George Kamel - I Asked People What Their Car Payment Is

Episode Date: December 8, 2025

Right now, people are paying over $700 a month for a new car on average. That’s a lot of money, and I honestly don’t know how they’re affording it—which is why I’m going to ask. That’s right, we’re heading to the mean streets of Franklin, Tennessee, to ask people what they’re really forking over for their rides each month.  Next Steps: • 🎥 Watch my video Is Your Car Robbing You of $6,000,000? • 📈 Are you on track with the Baby Steps? Get a free personalized plan. • 💵 Start your free budget today. Download the EveryDollar app! Connect With Our Sponsors:  • Get up to 40% off Cozy Earth with code GEORGE. • Get 20% off when you join DeleteMe. • Go to FAIRWINDS Credit Union for an exclusive account bundle!   Explore More From Ramsey Network: 🎙️ The Ramsey Show 🍸 Smart Money Happy Hour 💸 The Ramsey Show Highlights 🧠 The Dr. John Delony Show 💡 The Rachel Cruze Show 🪑 Front Row Seat with Ken Coleman 📈 EntreLeadership   Ramsey Solutions Privacy Policy Learn more about your ad choices. Visit megaphone.fm/adchoices

Right now, the average American is spending over 700 bucks a month for that new car payment. And honestly, I don't know how they're affording it. And that's why I'm going to ask. I'm here on the mean streets of Franklin, Tennessee, one of the wealthiest counties in Tennessee, to figure out how much people are forking over for their rides every month. Okay, let's talk shop. What do you drive? I drive a 2004 Toyota Highlander.

It's a good whip. You got a payment on it? Yes. I only have... It's $100 bucks a month, and I'm almost done with it. I've probably got like five more. Okay. You bought it used?

Yes, bought it used. Yeah, it was $11,000 used, which is crazy. Dang. Okay, when did you buy it? Three years ago? No, two years ago. Two years ago. Okay.

So it was already like close to 20 years old. Yes, yeah, already close to one year old. Those things can hold their value, though. Yeah, they can hold their value. I can still sell it for eight to nine, I think. All right. And I've always driven a Toyota. That's my favorite car of all time.

Heck yeah. All right. How about you? At 2006 Lexus. Nice. And it's still running. Great? That's surprising.

No reason to upgrade. No, it's my grandma's. So. Did she give it to you? She did. She did. That's grandma energy right there. Yep, very generous woman.

And how about you? 2015 Lexus. All right, he wins. He is the nicest car out of all of you. So if someone's going to pick you guys up to go around town, it's going to be him. What's the payment on this 2015 Lexus? Uh, zero. You paid for it in cash?

No, my parents did. Very blessed. Wow. Do they buy it used, new? Used. So they bought it for you. used in cash, and what's next? Like, is it on you to get the next one? Of course. I'd like to buy my own car one day, but I'm going to keep this until it hits the bucket. Yeah, until it dies.

Good. We like that. Camille, tell us what you drive right now and what the payment is. I'm in a Tesla model Y, and I think my payment's $450 a month. Okay. Is it, what year is the Tesla? 2024. Okay. Just got it last year. Nice whip. Big Tesla fan. Okay, so you got it last. Was it used or new? It was new. I lease it. Oh, it's a lease at $4.50 a month? Yep.

So at the end of this lease, what happens? Probably going to get a new Tesla. With payments? Yeah. Instead of the lease. I don't know. It kind of depends. My thought process was like, I don't know what the tech's going to be in three years.

Like, we could have flying cars, and I knew I wanted a nicer car. What were you driving before? Toyota Prius from 2005. So you really upgraded and you're like, that's fine. Did you have payments on that? No. Okay. But you decided this is worth it for me to make this payment every month for how many months?

What's the lease agreement? It's three years, so 36 months. And yeah, that's it. Afterwards, there's no option to renew the lease. It's just you give the car back and it goes into their fleet. Can you do a buyout on it? No. It goes into the Tesla fleet and they use it for Uber's.

That's so crazy. Okay. Have you done the math on this? I think I did when I first got the car. I kind of wanted, can we do it live? This will be really fun for me. Okay, so 4-50. You said three years, 36 months.

So you're paying $16,000 to basically rent the car from Tesla. Yeah. That's a lot of dough. What kind of car do you drive? I drive a 2025 Ford Expedition. That sounds expensive. It is expensive. Remember the total cost of this car?

