Reacting to the Internet’s Dumbest Car Loans

Summary

Podcast Summary: "Reacting to the Internet’s Dumbest Car Loans"

Host: George Kamel (Ramsey Network)
Date: December 3, 2025

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Main Theme

In this episode, George Kamel digs into the world of outrageous car loans, reacting to viral social media clips featuring eye-popping car payments. With humor, snark, and solid financial principles, George highlights the hidden pitfalls of car financing, busts money myths, and offers practical alternatives for anyone tempted by a flashy ride with a hefty monthly payment.

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Key Discussion Points & Insights

1. Outrageous Car Payments on Social Media

[00:05–03:23]

• George reacts to TikTok videos highlighting extreme car loans and monthly payments, introducing a humorous “buzzer” for especially bad cases.
• Example: A 19-year-old paying $658/month for a Kia, with only $3,000 down. George slams not just the payment, but the editing of the video itself.
• Community Reactions: Social media comments criticize the long-term waste, one user noting she’ll pay triple the car’s value in seven years.
• George does the math:
  • If the payment were invested in the S&P 500 from age 19 to 40, it could grow to $560,000–$643,000, underscoring the massive opportunity cost.

Notable Quote:
"Maybe next time, before you spend all that money on the car, maybe you should think about the wealth that you're missing out on."
— George [02:53]

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2. What’s the Highest Car Payment You’ve Seen?

[03:23–04:18]

• George polls car dealership staff for the highest car payment they’ve ever seen; responses range from $1,400 to $3,200/month.
• George uses the Ramsey Auto Loan Calculator to reverse-engineer a $3,200 payment:
  • Buying a $105,000 car, $1,000 down, 36-month loan at 8.43% interest.
• Fun Fact:
  • As of Q1 2025, the average new car payment is $745/month, and used is $521/month.

Notable Quote:
"These people are the worst. They're like proud of it. Like it's a badge of honor to get people into a $2,500 car payment."
— George [04:18]

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3. Social Pressure, Bad Decisions, and Depreciation

[04:18–08:10]

• George mocks TikTok users proudly overspending for features like “rose gold trim.”
• User stories:
  • Mercedes owners lament expensive payments and rapid depreciation.
  • Not just the monthly cost—high-end cars bring repair, maintenance, and premium gas expenses.
• Jokes about social media handles as predictors of “sad lives” due to bad car loans.

Memorable Moment:
George does the “two for Brianna with two I’s” buzzer, poking fun at social media culture. [07:58]

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4. Car Dealership Staff Reveal Their Own Payments

[08:10–12:07]

• Various dealership staff reveal their cars/payments:
  • Some have high-end cars and won’t disclose payments.
  • Some pay nothing, having paid off cars or driving beaters.
  • George calls out what he suspects are false or exaggerated claims (e.g., $699/mo on a 2004 PT Cruiser, $850/mo for a Nissan Altima).
• Skepticism about car dealerships’ trustworthiness, with George riffing on the classic “Let me check with my manager” sales routine.

Notable Quote:
"I think that guy was trolling and he was just a really good actor. But also, the other guy paying 850 a month for an Altima. I don't really buy that either."
— George [10:12]

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5. More Car Payment Confessions & Surprising Stories

[12:07–13:27]

• More dealership employees share car/payment pairs:
  • $945/mo for an RX500 hybrid, $325/mo for a 1982 Toyota Celica (which George doubts).
  • Some have no payments; best deal: BMW M340i for $250/mo.
• George suspects some people exaggerate for viral content.

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6. The $2,000 Car Payment: Financial Pitfalls

[13:27–16:19]

• A TikToker pays $2,000 extra principal on a 2023 Honda Civic to pay off a $750/mo loan faster.
• George does the math: saving $750/mo for 24 months could buy a $18,000 car in cash; delaying gratification avoids paying for the past.
• Advice: If you can't pay off a car in two years, it's time to sell. If a car is more than half your annual income, it’s a financial red flag.

Notable Quote:
"We're busy paying for the past instead of building wealth for the future."
— George [14:41]

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7. Paid-Off Cars Are a Blessing, Not a Beater

[16:19–17:05]

• Guest John weighs in: not having a car payment is true freedom.
• Reminds listeners: comparison is the thief of joy—the fanciest new model won't make you happier once the novelty wears off.

