The Ramsey Show - App - The Right Real Estate Agent Can Save You Money (Hour 2)

Episode Date: October 11, 2018

The show about you

🎵 Live from the headquarters of Ramsey Solutions, it's the Dave Ramsey Show, where debt is dumped, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I am Dave Ramsey, your host. Thank you for joining us. Open phones at 888-825-5225. That's 888-825-5225. Mark is starting off this hour in Boston. Hey, Mark, welcome to the Dave Ramsey Show.

Hi, Dave. How are you? Better than I deserve. What's up? Yeah, so I'm thinking about buying another business, and I wasn't sure whether I should put that money into buying another business or whether I should start trying to pay down my mortgage or putting money away for retirement and so forth. Why are you buying a business? It's a good business to buy. It yields a good return, as it appears right now,

what the current owner is doing there at this business. Does that represent a career change for you? No, no, no. I'm a dentist. It would be another dental practice. Oh, so you would fold it into what you're doing? Yes, yeah. So I own one practice right now up in Mass,

and I'd be trying to purchase another practice potentially. That you would combine with yours um pretty much yeah in some respects it'd be a different location oh so you'd have a second branch in a sense okay yes all right cool cool and so what would you be paying for the practice, the second one? So the practice itself would sell for half a million dollars, $500,000, and then the real estate would cost $300,000. So it would be a total transaction of $800,000. And how much do you have? Right now I have $100,000 saved um so i'd have to finance the rest okay all right and do you have other debt other than your home

no just just our home no student loan debt no debt on your former practice no we paid uh our student loan off and and my other practice has been paid off. And what's your household income? What is your income? What do you pay taxes on a year? Between my wife and myself, it's anywhere between $850,000 to $900,000. A year? A year.

And why do you only have $100,000? Well, I took all the money to pay off debt. So you're just coming out of the cave. Okay, I got you. Yes, yes. So you could pay for this. If you put the real estate aside and rented it with an option to buy it, that second $300,000, then you could pay cash for this practice in about a year?

In about a year, yes. I mean, $800,000, you need $500,000. Did I miss that right? Yes. Okay. Yep. Can you delay the closing until you can pay cash for it? It would probably not be a good idea to do it because the owner would

look to sell the office to another potential uh buyer these these offices sell very quickly uh within our area you're talking about the building no the practice itself. Oh, I see. So I have $100,000 saved, and the practice would be $500,000. So it would be really probably tough to scrape together another $400,000. In a year? I mean, if you could tie it up for a year and close it, that's, you know. And then buy the real estate the second year, the lease it for the first year and lease it. So here's the problem. Here's what I'm struggling with.

You obviously have an unbelievably fabulous income. I mean, crazy, wonderful income. But I do not tell people to borrow money to buy businesses. And I'm not going to tell you to borrow money to buy this. I think you can save up the money in a year. And I think if you just, you know, negotiate with this guy, put together a deal, and even if you took it over, ran it for a year, and had an option to buy it and put $100,000 down as your option to buy the practice

and then close on the practice in one year and pay cash for it and close on the real estate the next year and pay cash for it. And that's how I would do it if I were in your shoes. I do not borrow money mark and i do not tell people on this show to borrow money for business purchases um i don't believe in it i think it gets you into problems and um uh you know if this guy wants to sell this pro this practice to you that's how he'll have to sell it if I were negotiating the deal. But, I mean, certainly you can do what you want to do.

I think that practice, you know, I suspect it's going to even add more to your income. And then in the third year of this discussion, you can probably pay off your house. I didn't ask what your mortgage balance was, but I don't go into debt to buy, to do business because business has too much risk with it, and even dental practices have too much risk with them, especially when you're completely changing the format of what you're doing in that you're picking up a whole second location, and practice management comes into play then. And so there's risk here.

