I Just Bought My Dream Car - Should I Return It?

Summary

Ramsey Everyday Millionaires: Episode Summary - "I Just Bought My Dream Car - Should I Return It?"

Podcast Information:

• Title: Ramsey Everyday Millionaires
• Host/Author: Ramsey Network
• Description: Listen to how ordinary people built extraordinary wealth—and how you can too. Learn how millionaires live on less than they make, avoid debt, invest, and maintain discipline and responsibility! Featuring hosts from the Ramsey Network: Dave Ramsey, Ken Coleman, Rachel Cruze, George Kamel, Jade Warshaw, and Dr. John Delony.
• Episode: I Just Bought My Dream Car - Should I Return It?
• Release Date: April 18, 2025

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Introduction

In the April 18, 2025 episode of Ramsey Everyday Millionaires, the hosts delve into the financial and emotional implications of purchasing a high-value depreciating asset: a luxury car. The episode features a heartfelt discussion between Landon, a 27-year-old in Baby Step Seven of Dave Ramsey's financial plan, and Ramsey Network hosts George Kamel and Dave Ramsey. This episode provides listeners with valuable insights into balancing financial goals with personal desires.

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Landon’s Dilemma: Should He Return His Mercedes S Class? [00:17 - 07:44]

Landon's Concern: Landon reaches out to the Ramsey Network with a predicament: he recently purchased a Mercedes S Class for approximately $35,000 after taxes and fees. While his net worth is robust, primarily tied to his paid-off house, he's grappling with the emotional aftermath of spending a significant amount on a vehicle that depreciates in value.

• Landon: "I feel like I spent way too much money on something that goes down in value... should I take this stupid car back?" [00:26 - 00:57]

Financial Overview: Landon outlines his financial position:

• House: Paid off, valued at around $750,000.
• Cars: Total value approximately $45,000, including the new Mercedes.
• Household Income: Averaging $250,000 over the past two years.

George Kamel and Dave Ramsey analyze these figures, highlighting that Landon's investment in vehicles, while substantial, aligns with his overall financial health.

• George Kamel: "If all the things with wheels... adds up to more than half of your annual income, you're off track. That's simply too much." [05:31]

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Emotional vs. Rational Decision-Making [01:45 - 06:18]

Emotional Conflict: Landon expresses regret over the purchase, feeling that the money could have been better invested in appreciating assets like mutual funds or retirement accounts.

• Landon: "Emotionally, it just doesn’t feel right to write a check when I could... put that in something like some mutual funds, retirement, whatever." [01:45 - 02:10]

Dave Ramsey challenges Landon's emotional reasoning, prompting him to reflect on past decisions where emotions overshadowed rationality.

• Dave Ramsey: "Have you ever acted out of emotion before and realized that your emotion was wrong?" [01:45 - 02:00]

Landon acknowledges his emotional-driven decision-making but struggles to reconcile it with his logical understanding.

• Landon: "I mean, intellectually, I get that. Like, I do get that, but..." [02:06 - 02:10]

Hosts' Insight: George Kamel and Dave Ramsey emphasize the importance of balancing emotional satisfaction with financial prudence. They reassure Landon that owning a luxury car at his stage is manageable and won’t derail his financial goals.

• George Kamel: "There are people who have a negative net worth who bought more expensive cars than you today. It's going to be okay." [02:38]

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Balancing Financial Goals with Personal Desires [03:09 - 07:09]

Understanding Financial Ratios: The hosts discuss Landon's net worth distribution, noting that a significant portion is tied up in his house, which is common for young individuals in the early stages of wealth building.

• George Kamel: "When you're young, more of your house is going to make up your net worth... by the time you retire, your house will probably be a third of your net worth." [03:09 - 03:20]

The Three Pillars of Money Management: George introduces the concept that money can be used for giving, saving, and spending. Overemphasis on one aspect can lead to financial imbalance.

• George Kamel: "There are three things you can do with money, Landon. You can give it, save it, spend it." [03:22 - 03:24]

Personal Struggles with Spending: George shares his own experience of the emotional difficulty in spending after years of aggressive saving, illustrating that Landon's feelings are common among disciplined savers.

• George Kamel: "When you stroke a check for my wife's last car we bought her, it hurt my soul." [03:30 - 03:57]

Landon’s Family Perspective: Landon reveals that his wife supported his decision, even suggesting he buy the car, indicating a shared understanding and mutual support in their financial decisions.

