The Ramsey Show - App - Our Son’s Car Got Stolen

Episode Date: June 10, 2022

George Kamel & Rachel Cruze discuss: When is gazelle intensity too much? Why buying a friend's owner-financed home is a bad idea, What to do when your car gets stolen. Want a plan for your money? Find out where to start: https://bit.ly/3nInETX

I'm out. From Ramsey Network, this is The Ramsey Show, where we help you get control of your money, get ahead in your career, and get on the path to living well. I'm George Campbell, your host, host of the Fine Print and Entree Leadership Podcast, joined today by host of The Rachel Cruz Show, you guessed it, it's Rachel Cruz herself. And we are here for you, America, to help you take that right next step. Maybe you're at a crossroads, you need some confirmation, you need a third party to give you some encouragement. We are here for you.

The number to call is 888-825-5225. Nathan kicks us off in Kansas City. Nathan, welcome to the Ramsey Show. Thank you. How's it going today? How can we help? Pretty good. I need some advice about, I'm on maybe step two, and if I could reduce my gazelle intensity.

Right now I'm working 60 hours and two jobs, 20 hours at one, and there's the opportunity to stop that 20 hours or at least reduce it. Uh, right now I would be comfortable with keeping the main job and just losing those 20 hours, but my debt would, uh, age would extend a good year or two. So how much debt do you have? I have $54,000 right now. I'm working to babysit, so I was at $65,000 earlier. Cool. What kind of debt? Car and student loan mostly, a little bit of medical.

Okay. And what's your income, household? With my main job, $72,000 a year, and with my side job,00 a month okay and is is your wife working outside the home that's a lot of the question i'm losing a lot of time with my kids how old are your kids, Nathan? He is two. Okay, so if you were doing the math from what you said, if I cut my 20-hour-a-week position, it's going to keep us in debt another year or two. How long until you were out of debt if you kept the 60 hours a week? I could be out of debt entirely by 2024.

That's with the assumption that it's just going to end eventually. My main focus right now is taking care of my car payment. I can take care of that by September. Once that's taken care of, the year of concern, it goes away. Okay, so you're saying two years is the current track with the extra job, and if you lose that $28,000 a year that you're doing with the side job, it'll extend it by another year or two. Yes.

How much is the car loan? Right now it's $12K. Okay, okay. What's the car worth? $8K. Well, it's kind of one of these things nathan i mean you know it's the the math is there meaning you know how much it's going to be how much you're going to have to work how much you're going to have to make um to get out of debt and this time period versus two years and so it's

really a values question for you and your wife to sit down and say, hey, what do we value right now in this season to, you know, to knock out this debt off to get out as quickly as possible, to get out faster, so that we are, oh, we get to let our foot off the gas and then enjoy life versus dragging it on another year or two. But then there's people, and it takes them four years, you know, to pay off this debt, like what your track would more be if you did not pay that off. So honestly, I can't answer the question of like what you should and shouldn't do. Um, I mean,

we talk about being gazelle intense and really doing what you can to pay it off. Obviously if there's, you know, issues at home or there's, um, you know, you know,

mentally, if, if something's, if something's wrong, you know, like we want you to take care of yourself as a whole person first and foremost. I mean,

that's important um but also i do think that we've gotten comfortable in our i don't know i feel like a little bit in this time of life of like um you know that man i i don't want to i don't know it's not that i don't want to miss out but also like i i don't want to sacrifice the family time to do this other goal, which again, I don't think there's necessarily a right or wrong in it. But I think if you look back, I feel like I could be totally wrong. Like 10 or even 20 years ago, it was more accepted to work longer hours. I don't know. Is that fair to say?

I think that's fair. I'm just looking at the numbers going, man, right now you're pulling in 100,000 with this side job. And when you lose that, you're going to lose steam. You're going to get comfortable. And now it's just going to be plugging away

for four years. It just feels like a really long time to make any level of sacrifice. So if I'm you, I'm sticking it out. I'm going to find some way to still have that family time. So if I'm you, I'm sticking it out. I'm going to find some way to still have that family time. Maybe the side jobs at a different time so they're not asleep when you get home. But I'm going to figure out a way to keep this level of intensity income-wise without sacrificing too much family time. But at two, I mean, now, Rachel, you can