There's real risk here. So I'm paying cash for it or I'm not buying it and that's how i would go about it but good question i don't know what you'll do uh you've certainly got a lot of income and that that covers a lot multitude of sins but that's how i would do it thanks for the call open phones at 888-825-5225 melissa is on facebook and dave ram, facebook.com slash Dave Ramsey. What exactly does it mean if the term insurance is 20 years? I'm 43. Should I go for longer or shorter term?

Well, that means that policy will not change for 20 years. It's called 20-year level term, and you'll have the same premium and the same amount of coverage for 20 years. After 20 years, the premium will go up dramatically. Or you can go have another medical exam and buy a new policy that will not go up nearly as much as that one would go up. Now, the question is, how long do you need life insurance? If you've got a 6-year-old and a 12-year-old in 20 years, you'll have a 26-year-old and a 12-year-old in 20 years, you'll have a 26-year-old and a 32-year-old. Hopefully they're gone.

That's the idea. We train them to leave and come back with grandbabies. That's their job. Okay? That's the process here. This is how life works. So, kids are grown and gone. 20 years from now, you would be 100% debt-free because we never tell you to take out more than a 15-year fixed-rate mortgage.

And 20 years from now, if you were doing the baby steps that we teach, you'd have been putting 15% of your household income away for 20 years, which would probably make you well in excess of a millionaire, depending on what your household income is. So let's just say you have $700,000 and a paid-for house and no kids at home, and you die. I think your husband could struggle through or reverse it. He dies. You could probably struggle through the $700,000, no kids at home, and a paid-for house. The point is being out of debt and building wealth does away with the need for life insurance. You don't need it your whole life.

The only whole life life insurance is needed is because your agent needs a commission his whole life. This is the Dave Ramsey Show. Did you know that if you combine the data breaches that have occurred in the past 12 months, almost every American has had their personal info compromised or hacked. Over 50% of our listeners and viewers tell us that they or someone in their family has been a victim. And 70% of those folks have had it happen more than once. See, this is unbelievable. Once thieves get your info, the risk never goes away, and they can use it whenever and however they choose. It truly has become an issue of not if, but when.

That's why the only plan I've ever recommended is through Zander Insurance. I actually sat down with them and we put together a plan that I felt provided the best protection, but didn't waste dollars on things you could easily do yourself or were just gimmicks. The key is getting protected before you're a victim and it's too late. Go to Zander.com or call 800-356-4282. We are all at risk, and it doesn't make sense to wait. Numbers don't lie. That's Zander.com or 800-356-4282. Thanks for joining us, America.

We're glad you are here. Well, you can save big in the online store at DaveRamsey.com. Now through October 31st. Yeah, you guessed it. We're having a Halloween sale, and it's not scary. We're going to save up to 72% off on our best-selling books, tools, and bundles. And you'll find deals, deals and deals on books that will change your life or your family's life. Hurry, the sale ends soon.

We've got kids' books and bundles on sale. You can get the best-selling kids' bundle, the Adventure Pack, for only $45.99. You can also get the Deluxe Envelope System for only $19.99. And they get you organized and ready for Christmas. There you go. Check it out. Jason is in Burlington, North Carolina. Hi, Jason. Welcome to the Dave Ramsey Show. Hey, Dave. Thank you for taking my call. Sure. What's up? Okay. I just took a new position at a new company. I'm traveling 110 miles Sure, what's up? the stomach moving to this new city because of the fact that the rent's a lot higher up there. My rent right now is only $700 a month up there, and that's on a two-bedroom apartment.

A one-bedroom apartment up there starts at right around $1,000. So my question is, what should I do about that? Where are you driving to? I'm driving to Cary, North Carolina. I think you went shopping in one end of town, and there's another end of town. I mean, Cary is not that dramatic. It's not 30% more expensive than Burlington. Something's wrong.

Something's wrong with your analysis here. Well, everything that I've done research-wise, I can't find anything less than $950 to $1,000 a month for a one-bedroom apartment. And I've been digging for almost 30 days now. Okay. I'm trying to offset the cost of gas and be closer to my job. Yeah, I get that. And I'm just not doing the cost of gas and be closer to my job. Yeah, I get that. I'm just not doing what you're doing.