• Landon: "We went up to the dealership and she said, buy whatever you want...." [06:10 - 06:20]

• George Kamel: "It's a good woman right there." [06:19 - 06:20]

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Reframing Financial Choices: Embracing Lifestyle and Enjoyment [04:21 - 07:44]

Living to Enjoy: George emphasizes the importance of enjoying the fruits of one's labor. He explains that while financial discipline is crucial, so is allowing oneself to enjoy significant purchases responsibly.

• George Kamel: "You have to do something called enjoying life. And I'm scared because you're kind of like me... you have to let go." [07:09 - 08:34]

Dave Ramsey’s Reassurance: Dave Ramsey supports the notion that Landon’s purchase is within reasonable bounds and encourages him to appreciate his hard-earned success without guilt.

• Dave Ramsey: "I drive a used Mercedes as well. If you take good care of it, it'll last forever... listen, you've been shooting all over yourself and you need to stop." [04:29 - 04:43]

Humorous Interlude: A light-hearted exchange about biscuits and personal preferences provides a moment of levity, strengthening the rapport between the hosts and Landon.

• George Kamel: "I'll do half butter, half jelly. Both. Best of both worlds." [08:34 - 08:52]

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Conclusion: Embracing Financial Success with Balance [07:44 - End]

Final Encouragement: The hosts conclude by affirming Landon's financial standing and encouraging him to maintain a balanced approach to spending, saving, and giving. They highlight that his decision to purchase the Mercedes is a testament to his hard work and financial acumen.

• Dave Ramsey: "Relax. You worked really hard. It is impossible for me to conceive of a scenario where Landon does something dumb with money." [07:42 - 07:52]

Closing Remarks: George Kamel reinforces the message by comparing financial ratios and reminding listeners that enjoying life is a crucial aspect of financial success.

• George Kamel: "Here it is. If all the things with wheels... adds up to more than half of your annual income, you're off track. You are not even close to that." [07:42 - 08:34]

Final Thoughts: The episode wraps up with practical advice and support for listeners facing similar dilemmas, encouraging them to find a harmonious balance between financial responsibility and personal enjoyment.

• George Kamel: "Let go. It's called double entendre." [04:46 - 04:57]

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Notable Quotes

• Landon: "Emotionally, it just doesn’t feel right to write a check when I could... put that in something like some mutual funds, retirement, whatever." [01:45 - 02:10]

• Dave Ramsey: "Have you ever acted out of emotion before and realized that your emotion was wrong?" [01:45 - 02:00]

• George Kamel: "There are people who have a negative net worth who bought more expensive cars than you today. It's going to be okay." [02:38 - 02:40]

• George Kamel: "There are three things you can do with money, Landon. You can give it, save it, spend it." [03:22 - 03:24]

• Dave Ramsey: "You've been shooting all over yourself and you need to stop." [04:29 - 04:43]

• George Kamel: "You have to do something called enjoying life... you have to let go." [07:09 - 08:34]

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Final Takeaway

This episode of Ramsey Everyday Millionaires skillfully navigates the complex emotions and financial strategies surrounding significant purchases. Through Landon's story, listeners learn the importance of balancing disciplined saving and investing with the joy of rewarding oneself. The hosts provide reassurance that achieving financial goals doesn't mean foregoing life's pleasures but rather integrating them thoughtfully into one's financial plan.

Transcript

[Dave Ramsey]

Foreign.

[George Kamel]

This episode is brought to you by SmartVestor. Connect with an investing pro near you at RamseySolutions.com SmartVestor Landon is up next in Memphis. What's going on, Landon?

[Landon]

Hey, I appreciate y'all taking my call.

[George Kamel]

Sure. How can Ken and I help?

[Landon]

So this is probably a really stupid question, but I'm a tight wad, so I gotta ask it anyways.

[George Kamel]

Okay.

[Landon]

So I'm in baby step seven, my wife and I, and we're 27. And really the problem with my question is I feel like I just have too much my net worth wrapped up in my house. But I just recently bought a Mercedes S Class, maybe a day or two ago. And just emotionally, to me, feels like I spent way too much money on something that goes down in value. And it just eats me up thinking about what I could put that money in that would go up in value. And so my question is just, should I take this stupid car back?

[George Kamel]

Well, let's talk about what you spent on it.

[Landon]

So after taxes and fees and all that, you know, junk, it was about 35 grand.

[George Kamel]

All right. And what's your household income?

[Landon]

Last two years, I've averaged about 250.

[George Kamel]

Well, there's some ratios for you that puts it in perspective. How much do you have tied up in everything with wheels and motors in your. In your house right now?

[Landon]

Probably about 45 grand. Counting the Mercedes.

