My Company Forced Me To Buy A $38,000 Car!

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[@yamamancha]

I never get tired of listening to Dave talk about vehicle debt.

[@Shaolin91z]

This time it's justified

[@yamamancha]

@@Shaolin91z I thnk he's always spot on when it comes to vehicle debt. Half the people calling in would be living the good life if not for stupid decisions on cars.

[@yamamancha]

@@Shaolin91z And just to be clear, I almost made one of those stupid decisions a year ago.Thanks to Dave, I decided not to buy a new car and it totally changed my trajectory for the better.

[@Shaolin91z]

Good for you. New car payment+full coverage insurance+ sales tax = debt

[@InvincibleMegaBeast]

I have a sport car that Im under water with at least $3k...going to try and sell it off this spring

[@leilanikuuipo6004]

Nobody forced him to buy a 38k car, he did that all on his own.

[@CrashCarson14]

Jswirv so a civic to an M3? An M3 wouldn’t be to good for any clients. Too tight

[@i0hate0this0place]

@@CrashCarson14 true, sounds like an excuse to buy a M3. A regular 3 or 5 series would have done a better job of driving clients around. Even a C class, not many people know the model of cars, just the brand.

[@CrashCarson14]

jean rainier feliciano exactly. People egos into buying a car. An X 5 or whatever it is would be best of a bmw really

[@califdad4]

a Real Estate Broker told me that he got his agents years before, a deal on a Lincoln Continental , but they bought the cars, this was back in the mid 1960's, he said they looked real good and the cars looked great outside of the business

[@jonnytorch5855]

Jswirv this is true. The know a girl with a real estate firm that required you to have a luxury auto. She bought a Lexus suv.

[@InvestingHustler]

He wanted a new car and blaming his company for it 🤔 I’m sure he could’ve got a better deal then a 38k car

[@atown27]

I agree

[@LuisPerez-xh7if]

HE SHOULD HAVE GOTTEN A CAR THAT WAS 1 YEAR OLDER AND ALREADY TOOK THE DEPRECIATION HIT.

[@georgewashington938]

than

[@lovethemflowers]

Man! I wanted to hear what car he bought. Sorry the call dropped before we found out.

[@jamescurrent8794]

You've nailed it on the head here.

[@nathanielcarreon5634]

My company forced me to buy a house in Malibu. lol

[@BethBurns68]

lol

[@aldovlo]

🤣🤣

[@designhub360customapparel]

Lol

[@defnotsolrac3406]

rofl

[@davidburton4582]

Haha

[@PittToNYC]

I had a similar car arrangement with a previous company, and I would not be surprised if the rule is within 4 model years “at the time of purchase”. So if that’s the case, he wouldn’t have to swap out cars every year. Then he could just buy a reasonably priced, reliable car and bank the monthly car allowance.

[@gus4198]

Brand new corolla for 20,000 then he’s saved money and qualifies for the stipend for 4 years. Sells it at the end for 5k and that brings the next new car down to 15k to qualify for another 4 years.

[@trippin9298]

True! Would a Corolla be comfortable enough to be in all the time?

[@trippin9298]

Well that speaks to that.

[@raydavies6236]

@@lslurpeek I knew a 6-10" guy that drove a Ford Tempo....

[@MiguelRPD]

He could have easily gotten a Toyota Camry Hybrid or something.

[@geoffreysserwanga7996]

I dont remember him mentioning that type of car he got

[@erikgonzalez2278]

If I could buy my new car before I knew about Dave I'd buy a used Camry Hybrid SE for sure.

[@big4g63t]

That's what I just got my mom after my dad passed away, so she could travel on small fixed income , 2012 Camry hybrid 45mpg and 200hp.... Real nice car

[@iaimforawesome]

Geoffrey Sserwanga most likely a base model luxury, Mercedes Audi etc. go for that price

[@johnneill5960]

You have to be comfortable if you drive it that much and not be a sardine ...there were other options though.

[@mannyjeanpierre4062]

dudes a clown. Not man enough to receive wisdom from a man whose already been there and done that. He better pray he doesnt lose his job and is stuck with a note he cant pay. His company probably gets a kickback somehow from some auto sellers

[@herfirstmate]

Manny Jean Pierre And the nerve to hang up on him. Can you believe that? You call into his show asking for advice after you do something dumb and hang up because you heard something smart. LOL.

[@egresk1]

@@herfirstmate How about the guy was disconnected on his cell phone?

[@herfirstmate]

egresk1 And we know this... how?

