The Rachel Cruze Show - Biggest Financial Mistakes When Buying a Car (With The Car Mom)

Episode Date: July 9, 2025

🚙 Get the free Ramsey Car Guide. In this special episode, The Car Mom’s Kelly Stumpe shares the biggest mistake you can make when buying a car, tips on finding the right “mom car,” plus how to do it all with confidence.   Next Steps: 🎥 Watch my video What America’s #1 Wealth Killer Is Actually Costing You. 🚘 Learn more about The Car Mom. 📈 Are you on track with the Baby Steps? Get a free personalized plan. 💵 The simplest way to budget. Download the EveryDollar app for free!   Connect With Our Sponsors: Learn more about Christian Healthcare Ministries. Get 20% off when you join DeleteMe.   Explore More From Ramsey Network: 🍸 Smart Money Happy Hour 🎙️ The Ramsey Show   💸 The Ramsey Show Highlights 🧠 The Dr. John Delony Show 💰 George Kamel 🪑 Front Row Seat with Ken Coleman  📈 EntreLeadership   Ramsey Solutions Privacy Policy Learn more about your ad choices. Visit megaphone.fm/adchoices

Hey, you guys, I'm so excited about today because I have Kelly the car mom on. And I've been following her for a couple of years now. And I just want to tell you, she's one of the most incredible people from a knowledge standpoint when it comes to the car industry. Her family is in the car business. And she has created an entire platform helping moms pick out the perfect vehicle for their needs. And it even goes beyond moms. It really does. She just has a great job looking at new vehicles, use vehicles, and talking through it all,

and gives you the language and the knowledge you need when it comes to car buying. because it can be an intimidating process. So make sure to like, subscribe, and share this episode with a friend. And here is my conversation with Kelly. Kelly, thanks so much for being on today. It's so good to see you again. So good to see you.

I'm so happy to be here. It's like the digital friendship, you know? You see each other through cameras, but you feel like you're friends. I really do. I feel so comfortable around you. Like I hope that like when we meet in person, it's the same kind of good energy and vibes.

Oh, yeah, yeah, 100% it will. well, 100%. Oh, so great. Well, I have always loved your channel because I think cars in general, they're big purchases. So I know, like, in my line of work, saving and being wise with that purchase is really important because it's the thing that can either, like, tank people if they make a bad decision, or it's the thing that, like, gives them so much stress and anxiety as their car. And so you just give so much great content, and especially for moms. And I think, like, I literally went to your page when we were looking for my minivan. I may even message you. I think, This was a few years ago.

And I was like, okay, out of this one, what do you recommend? So you're just an expert in all this world. So I think for maybe women specifically, it's probably a little bit of a stereotype, but it's probably true. It can feel kind of intimidating, right? This whole car industry. And so what have you found to be like, here's the things that you have to know, man or woman, but specifically for women where I feel like, okay, you're going to

dealership, you're shopping for a car or you're going to an individual and finding a car, like just the car industry in general. What do we need to know? Totally. Well, I think that when it comes to the car business or like buying a new car, people love the idea of like getting a new car, getting something fun, but they hate the idea of feeling sold. So I think if you want to feel empowered, to feel like you're making a good decision to feel like you're in control, then don't let yourself get sold. And the way to do that is to be very prepared when you go to the dealership. It's to expect to maybe buy a car that day.

It's to have, you know, what your trade is worth lined up, what the vehicle worth is lined up. when you just walk into a dealership to test drive, people end up getting sold. And that's where I think we'll start to not like the car buying process. So, like, I also have this, like, kind of crazy piece of advice. But I tell people, like, I wouldn't even start test driving until you're ready to buy a car. Because I just, I'm telling you, it happens every single day. People walk in, like the sales ride. They think it's a once in a lifetime thing.

And there's sales professional there that are selling the sizzles. So just be careful. and don't start the process until you're ready. Or have like a really good buffer in the place. Like, for example, like, don't bring your trade in. Like, don't bring your husband. Like, you know, so you can like kind of have that walk away. I need to think about it feeling.