I don't have the emotional ability to commute like that. Some people do, but I can't do it. My commute is seven minutes, so I can't relate. I really think that, I mean, I have never seen anything that indicates that Cary, North Carolina, is 30% more expensive than the rest of North Carolina. I mean, now maybe you need to move 20 miles from there instead of 110 miles from there to get something cheaper, but the numbers you're giving me just don't work. Truthfully, I think you haven't looked in the right places. I think you're looking in certain neighborhoods or certain types of apartment complexes or whatever.

I'm going to continue to shop and learn. And I'm probably, I mean, you may need to dial it out, pan back a little bit, and dial out just a little bit mileage-wise from where you're looking to get. You may be in the most expensive in the town. I mean, I can imagine that there is an area of Cary that's that expensive. But overall, to say Cary, North Carolina, is 30% more expensive rents than Burlington, no. That's just, I just don't believe that. I can be wrong, but I've never seen anything that indicates that, you know,

one end of North Carolina is that much more expensive than the other end. Now, you want to compare Manhattan to Abilene, Texas, we can talk about this. But that's a different issue, and that's not what you're proposing. So I think you look in a different end of town of Cary, or you move a little bit further out of Cary, but not 110 miles out of Cary. And let's see where we are at that point. But I don't think you can, well, your numbers just don't work. Hey, thanks for the call. Sharon's with us in West Palm Beach, Florida.

Hi, Sharon. Welcome to the Dave Ramsey Show. Hey, Dave. I'm doing the SPU and I'm on my baby steps, and I just finished paying off my car last week. Good for you. And I have one of your ELP, and I was talking with them, and I said that car payment money, I'm going to be tackling my house next. And they were saying that it would be better to invest. And I'm, like, confused.

Why are you confused? What do the baby steps say to do? It says to go to the house next. No, it doesn't. When you're 100% debt-free, everything but the house, what's the next baby step? What's baby step number three? Six months of savings. There you go.

Do you have that done? Yes. Do you have that done? Yes. You already have that done? Yes. Oh, I thought your car wasn't paid off. No, my car is paid off. Oh, it is now paid off? Yes.

Oh, good. Okay. So you got Baby Step 2 done, and then you got Baby Step 3 done with your money saved for your emergency fund, right? Yes, I do. And what's Baby Step 4? Baby Step 4 is the house. No.

Baby Step 4 is 15% of your household income going into retirement, which is what the Smart Investor Pro was telling you. And Baby Step 5 is saving for kids' college, and 6 is anything above those two things you throw at the house. Okay. All right, let's go back and look at the baby steps again in financial peace, and it will walk you right through that. And you are getting advice from the SmartVestor Pro that is consistent with what we're teaching.

So that's why. Hey, thanks for the call. Jennifer is in Houston, Texas. Hi, Jennifer. How are you? Hi, Dave. Hey, what for the call. Jennifer is in Houston, Texas. Hi, Jennifer. How are you? Hi, Dave. Hey, what's up? So I'm calling because I'm ashamed of my debt,

and I wanted to know if I should postpone getting married or if I should continue to get married but to pause baby step two to stack up money for the wedding. Okay. What is it going to cost you to get him? What's the wedding going to cost? Well, so right now we're in the stages. We went ring shopping and the families are involved, so he hasn't proposed yet.

Okay. But I have no money and I have a lot of debt. So that's my concern. How much debt do you have? I have about $148,000 in debt. You do have a lot of debt. Are you a doctor or a lawyer? Yeah, and my boyfriend, in terms of how different we are, he would be like baby step four and I just barely got out of baby step one. So are you the doctor or lawyer? What's your debt from? No, I made a lot of bad mistakes. I don't have none of those things.

What's the debt on? Primarily student loans, a car, and personal loan credit cards. Gotcha. What do you owe on your car? I owe, I have $13,000 left. And what's your degree in? I have a bachelor's in economics and an MBA. Okay.