[@herfirstmate]

egresk1 You’re right. Maybe I’m projecting and it’s actually me that would’ve hung up cause I did something so dumb.

[@nochindeluxe]

This is exactly what happened to a friend of mine. He was in sales and the company gave him a stipend to buy a vehicle that could haul the commercial equipment that he was selling. Dude goes out and buys a brand new Ford Expedition for like $50k or whatever and loses his job a few months later. The truck got repossessed almost immediately and he declared bankruptcy shortly after.

[@Kostas1989]

4:58 Hello ?? Hello ??? hahahahahah the guy hung up he couldn't take it anymore !! hahah

[@angelad7759]

LOL!!!

[@EmpireTextbooks]

Kostas haha yeah he couldn’t handle Dave’s stupidity here. Dave didn’t even ask how much the stipend was!

[@ibmtpx24]

@@EmpireTextbooks The amount of stipend is irrelevant. The spending habit of this caller is the focus here. I am not sure who is the stupid one here though.

[@EmpireTextbooks]

teetee tee what if the stipend is a percentage of the car payment? Then it is relevant. Especially if the stipend isn’t provided if you don’t purchase a car

[@TheAngrySlug]

@@EmpireTextbooks This response actually made sense in your mind?

[@scarpfish]

I love how Dave facepalms before the caller even completes a sentence.

[@a-a-ron2336]

2020 Ford Fusion, $17,000 out the door. I get a new one every two years. $600 a month stipend, all maintenance and insurance paid for. Prophet approximately three thousand a year.

[@eddieg3631]

Profit

[@DaMu24]

You better be making $120k

[@stupidrules1000]

I love how he's giving advice on the company's car reimbursement program without first getting any information about the reimbursement program. Like, how do you know the car reimbursement isn't a reimburse up to X amount, instead of a flat reimbursement. In tgat case, he should go buy the most expensive car possible because it's on the company.

[@tzarzinjo3766]

He's getting paid $95,000 a year. There is no way that stipend will go up over $500 a month. Even if it did it would be $6,000 a year which will add up to $24,000 in the four years till he gets a new one. The stipend wouldn't get near to covering his car for the time he has with it. Also, Dave only brought up the loss in value only, he didn't account for the gas nor the repairs that he's going to need to maintain the car, which if he got a BMW or some other European car, will add on significantly more to the cost over these four years. Quit trying to justify the actions of stupid people.

[@AB-wy7dr]

Despite your attempt to sound smart - you sir have failed.

[@mikejcarthy]

After being reckless in my early and mid twenties financially I'm finally starting to see the light. I've paid down all my debts to zero, increased my income and managed my expenses to invest and save as much money as possible every month. Thank you Dave! By the way if you haven't read a book called The Richest Man in Babylon I'd HIGHLY recommend it.

[@andrew2137]

I bought a brand new mazda6 back in 2015 for about 19k. I have 90k miles on it and it's doing just fine no problems ever and about 30 mpg

[@heidithaw1072]

A company I worked for provided you with a leased car which they paid for. We were given a gas card which could be used at all times. You had to keep strict track of personal and bussiness miles as the personal miles are taxable. You could buy the car at the end of the four year lease if you wanted. That was a great deal. They deducted an additional 100 bucks a month for this deal. That was great.

[@xman666soad]

This frickin bum, nothing but excuses dancing around the fact that HE bought a $38k car when a $10k car would have sufficed. He could have bought two $10k cars!

[@darrelllewis5976]

Boringname 3 cars man. THREE cars for that price

[@Andrea-xs4ny]

Got a 1-year-old Honda Prius Hybrid off the lot with 21 miles (it had never been sold off the lot, so a year later, it was substantially discounted). No matter what car you want, wait until it's a year old (but still on the lot, never purchased), and you get thousands of dollars off the MSRP. It's still a brand new car. :-))

[@b4ndogor479]

I used to drive a 1998 Mitsubishi Pajero 50 miles a day. Probably the most reliable car I've ever owned. Absolutely no need to spend that much on a car.

[@S4h4r4s]

3:55 "We're not putting you in a smart car, that'd be dumb" 😅

[@joselafalaise2600]

That thumbnail doe.

[@mverma7845]

Dave: Why did you buy a 38k car Caller Peace out Dave ****hangs up***** Dave: Hello, Hello Hello

[@InvestingRobinhoodInvestor]

Buy the least car with the most value! No point in spending so much on a depreciating asset

[@joeyr2720]

My 1969 k20 suburban goes up in value daily. I get a knock on the door monthly with someone trying to buy it. Just gotta know which vehicles to own.