Notable Quote:
"You do not realize how freeing not having a car payment is until you don't have one."
— John [16:38]

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8. George’s Core Lessons & Action Steps

[17:05–End (~18:30)]

• Cars are Depreciating Assets: Financing a car means paying extra for something losing value.
• Life Without Payments = Freedom: Money formerly spent on car loans can go to any dream or priority—vacations, retirement, etc.
• Cash is King: Paying cash, especially for used cars, saves thousands in depreciation. Waiting 5 years = 60%+ discount over new.
• Save up, budget, and only buy what you can actually afford. If that means a beater, so be it—upgrade later.

Notable Quote:
"At the end of the day, it's just something going down in value. It's a liability in your life that is just costing you money. And so be wise with it. Pay cash what you can afford and just upgrade later."
— George [17:56]

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Notable Quotes & Memorable Moments

• "I've seen some scary money stuff over the years, but some of your car payments, they deserve their own horror movie soundtrack." — George [00:05]
• "It's going to cost you that just per month in fees at the service center, let alone your car payment." — George, on luxury cars [05:25]
• "Your 2024 fancy car a decade from now is gonna be a decade old car that you hate." — George [17:07]
• "A new car loses 60% of its value in the first five years. So think about it. You could get a 60% off discount if you just wait five years." — George [17:52]

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Timestamps for Key Segments

| Timestamp | Segment |
|-----------|---------|
| 00:05–03:23 | TikTok car payment horror stories & first financial breakdowns |
| 03:23–04:18 | Dealership staff reveal highest payments encountered |
| 04:18–08:10 | Social media flexing, luxury cars, and depreciation |
| 08:10–12:07 | Dealership employees reveal personal car payments |
| 12:07–13:27 | More car payment confessions, skepticism |
| 13:27–16:19 | The $2,000 Honda Civic payment/fast payoff math |
| 16:19–17:05 | Guest segment: John on the blessing of paid-off cars |
| 17:05–End | George’s closing lessons and action steps for smart car buying |

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Tone & Style

George’s delivery is fast-paced, humorous, and tinged with disbelief at the car-crazy spending habits on display. He mixes real numbers with financial wisdom and a dash of pop culture snark, making serious points feel approachable and relatable.

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Takeaways for Listeners

• Car payments are often financial traps; avoid debt on depreciating assets.
• Don’t measure your self-worth by your ride—coveting the “latest and greatest” leads to an endless cycle of debt.
• Pay cash if possible; wait, save, buy used, and consider the true cost of keeping up with the Joneses.
• A paid-off, reliable car is a financial blessing—don’t let comparison rob you of peace.

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For more resources or to learn how to buy a car the Ramsey Way, check out the Ramsey Car Guide (link in episode description).

Transcript

[A]

I've seen some scary money stuff over the years, but some of your car payments, they deserve their own horror movie soundtrack. And today I'm reacting to TikTok's most unhinged car payment videos. Including a car that's costing one guy $3200 every month. It's gonna get crazy. So stick around for a front row seat to the wreckage and to find out the hidden truth of what it's costing these poor unfortunate souls. And to spice things up, we're introducing a buzzer. So once I'm just sick and tired of your videos, you're getting buzz, bro. When you buzz me off, it's like the voice but the opposite. Instead of me turning around and saying, you're on my team now, this buzzer means you're no friend of mine. POV. You pay $658 a month at 19 years old because you wanted the car. Oh my gosh. This girl is everything wrong with America. What? That was some garbage editing girl. Hire someone. I don't know what's happening. Plugs into the seat. Okay, I don't even know what kind of car this is.3k down 2 with the like little one tier emoji. I don't understand but that's really sad at 19 years old. Goodness gracious. Okay, this is apparently a Kia from what I've gathered. And here let's look at some of the comments. Let's see if they agree that this is insane for a 19 year old to go deeply into car debt. Because it's the car. Cieloria said paying triple what the car is gonna be worth in seven years when you're loaned up prayer hands. Danny, these comments are not it. You do you girlfriend. Yikes. Danny. Not with the sparkle emojis. Another one putting that money in an S&P 500 for 5 years. With the last 20 years average return rate you would have around 600k USD at 40 with about 430 of that being profits. This guy maths. This guy Compound growths, if you know what I mean. Should I calculate it to double check the math? I guess we should. Okay, let's find out if this guy is really up to snuff here. So the payment was 658amonth. She's 19. He said 20 years average return rate. Okay, so we're gonna go to 40. From 19 to 40. If she just invested that car payment instead of trying to look fancy. 658. Okay, 658. 10%. And he claims it'll be 600k. Yeah. Real close. $560,000. They may have been using an 11% return, which puts you at 643. So yeah, 10 to 11%, which is what we've seen in the s and P500 over the last several decades. Yeah, she could be on the way to a million dollars instead of just trading in her now, you know, 15, $20,000 car for another car payment. Math checks out on that one, Abby. With two Y's. That checks out. Maybe next time, before you spend all that money on the car. On the car. Maybe you should think about the wealth that you're missing out on. Next up, Grace.

