Caller is perfect example of .....it’s not what your income is.......it’s what you do with it.

I have driving a $900 car for 2 years. Makes a big difference when you just dont give a darn what people think. Its reliable and nice. Older but clean.

This guy could comfortably afford almost any car he wants if he'd just take a step back and humble himself for 3 - 5 years.

"I drive a nicer car than that..." Antonio lives across from the Joneses. He needs to stop hanging out with them.

Done with all baby steps..... Driving a $3,400 car....Honda. Paying off my moms mortgage of $26,000;in 6 months.....instead of keeping up with the Joneses. Choose well.

He was totally not going to buy a $7,000 car! HAHA

Makes 150k, yeah he's not driving a 7k car, he's too worried about keeping up with the Joneses.

It's pretty mind boggling how broke some people with high incomes are.

Just by the title I’m gonna say ABSOLUTELY YOU SHOULD PAY OFF DEBT WITH ANY EXTRA INCOME

Translation: I drive a nice car and want to keep it. My eyes rolled out of my head at his reaction to driving a 7k car. Not even finishing this video.

Keep the lease, use the bonus to pay the credit card down. $370 on $150,000 income is nothing, that’s only $4,440 a year. Pay the credit card off as soon as possible, then save up to buy a car.

Do you have debt? YES Do you have money? YES Pay off the debt.

Every time I think about getting a new car with a payment I just pull up Dave Ramsey videos and put myself back in check.

I predict he doesn’t take Dave’s advice. I predict he ends the lease, pats himself on the back, and then finances another car thinking he did the right thing.

He's going to get out of the lease and buy a $40k car on credit. He did not want to hear what Dave said.

Scoffing at a 7,000 car makes me feel like he hasn’t really felt the pain of debt. Hopefully he doesn’t go jump into more.

People really have an issue living within their means when it comes to cars. Incredible.

Car companies and dealerships have drilled into people’s heads that if they buy a car for less than 10k that somehow the wheels are gonna fall off the car as soon as they drive it. This is why people are so reluctant to buy cheap used cars. There are so many Honda’s and Toyota’s just waiting to be bought for 7k or less and that will run for 5+ years.

Well my Xmas bonus for working thru the pandemic as an essential service was a $20 gift card. I think I will blow it in groceries!

I just sold my 26k 2019 Mazda CX-5(which I loved) after owning it for 2 months and bought a 1998 Plymouth Breeze in excellent condition off Craigslist for 2k cash. Doing that will save me 2 years of debt payoff on my current salary. Funny thing is I'm having more fun driving the Plymouth than I did the CX-5. Mainly because I don't have to worry about payments everytime I got in it. Skip status freedom is way more important.

11 years ago, I bought a $2500 car and am still driving it.

I’ve watched countless videos like this and it still amazes me when people say they have 25k credit card debt. The worst credit card debt I ever had was about 5k when I went crazy on a holiday and I made sure to pay that off ASAP and never did that again. What are people buying?

i paid my car off 5 months ago, best thing i ever did. End of the month comes around and o yea i dont have to make a stupid $500 car payment.

lol "It could happen" Dude sounds like he drives a Mercedes in Glendale.

I’m 20 and drive a $5k car while my friends drive $25k+ cars while I make 3 times what they make but i’m just not dumb haha. All of that money i’m saving is going straight to my 401k at work and savings !

$7k can get you a solid Camry, maybe a 2010-2011.

Dude is acting like he's so smart- says the guy with 25k on a credit card and a leased car. A $7,000 car is FAR sufficient- it's a depreciating value. I hope he doesn’t hurt himself falling off his high horse keeping up with Jones.’

Car dealerships no longer like cash-only offers, as they want to nickel and dime customers with high APR & additional warranties...

Caller: Should I use my christmas bonus to pay off debt? Dave: Sell the Car. Beans and Rice. Rice and Beans.

I turned in my 2017 f150 costing me almost 500 a month and bought a 2003 expedition cash. Honestly I enjoy it much better than paying every month. Cash is king

1:01 Ken smiling at what Dave's response is about to be made me chuckle.

I'm not buying a $7000 car to turn around and buy another car six months later. I'm keeping it!!