More of my conversation with Kelly in just a moment. But first, I want to tell you about one of our incredible sponsors, Christian healthcare ministries. When you lose your employer sponsored health insurance, there may be a better option than Cobra. So consider Christian healthcare ministries. CHM is an affordable, biblically based alternative to health insurance. That could be a third of the price of COBRA. Yes, CHM programs start as low as

$98 a month. And CHM has helped hundreds of thousands of families take care of over $11 billion in medical bills since 1981. CHM members are also supported spiritually with prayer when they have a medical event. So try getting that kind of support with COBRA. So whether you are going through a job loss, life change, or just want to consider other options to save on health health care costs, check out CHM. Learn more at CH Ministries.org slash budgets. That's CH ministries.org slash budgets. Because a car, it's like obviously a very large purchase for people. So you don't, I mean, you normally went and think like, oh, that's going to be an impulse purchase. Totally. But it can be. You see people do that. So what all the time?

So what is like the biggest financial mistake? What did you say it's that? I think that one of the biggest mistakes is, yes, maybe impulse buying, but also not forecasting like what that vehicle going to look like through all your years of ownership. This is specific to my audience, but I think it can apply to almost anybody. Like who you are year one is not who you are year six. So like have you forecasted how your needs, how your family is going to change over the course of ownership? I take my personal example a lot, which mind you is a little dramatic because I had four kids in five years. But like, if I would have just like bought a new car when I was pregnant with my first, the way I would have never landed on a Ford Expedition Max. So what it would have

happened is like around year three I'm pregnant with my third. I would have gotten the itch. I would have been like, gosh, this wasn't the car that I thought could grow with our family. And now I'm upside down. And now I don't have room for the stroller or whatever the case is. So I think it's for families, it's rushing into a car purchase. You know, everyone thinks they get pregnant. They need to go get a new car. Well, I think you're throwing a Camry's fine for a car seat. Like, let's just take a beat. It's fine. Let's see where we're at in two years. Or if they do need a new car, they're not thinking through what that looks like. They're not thinking through now I need the third row and the trunk space and I can't fan my stroller wagon.

Yes. And that's where people get into big trouble. That's where they get upside down. Yeah. And that's not fun. No, not at all. Well, and, you know, I always talk about cars being kind of an emotional sense of our identity that people so like take like who I am as a person is what I drive.

But I never really thought about it in a sense that what you're saying. And I'm like, this is so true. It can be such just an emotional decision, whether it's, I'm pregnant. Oh my gosh. Yeah. My car. My sedan. Is it going to work?

I need an SUV. or the car keeps breaking down. So I'm going to just go buy a brand new car for $50,000 that I can't afford because I'm just so sad about this one because I'm so depressed and it just feels like a hopeless situation. So I'm going to go fix that situation with this purchase. And so don't let the emotions drive. One of the largest purchases that you make, you know, it's so much. So having the facts and slowing down and that delayed gratification almost actually lets you settle to know and actually have a better outlook of your life is what kind of you're saying, which makes so much sense.

And again, like, just to be honest with yourself and to don't not put yourself in that situation, I mean, I sold cars for years. Do you have many times before, like, I didn't think I was going to do this today. And it's like, yeah, well, here you are. Like, you just, you have to be honest. We be honest with yourself. Okay. Be honest with yourself.

Don't go to the dealership unless ready to buy a car. Oh, so good. Okay. I love it. Okay. When you're talking, let's say moms specifically, because there's a lot of moms that, you know, listen and watch this channel. What is the thing that you're saying now, like, feature-wise?

that you're like, oh my gosh, because I hadn't bought a new car in a while. And we bought a van in 2020. And it was the most like, I don't know, technology advanced. And it was a van. But I was like, oh, my God, this is amazing. I was like, there's so much in here. So fast forward today. I'm like, I don't even know.