So what are you doing? How much do you make? I make about $71,000. Good. I work in IT right now. Good for you. Okay. So you're just coming out, getting things going, and

making 71 as a single person, you can attack this debt very, very aggressively and very quickly. Okay. So you're working on getting out of debt. Your boyfriend's already out of debt, and is your parents or his parents going to help with the wedding cost, or do you have any idea?

I think it'd just be us. So I know, see, the thing about it, we talked about marriage. We briefly did an overview about finances. I know he has a substantial amount saved up himself. Okay, then he pays for the wedding and you keep getting out of debt. He pays for the wedding then and you keep getting out of debt. Okay, so if he pays for the wedding, before we do it, should I pay down some of this debt or i'm sorry no you you have a lot of debt you have enough to work on yourself

okay um i mean listen that that's what the the package that comes named jenn Jennifer has a master's degree and $148,000 in debt and all of the other things that are wonderful about Jennifer. The package that comes with him is he is out of debt and he has some money. We don't know exactly what yet. I think you guys need to really get into this and talk about it. But when you combine these two things, then you're going to finish off the debt. You're going to spend a limited amount on the wedding so that you can use the rest of his money to clear your debt when we are married, after we get home from the honeymoon.

I understand you've got some shame about your past. We all do. We all do. You could do it over. Wouldn't you do it? Oh, my gosh. Don't let that hold you back, kiddo. You got plenty of good stuff ahead of you.

This is the Dave Ramsey Solutions, Alan and Lauren are with us. Hey, guys, how are you? We're great. We're excited to be here. Where do you guys live? In Bessemer, Alabama. It's just west of Birmingham. I know it will.

Welcome. Good. A couple hours, about two and a half hours up here, right? Yeah, a little bit. Just about. Yeah, close enough. So how much have you guys paid off? $342,303.91.

Wow. And how long did this take? 71 months. So just under six years. Good for you. And your range of income during that time? Started out about $75,000, now about $275,000. Well, there's a little jump.

So what do you guys do for a living? I'm an assistant professor at a university and a Navy reservist. And I'm a family physician. Oh, there we go. Okay, cool. So I'm guessing maybe with these degrees and these career choices that this is all student loans. Actually, it's not. It's not.

The first half, about $155, was my med school loans. And then the rest is the house. You paid off your house all right i love it very cool you got through med school for 150 grand yeah uab way to go good for you excellent i love it i love it and how old are you two i'm 33 now I'm 37. Okay. And what's the house worth? It's worth about $200. Good for you guys. Wow!

And $200 is a really nice house in Bessemer. I mean, that's a lot of house. That's good. Yeah, we got it on sale. Yeah, good for you. I like it. Man, with this income and no debt in the world as young as you are, you guys are killing it. Yeah, we kind of don't know what to do with ourselves now.

I guess. We've always had, you know, the nice thing about following your plan, there's always one step at a time. And you always have a goal that you're working on. And now that we're, like, done, we don't really know what to do next. Spend some, invest some, and give some. That's about all you can do. Well done, y'all. How's it feel? It's really awesome. It's a long

time coming. It's a lot of planning, but now it's just, you see one bill go, and another bill go, and another bill go, and that mortgage counter come back one month, and another month, and another month, and it feels really good. Cool. What do you teach? Law. Oh, good. Okay. So, law professor and MD. month another month and it feels really good cool what do you teach uh law oh good okay so uh law professor and md not bad yep it was a lot of work to get to where we are but and uh i think you know

coming out of medical school it's um you you have this big lump of money that you owe and i remember getting statements in the mail from the loan company, and I would just kind of open them and put them to the side because it was so overwhelming. And I was nervous about having to make an $1,800 to $2,000 payment every month for 10 years and then end up paying almost double what I'd borrowed. And it's basically like paying off a mortgage. and then end up paying almost double what I'd borrowed. And it's basically like paying off a mortgage.