I turned in my $285 lease in May & bought a 2011 car for $5,500 only 50k miles, it looks/runs almost like new. I essentially gave myself a $285/month raise plus cheaper car insurance, I will never lease or finance a car again,

USE ANY EXTRA INCOME AND THROW IT ONTO YOUR DEBT

I own a 1997 Dodge 2500 12valve Cummins 5.9 and a 1999 Toyota Avalon 6c ... I spent 8 grand on my truck (250K miles) recently NEW rear end, front end, rebuilt transmission, brakes, calipers, rotors, , suspension, engine seals, oil pan, head gasket, ac, radiator, inner cooler, condenser, hoses, water pump, oil pump, dampener the list goes on and on. I just got another 20 years out of that truck. Its insanely reliable and has been that way since it was purchased for 22K back in 1997. That engine can go 2 million miles if taken care of. Same with my Avalon, spent 1k on it and its going to run another 100k miles. I wouldn't trade that truck for the world- NO computers, All mechanical, was able to do the work myself. My dad ( retired ) just went out and bought the same version of that truck but the 2020 model - 65K and its really really nice. My relationship and his friendships did not exponentially go through the roof and he didn't become the most popular guy in town because of his expensive truck. ... He started out with the one I have now. Took care of it, then i bought it off him when he was ready to upgrade. Sounds a little like this guy's friend circle is putting pressure on him to look a certain way. And he sounds a little ashamed if he is seen in a 7k car. Those kinds of people who actually judge you and look down on you because you don't drive a nice vehicle aren't your friends... you are THEIR comparison board. They keep you around to make sure they are better than you and have more than you. Dump them; fast. I don't give a rip what other people think about the way my car or truck looks. If what I drive is a problem to someone or keeps us from having a conversation/ friendship, Then GOOD! Those aren't people, they are what I like to call pathetic.

Both of our vehicles are less than $7,000. Dude needs to calm down lol.

I would LOVE to watch Dave Ramsey do the "Undercover Buyer" episode haha. Lets make that happen!

“Well I’m driving a nicer car than that” WOW how incredibly entitled. I lived in SF for 4 months, had to leave because this is how everyone who lives there acts. Why did this guy even call Dave?

I got a 2003 honda civic really good condition everything working for 1k no need to be gets me to the same place a bmw would

"I was playing a character I concocted in my head" I did that once at a dealership, drove up in a suit driving my father's newer Cadillac, told them I was bored with it and it turned out I didn't need something so practical, got a test drive in a sports car they don't typically test drive. Really glad I did, it was terrible.

Once upon a time, cash was king at the car dealership. Nowadays, agree on a price BEFORE you tell them you're paying cash or they'll never bring that price down. They make their money on financing now. If they know you're paying cash, they won't drop the price because they won't have the financing to make money on.

Great content Dave, keep it up!!

Cash is no longer the deal for dealers, aspecialy for car dealers as the making most of money on financing.

Haha I love these calls. Pretty much they should just ask, “Hey Dave, so should I do the right thing or the wrong thing with my money? Also, if I do the wrong thing that will be wrong but the right thing will be right... kind of having a tough time trying to figure this out because I want to do the right thing and I know what the right thing is... what do you think?”

My thousand dollar crown vic never betrayed me once. Can’t say the same for the 15K BMW

I did this a few years ago. You will be so glad you followed Dave’s advice.

I am pretty high up in a hospital, my bonus for the holidays was a turkey. Guess They are trying to tell me something.

Dude makes 160k needs to pay off 25k. So he’s going to go through the hassle of buying a car just to sell it and buy another in 6 months? Gtfooh, just keep the lease, pay off the credit cards, and then save up for a car.

Please Dave Ramsey, make that show. i would love to watch "Undercover Shopper."

When you've never owned anything above a 4k car, calls like these are surreal lol

Most of the older truly wealthy people I know drive Toyotas, etc and keep their cars 10+ years until they start having real issues. I also know people in debt up to their eyeballs driving BMW's and expensive trucks struggling to make the payment every single month. People need a reality check.

I love all of your advice and all of your content, keep up the hard work!!

I probably would have focused on the credit card debt myself, that stuff is burning you way harder.

The stupidest questions on this show. Basic fiscal understanding.

I agree, there are enough great cars such as Toyotas that can one retain their value two have very little repair costs and three will save you tons and get you from one location to another! Great advice!! Focus on paying down consumer debt!!

Awww, bless his heart.

