“I Think We Found the Problem”
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- čas přidán 14. 01. 2024
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He works 65 hrs a week so he's basically never driving that $35,000 Jeep.
You know the caller is in trouble when a $10K credit card is a reasonable option 😮 Yikes
Cars the biggest killers for personal finance. Stick with used vehicle, 3-5 years old from a reliable brand and confirm it has been maintained if you do that you will save money and the car should last for a solid 10+ years with regular maintenance.
Ok, so your advice is to buy a $30,000 car for cash? Thanks.
@frankvonfrauner Can get them for less than that..low 20s. Depends on a person's budget and the vehicle.
@@frankvonfrauner I'll sell you my 2007 Ford Escape, runs fine and should last another 10 years for $5K. I bought it brand new for $15K. not sure where you are shopping.
If you save $10,000, you might as well pay your car down. They never ask how long someone has had their car.
He said it's a 2021 Grand Cherokee. So, he possibly bought it brand new.
dude and then he still has 25,000 more to go what the hell lol no!
He could get a Honda with 10 thousand
The thing about cars is not the price but the maintenance. Tires, brakes, suspension, etc. costs money. I would watch out for buying a car that’s too cheap.
I know a repair shop that charges $500 for everything. You need an oil change? They will do a full scale fluid check for $500. You want brakes and rotors replaced? $500 for a wheel and something or other check.
Yes, and that's where the car owner puts his video game down, roll up sleeves and turn a wrench to fix a few things on it. All it takes is watching one quick video right here on YT and having a toolset. If it's a female car owner, tell your bf or brother to put the joystick down and come fix it.
Back in 92 I bought a nice used car for 2400. Today that car would go for 12000. You don't buy a nice used car cheap any longer. A " 1,000 " dollar car shows you that Dave doesn't live in the world that us average people live in.
@@front331 And if you for some reason mess up, you are now out $ for all the supplies you bought, more problems you still have to fix, and then taking it to a mechanic where they fleece you.
@@wewhoareabouttodiesaluteyo9303Yep, definitely don’t always save money by DIY and almost rarely save time.
This happens when ego is a lot bigger than financial sense.
I paid $2250 for a 2002 Camry 4 years ago and it’s still kick’n. A $1000 car is probably no bueno I agree.
In a recent call there was a caller that had a used 10 year old Honda Civic that he intended to sell for 10,000 or something like that. The car had plenty of mileage. Case in point, the Toyotas and Hondas that can be run down and that are reliable cannot be bought for 1,000 USD. Maybe with a lot of luck one get get a bargain. But that would need time and being able to wait for the opportunity to pop up.
If anyone actually finds a $1000 car....that runs...please let me know. I will buy 10 of them if 10 can be found. My 19 yr old neighbor bought a $1100 car, but from the dealership he works at, as it just came in on trade and thats what the dealership paid. That is one of the "perks" for working there. So, in other words, for the average consumer, thatll be tough. Oh, also, he has that car up on ramps in the driveway more than it has been on the road.....so you should also be prepared to use CZcams on how to fix stuff. If you have to bring it to a mechanic for ANYTHING....that $1100 car will turn into a 5k car in less than a month.
I recently sold a truck for $1000. 1985 Chevy C30, crumpled front end, needed six tires, torn seat, needed new exhaust, brakes were iffy, power steering leaked, needed tune up, probably needed new carb, etc, etc, etc. You could spend about $7000 on it and have a nice $5000 truck. LOL
I appreciate how straight to the point and able to tell Dave/Jade exactly what the numbers are. He just really needs to hammer these debts down one by one. Make advanced payments on the car by paying off principal. One thing I will say is for your next car don't get american, I love american but they depreciate very fast and aren't the most reliable. Get a Honda/Toyota or their luxury brands.
He might as well just live in the jeep. Shower at a plant fitness
He said "We're renting an apartment" so maybe there is a girlfriend?