I haven't looked at cars. But like, what's the feature that you're seeing people are like, oh, this is what I really want? Oh, you know, it is such a good question because the cars, you can't believe the technology on some of these cars. and sometimes it does, it's almost getting to the point where I think things are starting to feel a little out of touch. Because it's like also like that's nice, but like what if it just didn't have to cost $55,000? Like what is about like more focuses like on vehicle affordability? Like that would be pretty cool. But I would say like if you're wondering like what's out there the latest and greatest,

a lot of manufacturers are starting to introduce a semi-ontonomous driving technology. Okay. Which basically means it's like a really glorified cruise control. So, like, when you're on the highway, you can take your hands and your feet off the pedal, off the wheel, keep your eyes on the road. They all have trackers in the steering wheel that track your eyes, and they can even work through polarized sunglasses, which is cool. So if you look down at your phone, if you look over here or the car will beep at you and say, no, no, you have to sit here. You have to look straight.

Yeah, yeah, yeah, you can't be on your phone. The car will drive. The car will drive. So that's like, and I actually, I really enjoy using that technology. I've used on a couple of road trips. So that's been fun. But, yeah, I mean, it all comes at a pretty big price. right you're paying for it.

And, you know, like a lot of manufacturers think it's so cool to put, like, all these different screens. So, like, the second row gets a screen. The passenger gets a screen. Like, screen, screen. And I'm like, oh, like, who asks for all these screens? Like, that's, like, calm down. Everyone chill. Just chill.

Like, yeah, it's been interesting. Yeah. Oh, my gosh. Well, and I love it because you get to see, which is so fun. That's why I love, like, even follow on you on Instagram was like, you get all the new stuff. And you're like, oh, my gosh. this and look at this. Like it's just wild what's happening. So if someone is going to buy a car, tell me some things that they should be thinking through, like even savings tips, if there is

such a thing. When it comes to dealership buying, and then if you have anything, if they're buying from an individual, some things to think through. Sure. So I think when it comes to buying and negotiating a car, I think dealership, but also I think this would apply to buying, you know, through a private party. There's so much more information for the consumer than there's ever been. And there is a lot less negotiation happening on both new and news cars. And a big reason for that is because of like dynamic pricing and car prices changing every single week needing to be updating all these search engines, but now tell a customer like what a car is worth. It's like when you go to the dealership and you're going to test drive their 2015 Chevy Traverse, like the dealership knows

you didn't come because it was $2,000 overpriced. Like the cars are priced more competitively. So, a piece of advice I give to people is like if you go find a great news car and you can verify like it is one of the best use the best price in my area and they don't discount it you are not a bad car buyer you are not a bad negotiator like at some point that's that's what the vehicles worth the dealership prices it to sell they have to leads are everything if they're on page six of cars.com like they're not going to get people to come through the door and vehicles depreciate every week. So it's in the dealership's best interest to sell these cars as quickly as possible. Same thing applies to private parties. So like, I would say gone are the days of getting thousands

and thousands of dollars off pre-owned cars and truthfully new cars now also. Yeah. But I think the golden thing to think about is like what is still incredibly negotiable is your trade-in. Like trade-in and trade-in values is honestly where dealerships make the majority of their money is like stealing trades and reselling them for what they're worth. So, if you have a trade, especially now, like you have a lot of leverage. The use car market is really hurting for vehicles. So this applies to if you're buying new or use. The use car market is hurting because five years ago during the pandemic, there was a major

chip shortage and a ton of cars just never got built. So since those cars never got built, they're now not five years later entering the used car market. So if you have a trade, like any dealership wants it and it's worth a lot of money. So don't forget to like know what your trade's worth and really like be the salesman of your trade because I promise you in today's car market, like you're going to make more money on your trade than you would be negotiating off the price of their car. So interesting. That's such a good point. Okay, would you say for someone to, if you're buying from a dealership to do the trade at

