Toyota engines

[@alinatamashevich3354]

@@johnnydoe9969 Does not matter, a car with 150K is a car with 150K.

[@KinggCornn]

this guy will be a millionaire before he is 50

[@Teutoburg09]

I disagree. $30K for a car is too much if your sallary is $80K. The traditional rule of thumb is that your car should not cost more than 25% of your income. Just because the cost of cars has gone up doesn't mean our ability to pay more has gone up. Ordinary people are being priced out of the new car market. Now he, and everybody else earning $80K, which is a great income, have to buy used.

[@akacaali]

I have a 2010 toyota corolla and im 24 year old making 120k a year. I been really thinking about getting a new gr86 but idk man. ( no debt/no kids)

[@stevenporter863]

If the caller is following Dave's teachings since high school then he should already know the answer.

[@hvaball150]

theater.

[@jeretso]

He says he has no debt but he probably has to pay rent. With rent prices nowadays yikes.

[@stevenporter863]

@@jeretso Rent isn't debt though - ongoing cost.

[@stevenbaxter5601]

Remember a car, in this situation. Isn't an emergency! No

[@jaredfrazier2216]

what does that have anything to do with buying a car

[@oldfordman68]

Your complaining about owning a 2006? I'm still driving a 1993

[@DDoubleU8001]

* You're *

[@mustasheolll2020]

Honestly amazing

[@Teutoburg09]

Damn, you got me beat. I was just going to brag that I'm still driving my '08 Honda Fit ($15K when it was new), and I earn a lot more than he does.

[@solgoddess2283]

Oh heck no! Thats way too much to spend on a Corolla!!! I would be looking at a used Lexus ( possibly a UX )

[@GunGlutton]

20K get another Toyota

[@jeretso]

Corolla Cross is too new. Wait a year at least to get the bugs out. Honestly you will get a better deal with a Camry. Crossovers are way to popular.

[@kino7539]

How do you get a pre purchase inspection before buying the car?

[@alleyes9243]

My Yaris has 251,000 miles is perfect but I had to changed it. It hurts not to drive it any longer

[@ddubsr5886]

This is the kid who always kissed up to the teachers in class and needed to be told he’s a good boy and patted on the head

[@kevinabernardo]

So true!

[@scottvickery2057]

unless you need something bigger...family expansion..I'd keep this one unless it's giving you problems.

[@cosmomontanaro5759]

Folks: _cars are depreciating assets._ There's no reason to upgrade your car that works unless you're doing it for utility like cargo capacity or gas savings. There's a reason why Buffet drives what he drives: people with real money don't give a crap what you drive.

[@ccjdis]

He should buy a new phone instead.

[@crazytrashman123]

Corolla crossovers start at about 22k and goes up 26k. Seems pretty reasonable

[@edwardlloyd1516]

Buy brand new. Buy a sensible mid range. It's cheaper in the long term. Even a 2 year old is already 15% into its 15 year life expectancy. So a 30K 2 year old isn't really cheaper than a 36K new car.

[@mandysimmons2769]

Yes if you are close to marriage please wait until you marry to buy it. It's more fun that way. Used cars cost more than new right now, so we got a new one ( all pre saved up too ) for the warranties on it. We are close to what Dave says. Funny it costs almost as much as our first house did 35 years ago. That is hard to wrap my head around but I'm going to enjoy that new car smell and not being stranded!

[@juliettezea9507]

Why is it more fun because your married

[@mandysimmons2769]

@@juliettezea9507 I enjoy compromise and house hunting sharing my life with a good partner. Our first house lasted us 30 years but A young man I know is now stuck with a house that his bride does not like. Just my opinion and life experience.

[@louismat319]

any toyota, I'll drive way past 200k miles. I followed the rule on buying a car and I still feel shitty that I couldnt get the BMW

[@paul_domici]

He's on the right track!!!

[@superblump87]

As little as possible.

[@abealtamimi5047]

I would like to buy his 06 Corolla if u see my comment let me know please

[@WeBeatMedicare6969]

Lol

[@mustasheolll2020]

I’m 22 making 30k a year not in school due to failing due to mental illness. Right now I drive a 2016 my parents got me for just under 10k before fees, I may get a new civic soon since I really want one and can afford it.