[@jonathanm9637]

He is going to destroy that car not worth it

[@DozensOfViewers]

I used to work for this banker. Very wealthy, very nice house. He always bought the cheapest low-end car. Honda Civic, Toyota Corolla, etc with no options. Manual transmission, cloth seats, etc. and he drove them until they quit.

[@sophiesto6122]

There is such a thing. At a job interview ( bank) i was told that in the contract, i would have a close about a mandatory mini value for my car to receive the parking pass ( mandatory due to location). I passed on the job.... ( car value around half the annual paycheck)

[@classicrocklover5615]

Dave: "How much do you owe on the vehicle?" Caller: "Around $38,000" Dave: *sigh* "Good Lord..."

[@PurpleRose8725]

Caller: Look into purchasing former rental cars. They are never more than a couple years old and tend to be cheaper than the same vehicle elsewhere.

[@jimbobbyrnes]

there are vehicles that exist that dont go down in value but require alot of hard work to gain value over its original price. but they are most likely never used as vehicles and become more a showpiece.

[@semperfi-1918]

The only reason I bought a 2019 Toyota corolla was because my other car broke down, and needed different car. Still owed 2,300. They gave me good deal, plus dropped the old debt. Also the difference in payment is compensated by the savings in fuel. Otherwise I would not have done it.

[@lifeisgood070]

My truck went up in value by $2,500 after putting 100k miles on it. It was a Tacoma though. And to be honest it took over 4 weeks for me to say yes to an offer. That was the best car I've ever had in my entire life. It worked every time. -40F, sand, mud, over 1ft of snow up hill, 100's of straight miles of highway over 90mph. Only issue I ever had with it was accidentally putting super tech gear oil in the diff. It got real hot, had to switch to amsoil to get back to 130F - 150F.

[@gzyang1986]

A Honda Acura. Kool. Didnt kno they made those

[@CHixon]

Probably what Ramsey drives.

[@a87nomsirrah35]

Did the guy really hang up on Dave? LOL

[@DP-js2fi]

What a cruddy company. Force you to buy an expensive car, and put it in your name. So at the end of the day, your holding the bag.

[@kennygroth4938]

Everybody should buy used accords/toyotas and get on with it. I'm 22 and I drive an 08 accord exl. It's all black, Looks nice, has nice leather seats, leather wrapped steering wheel, heated seats, power sunroof, premium sound... bought it with less than 100k for about 9 grand.

[@20centurysquirrel]

3 year old certified pre owned with a year warranty, something designed to be a taxi like an e class mercedes, get another 3 year old one every year, job done.

[@keithclark8030]

This guy could have at least purchased one 2-years-old. Saved a bunch of money.

[@rachellawrence702]

Man, I would be so mad. He could have been banking that stipend geez

[@masteroogway8453]

I know people selling 2004 honda civics and accords for $2k. He just made an excuse to buy a new car

[@ckmckeon]

Heres an idea, buy a 25k car and park it. Buy a 5k cash and run it till the wheels fall off. Then you still get the money from the company and a car with no miles.

[@MattSezer]

This is why bike messengers tend to work on more inexpensive single speed fixed gear bikes, rather than the expensive 22 speed road bikes that the hobbyists ride on weekends. Parts get you a certain amount of miles, and if you travel a lot of miles, it makes sense to have as few parts and as cost effective parts as possible.

[@Mr.Ramirez95]

*Legend says he's still looking for that Honda Acura.*

[@markn1mmo510]

I believe company provided car stipends are considered taxable income. Take the mileage reimbursement.

[@dontundra2259]

Saturday night live should do a Dave Ramsey skit, it would be Gold!! 😂

[@SiCVoltage]

Shaking my head shameful excuses.

[@SiCVoltage]

I really don't know how much more dumber you can be. Unneccessary expense.

[@Rex12345-r]

Must Watch Full Video 👀👁

[@ChachiTelevision1979]

**punches hole in the wall** What is WRONG with people?

[@thatebutuoyguy788]

I don't understand the stipend part. Is the company reimbursing him the full amount? If so, why not lease it and he doesn't have to take a hit every 4 years when he trades it in for a newer MY.

[@brandonlesko8195]

Just buy a nice barely used car. They get repossessed every year. You’ll still get 3-4 years on it and get this stipend. Most depreciation already lost since someone already drove off lot. Assuming you can pay cash and company keeps paying you this stipend, you should have a free car or maybe earn a little.