It's $80,000. $80,000? $8,000? Did that feel like a good decision? Um, no. It didn't feel like a good decision. No. Does it now? It does. Okay. Because I paid cash for it. Whoa. Okay. I paid cash and I buried the lead. Car payment. That is wild. Yeah. Take your breath away to pay cash for it. It did. Were they confused at the dealership? Uh, yes. And he actually was trying to

convince me to make payments on it. And he said, um, that it would be $2,100 a month for a car payment. And I said, who doesn't? that and he goes my car payments $2,100 and I looked at my husband and I was like you just insulted the sales guy I did I did he's trying to impress you with his car payment and I that's there's nothing impressive about that wow that's really impressive so did you guys just save up for this like how easy was it to save up for an $80,000 car I we kind of cheated because we lived in California sold our house and then we moved here we got completely debt-free paid cash for a house and paid cash for our car so you had enough from the home sale that

that you're like, we could buy a house in cash and have enough left over to get a really sweet car. Yes. Well, good for you guys. I just haven't met a lot of people who spent $80,000 on an expedition paying cash. They must have looked at you so weird at the dealership. They did. And then the finance office is like, you're not going to let her pay cash. She's not leaving here without payment.

They absolutely were mad at us. No, you know. They don't make money off of cars. They make money off of financing. Gotcha. And your little tricks, car salesman. Always be closing. What kind of car do you drive?

A BMW, 24. Ooh, which one? What's the model? Oh, that's a sweet ride. Okay, you got a payment on it or is it paid for? Payment. What's the payment? 734.

I know. That's up there. Do you know, like, the interest rate, how many years? The interest rate is like 3.99. So, yeah. I've recently thought about selling it. Oh, really? When did you get it?

A year ago, October. Wow. When did the regrets sit in? We're like, I gotta get rid of this thing. Within a few months. Wow. Was it because of the payment or what? Yes.

Okay, you're just, did- Like, did you just feel like why did I sign up for this payment or could it have been any payment? I think it could have been any payment. You know, I'm close to retirement and I'm not ready. So you're like, okay, this, I could have used this money to invest and set myself up. but now it's setting me back.

Okay, off debt. Oh, you have other debt too. What kind of, what's the other debt? Credit card, I owe on my house, I think that's it. Okay, so credit card debt, you got the car loan, the mortgage, and you're just like, ah, you want to retire one day? Is it delaying retirement now having this car payment?

Well, I don't know, I've been taking a serious approach. I have two years, eight months in like 12 days. Okay. Before I can retire from the state of South Carolina. Okay. So, yeah. Are you underwater on the state? this car at this point?

Yeah. Oh man. I checked it out, yeah. What's left on the balance? Probably about 43. And it's worth? Mm, 39. Yeah, I don't know.

I mean, that would almost be worth doing it. What do you drive right now? A Honda CRV. What year? 2018. It's a nice whip. What's the payment on that? Zero.

Paid for in cash. So originally when you bought it, it was cash? Cash. All cash. Did you buy it used? How many years used was it at the time? We bought it in 20, when do we get it? 23.

Okay, so it was five years used when you bought it. And you got a sweet discount for that, because it already depreciated, right? Right. How did you save up for that? Because a lot of people go, well, I can't afford even a used car in today's economy. So we just saved monthly.

And I called it my Dave car for a minute. What were you driving before? Sonic, a Chevy Sonic. It was used, a little five speed. Yep. Yep. So I drove that for a while and then we just saved. How much were you saved? Do you remember like the savings plan you had and were you on track? I don't remember monthly how much. We just like set it because we have the app like the Dave Ramsey. Every dollar budgeting app.

So we just, yeah, we're kind of all in. We're kind of all in. That's amazing. Yeah. So we just saved monthly and just kind of forgot about it and pay cash. So you forgot about it as then you had it like automated going to savings every month from checking? Yeah. That's impressive. Yeah. Do you remember how much it was going per month?

I have to ask husband. How much was it? 350 maybe. 3.50 a month. Okay, that's impressive. And then over time. College, and we save for that cash too. Over time, yeah, I mean just add it up.

When you leave it, you forget about it, don't touch it. It just adds up. You want to play a game real quick? Sure. Okay, it's called Socket to me. Here's how it works. You have to insult me, and if it's a good enough of an insult, I will gift you these socks from Cozy Earth,

which will you feel them real quick? Yeah, I feel... Pretty plush, right? Are you ready to play Sokutumi? I'm scared. You have to hurl the worst insult you can think at me. Have you ever been mean to your husband? All the time, but that's easy.

Channel that, channel that. I'm not nearly as good looking as your husband. I know. Okay. Does that count? Wait, she said I know. Does that count? Can that count?