[@soyboypersonalfinance1138]

Max budget 25k if you find a good one under 25 than great

[@jeffkline9191]

Drive what you have.

[@fjorge4014]

I have a 2007 Toyota Camry 96K miles!!! Let’s go!!!

[@ernglez4390]

$30K for a Toyota Corolla?

[@KelMurphy]

Haha! This was my reaction as well! Keep the old one for those prices... not worth it!

[@johndone8045]

save it for the new FL5 another corolla..... welll, say the word, GR Corolla

[@Jay-om8gr]

30 Gs for a corrolla???😂😂😂😂😂😂

[@WookieSenshi]

That car has at least 10 years left in it if not double that or more. Don't sell. Live with it. Invest what you would have spent.

[@nebulousJames12345]

This guy should upgrade to a 2002 corolla

[@joeburtch5670]

I thought you were supposed to have a million dollars net worth,and then pay cash for the car?

[@ytr8989]

Now he’s going to go in debt. 🎉 🎈 🎊

[@WeBeatMedicare6969]

How so? Lol

[@riddledtomcat1360]

What a terrible idea to sell that car. That old corolla is immortal.

[@jamesdean6744]

No less than $100k is the right answer. Finance it with nothing down. Yolo

[@Stormy_Dawn]

😆

[@wwhite2958]

Do it twice so you have negative equity

[@Tyronebabydaddy]

I’d recommend leasing too!

[@eliasdlga]

😂 life's too short to drive boring cars.

[@bucnner]

🤦‍♂️🤦‍♂️🤦‍♂️

[@TomHartley1]

Is it half gross or net income on car recommended??

[@aygwm]

Neither. Maybe 10%

[@mustasheolll2020]

Correct answer is nothing :)

[@untouchable360x]

More than a down payment on a home.

[@CDLMoney]

Beans 🫘 in Rice 🍚

[@JosiahK555]

keep the car. and if you want a new one there is zero reason to spend more than 20K,probably less than 15...

[@TrazimDollare1982]

Dave Ramsey Car Channel is back 👍💵

[@residualroyaltyacademy]

at 26 driving a 09 swallows some pride

[@Old_Sailor85]

As little as possible.

[@clement2780]

what is the cheapest not junk car? think about repair costs

[@hvaball150]

$400-$500 per month. done.

[@philiptaram]

Me in my 2002 Econoline 👀

[@rickyaarroyo]

But how much would be your down payment ?

[@chrishayes4166]

$6K for a 175k+ miles 2006 corolla? A good illustration as to why lower income folks truly are struggling for necessities such as transportation, yikes.

[@jessicastarkey1229]

I can’t understand what the guy said at the beginning right before George and Rachel made those faces. Anyone know what he said?

[@amireallythatgrumpy6508]

Try clicking the 'CC' button on the bottom right corner...

[@elkellenhabla]

I think Rachel laughs because George says “that’s what’s up” but I’m not sure.

[@lukeiskandar1208]

He should get a Camry TRD lol

[@dummgelauft]

How much should he spend? NOTHING.

[@HondaHMC]

I’d go with a GR Corolla if it was me.

[@unfairsanic5089]

Same lolz

[@dericanslum1696]

...bingo bango boingo...

[@DDoubleU8001]

If it * were " me.

[@jimmymcgill6778]

6k for a 2006 car?

[@jackdempsey9346]

2016 Corolla. 39.

[@kevinkidneyy]

man get a truck man !!! 30k on a car nahh man get a truck 35 k tacomaaaaaaa

[@unfairsanic5089]

Haha goodluck getting a tacoma for 30k

[@lincolnzeras]

Where's papa Dave? He's been away for a long time now :(

[@picadosinferno]

He's on holidays in his timeshare condo

[@darex0827]

retiring

[@BigPhil2024]

He’s away buying cars

[@OTOWN2STOCKTOWN]

Yes. So bad

[@sendit3251]

Good! His too old for this show

[@WELZEL10]

How about the inland empire of Southern California? For a blue collar guy. Honest numbers 🙏🏽