[@XxBloodSteamxX]

Why didn't he just lease a car? If your going to live with a car payment forever it's better to lease

[@pauli6043]

Sounds to me like he drives way too many miles for that to be practical

[@abark]

This sounds like a situation that might be an exception to the no leasing rule.

[@jadeedwards9276]

Nah he'd be over the miles all the time

[@abark]

@@jadeedwards9276 Would need to calculate the difference in cost.

[@MarioPerez-qv2pz]

Before I start watching. Just based on the tittle I’m gonna assume that the company didn’t make him buy a car he just wanted an expensive one. Edit- hey I was right

[@lriver5766]

I love gas savers, mine is a Nissan Sentra it gives me 30 miles per gallon , city miles.

[@MarioPerez-qv2pz]

@@lriver5766 that’s crazy I actually bought a 2016 Sentra about 4 months ago as my first car. But I get about 34mpg city since it’s a stick shift.

[@nleem3361]

If it's "model years", then as long as car company doesn't change thier model, then it could be older than 4 years. Lots of car companies keep a model exactly the same for years.

[@FlimsTV]

I can see why the guy hung up. The question was should he keep paying the payment or just write a check for the full amount

[@MattyVice]

I find no issue with the car thing provided the monthly payments dont exceed the stipend

[@mdooms76]

He was trying to be flashy and impress whoever with that car. Thought the stipend was free money for him to blow on his dream car. That was just stupid to pay $38k. I would never finance that much for a car and definitely not pay the note depending on a stipend!!

[@kahea2018]

Every time Dave says, "Oh, good Lord," you can tell he's in pain from what he just heard. Lol

[@johnschweiger1079]

No company can force to do anything you can use the word no

[@revcsno4428]

I'm really curious what kind of car that foo bought, it would've really answered (or confirmed) that he just wanted to keep up with the joneses like sure buddy I'm sure your job needed that A4 entry level audi or Challenger RT or even a truck for your office job

[@threatlevel_TACO]

I need a cheap, reliable car that is AWD. (for snow). One of the very few options I’ve found is the Subaru WRX/Impreza/STI for around 10-20k range used. How reliable are Subaru’s? Or should I take a chance with a 5k RWD Toyota/Honda car?

[@CameronsCarReviews]

If you look at what people drive in the wealthiest town of Atherton, CA in the Silicon Valley that really truly includes the 1% rich you will see Toyota Camrys, Prius, Siennas and Honda Odyssey’s Fits and Lexus RX350 S aplenty parked at 6 million dollar houses. People need to stop trying to impress other people because the real rich are not what you think they are.

[@privateprivate8366]

Yep, Dave finally got to my thought: The car is in your name and you lose that job. Then, what??? Hasn’t everyone woken up to the fact that businesses laugh when they leave you holding the bag? That’s whether you’re an employee or a customer. They don’t care about you or your family. For many businesses, the idea of making their employees even cover the business’ overhead is just good business practice, whether it’s for a uniform, shoes or any number of things.

[@Acoustic_Theory]

I originally heard this on the podcast and thought, "I can't wait to go on KZbin and rant about this". This is not about the company caring for their employee. This is about the company caring about what type of car their employee will be seen driving when he arrives on site - in this case, a car that is not more than 4 years old. It is a terrible deal that does not cover the cost it incurs for the employee in lost vehicle value as they replace their new car with another new car in 4 years or less, but the company doesn't care about that at all - they just want to dangle the $8000 carrot to keep their employees making car payments and not getting ahead. This is first and only about the company's appearances, not the employee's success.

[@milleniumann28]

So many people let go of perfect running cars to get I'm successful look at me cars. They dont realize that those expensive cars are computer programmed to drain your wallet once you hit a certain mileage. I have a BMW m6 hit 100k been nothing but check engine lights but my Camry has been check engine free for 220k.

[@trekreview]

Dave schooled that guy!!!! He hung up!!!

[@404TRUCKERTV]

i agree dave! a 2018 Corolla is $17k. a used one goes for $12.

[@muhammedmateen4728]

I bought a car for £13000 and it is paid in full cash no monthly payments I don’t have any debts at all and I am not sell my car it is a Honda CR-V 2017 I got it at when it had 17775miles now it has 24074 miles on it I do work my work flex able and in different places all the time I am happy for the choice I made

[@winecraft5009]

A brand new car and a 3 year old car looks exactly the same if it's the same model, but with a 40% price difference

[@simpsonsdiva]

There's a place called Kalamazoo and also does everyone is the US pronounce vehicle that way?!

[@bonelesscoding6375]

Used Toyota Corolla or Camry.