I played the homeless game for 6 months and showered at planet fitness to avoid re signing my lease. I saved so much money over that time. The only down part is having to buy food everyday at a bar or drive thru since you can't save leftover eating out of your car.
@@tsaunders4684 I'd say in that case he better move in with relatives or friends for a few months.
Hey Dave welcome to 2024. You can’t get running cars for $1000 anymore, and you also can’t rent rooms for $300 in most places.
Exactly, he doesn't understand
Yes you can. I just got on my local fb marketplace and found 7. Try it out for yourself if you think im lying.
Exactly he don't know how much anything cost now,too rich too know
@@Sincity725 right
That may be true. But that doesn't mean you need to spend 10 or 20 or 30,000 on a car and that doesn't mean that you need to spend ridiculous amounts on rent.
The principal is still true that most people make way too many excuses for not cutting their lifestyle back
Holy Sh*t Dave says if the dealership does not grant him installment payments, he should _rather borrow 10k on a credit card._ !! The date was January 15th, 2024. (he is right the car loan might be high interest, too and he owes 35,000 on that). Maybe the bank would be willing to give him 10k if he came up with his income, even 5,000 would be helpful. Maybe a family member would help him out ? If he lived frugally so far except for this one car and works a lot they could risk it.
Dave's muttered "umkay, umhmm" says it all.
Yikes, that guy needs to work on a better job for sure!! He sounds like a nice guy, I hope it all works out for him!
Working 60-70 hours a week to only make 65k/year is absolutely insane!
It's a blue collar job. Not big money. He's lucky that it's been steady.
A lot of law enforcement in my area work 70+ hours a week and make less than $60k a year.
@@Qu33nHUDDY , and then they retire down south at age 40 with a healthy pension. I know, because my entire street is retired cops, and my street the houses are 450k and up.
Probably take home pay. It would have to be. I do the same job and that was about the take home last year working those kind of hours. Still not great it depends on the are but if working 40 hours only would gross you 45k I think it’s pretty obvious the math checks out.
@@stevegolacks8731When you're already down south that isn't an option. Not all law enforcement has a good retirement plan. My in-laws recently retired and the two of them each only has $180,000 in retirement after working 30 years and maxing out their retirement plans provided at work. If my husband were to only rely on his retirement plan provided at work he'd never be able to retire.
Have to laugh at the people who think the problem is education costing too much or greedy car dealers. 😂
Ah, the mythical 1000 USD car. More like: with some luck getting a 6,000 USD car that is reliable and does not cost a few thousand in repairs within 12 months. If he can drive around in the concrete truck, he could do with an electric moped, should work in TX (not so good in regions where they have real winters). Those would help him get around cheap insurance.
I was in the exact scenario last year. 2020 jeep grand Cherokee limited x, $10k upside down
All the people who bought vehicles during the pandemic are paying the price. Never understood why people will pay inflated prices, but won’t buy when there is a bargain.
Lol how u get upside down I bought a gc with 2k miles on it financed 30k after my trade in . I owe 18k and offered the other day 31k for it 2019 Jeep . U all must have 15 percent interest rate . Lmao
"Bought a Jeep Cherokee".... big problem right there - should have stayed away from the SUV trap and gone for a compact Honda or Toyota. As for the student loan - it's just insane - it's just beyond evil to have such a thing as a student loan....
Its juat ridiculous what cars cost these days. I mean youll pay $500 a month for a new civic with 20 down. That is 48 months, which used to be a standard loan. Now they put you on 72 months to fool everyone.
Only buy a car in cash.
Dave "Sell the Car" Ramsey
Jeep = just empty every pocket
I would love to know from the audience, how many people have ever tried and been successful getting a credit union to loan you money for a situation like this, where there is no collateral and your credit is probably shot.
0?
This probably worked back in the 80s and 90s. Now everything is so regulated and structured it's unlikely anyone willing to talk to you has authority to make a decision other than follow their standard default waterfall.
Almost zero chance unless the interest rate is crazy high. Likely this guy has a too high debt to income ratio and with credit at 550 a credit union won’t just give you 10k unsecured. This guy is in a deep hole.