[Dave Ramsey]

Yeah.

[George Kamel]

Okay.

[Dave Ramsey]

You're driving an older car.

[George Kamel]

For the other car, Dave would have said you should have bought a nicer car.

[Landon]

You're not doing anything. Both of my cars outside of the Mercedes are probably worth ten grand total. I understand, like, ratio wise, it sounds okay, but emotionally, it just doesn't. It doesn't feel right to write a check when I could for something that could go down, something that goes down in value when I could put that in, you know, something like some mutual funds, retirement, whatever.

[Dave Ramsey]

All right, let me ask you a quick question, Landon. And you seem like a very even keeled, level headed person, so this may be difficult for you to answer, but have you ever acted out of emotion before and realized that your emotion was wrong?

[Landon]

Sure.

[Dave Ramsey]

All right, so your emotion is wrong on this Mercedes. Well, your emotions wrong.

[Landon]

I mean, intellectually, I get that. Like, I do get that, but.

[Dave Ramsey]

Oh, wait a second. Wait, wait, wait, wait, wait. You started off and said it was all emotional, and I just destroyed the emotional argument on your behalf, by the way, and now you want to go intellectual?

[Landon]

Well, what I mean is, like, my neck. So basically, all in, all in, worth about 750. And about 550 of that is in my house.

[George Kamel]

Okay.

[Landon]

So it just feels like cash, but cash wise, I feel like 35 grand is rich out of the cash that I have available is what I mean.

[Dave Ramsey]

It's not.

[George Kamel]

Landon, there are people who have a negative net worth who bought more expensive cars than you today. And so just know that in the grand scheme of life, it's going to be okay. And here's the deal. When you're young, naturally, more of your house is going to make up your net worth. It might be 50, 60, 70, 80% when you're young, but over time, compound growth with your investments will catch up. And so by the time you retire, your house will probably be a third of your net worth. And you're right, that car will be in an impound somewhere 30 years from now. And that's okay. Stuff is stuff.

[Landon]

You wouldn't. You wouldn't, say, go buy $10,000 on Toyota Camry or something.

[George Kamel]

You're in your live like no one else era. You said you have a paid for house, right? You're in baby step seven.

[Landon]

Yeah.

[George Kamel]

Then what's the point of money?

[Dave Ramsey]

You're scared to death over nothing.

[George Kamel]

There's three things you can do with money, Landon. You can give it, save it, spend it. And if you just save it, you're going to drive yourself crazy. If you just spend it, you're going to end up broke. And if you just give it, you'll be a great philanthropist but unable to retire. And so it's wise to do all three. And what you're experiencing is something I experience as well, which is needing to flex this muscle of spending after you've been so aggressive toward a financial goal of paying off the house or investing. And so this is something I struggled with when I wrote. When I stroke a check for my wife's last car we bought her, it hurt my soul. I've never spent that much money on anything outside of a house.

[Dave Ramsey]

I remember that.

[George Kamel]

And Ken remembers I was talking to him about it. But over time, you. You'll look back 10 years from now and go, remember when I was stressed out about buying a $35,000 car? I'm sure Dave Ramsey had the same experience.

[Dave Ramsey]

Yeah.

[George Kamel]

Now Dave. Dave's cars are worth more than my house. And so it's okay to have nice stuff as long as you understand that it's a toy that goes down in value. It doesn't make or break you. Money just magnifies who you are. And it sounds like you are Right on track.

[Dave Ramsey]

What year. What year is that? Mercedes. And how many miles?

[Landon]

20. 18. It's about 80,000, 85,000.

[Dave Ramsey]

Yeah, it's totally fine. I drive a used Mercedes as well. If you take good care of it, it'll last forever. Is it a little bit more expensive to keep up? Yes, but you've got it. I mean, listen, you've been shooting all over yourself and you need to stop.

[George Kamel]

Keyword should. Just for those listening who weren't sure what Ken just said.

[Dave Ramsey]

I know exactly what I said. And we all tend to should.

[Landon]

I don't know what he said either.

[Dave Ramsey]

Should. But I'm using it very purposefully. My therapist helps me. This.

[George Kamel]

It's called double entendre.

[Dave Ramsey]

Stop shoulding on yourself. I should have done this and I should have done that. That's the idea. And so you could sit there and play that game and talk yourself into another $5,000 car. Sounds like you got two $5,000 cars or somewhere in that range. So you do whatever you want to do. You can take the car back and if that allows you to sleep better. But I think you're not addressing what's really going on. And what's going on, George? This is more your lane than mine. Although I understand it. I just think there's a deep rooted shame in this.