speak to this as a mother. Being away from your little kids for, you know, all that time, that's hard. Yeah. Oh, absolutely. Yeah. I mean. But it's not going to ruin their childhood either. So there's this balance of like, they're going to be okay. Yes. Yes. And I think too, you know, you read so much in that parenting space and it's like that quality versus quantity. You know, I mean, there's so many ways to go about parenting, right? So, so again, Nathan, I, I hate to like not give you an answer on this call, but I do think it's a values question for you and your wife to sit down and say hey what do we want to do um as a family but i don't think your two-year-old's going to be scarred uh in life

you know i think about my i mean when dave was doing this i'm like he was he was doing he was teaching at financial peace university live every night, gone almost every weekend doing events. And we went sometimes. We didn't. I mean, like it was a whole thing for a long time. I mean, the amount of hours he put in. And I look back and I'm like, and I didn't feel, I don't feel, which again, everyone's story is different.

But I didn't feel like abandoned. I didn't feel like I didn't get time because he was at the important things. And when he was home, we were home. He was present. And we didn't have cell phones attached to us like we do now there's so many distractions now where then i feel like you were able to like really get time so and i don't remember the early years like i don't remember when i was two when he was doing all this they were coming out of bankruptcy when i was born so so i just want to give you a little hope nathan that like your dad heart might be

broken of like man i'm not there for my two-year-old as much as I want to be. Your wife might be exhausted. No, not might be. She is. She's exhausted. She's the one doing bath time and bedtime, and she's the one doing it all. It's exhausting. But it's one of those things to say, okay, is it worth the sacrifice to get out? Yeah.

And I think that level of sacrifice makes you go, never again. Yeah, for sure. Never again are we going to put ourselves in that kind of position. I'm going to be here for my kids because of the sacrifice is it more of what you're feeling nathan or your wife uh i'm the single dad so i'm feeling oh i'm so sorry goodness so what we just totally assumed i apologize no that's okay uh i work from home so i get to be there for him and like the sense of i'm being him, I'm putting him to bed. But there's not that interplay.

There's none of that quality time. It's a lot there, but it's not quality. Well, that feels like a solvable issue of how can we be more intentional with the time that we do have because you are working from home. But, man, if I'm in your shoes, I'm keeping the intensity up because I want to sacrifice for as short of a term as possible, even if it's intense. So that's my plan. But, again, it's a values question, and we're rooting for you either way. Thank you so much for the call. This is The Ramsey.

It's called Gazelle, and it's a digital banking experience that will help you spend and save the Ramsey way with banking services provided by PathWord NA. You'll get a single spending account with no monthly fees, and it's FDIC-insured through PathWord NA. We're offering early access to our beta customers, so you can help us make it the best experience it can be. Just go to ramseysolutions.com slash gazelle to sign up for the wait list today. Imagine the energy of a jam-packed arena filled with people ready to experience what it means to live life to the fullest. Now picture all of your favorite speakers together on one stage, empowering you with tools and principles that will create unstoppable momentum in your life. That is Smart Conference. You heard it right, folks.

Smart Conference is back. It's been three years since we've done this event, and we're pumped to get it back on the road in Dallas, Texas on Saturday, October 22nd. Now, this isn't just another pep talk. This is thousands of people just like you coming together under one roof to learn how to build wealth, achieve their goals, strengthen their relationships, and so much more. And we have a good time. This might be the most entertaining event we do. There's usually live music. There's theatrics. Ken Coleman's doing backflips. Who knows what you'll experience?

And all of our Ramsey personalities will be there. Rachel will be there. I'll be there. Dave Ramsey, John Deloney, you name it. The whole gang, plus special guests, Craig and Amy Grishel from Life.Church will be there as well talking about marriage. And event passes start at $39 for an all-day event.

We're talking 8 to 5. So get your passes before they sell out because this event definitely will. RamseySolutions.com slash events is the place to be. Rachel, is there a better event than Smart Conference? I'm just not sure. No, it's so fun. Well, you get every part of your life talked about, whether it's marriage, it's parenting, it's money, it's goal setting, it's your career. I mean, literally every part of your life we talk about,

and we have a lot of fun. It's a really fun event. It's like the Ramsey buffet. You get a little bit of everything. You get a little bit of everything. And you will leave stuffed mentally and probably physically. There's food there too. So join us, ramsaysolutions.com slash events. Can't wait. Kevin joins us up next. He's in Houston, Texas. Kevin, welcome to The Ramsey Show. Thank you for taking my call.