2021 Jeep Grand Cherokees are much more than $25,000 unless they have 85K miles on them.
Why can't ppl just buy a cheap Camry or Corolla?
Because they can't impress people with owning a Toyota. And to some people showing off is all that really matters.
Being sensible is no fun. Drove my Toyota for 28 years. No one was impressed except my banker. 😅
Because my parents would be livid. They always want to buy new; however, they have a point too because they never were in debt at any point of their lives when buying new.
Are your parents building the car themselves? If not, they've never owned a new car.@wewhoareabouttodiesaluteyo9303
@@robloxvids2233 I see what you did there.
Yeah try finding a 1k car that works & doesn’t cost you $500-$1500 a month for repairs to keep it running!!! Just saying it’s very difficult these days!!
A lot of us that have done our debt free screams did it…and are helping people do it now.
I did do it . . & it sent me into even deeper debt!! Just saying!!
^You did it wrong somewhere. You have to know how to check a car when buying. Either that or just bad luck.
I tried it about 45 years ago. When all the local tow truck drivers and you are on a first name basis you find out this doesn't work.
I don’t understand how people get in trouble with cars. It’s obvious that to get a good deal, you must get a 3-4 yo car and drive it for 10 years. I recommend Honda civic, accord, Toyota Corolla and if you are fancy, accura mdx or Lexus rx. Following that rule, in my family we drive really good cars but pay less than people who drive new but inferior vehicles.
We've done that with Hyundai Elantras and are very happy with them. Very reliable cars.
55-70 hrs a week for 60k the American dream really is a myth. I was working 80hrs a week here in Australia 10 years ago making 6k a week this dude needs a new job
And I went to college, and now work 37 hours a week, and made the same as you 10 years ago.... The American dream is alive and well. The caller needs a new job, but so do you. 80 hours a week, no human being should endure.
I just dont get why Dave always suggests this method. True, 10k loan is better than 35k loan, but with the 10k loan option, you have no vehicle. I would rather deal with with the 10k deficit and still have the vehicle.
High maintainance cost, insurance, tyres, .... . He could move in with a friend or family for 6 - 12 months and save up, and invest 8k in a Honda or something like that. He can drive that car for a long time. Also, if he crashes the car it is not THAT bad. If he has a gf (that he does not want to admit too on national radio - maybe she can help him out, or a family member.
Buying a moped to have cheap transportation would be possible.
Never ever again would a buy a cheap used car! The stress of it always breaking and never reliable to get to work, let alone more miles on it for side hustles. Been burned sorry
What kind of used car did you get? Probably unreliable and didnt check by the mechanic 😂
$60K income with $60K debt, yeah beans and rice, rice and beans on a $0 net worth, LOL!!!
I swear, 90% of callers are in financial trouble because of car loans. Impulsive financial ruin.
Because having a reliable car is essential to keeping a good job, and if you don't have any money, you need to finance to get on the ladder.
@@frankvonfrauner There's a difference between a $2000 car and a $50,000 car. That's what I'm talking about. And Ramsey does too. The only time I ever spent a lot on a car was because as a regional sales man, I "lived" in my car. Even then, it was used.
As an owner of a Grand Cherokee myself, trust me, it drives much better when it’s paid off!
This is true with ANY vehicle
Rice has arsenic in it. It can be a problem if you eat too much. Mix with other cheap grains. Also works with pasta. Lentils, instead of beans are also another alternative.
"$19,000 in student loan debt . . . " bet he regrets borrowing money for that.
Dave: Are you married?
Caller: silence while figuring out how to answer this without judgement
Dave: Are you married? second time
Caller: pause..no sir not married
I was very confused about that. Did he just have a girlfriend and wasn't sure if he should say that?
@SouthernLife7772 Ahh good catch. Didn't hear that
He hesitated because he got a baby momma.