That hurt, but in a different way. I mean, I forgot your name. Is that an insult to not? You know what? Just take the socks and leave. And you know what? If you can't sock it to me, you can still get some great coach.

Cozy Earth apparel, socks, loungeware, bedding at CozyEarth.com slash George. Use promo code, George, for 40% off their loungeware, their socks, their athleisure, their betting, all of it. Go check it out. CozyEarth.com slash George or use the link in the description. Okay, tell us what kind of car you drive? Toyota Highlander 2007. It's a nice whip.

Yeah, I mean, it's been rusty. It's seen some things, but it's reliable. Yeah, how long have you had it? Three years now. Okay, is it paid off? you have a payment? Absolutely. Yeah, paid in cash. Nice. Loud and proud. Okay, when are you going to upgrade, you think? Oh, I mean, when it dies? Yeah, I don't plan on upgrading. Do you have a, like, a savings plan to upgrade? Like, do you guys have the money right now to get a different car? Nope,

this one's great. I don't need anything more. Just fibing. So, like, tomorrow it breaks down. What are we going to do? Um, use my husband's car. He's just got a truck. Oh. Yeah. I love how nonchalant, and she's like, we'll see it out. It's fine. It's fine. Because some people go, well, it needs to, It needed a repair, so I went out and bought a brand new car. Oh, yeah, no, I think that's crazy. It's insane. Okay, what do the people of New Zealand think about car payments? Oh, gosh.

Like, in general. Do you need a lot of people that have car payments? I have noticed that, like, the standard of cars is so much lower back there, and nobody really cares. Like, yeah, everyone cares about their cars so much. Everyone's got a fancy car, no matter what your income is. Back home, like, the more run down your car is, the cooler it is, I reckon. So.

I reckon as well. Yeah. So it's just utility. It's like that's stupid to care that much about a car. A to B, done. And there's no like comparison game. Like I want to look cool in this car. I think if you've got a van that's like peak cool.

Oh. Like everyone wants a truck here, everyone wants a van. Like a converted van or like a mini van. No, like a converted van. Like if you can go tenting in it. Oh, very outdoorsy types over there. Yeah, that's pinnacle. It's like we're camping.

We love camping. All right, I hear you're a musician. I am. Do you think musicians make good financial decisions? Depends on the musician. I'm pretty business savvy. Oh, okay. We'll find out. What kind of car are you driving? This is gonna start really bad. I drive a Y-S-U-V. Is it a luxury brand?

Um, it is an Audi. Oh, okay, you got an Audi SUV. But it's only paid off. It's paid off, no payment. In cash. Nope. Did you buy it in cash? Yes. How?

Saving. Was it brand new? Add some miles. Okay, so it was used. You bought a used car in cash. Yeah. Why the shame? You're amazing.

Thank you. Okay, how long did it take to save? I've saved since I was little. My dad sat me down at nine and said whatever I had in my savings account, he would match. So I've been saving up a storm. Okay, so how much did you save to get the match? What did it end up costing you? I mean, I think by the time I graduated high school,

I probably had 30-something in my bank account. Oh! And then he matched the rest. Was there a limit? Was he like, all right, I never said I was going to put $3. 30 grand into this, but he was like, hey, you saved it, I'll do it. No, not really. So what did it end up costing?

The car? Out the door. What was the total price? What a new Audi would cost. You said it was used. Not a little bit of miles, okay? Okay. Testing around the lock. Is it 50,000?

Is it 60,000? Is it 70,000? 50-ish, yeah. Okay. All right, then keep your secrets. I got to tell you, a lot of those people restored my faith in humanity. I was shocked at how many people actually drove, used, paid for cars. Are they flashy? No, but who cares? It gets them from A to B.

And the people that did have car payments, you can feel the stress. You can feel the pressure that adds to your life to have that car payment. So here's the deal. You don't have to have a car payment to have a car. You can pay cash. Is it going to be the latest and greatest? Maybe not. But you can always upgrade over time. Here's my parameter to know if you have too much car. If you can't pay it off in the next two years, it's simply too much car. all of the things in wheels and motors in your life adds up to more than half your annual income,

you have too much car. It might be time to sell and get rid of an ASAP and downsize into something you can afford in cash because cars are depreciating assets. They're going down in value every day and interest is making you pay more for that car every single day. So live a debt-free life, get rid of the car, pay off the car, and never have a payment again. That's the way to do it. And if you're not convinced yet, I'll show you how that car is costing you millions when you watch this next video coming right up or click the link in the description. Until next time, click the like button, click the subscribe button. Thanks for watching.

We'll see you next time.