Happy to take it. What's going on? So in about eight months, I expect a big jump in my career, God willing. So we weren't really looking to get into a house or make a purchase on a house until then. But recently, a family friend offered to sell their house and it'll be below market value. And I guess like an owner finance deal, if that's what it's called. Uh, I just wanted to call and ask is the discount, I guess you'd say worth the risk, you know, until my income would go up and we could afford it then. And if not, what would make this deal worth pursuing?

It's great questions, Kevin. So give me some numbers. What do you guys make a year? Sure. Me, my wife, we're single income. Currently, with no overtime or anything, just about $2,100 a month. And, you know, in that eight-month period, I guess. Is that your take-home pay? About like 60%. Yes, that was net take-home pay. Okay. And do you guys have any debt right now? No, we're debt-free. Completely debt-free. Do y'all have money in the bank just for a down payment or emergency fund? Yeah, so we have $30,000 saved up, and then recently the company I worked for sold. It was employee-owned, and so I didn't have to contribute anything,

but the shares I got just for working there were $76,000, and that was a big blessing. Wow. And that went into an IRA. And I could take $10,000, I believe, without the discount for a house. Okay, so the $30,000, though, you have liquid. So that's all the liquid cash you have to your name. That's non-retirement.

Correct. But part of that's your emergency fund yes okay and how much how much is the house the the house is 230 um and just going off houses in the neighborhood like it hasn't been officially appraised i guess but just right across the street probably around they're going for like 300 000 okay and do you know what the mortgage would be on a 15-year? 15-year, I think it's like around $1,200 or $1,300. Okay. That feels real high for your current income. What's it going to go up to in eight months and how for sure is that? Is that a guarantee? So I work in trades. I'm an apprentice right now. And then once I get my license, that'll be, it'll go up by, you know, at least 60% just on the pay. Then there's a lot of other incentives where, you know, just like the numbers we've been running,

you know, we should be right at the, like, you know, having the house cost like a quarter of our take-home pay. On a 15-year? Yes. Okay. I don't know, Kevin. How soon do you have to do this deal? How soon? I guess this summer,

like probably by July or August, they would like a decision, or else we'll just put it on the market. Yeah. You know what? For me, I know you're... I don't think you'll have enough for a down payment at this point,

because you have your emergency fund, but outside of that, you've got about $10,000 to your name for the down payment. Right. Which, that's not much on a $230,000 house. That's not even 10%. Right, right. I know, Kevin, I hate to say it, but I'm like, if this was two years later, I think it would be great, and if you guys liked it, but I'm like, if this was two years later, I think it would be great.

And if you guys liked it, but I would I would have I would not keep them on the mortgage. Like it's you need to do a whole clean up there if that's what you guys did in two years from now. We're talking about today. And for me, I just have to say, Kevin, the numbers aren't aren't there for me right now for something like a house. And with the gamble of like in eight months and i'm sure your income will go where where you want it to but still um it's not there now it's not a guarantee now and so that makes me that makes me nervous yeah i mean just crunching the numbers i'm just worried you guys won't be able to eat even for the next seven months if you do this deal. Because what I'm seeing with $10,000 down, that's 4%, and your mortgage would be $2,000.

And you told me you'd take home $2,100. Correct. So if I could add, it would be zero down. I don't know for like owner finance if they would require PMI. I know zero down is not like the best, but if that is anything. It's the worst. You have no equity. I don't want you to have four clothes on this house because two months in you have regrets that it was a terrible decision. A deal on a Prada purse when I can't afford it is not a deal.

Yes. And so I love that your friend is doing this, And I think in other circumstances it could work out. And Kevin, let me say this too. When there's situations like what you're in right now, it feels, you get tunnel vision so quickly because you look and see, Oh,

it's, it's the only deal. It's a great deal. It's what through my friend. Oh, I have to take this because it feels like there's no other options. You know that this is going to be the best thing and we have to do it, we have to do it, we have to do it because and you start to live in this tunnel and I want you to kind of bust through that tunnel and say,

okay, what if instead we got, you know, money saved up, I started my new career and we look up 12 months from now and see where we're at with our cash flow and go and buy a house that, you know, there's tons of houses out there. And granted, the housing market is freaking all over the place. We know it's insane right now. But and then say, okay, what are my options then? Because this is not the only deal in the entire world. And it feels like that because of all the circumstances that you're laying out for us. So I know it can feel on your end like, oh, this is it. This is it. This is it. We got to take it. It's the best deal. You have no idea what a year from now is going to bring when you actually do it where the math plays in and you're actually being smart about it on that

end versus rushing into something because it feels like a good deal. Does that make sense? It does. No, I mean, the market being so crazy, sometimes it does feel like the, you know, kind of the only deal on the market. And originally we told them, you know, we're still renting right now. But yeah, no, it is just attractive, I guess. But yeah. Would they let you rent it from them? That's a good question.