@@miketheyunggod2534 Maybe more than 1.
maybe he's with an illegal alien whom they have kids with "birthright citizenship"
..35k for a Chrysler!.the humanity..😳
Anything under $29500 now for a new car is a steal, if possible. Back in 1938, a car was $860.
You mean Christler? Bu dum tsssssss
“Git you a thousand-dollar car” hahahahaha in 2017??
Try carvana. I have heard they give above average prices. Doesn’t hurt to try.
With caravans it’ll hurt
NOPE
Nope they will bait and switch u
Based on what he makes and what he saves, it's going to be tough for him to chase this moving target. By the time he saves up 10K, he's going to need 15K to get out of it, used car prices are dropping fast and value of his car will fall as the mileage goes up.
That's why they said to get a loan.
No, it’ll be the opposite. The depreciation of his car will continuously slow down while his loan continues the same speed. The number will probably actually decline very slightly.
@@adamseidel9780 Naw, used cars are tanking and he's probably in a high interest 84 month loan not making a dent with each payment. He'll be underwater for 5 years.
Good evening, and welcome to The Money Programme. Tonight on The Money Programme, we’re going to look at money. Lots of it. On film, and in the studio. Some of it in nice piles, others in lovely clanky bits of loose change. Some of it neatly counted into fat little hundreds, delicate fivers stuffed into bulging wallets, nice crisp clean checks, pert pieces of copper coinage thrust deep into trouser pockets, romantic foreign money rolling against the thigh with rough familiarity, beautiful wayward curlicued banknotes, filigreed copper plating cheek by jowl with tumbly rubbing gently against the terse leather of beautifully balanced bank books!!
It's all about common sense Don't live beyond your means...
I’m so curious what percentage of people actually take the advice they get on this show
Less than 2% I’d say.
Why doesn't he take the 10,000 he is supposed to save up and put it towards the truck and refinance with a small amount rather than lose money on the truck? A 1,000 car will be breaking down monthly and not last long.
Dave told he to try with a credit union, but he was not hopeful. Therefor - TADA - he said him even borrowing 10k on a credit card would be better. Then he can find someone that pays 25k, add the 10k and knock out the car loan. Maybe he will have to take the bus for a while ;)
I would like to thank my parents, my bosses, my children (if I decide to have any), my cat Wilde, my fish that I thought I had when I was little that I had no idea what happened to it. Thank you!
Sorry to burst your bubble but it got flushed and is floating in all of our poop
@@HOLDXSTEEL Goldie....nooooo :'(
@@wewhoareabouttodiesaluteyo9303 Sorry about your fish 🐟.
@@strangeroamer3219 I had won, I think it was a him O_o by winning that game where one throws a ping pong ball in a glass bottle.
Today a “thousand dollar car” will cost you about 3k. 2010 Toyota Camry or Corrolla that needs some repair.
I sold my car 1 year ago and I have so much extra $ every month. No payment, no gas and no insurance. No new tires no oil changes. Literally $600-800 more a month in my pocket. I take the bus to work or ride my bike
Whatever happened to knocking out debts smallest to largest
Dave always said to knock out the biggest depreciating asset first before snowball
@@unfairsanic5089not in his books though.
The bank will not give you a loan, when he could not even afford it.
And interest would be even higher on a credit card.
70 hours a week as a concrete mixer driver? He should be making more then that.
He can go and his own, buy a concrete pumper, they cost like 20-40k used. And charge 1k per job.
Finance something else huh????? Some people never learn......
Hours is not a wage label. How much is he making?
@@natersalad889 But have can make a lot more. Into the 6 figures.
@@wewhoareabouttodiesaluteyo9303 He said he's making 65k.
This is why it is called a car fleece. Car dealers know that it is a way to rip you off. Save money and buy a car. You will breathe and sleep better.
Caller is screwed.
It can be fixed he gotta get another side job
Ask the credit union to refinance the Jeep
A $2k car today is going to be needing $2k worth of work within the next 2 months. A 5 will stay alive.