I feel like I'm missing something here. Why would Dave recommend getting rid of the lease, spend the bonus on a temporary car, then pay down the debt, then in 8 months sell the car again and buy a new car? Why not pay the credit card debt down faster and just hold on to the leased car until he can afford to buy a more long term car? I get that Dave doesn't like leases, but its only $365/m. And Dave doesn't like credit card debt either. He didn't ask what the interest rate is on the credit card debt. Buying a 7k car usually costs some money. The chances of not having to pay for anything on that car are slim to none. You also can't bank on the fact that you will sell it for close to the same amount. Keeping the lease for another 8 months would only cost him about 2k. And it makes a pretty big impact on his quality of life now: 1) The money lost on the car buying and selling (plus any maintenence). 2) The time and effort needed to find the right car (he'd have to do it twice). 3) Driving a worse car for X amount of time. 4) Whatever the interest rate is on his CC The guy is making 150k. I know people are making fun of him here about "keeping up with the Joneses", but Dave isn't saying to never buy a decent car. I just don't understand this. Pay off your CC debt ASAP and agressively save. Spend whatever you want on the used car you are getting next. If the guy was making a 1k/m car payment, thats another story. Or if the guy had a massive amount of debt and the 7k wasn't going to put much of a dent in his other debt, get away from the perpetual payments. But in this case, it seems to make more sense to hold on to the lease for X number of months.

Dude makes $150,000 a year dude but wants to live like he makes $1,000,000 a year dude. Dude

I’d love to watch an Undercover Boss episode with Dave on it ❤️

“Be sure to take a picture”😂😂😂

My '09 Civic is around $7-8k and is running smoothly, with proper maintenance. That car is a huge reason my husband and I are going to be rich someday. We're letting our other assets grow, and when we have a ton of money in 10 years, we can buy a brand new Tesla if we want. It won't matter then. But if we bought that new $30-60k car now, we'd be stuck in the middle class forever. That's what people don't understand. It's so hard to go back in lifestyle once you inflate it. Slow down

I bought an '06 accord in 2016 with 31k miles for $10k. Now it's 14yrs old with 87k miles. Might as well be new except some cosmetic rust. Probably worth $7k now. No repairs that weren't regular wear and tear.

VP in my company should be making close to 200k if not more and he drives a beat up accord that you wont believe a person in his position would drive. I am sure he has big money in the bank. I make 150k and guess how much I pay per month, zero. The feeling you get when you don’t have any debt payments other than mortgage is priceless and frankly now that i am used to it, I can’t stomach spending any money per month on car payments. Like Dave says, it gives you financial piece of mind.

Showing up with cash doesn't work with nearly all dealerships, person to person yes, but dealerships cut deals with banks to drive buisness to them for car loans. They are well incentivised. Not only do they get money for the car they get a kickback from the bank.

The guy makes 150k.... Just keep the lease and pay off a chunk of the debt. Buying 2 new cars within the 4-6 month time span it takes to pay off the remaining 18k, would just be too much of a headache to deal with.

People that call and argue are so odd.

My dad got me and my sister all cars that were under 6000. My favorite cars were a 1990 Infiniti Q45 and a Hyundai Elantra that was a 2002 that I had from 08 to 15.

I paid 2k for my 2003 MonteCarlo ss. I got it with 106k miles on it and it now has 110k miles on it. It’s originally a Florida car so it has no rust on it.

He won’t get out of that lease and buy a 7k car. Never happening. People are too focused on how they appear to people they don’t know. I have a 2011 Camry, paid exactly 7k for it and it’s pretty nice for the price. The end game is to retire with some money laying around, not look rich in my 30s and 40s.

I just got a 2013 Ford Fusion for much less than $7000 and it's a very reliable, sweet car. Love that they pointed out you can get a great car for les than $7000!!

PLLEEASE do undercover buyer with Dave in a wig & sunglasses 😂😂😂

Writing on a man's business card is so disrespectful. You coulda just said "Chew on this. Ill give you (insert amount) for this here TV. Imma keep looking, and you think it over."

Great advice. He might end up liking his 7k car as he pays off debt and then begins to save more and more. Drive it until the wheels fall off and save save save.

O wow a $7000 car. The horror! Up until 2 years ago when I inherited a 15 year old car I was driving a 17 year old car that I ended up giving away as no one would buy it lol. Stop whining Mr. 8k Christmas bonus boy.

If he lives in San Francisco you don't even need a car. That's an extra $500 a month in parking fines and parking fees along with bridge tolls getting in and out of the bay. San Francisco is only 7 by 7 miles so you can bike or take the Bart wherever quicker than you can in a vehicle.

Been driving a 3,200 dollar truck for 2 years with less than 500 dollars in repairs most of that is routine maintenance

Thankfully i spent many years as a mechanic, and can always fix my own truck. Because honestly, it's hard to find reliable & affordable used vehicles here in the rust belt. Most of them aren't worth the price of frame they're rotting away from.

Not sure waving cash at a car dealer is the right strategy, nowadays, as most car dealers are more in the business of selling car loans than they are of selling cars, I'd wait pulling out your cash until the deal is signed. With civil forfeiture rules, I would also make sure I have a perfect excuse to have so much money on me, it's very hard to prove you are not involved in any criminal activities, if the police wants to take it, the burden of proof is on you... I still love cash, and would still buy cash for something in a private setting if possible, but those are things to watch out for.