No, that was our kind of like, we thought about it for just like a few days and we came back to them and say, we do, we'd rent. But they're retired and they said it'd be too involved. And so they were just thinking about it for, you know, a few months and come back to them and say, we do, we rent. But they're retired and they said it would be too involved. And so they were just thinking about it for a few months and come back to us. Yeah. And I think we just wanted to. Yeah.

And on their end, they're probably like, okay, we're going to sell this. We're retired. We're good. We could offer it a great price to this couple that we love. You know, like it all makes sense and it's very kind of them. But I just don't think you guys are in the position to do it today. I would not, Kevin, personally. I just look at the numbers and go, I can't breathe thinking about 90% of my take-home pay going towards the mortgage and then not being able to put food on the table because we wanted to be homeowners.

For six months. Right. And so I just, I love you too much to put you in that kind of position. And, you know, a few years down the line, I don't think you're going to have this kind of FOMO because you're going to buy a house when it's the right time for you and not look at this deal with a lot of regret. You're going to go, man, I'm glad we passed that up. We dodged a bullet.

Yep, I really do. I think so. So I'd pause, Kevin. How old are you, Kevin? 28. 28. Well, I'm pulling for you. You're going to be a homeowner soon enough with your diligence and set up a different savings account for that down payment.

And maybe you save up $50,000, $75,000 in the next couple of years. Your income goes up. Now you've got a healthy down payment to put down. You can afford the mortgage payment. Now that's a deal right there. That gives you some peace. This is The Ramsey Show. I'm George Campbell, joined today by Rachel Cruz.

Ashley is up next in Dallas, Texas. And Ashley, I see on our screen that you are debt-free. Hi, yes, I am. We love to hear that. Tell us about it. How much have you paid off? I paid off $111,000 in 18 months. Wow. Oh my gosh. What was your range of income during that time?

I started at $75,000, jumped pretty immediately to $120,000, and last year I made $160,000. Whoa. Ashley, what do you do for a living? Well, I was travel nursing. There we go. That would do it. You're incredible. You've been busting it. That's amazing.

I was busting it, yes. So tell us about the $111,000. How much of that was student loans? Majority, probably $96,000, yeah. And what was the rest? The rest was a little bit of credit cards, a car note, and a tiny bit of medical expenses. Wow, you're incredible. So tell us what got you on the path 18 months ago to go, no more, I'm not living like this. Well, I had just graduated from grad school and had a hard time finding a job and getting things going with the pandemic. A friend reached out and asked me if I wanted to start travel nursing. And it just seemed like a good opportunity to get on board

with that. I actually finished my nurse practitioner degree, so kind of delayed with that a bit and just decided to go ahead and pay my loans off. Wow. That's incredible. So how did you find out about Ramsey? What was the thing that we went, all right, I'll follow this baby step thing, this debt snowball thing? Well, I've been a listener for a long time, several years. But once I graduated from grad school, I really

sat down with the numbers and knew that I needed to do the Dave Ramsey plan, which is what I knew I was going to do since I started school. So originally I was doing the math. It was going to take about 36 months. But once I started traveling, I cut it in half. Yeah, you doubled your income and you went, okay, well, that just cut our timeline down, didn't it? How old are you, Ashley? I'm 31. Okay. So for most people, I feel like when you graduate and you're making, you know, this kind of money, which obviously you're working extremely hard doing it but you're making 160 a year are you married i'm not i'm single i won't be continuing to make that much i was working a lot of overtime sure sure to get out of debt yeah but but just

go ahead yeah i was gonna ask though like you know when you're you know late 20s early 30s and you're making this kind of money it would be so so easy to be like, oh, I'm going to go on a great vacation. I'm going to go out. I'm going to do whatever I want because I feel like I just have so much. So what kept you motivated to say, no, this money is going to this debt. I'm not allowing these numbers, these dollar signs of making great money, you know, take you off track? Well, I listen to the show almost every day and I

