shelby's with us in Corpus Christi Texas I shall be how are you I'm Dave thank you for your time my question is I'm a new grad I just got my registered nurse and I'm planning on going back to school today or this year unfortunately I've had car problems in the last six months I have a 2006 Ford Fusion I spent 2,500 on the car in the last six months and the current problems that it's having now I'm going to have to spend another $3,000 to keep it going I wouldn't do that what's the car worth
what was so for today Kelley Blue Book says 4,000 I think you could sell it as it sits for $4,000 no okay you're so cool problems the dealership is offering me 2250 if I buy a car this month oh yeah bad but that's not that you know so the car is probably worth as is probably close to $3,000 then if you sold it yourself on Craigslist I might be able to get that much yeah okay and but and it's obviously a piece of crap so you need to get rid of it I don't disagree with
it you have any money I do well here's the thing I thought the pet car was paid off but was speaking of my parents they owe $4,200 on it away so it's they're gone well but I don't want to give it back to them I know but it's their call over there yes technically okay crap and so you just graduated from nursing school mm-hmm okay and so how much debt do you have from that I have no debt I made it through it it's very good for you and so you're completely debt free except that
your parents owe money on the car that you're driving yes okay how is your parents finances not good and what do you make a year um when me and my fiance make 67 okay um I I would suggest working with your parents to get this car sold and I don't know what that means it probably you guys are going to somebody's going to write a check to get rid of it is what it sounds like right yeah I don't think they're in the position to do that so it sounds like you're going to come up
with $1,000 to sell this car yes okay and then you're gonna have no money right well I have six thousand dollars that I can make as a down payment awesome no you don't need a down payment you need a car payment you didn't call Dave Ramsey has to go into car on car debt did you no good I'm glad you did and I want a reliable one but I don't can I get a reliable car sure house dollars oh absolutely it's not six anymore it's five because you got to pay to get out of this
parents mess yes so you got a $5,000 car yeah you can get a decent car for five thousand bucks because you're not driving this thing for ten years drive it until you save up some more money because you don't have a car payment and buy a better car correct so how much content were you thinking of doing before you called me $500 a month good lord okay and so if you didn't if you did what let's just pretend for a second let's say you wrote a thousand dollar check and you sold the piece of crap
car of your parents and got them out of their mess okay okay we got thirty two hundred or three thousand bucks for it or whatever that leaves you about five thousand dollars to buy a car you buy a five thousand dollar car and you pay yourself five hundred dollars a month for 10 months pay yourself a car payment okay that'd be another five thousand dollars wouldn't it it would ten months from now buy another car with five thousand dollars cash and the trade of your five thousand dollar car that's a ten thousand dollar car now
we're getting into a pretty good car and that's only ten months away in the meantime you drive a five thousand dollar car home and pay yourself a car payment and you don't go into debt for a car ever if you want to build wealth okay I guess my only concern was with spending six thousand dollars is that I would get a hunk of junk you could and have the same problems where I'm spending almost as much as the cars worth you could you don't want it you don't want to get into what you got into
there that was a piece of garbage you got into how long you been drive have all you been driving this car three years okay I'll talk about ten months but I would just drive this $5,000 $5,000 car okay and you Savior and you pay yourself 500 bucks for 10 months and then you sell your $5,000 car put $5,000 cash with that and that's a $10,000 car you with me yeah by the way you have ten months later you want to move to a $15,000 car I'm okay with that okay so put down ten thousand and
then pay off five thousand is what you're saying I'm so confused okay let's try again real quick I got about 20 seconds I want you to buy a $5,000 car with no car payments and for the next 10 months I want you to pay yourself $500 a month into a cookie jar in that cookie jar you will magically have $5,000 10 times 500 like you take that $5,000 you sell your $5,000 car at the end of 10 points and with that two together you buy a $10,000 car never have you had a car payment never
was there a down payment we're done