[George Kamel]

I'm not allowed to have this night, something this nice.

[Dave Ramsey]

That's what. I don't think it's fear. I think it's shame. I think he's got shame over this. And I think you got to confront that.

[George Kamel]

Did you grow up with money, Landon?

[Landon]

Yeah, maybe. My parents had some money for sure.

[George Kamel]

So what was the. What? You know, we say behavior is a language. What. How did the way they handled money influence you?

[Landon]

Well, I'll tell you what. Honestly, what I think it is is honestly that I've just been so aggressive since I was 18, because I mean, you know, just doing this since I was 18 and you know, doing this throughout marriage that it almost feels like, you know, I need to stay aggressive. You know what I mean? And so, you know, we just fought and clawed so hard to pay our house off and the whole deal.

[Dave Ramsey]

Ye.

[George Kamel]

What does your spouse think about.

[Landon]

Oh, she legitimately. We went up to the dealership and she said, buy whatever you want. I'm tired and went home.

[Dave Ramsey]

Good for her.

[George Kamel]

It's a good woman right there.

[Dave Ramsey]

Good woman. By the way, let me. Let me just ask you, how long you been familiar with Dave and his teachings and what we do here?

[Landon]

Since I was probably 12.

[Dave Ramsey]

All right. I want you to finish a sentence for me. Okay? You ready?

[Landon]

Sure. Sure.

[Dave Ramsey]

Live like no one else so that later you can live like no one else. All right, then.

[George Kamel]

Now swap that with drive. Drive like no one else. Drive the crappy car so later you can drive like no one else.

[Dave Ramsey]

Worked really hard. You worked really hard to get to a point where you can buy a $35,000 Benz. And by the way, your wife has worked really hard, too. And she deserves to go on date night with you in a car that you don't have to pedal like Fred Flintstone. Hey, there he is. Did you hear that laugh? That's the first time on this entire call I felt like we got the real you who wasn't so uptight.

[Landon]

Well, what's so funny about that is that's not far off from what I'm driving outside of the bins.

[Dave Ramsey]

I know. I know.

[George Kamel]

I don't get rid of that car.

[Dave Ramsey]

This guy, he thinks, do I. Do I come across really dumb? Because when you tell me you got two cars worth $10,000. Those are Fred Flintstone cars. I didn't have to do a lot of deduction, my man. And so she deserves better. She deserves better. You. If you want to drive a piece of. If you want to drive a turd on wheels, then that's up to you. But she doesn't deserve that. Can we agree? It's Valentine's Day, for heaven's sakes.

[Landon]

I agree with you.

[Dave Ramsey]

Relax. You worked really hard. It is impossible to. For me, George, to conceive of a scenario where Landon does something dumb with money.

[George Kamel]

Yeah, you're. I mean, you are spot on our parameters. Here it is. If all the things with wheels, motors in your life adds up to more than half of your annual income, you're off track. That's simply too much. You are not even close to that. And again, like ratios, Dave, buying a nice car is like me buying a biscuit. And so you have to understand, the ratios look different when you have a very high income. Your net worth's gonna continually grow. You're 27. You got another 30, 40 years of working for you and investing to build wealth. And so, in the meantime, you have to do something called enjoying life. And I'm scared because you're kind of like me. I'm wired to go. But if we didn't eat this month, we could invest that in a good growth stock mutual fund. It can make 12% over. You can't live your life like that. You got to let go.

[Dave Ramsey]

Speaking of letting go. And living life. George, how do you eat a biscuit? What do you put on your biscuit?

[George Kamel]

One bite at a time.

[Dave Ramsey]

Oh, really?

[George Kamel]

Yeah.

[Dave Ramsey]

No. No butter, no jam. I'll do a little butter, no jam, no honey.

[George Kamel]

It's like a chicken biscuit. What are we talking?

[Dave Ramsey]

I'm asking you. It's your biscuit.

[George Kamel]

Yeah. I'll do half butter, half jelly. Both. Best of both worlds. How about you?

[Dave Ramsey]

Oh, I like the jam. A lot of jam.

[George Kamel]

Jam's your jam. I respect that.

[Dave Ramsey]

Yeah.

[George Kamel]

Well, glad we could at least help Landon get over his emotions. Thanks for tuning in to Ramsey Everyday millionaires. Need help with your investments? Connect with a smartvestor [e-mail] smartvestor or click the link in the show notes. Ramsey Solutions is a paid non client promoter of participating pros. Learn [e-mail] SmartVestor.