[B]

What's the highest payment you've ever seen?

[C]

1784.

[B]

Demetrius.

[D]

Yes.

[B]

What's the highest payment you've ever seen? Oh, 2,100. Sheesh. Roy, what's the highest car payment you've ever seen? It was $1,958.

[A]

Goodness gracious.

[B]

Leslie, what's the highest payment you've seen?

[A]

1400.

[B]

Hey, guys. What's the highest payment y' all have ever seen?

[A]

2430. No, Arch 3. 2400.

[B]

Bailey.

[A]

Yes.

[B]

What's the highest car payment you've seen?

[C]

I wouldn't have a clue, cuz I'm the marketing manager.

[B]

Patrick.

[A]

Third.

[B]

What's the highest payment you've seen?

[A]

Highest payment I've seen. Probably like 18, 1900.

[B]

What's the highest car payment you've ever seen?

[A]

2,500 and you can be next. Oh my gosh. These people are the worst. They're like proud of it. Like it's a badge of honor to get people into a $2,500 car payment. And that one guy who said he saw a $3200 car payment, I've got to use our Ramsey Auto Loan calculator to figure out even, like, how do you get. Is it. Did you just get hosed on the interest rate or did you buy a six figure vehicle? All right, let's see what it would take to get a $3,200 car payment using our Ramsey Auto Loan calculator. I'm just going to go $100,000. And let's say they had very little down. I hope they had something down. We're only at 1700 bucks with $100,000 car price loan term. I guess if you really lower the loan term down to 36 months, you'd have about 3122. So we're gonna go 110. Yeah, that'll do it. 105. Yeah. $105,000 with $1,000 down. I don't even know if that's legal, but I feel like dealerships would let you do that. 36 month loan term, 8.43% interest rate. That is so insane. $3200 for a car payment? I don't know. I just don't know, guys. Oh, and here's a fun fact for you. In Q1 of 2025, the average car payment for a new car, $745. And even for used cars, $521. That should depress you. I don't know. I don't have a lot of faith in America after that. And for those reasons, don't Forget me having $1,420 carpet because I wanted a Benz with beige interior, big screen, rose gold trim carpet, LED lighting, panoramic sunroof. Rose gold trim. That's what we're doing out here. Rose gold trim is what sold. You guys, this is so sad. 1,420 do for Mercedes. Listen, it's going to cost you that just per month in fees at the service center, let alone your car payment. All right, that's really depressing. Let's see some of the comments here. Mariana said, that is rent for real shock G. That's 21,600 each year with insurance. J. Darrow said, and now the depreciation is crazy. I have the same car. Ha. It was a waste of money. Yeah. Mercedes are not known to to hold their value in most cases. So buyer beware. Because guess what? When people buy that used Mercedes, they know what they're getting into. They're getting into a car that's gonna have some very expensive maintenance and repairs. And so the longer it's been driven, the more likely you are to have issues. That scares me a little bit. And then say with Sophia, congrats. I'm only six months into my Mercedes and I'm sick of the expensive car and gas payments. Lol. Sad face, sad face. Sad face. Yeah, you gotta remember you're also paying premium gas for these cars, which is gonna cost you a whole lot extra for the life of ownership. Not a fan, but you know what, Bri with two eyes. Okay, here's my go with me here. If you have two letters at the end of their name instead of what should be one, you are bound to have expensive car payments and live a sad life. Now, I hope her parents didn't name her Bree with two I's. I think that's just her TikTok handle. Oh, No, I lied. It's Brianna with two I's. B, R, I, I, A, N, A. Now I just have to hope that's, like, a cultural thing and that's just how it's spelled. Wherever her family's from. To be fair, the guy that she ends up with, he's gonna be, like, the same dude. They're probably gonna be like, I have a bigger car payment than you, so I feel like you should get Chili's today. You know what? Let's do two for Brianna with two eyes. Sorry. Audio, guys. Here we go.