would just listen to people like sharing their why and that became my why was the biggest thing was as I just shared, I've been single and I just always wanted to go into a marriage debt free and be able to start a family debt-free without any financial burden. That's so cool. You killed it. $111,000 in 18 months. That's amazing. Wow. Well, add this to the dating profile. This is amazing. That's incredible. So what was the biggest sacrifice you made along the way? Something you had to pass up, give up, sell? Obviously, you worked overtime, but that's a big sacrifice on its own. Yes, and just being away from my support system, I turned down a couple of nurse practitioner

jobs along the way so that I could just really focus on paying off the debt, but I just took a position. I'll be making $115,000 salary, which was more than those other jobs had offered me. Wow. And I'm debt free. Yeah, that's right. Well, I'm curious. Do you feel like it makes you a better nurse practitioner to be debt free? Definitely. I think I can go into my job and my mind is clear. And I have taken a little break now and I just feel more prepared to walk into that career.

That's amazing. Yeah, people don't think about the headspace and brain calories and, you know, it's living in your head rent-free. Yes. When Sally Mae's up there going, you owe me some money at the end of this month, remember that. That's right. Did anyone think you were just crazy for doing this?

I did have some people along the way, especially those in the same career, saying, you know, you putting it off is going to put you behind a bit. But now here I am, 18 months, and I get to walk into it. That's amazing. Was it worth it, all the sacrifice, all the overtime? It was. It was worth it.

I feel free. So talk to the other nurse who's sitting there with $111,000 in debt who thinks it can't be done. I'm going to wait for someone to fix all of this debt. What do you tell them the key to getting out of debt is? Like I said, for me, it was my why. You have to really decide why do you want to be debt-free and just have a circle of people that are supporting you along the way, cheering you on, and just sticking to the plan.

Well, we're so proud of you. You're an inspiration to so many out there, especially the amazing nurses all over the country who have, you know, been through hell the last 18 months. Yes. Thank you for your work, Ashley. Thank you so much for doing that. We've got a copy of the Baby Steps Millionaire book for you. That's your next chapter as you continue to build wealth and look to the future. We also have a copy of the Total Money Makeover. Maybe you can pass that on to one of the nurses you work with to tell them that it can be done and there is hope out there. And also a Ramsey Plus membership, which includes Financial Peace University, Every Dollar Premium, to help you along the way.

Or you can gift that to someone as well. You ready to do this thing? I've been ready, yes. Boom. It's Ashley from Dallas, Texas. $111,000 paid off in 18 months, making $75,000 all the way up to $160,000 with overtime as a travel nurse. Count it down, Ashley. Let's hear a debt-free scream.

Three, two, one. I'm debt-free scream three two one I'm debt-free you love to see it oh so good it's amazing that's impressive too she's busting it that's one of the benefits of being single is like well I don't don't have to be home. I'll just keep working. Just keep working all the time. Just keep working. Being exhausted. Being exhausted. But man, that's amazing. Amazing. Well, Rachel, what do you do when you come across something that helps you do life better?

You tell your friends, right? Sure. That's what Ashley's going to do now that she's debt free. Yeah, absolutely. And when you find a great new gadget, a reliable mechanic, a new restaurant, you love to recommend it. You don't want your friends to miss out on a good thing. And that's partially why The Ramsey Show has grown to be one of the biggest business and finance shows in the world. Millions like you, America, tune in, and you can't

help it but share it with friends. You got to listen to this Ramsey Show stuff because it's changed their life. It's changed their family tree. They share how they've cut up their credit cards. They've gotten out of debt for good, like Ashley, how they've saved and built wealth way beyond what they could have ever imagined. It's strengthened marriages and relationships. We love to hear how this stuff has restored marriages. They got on the same page, how people have reached their career and life goals by becoming debt free and the stuff Ken Coleman teaches. So whether you found us on podcasts, YouTube, or your local radio station, don't keep it to yourself. Don't hide it under a bushel. All right? Share your favorite episodes of The Ramsey Show with your friends and family so they can get the hope and help they need.