So we actually had a great attending physician that during my fourth year of med school actually sat us down and said, we're going to talk about money. And we were thinking, oh, is he going to teach us about billing or how to run a practice? And he's like, no, someday you're going to make a lot of money and you need to know what to do with it so you don't end up like me in my 60s

and I can't retire because I have debt still. Wow. And so he's the one that I heard your name from and got the Total Money Makeover book and read that. And probably it was another year or two before I really started the program because being in med school and not having any income, living off loans, it's kind of hard to figure out how you're going to pay off debt while you're taking out debt. It doesn't really make sense. And then Alan and I met and we were engaged.

We wanted to start our marriage off right. We wanted to sort of get on the same page and figure out what our priorities were and what to do with sort of what our future was. So Alan actually had, when we met, he had already paid off all his school loans and had a lot of savings. And I'm like, hey, you want to get married? I've got $155,000 in debt. Yay! And so I think I felt really guilty doing that. Kind of like that girl a minute ago, yeah.

Yeah. And our church at the time was offering FPU. And so I was like, oh, we need to go to this class because I'm terrified and I don't know what to do. And so we did that in, that was in 2012. We actually did that while we were engaged. And so we got married August, 2012. And so to this day, you know, before we got married, we had our budget ready to go on the spreadsheet from the nerd. And to this day, we could tell you every penny we've spent since the day we got married. So that's been an interesting journey, but definitely a blessing.

71 months later, house is paid for, med school loans are paid for, everything's done. So what do you tell people the key to getting out of debt is, Alan? Gosh, it starts with communication. Whether you're married or engaged or you're just by yourself, you need someone to talk to you about it. And then it's setting the budget and being disciplined on it. There's no problem changing the budget, but it's just intentionally spending every cent and figuring out where it goes and being diligent and disciplined to do it. Yeah, we've gotten very good at cash flowing things.

There's been a lot of, of course, over six years, a lot of unexpected expenses. And we always say that if it weren't for the budget, then we wouldn't know where to get money from. We've actually cash flowed three cars in this span of time. And then about two years ago, we were having some trouble getting pregnant, which you never think that that's going to happen. And, you know, fertility stuff isn't really, it's not like getting cancer. It's not like a medical emergency or anything, but it's definitely very stressful. And so we were very glad to be able to have the funds and know where to pull money from. And we actually ended up doing two rounds of IVF, which was very extensive.

And so we're happy to finally be pregnant. So this is kind of our Dave baby. We're not going to call her Dave, though. Sorry. Good. But we just, you know, going through the stress of that, and I've seen plenty of friends go through that or want to adopt and not be able to because they don't have the money or they have to fundraise for years and years. And so we were just blessed to not have to put that on hold because of money. So that was definitely a blessing.

We have to finance the baby. Yeah. There you go. Yeah, put the baby on the MasterCard. Yeah, that would be bad. There's something wrong about that, but people do it all the time. Good for you guys. Well, well done. We're very proud of you.

Congratulations. Who was your biggest cheerleader? Each other. Other than each other. Everybody else thinks we're weird and crazy. Everybody else is just rolling their eyes. Honestly, we've been coordinating for a couple years now. So talking to all the families and talking to all the people in the class, that's a really big inspiration for us.

Just the moral victories of I saved this amount of money or I got this at a flea market or I sold this or I saved this. Those little victories are really rewarding. So when we pay off the house early or we chip one or two months off the mortgage, we can tell those same stories and sort of share in that excitement. That's a big deal. Well, thank you for coordinating the class, too. No, we love it. It's super fun.

We got a copy of Chris Hogan's book for you, Retire Inspired. That's the next chapter in your story, for sure, to be millionaires. Well on your way. Congratulations. Thank you. And we're very, very proud for you guys. I'm proud of you. Alan and Lauren, Birmingham, Alabama, 343,000 paid off in 71 months, med school, house and everything. I'm looking at weird people. They make 75 to 275.

Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free! I love it! Boom! Man, that's fabulous. What if you never had another student loan payment or another credit card, or you never had to worry about money? You can get control.

