Should I Sell My Car or Keep It?

Pamela is trying to decided wether or not to sell her car. Dave walks her through the steps on making the right choice.

Pamela starts off this hour in fort lauderdale hi pamela how are you hi dave i’m so nervous to talk to you i’m so happy to talk to you oh my goodness i’m great thank you how are you better than i deserve merry christmas how can i help i’m going back and forth between i’m in baby step number two i’m going back and forth about if i should keep my car or get rid

Of it because if i get rid of it i won’t have a car to drive and i know you say you shouldn’t be saving and baby steps to so i don’t know if i should just keep the car just keep panning off or ellis i’m just anxious to get to sally mate that’s why okay so how much do you owe on your car eighteen thousand sixty nine okay what’s it worth if i do private so i know

Someone it’s fourteen between 14,000 to 15,000 and if i go to the dealer between twelve to thirteen thousand okay and what’s your household income three thousand how much other debt do you have i have 47 and sally main and others are like doctor bills it’s like collection stuff i don’t even look at those yet because the biggest pet is sally main the 47,000 yeah

And so rent round numbers you got $70,000 in debt and you know eighteen of it is your car yes and you make sixty and it sounds like you’re single are you okay all right cool all right what i do if i were in your shoes well my rule of thumb is if the car is worth more than cars vehicles anything on the motor is worth more than half your annual income you have too

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Much tied up in things going down in value this one is not it’s less than half your annual so that’s safe the second rule is can we be debt-free within two years if we keep the car or if we sell the car does it make a big difference in you being debt-free in two years the answer to that one is yes you would i said three okay well – if you sell the car if you can’t

Be depth you can’t be debt-free in two years if you keep the car it’ll be three get out of here yeah yeah i really thought if you sell the car you can do it in two and so how do you do that well i mean you’re gonna move from an $18,000 debt on a car to a three thousand plus about a three thousand dollar car so in your six thousand dollar debt seven $18,000 debt i

Think that isn’t i think that is worth doing but how do you do because i have no money save and i know you suggest like what you think if you have me facing them baby steps – i don’t have any money i understand understand we go to your credit union you sit down with your local bank and you talk to them about a six thousand dollar loan three to cover the purchase

Of a car and three to cover the hole that you’re in when you can find a buyer you don’t take this loan until you find a buyer but when you find a buyer for 15 you go get the loan for six three of that is used to cover the hole that you’re in three of that is used to buy your next car oh okay okay good okay now that was my question the other question is this what

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You do for a living i’m your what a physical therapist assistant okay can you started doing ooh brr last saturday it was my first day okay see if you can pick up a bunch of extra income and we can get this down close to two years and you want to keep the car then you could fight your way on through it i just don’t want you to be in debt forever because of the car

And the car the sale of the car does move the needle on the math i mean it does help you get through the math here and so you know once you know that then yeah i’m probably selling it but you know if you could find something where you’re making like you know if you get if you in your area if you can make 1,500 on uber a month and you’re willing to do that is extra

Work in order to keep this car 1500 a months gonna pay you often or extra year early then we may talk about keeping the car but that’s a – that’s two years of no life while you plow through this and that’s in order to keep the car right yeah i don’t care right now i’m so hungry for it like oh my god i listen to you everyday like opening up a bible yeah you got it

You’re on fire you’re gonna do it i’m proud of you well done keep it up now let me know how i can help is your fight through i want you to win you’re on you’re on the right track to do it hey guys thanks for watching if you enjoyed this video click the subscribe button to get the latest content and check out these other great clips from the show

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Transcribed from video
Should I Sell My Car or Keep It? By The Ramsey Show – Highlights