[C]

Hey, Maurice, what car do you drive and what's your car payment?

[B]

I have a 2016 Porsche Cayman and I don't have a payment.

[A]

Let's go.

[C]

What car do you drive and what's your car payment?

[A]

I drive a 2004 PT Cruiser.

[B]

My payment, 6.99amonth.

[A]

No, he doesn't.

[C]

Then what car do you drive and what's your car payment?

[B]

I have a 2016 Tesla Model S, and I'm paying right around 650.

[C]

Hey, Raniero, what car do you drive and what's your car payment?

[B]

1972 Cutler Supreme. $500 a month.

[A]

No way.

[C]

Hey, L. What car do you drive and what's your car payment?

[B]

Drive a Jeep Wrangler Rubicon, and my car payment is a grand.

[A]

Hey, Bu.

[C]

What car do you drive in? What's your car payment?

[B]

I drive a 1999 Toyota Corolla, and my. Copy.

[A]

My guy. I had a vibe this guy was.

[C]

Hey, Brad, what car do you drive and what are your car payments?

[B]

Well, I'm a car enthusiast. I drive several cars, and I can't say what the payments are, but I have a 24 Hummer, 23 Defender V8.

[A]

Goodness gracious.

[B]

23 Audi E Tron RS. But I will not say what the payments are.

[C]

Hey, Ronnie, what car do you drive and what's your car payment?

[B]

I drive a Nissan Altima. My payment is 850amonth.

[A]

No one's driving Altima with 850amonth. Come on. I drive Bima, and it's paid for.

[C]

Hey, Patrick, what car do you drive and what's your car payment?

[B]

I don't have one. I have a motorcycle.

[A]

Whoa. Motorcycle.

[E]

What are you driving?

[C]

What's your car payment?

[B]

I drive a 2015 Corvette, and I.

[A]

Don'T have a car payment. Wow. Okay. I'm impressed. That's probably the most people at a dealership without a car payment I've seen in any of these videos. I got to go back to my guy with the 04 PT Cruiser with a $699 a month payment. I don't buy it. Cause the Cruisers. Can I show you 2004 PT Cruiser? Okay, let's look at the Kelley Blue Book here. God is. Dude, I swear this is the Cybertruck of 2004. Like, at the time, we were like, this is the future. And now we all laugh and go, who bought that car? Okay. Wow. The MSRP was 19 grand at the time. Starts at three grand today. Wow, that is sad. There's no way he has a $700 a month car payment on a car that's worth three grand. I just don't buy it. I think that guy was trolling and he was just a really good actor. But also, the other guy paying 850amonth for an Altima. I don't really buy that either. So I'm starting to wonder, can you trust people that work at car dealerships? What else are they lying about? Oh, I gotta go to the back. I gotta talk to my manage. Yeah, I don't know if we can do that, man. You know, like, we're already at the bottom. We can do. Oh, you know, I talked to my manager. Yeah, we can work it out, man, but we're gonna have to get you to go through the finance. I don't care. You're not going back to the. Talk to the manager. You went back to vape while telling your co workers, dude, I'm about to hose this guy with this payment. I'm sick of it. Stop vaping inside of establishments. It's disgusting. I wanna do seven for that guy. Seven cars he has, but he's a little too shy to tell us all of his payments. But I can tell you, based on those cars, that guy's life sucks. Okay, before I get back to anger inducing TikTok videos, I want to tell you about something that makes me happy. And that's Deleteme, one of the sponsors of today's video. I personally use Delete Me to clean up my digital footprint because they comb through hundreds of shady data broker sites to make sure my info isn't floating around where it shouldn't. And that's a big deal these days because scams and fraud are becoming way more common and way more deceptive. Plus, Delete Me will send you a detailed report every few months letting you know exactly where they found your info, where, when they removed it, and how much time they've saved you. And I guarantee you it'll give you the warm fuzzies. So right now get 20% off any of their annual plans by going to JoinDeleteMe.com George. Or go to the link in the description below. All right, I'm going back into the coal mines.