You can go to Financial Peace University. They're coordinating it in their area. You can jump into their class. It's a step-by-step plan that teaches you not only how to spend wisely, but to save. You're ready for emergencies. You can cash flow your IVF. You can cash flow your car.

Hey, they're doing it all. They're doing it. This is exactly. And then you start to invest for your future. Oh, they're doing it all. They're doing it. This is exactly. And then you start to invest for your future. Oh my goodness. All that money that used to go to the bank, now it goes to change your family tree. Yeah, the borrower is slave to the lender. And when you get control of your largest wealth building tool, your

income, you are ready to go, baby. Financial Peace University. DaveRamsey.com. You can find out about it there or you can call Customer Care at 888-22-PEACE. 888-227-3223. Dave Ramsey dot com. You can find out about it there or you can call customer care at triple eight. Twenty two piece triple eight. Two, two, seven, three, two, two, three. Thank you. We'll be right back. Elliot is in New York City. Hi, Elliot. Welcome to the Dave Ramsey Show. How are you doing? Better than I deserve. How can I help?

Yeah, hi. I'd like to know if it's a wise, bold, or foolish decision to trade in a perfectly conditioned car based on high mileage and consumer reports for an upgrade? Based on high mileage and consumer reports doesn't like your car? Yeah, I have a passion for traveling, and I'm committed to it. And I'm looking to possibly upgrade, but I've had this for two and a half years. Okay. So what's the car worth?

The car is worth like $17,000 private, $14,000 trade-in. Okay. And how many miles you got on it? $60,000. Okay. That's not a lot. It's a 14 Dodge Charger. Okay.

A nice car. So you're committed to traveling, meaning you're just planning on putting a lot of miles on it because you're out there running the road. Exactly. Yeah. In the last two and a half years, yes. Okay. So the thing we know about putting miles on a car, and you know this, is the more miles you put on the car, the more you destroy its value, correct? Correct.

And so if I'm going to travel, or for instance, people who travel for a living, people, road warriors I call them, they have to travel for work all the time. In that case, you want to drive the least expensive vehicle that will get the job done because you're destroying whatever you drive. I mean, you don't want to drive a $100,000 car. It's going to be worth nothing by the time you finish traveling. And so unless you've just got millions of dollars and you can afford to lose $100,000, but most people don't have that.

So basically what we're saying is you're going to take this 17 000 vehicle and you're going to cause it to drop in value faster than anything else what's your household income um i make about 80 000 okay you're single i'm single bachelor renting renting a small room okay all right since right. Since I'm always hanging out. Do you have any debt? Just the car. That's it. What do you owe on it?

$11,000. Okay. All right. Well, there's nothing I'm hearing here that's crazy as long as you realize that, you know, this $17,000 car might be worth, you're going to lose a few thousand dollars extra on it just because you're going to travel in it, okay? And as long as you're willing to do that with the kind of money you make, you should be okay. Let's get the car paid off as soon as possible.

So your preference is keep it and drive it, is that right? My preference is to keep it for five or six years. But my friends and co-workers, they say to trade it in, to trade it. You're crazy to keep it. To trade it in for what? Well, last night for fun, I was spinning around the brand-new BMW 440 Exile. I was falling in love with it. Right.

Well, that would be easy to fall in love with that, but that's even more expensive, so we're going to destroy even a more expensive car if you want to travel in that, right? Yeah, and to upgrade to a brand new one, that would be 20% less. Well, number one, you're in debt and you don't have the money to do that, so that's ludicrous. We wouldn't do it on that basis alone. But on the idea that you're going to travel in it, no, you don't want to upgrade and destroy a more expensive car's value. So if you're going to travel, you need to run the wheels off of something that's not going to cost you as much. So we don't upgrade in order to lose more money when we don't have any money.

That doesn't make sense at all. So whoever your friends are, I mean, they're encouraging you to do stupidity, but I've had friends that have encouraged me to do stupidity. I didn't have to do it, though. Brian's with us in Bakersfield, California. Hey, Brian, how are you? Better than I deserve, Dave. How are you?