Student loans to be a concrete truck driver? Dave still thinking there's running and driving cars for a 1000 dollars out here 😂 it's not 1992 anymore.
I bought a 2001 Toyota Corolla 5 speed manual for 2,200 dollars over a year ago. It was a beater, but I use it to save on gas sometimes instead of driving my truck. You can get a cheap car, but it will be crappy.
@@strangeroamer3219 I just watched a bunch of auto auctions at tow yards (150 cars trucks) in Jacksonville Florida, they where sell running vehicles with keys fob, 475 and up, sold a hellcat 24.000, you can buy cheap vehicles if you research it.
@@strangeroamer3219 How much maintenance did it need?
@@josephhuman7390 No way would I buy used for $24k. I would buy new for under $29k.
@@wewhoareabouttodiesaluteyo9303 Just a few things. It needed new tires, new new spark plugs, some electrical work done, oil change, a few others things, a few of them I did myself. In total I invested a little less than a thousand dollars more to get it running good, but now it is good and I am debt free. No car payments to worry about. And I save a lot on gas.
Just keep the jeep.
Caller can make it work if he is discipline. He got good advice from Dave and Jade but will he follow through. working up to 70 hrs for $60k salary is low.
Jeeps are endless money pits and also through a Hole in the wall the dealers are the worse place to buy a vehicle don’t know what’s wrong with the vehicle if it’s been in any salvage title.
Wouldn't pay 5k for that junk.
It's a Cherokee. I wouldn't even accept it as a gift.
@@strangeroamer3219 LOL 😆
@@strangeroamer3219 😆
U can find a 5-7k car that will last
$1000 car??
I wish they would do a show about what type/age/price of used cars that would be the best deal.
Like pull up autotrader and browse it live to call their picks.
Spoiler alert, there wont be any $1000 cars.
But at least show opinions on what is available in the real world.
I know. I look for the cheapest pre-owned cars on the Toyota website, and they're all like $8K dollars min.
I laugh every time Dave mentions "a $1000 car". They don't exist. Around here, anything that runs and drives and passes emissions testing (required here) is $2500+. There are no longer $1000 cars you can actually rely on to get you to your job. Inflation killed that.
@@DJRiyzen I just don't know if I can trust buying a car from there.
@@cwheeler42he never says you won’t have to put a litttle into it. We bought a car for $800, threw a new alternator in it & it drove for 3 years sir
@@ghostbird92 wrong website
1,000 used car? Lmao....Dave forgets to include the 5,000-10,000 to fix it up. I also like how he asked the gentleman what his credit score is? Why would that matter Dave? I thought no one needs a credit score.
A bad credit score will count against you. What you should have is NO score.
he explained why. so youre just here to be upset apparently
I have been driving $500 cars for 20+ years and get 2-3 years out of them with very little spent on repairs, I do them myself. I had 1 that needed a paint job so I used a gallon of tremclad, roller and brush for $30. Looks don't keep cars going. Good, cheap cars are out there, they usually had 1 owner. This is just one of many reasons I can pay a mortgage in 5 years (while raising 2 kids 100% alone for the last 12 years). Only an idiot would buy a car for 1K and put 5-10K into it. Just buy a car for that price range. If a person has cash and can get a mortgage, credit scores have no value. The bank didn't turn down my 20% DP, WITH NO CREDIT HISTORY. Money talks.
i've had late model cars cost me $8K in repairs and junker cars cost me $800 in repairs.@@danieldoucet9121
@@danieldoucet9121 The key to your response is that you can do the repairs to the vehicle yourself. A lot of people do not have that skillset and fewer still have the scan tools and other equipment required to work on today's cars. If you have to take a vehicle to the local mechanic every few weeks, you are spending as much as he was with the new car.
why in the world would you suggest a 18-25% interest on a credit card over a car thats 8-9% interest car. Theres a huge potential he'll end up paying more. Payments on a CC are far easier to ignore than a car payment. Yikes, that feels like some really bad advice. Private loan is far better suggestion than a CC.
