Unreliable Car? Don’t Think So!
by Dave Ramsey

My husband recently had his commissions cut in half at work. This has reduced our annual income from $100,000 to $50,000. Just before this happened, we bought a new car for $18,000 because he’s on the road a lot and needs something dependable. Before this we were debt-free except for our house. How can we get back there and keep him safe?

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Dear Dave,

My husband recently had his commissions cut in half at work. This has reduced our annual income from $100,000 to $50,000. Just before this happened, we bought a new car for $18,000 because he’s on the road a lot and needs something dependable. Before this we were debt-free except for our house. How can we get back there and keep him safe?

Donna

Dear Donna,

Are you trying to tell me the cheapest dependable car out there costs $18,000? I don’t think so.

I’ll agree that he needs a reliable car – every road warrior does. With the miles he’s racking up that $18,000 car is going to turn into a $4,000 car before you know it!

But I wouldn’t recommend he wear out an $18,000 car, even if you guys had a million dollars in the bank. I’d suggest he wear out a $7,000 car. And there are lots of solid cars with plenty of life left in them in this price range. You’re not looking for a vehicle to make a statement, Donna. You’re looking for dependable transportation – period.

If I were you guys, I’d sell that $18,000 machine. Take out a small loan to cover the difference and buy a good get-around car. Then, pay the loan off as quickly as possible so that you can re-focus on knocking out your house and becoming debt-free!

Dave

Comments on this article	ADD COMMENT
resale value Posted by Linda from Florida How can he sell the 18,000 car if it has already lost 20 percent of it's value when he drove it off the lot and continued to lose value as he drove it. I would be surprised if he could clear 10,000 by selling it. Maybe even a few thousand might make a difference, but you still have to factor in repair bills.
Yeah to you DAVE.!!!! Posted by Rosalie from Page,Az.86040 Good advice.... FOLLOW THE LEADERS, THE ADVICE IS STAY OUT OF DEBT..... I am so thankful for this testimony..<rosalie>
Cost of car Posted by Charlotte from Utah I don't understand your advice. If these people bought a new car for $18,000, they are not going to be able to sell it for anywhere what they paid for it.