My Company Forced Me To Buy A $38,000 Car!

My Company Forced Me To Buy A $38,000 Car!



alex is in Kalamazoo hi Alex welcome to the Dave Ramsey show hi Dave thanks for having me sure what's up so my wife and I are currently on baby step number two I've taken a new position that requires me to travel a lot throughout the area and my company offers a vehicle reimbursement program to buy a new vehicle so I went out and bought a brand new vehicle and am currently receiving a monthly stipend from the company to basically pay for the vehicle payment so the notes in my name that the company pays me monthly I'm wondering if I should just continue to take this payment monthly and put it towards the vehicle or if we should buckle down and pay this vehicle off as fast as possible and just the company continue to pay me that stipend okay how much do you own the vehicle about 38,000 good lord and what's your household income $95,000 okay and how much and you said you're married yep and what is the value of your wife's vehicle hers is probably about 15,000 okay all right and and you have thirty eight thousand dollars in debt on this car and what other debts do you have not counting your home less than a thousand on a credit card that we're just about to pay off her student loans which are I think right around sixteen or seventeen thousand and that's it okay all right a couple of things that that broke down here one is you get a vehicle stipend whether you have a car payment or not that's how I understood it is that I go out and buy the no no no you misunderstand oh you either they are asking you to use your car for work and so they are giving you a vehicle stipend they did not require you to have a payment in order to get the vehicle stipend so if the car were paid off in cash you would still be getting the stipend mm-hmm okay and so you connected those two things though and use that as an excuse to ridiculously over by own car so are you um are you bi are you driving a lot of miles I am I am part of the the stipulation for the company to be eligible for the program's the car has to be within four model years of being new you know to be eligible for that vehicle reimbursement and you don't think you could do is that cheaper in thirty eight thousand I probably did that for about fifteen thousand I did that I'd be buying a new vehicle every year or two to stay so within that reimbursement true yeah so here's the thing you're about to turn thirty eight thousand into eight thousand so fast you're gonna blink because what the miles you're putting on a car you are destroying the value of the car and you're not only destroying the value of a car you're destroying in your case the value of an expensive car whatever you drive you're going to destroy its value because the mouse you put on it your Road lawyer and so your you know this is a business transaction this is not impressing a girl to stoplight this is a business transaction and so you want to lose as little money on vehicles that you are destroying their value as possible and still get the job done now we've got three things that are required for you to get the job done one is it has to be reliable two is you spend a lot of time in the car it's got to be reasonably comfortable we're not putting your butt in a smart car that'd be dumb okay you'd be in the chiropractor's office as much time as you spend in the car so he's got to be reasonably comfortable it's got to be reliable and the company has said it has to be within four model years and so if I'm in your shoes financially I'm gonna buy a nice little Ford Taurus Honda or Honda Acura something that gets good gas mileage that is three model years old and I'm gonna roll that puppy once a year and because you're destroying its value and I'm gonna put all this company money in my pocket as I'm doing that because what if you buy a fifteen thousand dollar car a year later it's worth ten if you buy forty thousand dollar car a year later it's gonna be worth twenty because the miles are putting on it go do a little bit of research on your car three years from now with the miles you're putting on it value pick up your car that you're driving today what is it what kind of car hello hello well I guess that doesn't work okay sometimes I'm just talking to myself open phones that triple eight eight two five five two two five so Road boyers there's their principal okay you are not required to go into debt to take your company's car stipend and you don't want to do that that's not a plan you want to drive the leased car possible and that's you can't drive a hoopty in this situation and and the goal is save up and pay cash for it the other thing that Alex is violating is that he has more than half his annual income tied up in things with wheels and motors things with wheels and motors are the most expensive things we buy as consumers that go down in value and they all go down in value boats cars lawn tractors sea-doos four-wheelers motorcycles trucks all go down in value you don't get rich tying up a large substantial amount of your money in things that are going the wrong way so when you make ninety five thousand dollars a year you don't need more than $47,000 tied up in things that are going down in value and he has ten thousand more than that fifteen on his wife's car 30 so 30 eight on his car and so he's eight thousand dollars over that which tells me so so basically what happened is is he had the Opera he he saw extra income oh by the way when your company fires you or you quit because they don't have integrity that car stipend stops and your car payment doesn't so they are not paying for your car they didn't sign the car note you did you took all this risk you're the one taking the butt-kicking on this car going down in value while you do your job for them and they're not giving you enough money to offset that so hope that helps you stay away from car debt stay away from cars things with motors and wheels that equal more than half your annual income and if you get a company stipend buy the lead it cuz you're a road warrior by the least possible car that will get the job done reliable and reasonably comfortable and used

40 thoughts on “My Company Forced Me To Buy A $38,000 Car!”

  1. Dave doesn't take into account that it's a huge hassle to sell a car yourself and buy another. I KNOW he doesn't want him to just trade it in. The company required that the car eligible for the stipend had to be within 4 model years of the current one. He should've bought a cheaper car than 38000, but it makes all the sense in the world to buy new or at least the current model year.

  2. This makes me feel kinda guilty for buying a truck in that price range… but I paid mine off the day I drove it home and still get all my bills paid, so I guess Dave wouldn't be too upset 😂

  3. I love how he's giving advice on the company's car reimbursement program without first getting any information about the reimbursement program.

    Like, how do you know the car reimbursement isn't a reimburse up to X amount, instead of a flat reimbursement. In tgat case, he should go buy the most expensive car possible because it's on the company.

  4. If you look at what people drive in the wealthiest town of Atherton, CA in the Silicon Valley that really truly includes the 1% rich you will see Toyota Camrys, Prius, Siennas and Honda Odyssey’s Fits and Lexus RX350
    S aplenty parked at 6 million dollar houses. People need to stop trying to impress other people because the real rich are not what you think they are.

  5. So many people let go of perfect running cars to get I'm successful look at me cars. They dont realize that those expensive cars are computer programmed to drain your wallet once you hit a certain mileage. I have a BMW m6 hit 100k been nothing but check engine lights but my Camry has been check engine free for 220k.

  6. I used to work for this banker. Very wealthy, very nice house. He always bought the cheapest low-end car. Honda Civic, Toyota Corolla, etc with no options. Manual transmission, cloth seats, etc. and he drove them until they quit.

  7. Just priced a brand new Ford Fiesta "Great cars girlfriend has one" 17,000 for SE . You can even find 2019's with plenty of add-ons for 15k because they are making room for 2020's.

  8. I understand Dave that he's showing us how to save invest and worry about our future but I've seen that sometimes you just need to enjoy life and waste a little money. Let this guy enjoy his new car there's nothing wrong with it.

  9. Dude went out and bought a car he wanted, probably a big ole suv. For a company car man should've went out and bought a 18-20k civic and if he needed the hauling space then get the hatchback

  10. Yep, Dave finally got to my thought: The car is in your name and you lose that job. Then, what??? Hasn’t everyone woken up to the fact that businesses laugh when they leave you holding the bag? That’s whether you’re an employee or a customer. They don’t care about you or your family. For many businesses, the idea of making their employees even cover the business’ overhead is just good business practice, whether it’s for a uniform, shoes or any number of things.

  11. THAT WAS COMPLETELY ASININE TO BUY A 38K CAR JUST BECAUSE HE HAD A VEHICLE REIMBURSEMENT. HE JUST WANTED A FLASHY CAR TO IMPRESS WOMEN, ITS CLEARLY OBVIOUS. STUPID IS WHAT STUPID DOES.

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