The car loan interest might be higher than 8 - 9 %. But even if not - it is for 35k (the open amount) and not only 10k. If he strategically draws the 10k on cc he has almost 30 days interest free. And the car continues to depreciate quickly. Never mind if the vehicle would be damaged (storms, hail, car crash, even a bender. Damaged glass screen because a stone hit it .... )
This car has also high maintance / insurance costs. As soon as it is gone, he saves that money as well. 700 USD for approx. 13 to 14 months should do the trick. And he has to find a way to finance reliable but cheap transportation. That's another 5k - 8k (no reasonable 1k cars to be had).
To everyone saying you cant buy a $1k car, i just hopped on fb marketplace and found 7 in my area for 1k and around 16 in total if i bumped it to $1,500. Yes the listings all state running and driving. Are they crappy? They sure are. But if you can make it last a year, who cares?
It is not about crappy, it is about needing to invest seveal thousand dollars per year to keep them running. Plus the stress. If the brother is mechanic and lives nearby (and he inspects the car) maybe ... If there is a second reliable car in the household a 3,000 USD car might do.
Almost all cars get severe problems when they are over 12 years old, it gets expensive to buy them cheap.
Recently a caller, car enthusiast, so the advice was to sell 1 or 2 of the cars. Well in his collection he had a 10 year old Honda, with high mileage, he knew that car was worth 10,000. This is a good reliable economical car that can be droven down - and they hold their value very well. Same with the reliable Toyotas.
@franziskani it depends on the model of honda. Plenty of rarer models, s2k, the em1 etc. If its 10 years old from now the only thing i could think of for a 2013 would be the mugen SI. But those cars are exceptions for the norm.
@franziskani i have a 2008 year car, and i have very little issues. I follow the recommended scheduled maintenance, oil changes, fluid checks, tire rotations, etc, and my problems are essentially 0. Please dont believe that older cars are all just falling apart. This is a lie. I've always owned cars that were older than me at almost every point in my driving lifetime. I've only ever been stranded once in 17 years of driving. And it was from 2 blown tires.
@franziskani another point is that if you are in debt and it takes 2 years, that's all you need to maintain an older car for. In 2 years of regular maintenance, you might spend 2k or 3k on transportation at most. Not including gas, as any car uses that. If you were to pin that against a car payment, youd spend way more on a car with a car payment.
It’s simple trade down to a Toyota Corolla
But where will he get the 10k to make a trade?
7:54
TRADE IN THE CAR FOR A NEW ONE
I had a 300$ secured card max with a medical bill collection at 650 credit score after just a year of 5$ usage on card im back over 700 it was at 770 before the medical bill and max usage happened at only 20 years old luckily I can just pay this medical bill down and it should jump back to 750+ once it removes the collection because technically my report would be even better now with more history and same usage
Uber
In Houston? 😂
A moped.
Dave: "I've done a whole lot of stupid".
Also Dave: "I'm okay with you selling a car at a $10k loss and putting the difference ($10k) on a credit card at 30% interest. Oh, and then go buy a $1k car (which will probably require about $500 per month in repairs to keep it on the road.)".
{{{SMH}}}
Dave shows that he's not in touch with the average persons world.
@@musicman7297and he doesn’t wanna be…
The cc will be more like 20 % and the car loan is not better. The car has high related costs (insurance, maintainance, typres), a Honda or Toyota will be much cheaper.
The loss is there whether he covers it now or later (and has high ongoing costs for insurance etc).
His car payment is $752 a month? Oh my.
I told myself when I got my car that I didn't want my payments to be over $300!
700$ for a 35k jeep... when I was 19 I got a hellcat that was 80k over a 60k loan was only like 900
How much was maintenance?
He probably had no money left to maintain it!! Lol smh
Interest rates
Drives a concrete mixer and has student loans. Why did he bother going to college? I hope to God he didn't graduate and this was his best option as a career.
KBB doesn’t sell cars. I wouldn’t trust them.
First!