[@GardenerEarthGuy]

Should have bought a new Toyota Yaris, and banked the difference on the stipend.

[@ThomasStuart]

Isn't this illegal?

[@grethruth]

Hey now, dude was probably driving.... lost service. He knew he made a mistake. That’s why he was calling.

[@stevencole7331]

Its really no different using your cell phone for company business or buying tools to use for company work but thats how its done . Employees have seen a slow degrade to wages by providing compensation to a company for the pleasure of you working for them and it cuts into wages . This guy said I get this much so I am getting a car that is nice and comfortable that matches the reimbursement . That is ok as long as all costs are paid including insurance and gas . You do need some particulars like estimated miles driven and what is the reimbursement cost . New vehicles today can go many miles 300,000 is not unusual . Yeah you can get an economy car but driving that all day everyday is going to be brutal . Another thing that is important part is the length of the loan if its 5 years and put 50,000 miles a year so you would have a car with 250,000 miles at the end of the loan . The company is not there to let you make money they are there to minimize risk and reduce cost . This was sneaky and the kid got scammed . They should offer a company car . I was paid $ 1500 a month for my paid off Toyota pickup and not allot of miles driven . They offered me a company truck but this was a good deal .

[@bucketrance]

38k car is not expensive man you need that much not only are you getting stipend from company so are 95k income that’s okay

[@Ocelot35]

That's just how they do in Kalawazoo

[@TraumaER]

Caller must be related to Alexandria Ocasio Cortez ‼️

[@miriambautista4336]

He could of gotten a used 4 yr old car and still gotten the stipend

[@BenRangel]

Despite the 38K car being obviously ridiculous. I did find that part about replacing the car every few years was not something that I'd find obvious as an economic move.

[@Smullet90]

Great opportunity to come out ahead by getting an cheaper vehicle than you need.

[@DavidEVogel]

Crummy employer. A good employer will give you a leased vehicle for free.

[@vcash1112]

Lease the car !

[@dominickjohnson8401]

My company forced me to get a divorce nonwait they forced me to jump off bridge smh

[@adinahwithkaden]

He didn't need to buy a $38k car

[@roxcyn]

Either buy a good used car or if you finance, I'd recommend a double payment.

[@charlesvanderwoude8745]

Could have been in a year old rental for half the price

[@guadaluperios7653]

Truth hurts!!

[@raymondbrower7894]

He should have leased.

[@randomkid7390]

The math works out where he should buy a car as rarely as possible. Either way he eats the value.

[@zakattack467]

Fj cruisers haven't been going down in value

[@Nero691]

You can literally get a new honda civic and accord and insight?

[@mesoanto1031]

Good advice save

[@regularguychannel2967]

Amazing how hard you have to try to go broke. So many callers just look clueless. Great income and little debt and they just can’t help but go into debt for absolutely no reason. Lack of entrepreneurship. If I get a stipend for a car I’m getting a decent car and pocketing the rest.

[@calebniederhofer678]

He could have bought a decent very low mileage Camry , Sonata for under 20k , no reason to even buy brand new when you are going out that much mileage anyways.

[@waterbottle4782]

What was wrong with a cheap honda civic?

[@HunterShows]

I wonder if the stipend was flat. I don't really see Dave's point if it isn't. The company is paying for the car and if it stops, the car should be worth at least what the value of the loan is or the manufacturer's going to lose money on every default. So sell it. If the stipend is flat, yeah I guess he can buy something cheap and pocket the difference, but I think this guy is getting value out of a nice car since he seems to spend his working hours in it.

[@raydavies6236]

"The company is paying for the car and if it stops, the car should be worth at least what the value of the loan is or the manufacturer's going to lose money on every default. So sell it." That is not how things work, they always go after the person for the difference when repo'd cars are not worth what is owed,

[@HunterShows]

And they recover a fraction of the money owed if they even manage to recover from the debtor. It's in the manufacturer's interest to sell cars that are worth something after the day of the sale, and if that isn't the case with this car, he bought the wrong car.

[@kvmairforce]

Concept is simple, why pay for a vehicle if your aren't going to drive it?

[@NTGreekGal]

Go Dave!! Preach!

[@vinnyt.8027]

Can someone please explain me the fascination of our idiotic public and buying cars they can't afford 🤨

[@lovethemflowers]

Vinny, must be all that flashy advertising on tv. They make it sound appealing and affordable, especially the lease option. Everyone’s just having a wonderful time in these commercials. No mention of the astronomical payments!

[@andrewf4623]

Kalamazoo?! Sounds like a friggin fairytale