[C]

What are you driving? What's Your car payment?

[B]

RX500 Hybrid. I think my payment is 945 or 955.

[C]

What do you drive and what's your car payment?

[B]

1982 Toyota Celica Brute 25.

[A]

No, that's a good payment. What are you driving, what's your car pay?

[B]

I'm driving a Dodge Scat Pack. My payments is seven.

[A]

Now that I believe.

[B]

I also have a 2021 Toyota Corolla and that payment is only $400.

[C]

Only got two cars.

[A]

Got two cars.

[C]

What do you drive and what's your car payment?

[B]

2014 Camaro SS. No car payment.

[A]

Let's go.

[C]

Oh, that's good. What do you drive and what's your car payment? I drive a RAV4 and my payment is $400o.

[A]

That's good.

[C]

What do you drive and what's your car payment? I drive a BMW M340i and my car payment is 250.

[A]

That's the best one today. 940. I still can' that guys. 940. Okay, but this guy here, an 82 Celica for 320. I just don't. I don't believe it. Are these people trolling for like, is this engagement farming? I just don't believe it. Toyota of Montgomery. Tell the TR I will call your dealership right now and ask for this gentleman. I'm gonna show him a picture of this and say I want to. I want to talk to this gentleman right here. I need to interview this man. Goodness gracious. That is. That's just dark. I'm gonna say a Celica. 1982 Celica. 325amonth. That takes the cake. Moving on, Alex. Save us Alex.

[E]

On a budget, let's make a $2,000 card payment together. This is.

[A]

Let's not.

[E]

And this is how much we have left to pay. If we want to pay it off in 48 months, we have to keep making a $739.84 payment every single month. But because I'm trying to pay it off faster, let's make that extra $2,000 payment right now. We're going to click right here. $2,000 review payment. Why do they make the button red? It just gives me anxiety. It never gets easier. I just get stronger. It's crazy when you think that this is probably like a mortgage payment.

[A]

Yeah, it is.

[E]

Yeah. Okay, Sid.

[A]

Mitt, what's taking so long? Alex? Oh, it gave her an. Oh, success. Your payment has been scheduled successfully. $2,000 additional principal.

[E]

It's a 2023 Honda Civic. And wow, I love the car. I hate making that payment every single month.

[A]

Thank you for your honesty, Alex. Okay, here's. Just go with me here. The payment's like 750 bucks, right? And the payoff amount that was left was, like, 22 grand. So I don't know what this car costs her. Let's say it's around. That sounds like she's made some payments already, but if you just save up. Let's pull up our handy dandy calculator here. So if we just say 750amonth times 24 months, you could save 18 grand in two years just in a savings account. With a 0% savings rate now she's putting an extra 2 grand a month toward it. So let's say she could do 1,000amonth to save up for that next car. Well, a thousand a month. This is pretty easy math. Times 24 months. She could have bought a $24,000 Honda Civic in cash if she just had the delayed gratification to wait 24 months. Instead, we're busy paying for the past instead of building wealth for the future. And for that, you lose a point. Alex, you are the weakest link. Let's check out the comments section. Let's see if what the vibes are down there. Oh, here we go. Gave me motivation to save up for my car. All right, there's something good out of the comment section, angie.pa biweekly to pay off fast because interest accumulates daily. Yeah, I mean, the faster you pay it off, the better. So if you can make extra payments every week, that's even better than doing it monthly. But the strategy here is just throw as much to the principal as you can as quickly as you can. Now, here's what I do like about this. By paying off the car early, she's saving a ton on interest that would have accumulated otherwise. But here's the deal. If you can't pay off the car in two years, it's probably time to sell it. And if that car is more than half of your annual income, or the total value of all the vehicles in your life adds up to more than half of your household income, you got to do something. You got to get rid of this car, sell it. And if you're underwater, you're going to need that underwater Amount covered either through savings or a small loan from your credit union. Moving on.