the dealership, or do you ever see that you're going to get, you know, a better cost or you're going to be able to sell it more through just like an individual? I would say selling a car private party, you will make more money. I would say it's a pretty easy process if you don't have a loan on the vehicle. I think if you still owe money on the car, that deterred a lot of buyers. That gets a little confusing with payoff. So like that probably might not be worth the headache to you. Yeah. But I would also, depending on the car you're looking for, like I would not take it out of the equation because again, it does kind of give you some leverage. And if you have, especially if you have a good trade, like if you have a 2021 low mileage, like I think it'd be surprised how much the dealership would

step up to get that car. So I, I would never take it off the table. Like I would not tell the dealership, I'm not interested in trading. I think you can say, you know, I'm interested in trading, kind of see what the numbers are. And then I would also do your diligence

and get numbers from CarMax, Carvana, Kelly Blue Book, Edmonds. Like, get all the numbers and then try to, you know, get them up there. Yeah. You know, it's hard. Like, sure. Yeah, yeah, yeah.

I feel like I'm on team turn it into the dealership because it's easier. Yes, yes. You will make more if you do it yourself. Yeah. No, it's good to know. Well, and, you know, know, I mean, but it also factors in, you know, you have to have the time on your hands that

someone calls like, I need to come look at the vehicle. Do you have the flexible schedule? You know, is it a reality for you too? So I think there's a level of that. And there is, there is some states. You'd have to check your specific state. But like here in Missouri, we have a trade in a credit. So like if you trade in a vehicle for $20,000 and you're buying a car $50,000, then you're only paying sales tax on the difference of those cars. So then you're so you get like a bit of a sales tax benefit. Most states do that. Some states don't. So again, And that's just another thing like, okay, so maybe I could get $5,000 more selling to myself, but I could save $1,200 on the trading tax credit.

Okay, so now it's only $4,000. Like, is that worth giving up the next two months of my life to try to find it? That's right. Totally. Something to think about. No, that's so good. Well, and knowledge is such power, like you're saying. I'm like, this is where the internet is a positive thing in our world today.

Yeah. Is that like you have the ability to go and look? So, like, educate yourself. Don't walk into this blindly. You know, know what's going on. And I think that's really, really huge. Okay, so question for you, just because you have such a big social media presence, you're talking to so many, you know, mostly women, car moms, but also guys too. But the car thing, I mentioned this earlier, but it is so true, like in my line of work when I talk about having levels of just contentment in your life, you don't have to chase the bigger, better thing, because there's always going to be that, whether it's like from like our cell phones to the clothes to the cars we buy, right?

Vacations, like whatever that looks like. But cars is always one of my examples that I use when I talk about. having levels of contentment. So for you, do you see that being an issue today? Like do you, in the car lens that you're like looking through so much, are you like, guys, don't feel like you have to keep up. Like what you drive is not you, all of this. Like, do you find that to be a problem with people today?

It's such a good question. And I have like two points that I want to make on that. So I think the first point is new cars are so fun. Like a new car is so fun. Don't get me wrong. Totally. The problem is, and like, you know, like, let's say you go and you like a new Volkswagen Atlas and like it's a $600 payment. You're like, okay, like it's a $600 payment, but like it's a brand new car. It's a brand new car. It smells great. It looks great. The problem is in five years, it's still a $600 payment. Because you're now five years into this. You're still paying $600 a month and your kids have destroyed the vehicle. It's like not like you're not getting the same. You're dreading that payment now because it's five years later. So I think.

it's very easy in the beginning of people to justify their payment because it's a brand new car. Yes, yes. And then as the loan goes on, as the car gets used, and it's not exciting anymore. The excitement wears off. No, it hurts a lot more. And then people find themselves in this really toxic loop because then they're like, oh, why he'll get a new car? My payment only goes up $25. And it's a brand new car. And then here we are three years later. It's like, it's a very toxic cycle. So I would say like when it comes to thinking about a car, like you got, you got to find a payment that you can stomach when it's a brand new car and when it's a five-year-old car. Like, I can't stomach a $600 opinion on a five-year-old car.