Because no one should miss out on this good thing. And we know your favorites are, you know, with me and George. And tell them, hey, just skip the ones where Rachel and George aren't on. That's fine. I know. Just go to Rachel and Georgeorge's that's what people want but it is fun we love to hear how that yes that's what gets you to change your life you're not it's not a you know sometimes it's a paid ad on social media but a lot of times it's a friend saying oh i'm listening to this new podcast you got to check it out it's called the ramsey show give it a shot yep absolutely and we get so many calls on hey how do I talk to my parents about this stuff? How do I talk to my friend

about money? How do I convince them? Yes. And it's like, we're like the third party to come in and help. Like the third party usually is the best

just to say, hey, here's this over here that has really helped and I love it. It's entertaining. It's fun to listen to and I learn a lot. And that's it. I mean, it's a way to really get your friends and family on board as

well. Yes. So thank you to all of you who have shared the show and helped us make it what it is consistently number one on Apple Podcasts and Business, number two radio show in the country. And we can't do it without you folks. And the good news is we got more of this show coming right up. We'll be back with more of The Ramsey Show. I'm George Campbell, joined today by Rachel Cruz. And it's your show, America, so give us a call, 888-825-5225. Melissa joins us up next in St. Charles, Missouri. Melissa, welcome to the show.

Hi, thank you for taking my call. I appreciate it. Absolutely. How can Rachel and I help? We're hoping you can help my husband and I and our son make a very tough decision that needs to be made very quickly. Ooh. Okay. Yeah. Stakes are high. Yeah, it's high.

My husband and I bought a car for our son in 2019. It was a 2018 Kia Soul for about $14,000 plus taxes and registration. During that time, we had put a new engine in there. So we've invested probably another $6,000 in that car in the last couple of years. Last year, he was in a car accident. It was deemed his fault. So we put a claim through our insurance they fixed it but then this march when it renewed they dropped him so we had to go through a broker to get a new insurance and it was at about twice the premium of what he was paying but we we had to do it so you have to have insurance so now he's got this new insurance since March. And then the unthinkable

happens Monday night, his car is stolen. Now we're in a very worse condition because the argument between my husband and I is, do we put it clean through? Because we know what's going to happen when that renewal happens next year, they're going to drop us. And then the insurance is going to go, his premium is going to go even higher. And we talked to our broker, and he pretty much confirmed it. Yeah, it's going to go up. He doesn't know how much. It could be as high as $800 a month.

He doesn't know for sure. So the tough decision we're trying to decide is, do we put the claim through and risk our son being straddled strapped with a high premium for years until it drops off he said it could take up to five years for the drop off or do we bite the bullet kiss that money goodbye for that on that car and pull money out of our savings um and help our son get another used car. How much would you have been able to get for it? Like, is it at $20,000? We believe around $12,000.

Okay. And he's got a $2,000 deductible. So we'd be walking away with maybe $10,000 to put towards another car. But the unknown factor is what the premium is going to end up being down the line. For sure. What are you paying now for the insurance? He's paying almost $300 monthly. He's 21, so he's at that high risk, so he's already paying high to begin with. Well, I'm just going to do the math and go,

okay, let's say, you know, have you talked to an outside, you know, third-party insurance agent to get an estimate on what this could be? Yes. This is the same broker that got his insurance just this March. We called him. And he's saying he could add $800 a month, potentially? Or just up to $800? It could be. It could be, because now he's got to go out and find someone else that's going to insure him with a second claim. Yeah. And he said it could be as high as $800 a month. He doesn't know well if it's 800 a month absolutely it's not worth it because that's 10 000 a year yeah that you're now paying to file that claim to get 10 one time but that's worst case scenario that's worst case right so that's where i'm going is there a way to figure it out without running the claim i don't know that there

is without actually running it through your insurance. Yeah. He said he could start doing some research for us, but I mean, he would have no way to know exactly what that amount is. He's just giving us the worst case. So I don't know. My husband feels like we invested so much money in it. That's why you pay premiums. We need to put the claims through. We need to get recoup some of our loss i said yeah but as a parent do i want to strap the son our son with this huge pretty possible how did the car get stolen melissa where where was it stolen in a parking lot in a parking lot it got stolen they just like hot wired it and took off or was the key in there uh the key wasn't in there i guess they somehow got in there and got it going and you can't find it i mean have you reported police report and all that report yeah we did

the police report and unfortunately the police is not responding we've been calling for days to get an update because we've never had this happen before so we checked online they said oh wait about five days sometimes it shows up yeah we can't get the police to call us back to get any update so we're going to assume it's gone it's at a chop shop it's up yeah we can't get the police to call us back to get any update so we're going to assume it's gone it's at a chop shop it's gone and we got to make decisions because he's got a job it's already become inconvenient trying to get him to and from work sure so that's why i say it needs to be quickly how old is he he's 21 and does he have any money saved? Not much. A little under $3,000 saved.