Better than I deserve. How can I help? Okay, Dave, so before I found you at the beginning of this year i impulse and purchased a ridiculous car and then as soon as i found you i was like crap oh well what'd you buy well um we bought a 2017 mazda 6 with all the bells and whistles sweet yeah well not so sweet because my pocket hurts yeah well i well, I guess. But, I mean, the car is great. Okay.

Oh, yeah. So what do you owe on this silly thing? We owe $35,000. Mm-hmm. Okay. And what's your household income? This year we'll be making $60,000 to $65,000, maybe touching $70,000, depending on my overtime. Oh, yeah.

This car is gone. Yeah. depending on my overtime. Oh, yeah, this car's gone. So then next year I'll be getting a good 15% raise plus another 5% raise down the road. Yeah. So here's my, I'm calling to see if you're okay with this. Me and my wife finally agreed to let it go. Good. And sell it.

Good. It's worth $21,000. Oh, God. Yeah. So you rolled something upside down into it or died that bad yeah it died that bad it only took like three months good lord so 21 000 on trade-in yes oh well that's 22 23 on private sale something that that's not enough of a spread on private sale so you're saying this car went from $35,000 to $23,000 in one year?

Actually, technically it was $40,000 to $35,000. I also canceled the warranty on it because we had an extended warranty. Yeah. And then we found out that it's funny how when you pay off a vehicle or you reach certain miles, all of a sudden it starts to fail on you and the warranty is canceled because you overdid it. The car is one year old. Almost a year old. Yeah.

All right. So, yeah, we need to get rid of this thing for so many reasons. So what's your plan? The plan is me and my wife have been looking around and we saw some $4,000, $5,000 cars. I could save up that money, and I probably have it by next income refund. But what I was thinking is because our monthly payment throughout the whole month is like $800. So because I also have a student loan, and the student loan payment is like $168, but I'm almost done with it. I only have like $6,000 left over. So, what if I just go ahead

and sell this car, borrow the difference, and then go to the guy on the car that's selling for like $4,000 or $5,000, and just make payments off of it for like $100, and the monthly payment will go down to $400, making the math. Would you be okay with that? Yeah, sure. But I'm not sure I understood how you're financing your second car, the one you're financing. The $5,000 car that you're buying, how are you financing it?

I'll just go on and hit it, just like, you know, just like if you're going to go buy a car put a little down payment on it oh okay and over the you know what i mean yeah that's fine if you can just get a regular car loan on it that's fine let's do that because we're still reducing your debt by half right and uh by doing this and then you can concentrate on getting that car paid off and then getting the hole that you dug with this other car which is absolutely horrendous it's a great car i'm surprised that thing has dropped that far in value um make real sure you got your numbers right on that because i mean i the cars are horrible as far as going down in value i get it i i'm a car

guy but they and they go down in value rapidly. But that one is like a black hole for money. I never saw anything like it. That's incredible. What a horrible, horrible car on holding its value. So check that and make sure your numbers are a little high on terms of lost money. Maybe you haven't lost as much.

I'm hoping you haven't lost as much as you think you've lost. So let's dig into that a little bit further, and you do not want to sell it to a dealer at wholesale. You want to sell it private sale. It should be in this situation, about a $5,000 difference. In other words, you should be able to get $5,000 more out of selling a private sale than you would for my dealer on something that expensive. So really check those numbers. I'm not sure you've got correct stuff there, but wow, what a dadgum kick in the teeth. Man, you got hammered. Amazing. Good luck with it.

But yes, I would get out of it for sure. It's too much car. It's a mess. It's going down in value. It's breaking. I mean, there's nothing good in this story. Thanks for the call. Well, that puts this hour of the Dave Ramsey Show in the books.

Thanks for hanging out with us, America. James Childs is our producer. Kelly Daniel is our associate producer and phone screener. I'm Dave Ramsey, your host, and we'll be back. back hey guys this is james childs producer of the dave ramsey show i'm excited to announce that we're now carried on 600 radio stations across the country to find one near you head to daveramsey.com slash show.