[D]

Hey, if you drive a paid off car, you're not driving a beater. You're driving a blessing. Okay, now I get it. You're looking at all your friends, they've upgraded their cars, They've got the 2024 edition automatic lane switching or whatever. But I'm telling you, comparison is the thief of joy. You do not realize how freeing not having a car payment is until you don't have one.

[A]

Right?

[D]

Like I don't even have a backup camera. I don't have Apple CarPlay. You know, heated seats would be nice, but it's not worth not having a car payment. And what's crazy is that over 40% of people have a car payment and on average, on average they're paying $700 per month. I may not be the most fun friend that tells you to treat yourself and go buy the new car, but let me be your responsible friend and say you don't need it.

[A]

Amen, John. Finally, somebody talking some sense into the people. Big fan of John. He's a personal friend and loves the content he shares, especially as it relates to car buying. And this guy practices what he preaches, as do I. So like he said, you gotta stop comparing. Cause guess what? Your 2024 fancy car a decade from now is gonna be a decade old car that you hate. And so if you keep going, well, I gotta have the latest and greatest. You're gonna live an exhausting life full of payments. So just buy what you can afford right now and later on buy what you can afford then. But stop trying to kick the can down the road with payments to get something that you truly cannot afford. And I love the comments on this video. Me with my 2005 Toyota RAV4 while all my friends had a new car, she's still running strong. Kaylene said, me and my 2011 Corolla for Life. This is when I just learn to love the car you have and truly look at it like a blessing. Because there's someone out there who wishes they had a car as nice as yours, as reliable as yours, that gets you from A to B to a job that helps you pay the bills and live your best life. So remember, cars are utility. They get you from A to B. And sure, the nicer they are, the more fun they are. You want to hang out in the car, you don't mind taking a drive if it's a nice whip. But at the end of the day, it's just something going down in value. It's a liability in your life that is just costing you money. And so be wise with it. Pay cash what you can afford and just upgrade later. All right, most of those clips were anger inducing for a few main reasons. Here's the three things you need to understand about cars and car payments. Number one, a car is a depreciating asset. It loses value the second you drive it off the lot. And financing something that's literally going down in value is like throwing a flaming bag of Benjamins out of your PT Cruiser's window. Next, a life without payments is a life of freedom. Imagine if your paycheck stayed in your pocket instead of becoming a payment you send to the auto lender. What else could you be doing with that money? Well, you could pay off debt, save for a vacation to Holiday World Indiana, pump up your retirement fund, literally anything you want. So the beige interior and the rose gold trim, it's just not worth sacrificing your freedom and your financial future. And last thing, car payments aren't the only way to buy a car. That's right, you can just pay cash, especially if you buy a used car, because a new car loses 60% of its value in the first five years. So think about it. You could get a 60% off discount if you just wait five years and get the 2020 version in 2025 or 26. You just have to set up your budget and set a savings goal. And if that's $6,000, then you save 500amonth for a year. If it's $12,000, that's 500amonth for 24 months. Just set the goal, divide it out and make it a priority in your savings. And to make sure that actually happens. And listen, if you can't afford the exact car you want right now, welcome to life. Get the car you can afford to get around while you save for something better. Yeah, it'll take some patience, some hard work, some discipline. But guess what? You're a grownup. And by the way, that new car smell probably has an abundance of carcinogens, if that makes you feel any better. And if you want to learn step by step how to buy a car the right way, we've put together a free resource that will walk you through the process. It's called the Ramsey Car Guide. And I'll leave a link to it in the description of this episode. Now, if you think this is bad, you gotta know what dealerships out there are doing to get you into a lower monthly payment and help you get a nicer car that you really can't afford. And it's the dumbest way to buy a car of all time. So to learn what the trap is and how to avoid it, keep watching this next video or click the link in the description. That's it for today. Thank you guys for watching. We'll see you next time.