He doesn't have a job. It's like a career job right now. He's still working at it. He's just not there yet. And do you guys have money to basically gift him a car right now? We do, but my husband's a little irritated because we've already done that once. Yeah, and there's a part too, Melissa. He's 21, you know?

Yeah, it's tough. He's kind of got to get some skin in the game here. Yeah, I would want him to. Well, he was paying us back. He paid us back for the motor. He was paying us back half of what the car cost. So he was contributing. Yeah.

But it's just horrible timing. He wasn't done paying his half of the car. And it's just, we're just all just not sure what to do here. And I thought, well, let's call the guys that know about money, what makes sense. Yeah. It's hard to do when the numbers are so variable, because usually we just look at the math and go, is this going to ROI? Does this make sense to do from a mathematical standpoint? But there's too many unknowns here to say for sure do this. Now, if I'm in your shoes, I might just save up and get him a cheap used car instead of – That's exactly what the broker said. He said – I asked him, I said, what would you do if it was your son?

He said, I would just get a cheap car. We're not going to get him a $14,000 car. We're going to get him a $14,000 car. We're going to get them a $4,000 car. You know, and I thought that too, and I started looking, and then I realized, I remember Dave Ramsey said about, oh, it's COVID and these car prices are through the roof. And oh my gosh, they are. I couldn't find anything under $10,000 that didn't have like over 100,000 miles.

Well, I don't care if it has 160,000 miles. Find him an old Toyota or Honda. I don't care if it's a 1999. Those things will go forever. And, Melissa, he needs to be looking, too. I'm hearing you as the mom, which I get. But also, he's 21. He's 21.

This is his problem. You know what I mean? You guys obviously are there supporting him. I'm involved in every step of the process. I him to be bringing you ideas and maybe he pays half of the car and you go hey we're gonna put in two grand you're gonna put in two grand we're gonna find you a four thousand dollar car we're gonna negotiate it off facebook marketplace you're gonna take it to get it inspected and i think that will help him see this car differently okay okay yeah because i was just looking at dealerships.

I mean, the first car we got is from one of those first rental places. Your options are going to be Facebook Marketplace, Craigslist, and AutoTrader, and sort by lowest price in your area. Maybe even drive a few miles to go find this car. That's a good deal. And at that price point, too, Melissa, it's amazing what just cash will do. Go get $5,000 cash, bring it to the house and say, hey, here's what I got. And you may even get a good deal, right? I mean, I know used car prices are

insane right now, but still, there's still some ways to get a deal and negotiate all of that. But it would be through more of it. It would be an individual, not a dealer. I would not go through a dealership. The dealers aren't messing with cars that cheap right now. Yeah. Oh, yeah. Okay. So my takeaway is you're suggesting if you're in our shoes, not do the claim, get a cheap car and just keep that for a few years and then go from there. Yeah. And I'm going to still stay on that police report. I mean, cars turn up. It's crazy. And it may take a few weeks, but if it's not on the chop shop yet, it may just be sitting somewhere in someone's driveway without the plates on it. Who knows what they did, but it's amazing how these things turn up.

So still keep track of that, but at the same time, go, how much are we willing to put in? Have him maybe come in with half of that money and have him start looking and have him make the decision. Okay. All right. You guys are wonderful. Thank you. Thank you so much. That's a tough situation. Goodness gracious. That is hard. That's insult to injury.

And I'm like, you know, and I guess obviously the insurance agent knows, but I'm like, if your car is stolen, I mean, I guess obviously your insurance goes up. Like, that's one of those things where I'm like, is it your fault? You know what I mean? Because different claims,

depending on the situation, are also different. I don't know. I'm not in different claims, depending on the situation, are also different. I don't know. I'm not in that world, but it is frightening to think about that someone could just get in your car and take off. I know. Wild times. Yep. Wow.

Well, that puts this hour of The Ramsey Show in the books. Our thanks to Austin, Kelly, Ben, James, Andrew, and, of course, my co-host, Rachel Cruz. And who could forget about you America we appreciate you listening in we'll be back with you before you know it Hey it's Rachel Cruz co-host on The Ramsey Show. If you want to do your debt-free scream live on the show, visit ramsaysolutions.com slash debtfreescream.

We'd love for you to come to Nashville and tell Dave your story. That's ramsaysolutions.com slash debtfreescream.