Sure, sure. That would just not do it for me. So I think that's important. I also think a way to think about your current car, especially if you, if there's things you don't like about it, like, let's, to make it relevant to my audience, like, let's say your, you know,

your three-year-old has to crawl underneath a car seat to get to the third row. And like, it's so annoying because, like, they have to crawl under a car seat and, like, that sucks. I would, I like to slow people down and say, okay, well, like, three kids, car seat is really hard. So like let's say you go buy the Honda Odyssey because you think it's going to be so much easier. Let's say it's going to be 25% easier to buckle your kids into the car every

single day. Is that worth $50,000 to make your life 25% easier for also a short time like when you're in this car seat phase? So like think about what you don't like about your car right now. Okay, would a new car make it easier? Yes. Okay, how much easier? What percentage easier? And how long are you really going to have this problem for? Because if you're talking about two years, it's an annoying car seat set up, but another car would make it 25% easier, but that's going to cost you $50,000. So you're going to spend $25,000 a year

to make your life 25% easier? Like, I, I think that's crazy. Yeah, totally. So really like, it's a great way of looking at it. But for some people, like, the percentage might be higher. Like, I'm not, I love new cars, and I think a lot of families

do need to buy your vehicles, but like, just know exactly what you're asking yourself. Yes. No, that's so good. Oh, yes. Because again, it's like, our life is so comfortable. Like everything's convenient to us.

And it feeds itself into all these other areas of our life, including literally like, oh my gosh, my seat, my front seat has to be up so far. And I don't have enough room for my back because of the car seat back here. That's so annoying. So I'm just going to go spend, yeah, $50,000 to fix that one problem.

And you're like, slow down. $5,000. It's like your purse has more room. Like, totally. No. Yeah, there's realities of family shifting and needing more space 100%. But yet we are such a culture of like

we thrive on convenience. and comfortability, and we don't think through, you know, the repercussions of that, even financially because of that. So that's such a good point, Kelly. Oh, so great. So great. I always love talking to you and just your wisdom on all the things and especially this industry of cars.

I love what you're doing. I'm serious. I'm like to have like a fresh, young, fun woman out there talking about cars. I'm like, yes and amen. Like, thank you. You're doing the Lord's work, Kelly. You know, we try to make it fun. We try to keep it fresh.

And it's good. Just like get women excited about cars, car ownership and everything. And to your point, I'm a really big, a really big fan of finding contentment in your current car. And like one of my best tips, you don't like your car. One of my best tips is like, go get it detailed. Go get it detailed. Yes. Go spend $150, get an interior detail, significantly cheaper than a new car or cleaning yourself.

Yes. And then like, yeah, it's going to scratch that edge. And you're going to feel. It's going to scratch that edge. I promise you. Yeah. No, that's so good. So good.

Okay, Kelly, where can everyone find you? Because you have social podcasts and things. So, yeah, I have a podcast called The Carpool. It's lighthearted, fun. Rachel's been on it. We had a good time. I even have on Instagram and TikTok at The Car Mom. All of my vehicle tours are either on my website,

the Car Mom. Or you can find them on YouTube at The Car Mom. Beautiful. That's where I am. So wonderful. Well, you guys, make sure to check out everything Kelly does. Kelly, thank you so, so much for being on. I so appreciate it.

Thanks, Rachel. All right, you guys. Well, I hope that conversation was helpful. And we also have a resource here at Ramsey, the Ramsey Car Guide. And so I'll put a link down below if you're looking for a new car. So you can check that out. And here's the thing. Owning a car is necessary for most people.

But it also can be one of the ways that you waste your money the most if you're not careful. So make sure to check out what America's number one wealth killer is actually costing you. That's coming up next. You can click here or the link below. All right. You guys remember to take control of your money and create a life you love.