I am ALL IN for some Undercover Buyer featuring Dave. Or, Purchase Nightmares with Dave Ramsey. :)

Praying for a good bonus at our house, would love to kill some debt. The problem with buying/leasing a nice car is you never want to go back to a less nice car, people just hate to move down. Now we'll be living with our nice car until a slightly nicer car is less money than this one.

People need to realize it’s about safety and reliability not show and fancy options. I have a 91 dump truck that has heat and that’s it. I LOVE IT because it does a job! It saves (or makes) me money vs costing me money!

All the cars I've ever owned (I'm 30) might be worth seven grand together. Seven thousand will buy you a KILLER car. But I am in the car business, and can pick a good one. If that's not you, you may want to ask someone you know who works on cars to keep an eye out for you. Maybe offer them 5% for a finder's fee. So you would buy a 6,000 dollar car, and give your mechanic a 300-dollar bird-dog fee for finding you a good vehicle you can depend on. Use the rest to tag and insure it. You're in a good spot to get out of a lease and into owning your own machine. Just don't get excited because you want a nicer machine right NOW.

Hes gonna pay off the lease to still be in debt 😂😂

Cars are a status object. The fancier car, the more you think people applaud your success. Consumer Reports that Hondas and Toyotas are the most dependable and have good longevity. Not as fancy as a Mercedes but it will get you to and from and you'll get the most out of your buck

People want to look rich thats all. I'm getting out of debt and I drive an 06 scion tc manual that it has 192xxx miles. Great car has some issues but I know in 6 months I'll be in a different position. Priorities priorities.

Car lease (unless it's a business cost) is throwing money away. Again, $150K income living above his means. DUH

I got my car brand new 6 years ago. I still have it, it’s paid off. I almost got a new one this year but watching Dave made me realize I should get an emergency savings first. I also love cars and do have pictures of everything one I have owned past and present

That’s horrible advice to bring cash to a dealer. Dealers make all the money on finance these days. It’s best NOT to tell the dealer you are a cash buyer until after you negotiate the purchase price and have it in writing. Dealers will come down on the car price if they think there is a chance of taking you to the cleaners in the finance office. Once they know the purchase price is all they are getting they are far less likely to come down in price.

I want that hidden camera show!! Dave waving cash in sales ppl faces and see how far they’ll bend

I bought an 07’ Toyota Highlander with 55k miles for $7500. It was worth $10k. Still driving it 4 years later and it’s currently worth $8k (more than what I paid for 4 yrs ago)

My wife and I agreed when we got married we would NEVER have a car payment and it's been awesome...Every car paid for in cash and we often got the deal of the century!

LOL! Dave as Undercover Buyer would be awesome!!

I was lucky because my grandma gave me her car. I have been driving it for over 4 years now. 2009 Hyundai Sonata- just put 52k miles on it not bad for being 11 almost 12 years old. I refuse to get rid of it- low cost and I am also emotionally attached. Everyone says just buy a new car, heck no! I dont want to be even more in debt and I am getting closer to paying off my student loans and thats it! I even got a good nest egg.

Bought a 2012 small suv with 75k miles for $6,000 during the beginning of the pandemic. Thank you Dave R.

Look at it this way, if I buy this lower end but reliable car with cash and don't have a car payment. I'm paying myself $500 a month just to drive it. Or fill in the blank of your normal car payment. Same goes for that $6 morning coffee and eating out to lunch every day, if I brown bag it and make coffee at work, I'm paying myself $200+ a month that can go towards things I REALLY want to do in life.

Not true! I brought cash to buy a honda accord for my daughter this summer (off fb market place). Sellers didn't disclose car had bald tires, cracked windshield, & few other things wrong with car. I offered $400 less and they wouldn't accept! Can't believe they would lose a sale over $400!! Smh

I wish my job gave us a 10k bonus.

Just a reminder to everyone: he is making 150k a year in San Francisco CA. That is equivalent to a 55-60k salary in Philadelphia or another *cheaper* area. I could easily be making 150k+ out west but I would be paying 3k+ a month for my apartment instead of 900 on top of all the other increased expenses. Salary isn't everything.

$7000 for a car is not enough? I paid $2000 for a 1998 Lexus LS400 that is nicer and drives smoother than most cars on the road today. Spend what you have wisely and take care of what you have.

Nothing better than paying cash for a vehicle. I own 5 and have paid cash for all of them but my daily driver was by far the cheapest at 700 and its reliable. It doesn't look nice or do everything all the others do but it does what I need it to. One of the smartest purchases I have made