Podcast Summary: The Ramsey Show Highlights Episode: Buy A Car Sooner To Avoid Increased Prices Due Tariffs? Release Date: June 3, 2025

Introduction and Context

In this episode of The Ramsey Show Highlights, the Ramsey Network delves into the pressing question many consumers face: Should you accelerate your car purchase to avoid potential price hikes due to tariffs? Hosted by financial experts Jade Warshaw and Ken Coleman, this episode provides insightful advice on navigating the complexities of car buying amidst economic uncertainties.

Caller’s Financial Situation and Query

At 00:10, a caller reaches out with concerns about purchasing a new car. The caller and her husband had initially planned to buy their next vehicle next spring. However, apprehensions about possible tariff-induced price spikes have prompted them to consider moving the purchase up.

Caller:
"My husband and I were planning on purchasing a new car next spring, but we are wondering if we should move that purchase up and buy now based on the fact that car prices might spike because of the tariff."
(00:10)

She further elaborates on their financial options, mentioning vested company stock, long-term investments, and a substantial amount in a high-yield savings account.

Advice from Jade: Financial Assessment and Timing

Jade Warshaw begins by assessing the caller’s financial readiness:

Jade:
"Do you have the money now?"
(00:24)

The caller details their financial resources, including stock options and a savings account earmarked for vacations and sinking funds, which have inadvertently become an emergency reserve.

At 03:07, Jade provides a structured approach:

1. Financial Allocation:

   • Suggests letting the stocks vest as planned and considering transferring investments to mutual funds rather than single stocks for better diversification.
     Jade:
     "Move it to mutual funds or move it to whatever your next big thing is, investment wise. But I'd put it in mutual funds, not single stocks."
     (04:15)

2. Assessing Immediate Need:

   • Emphasizes the importance of purchasing the car based on necessity rather than fear of future price increases.
     Jade:
     "Don't do anything out of fear. Are we ready to buy the car today?"
     (06:08)

3. Prioritizing Financial Goals:

   • Reiterates that if the car isn't urgently needed, it's prudent to wait, allowing financial plans to proceed as initially intended.
     Jade:
     "If you're like, hey, we don't need it yet, then don't do it."
     (06:25)

Ken’s Insights: Tariffs and Market Predictions

Ken Coleman complements Jade's advice by addressing the uncertainty surrounding tariffs and their impact on car prices:

Ken:
"We have no idea what the tariff situation is going to be a month from now. We don't know what it's going to be two months from now."
(01:32)

He underscores the unpredictability of tariffs and cautions against making impulsive financial decisions based solely on media reports:

Ken:
"The media is pushing for people to make these purchases... I think it's risky."
(01:37)

Further, Ken distinguishes between new and used car markets, clarifying that tariffs will directly affect new car prices but not used ones:

Ken:
"The tariffs themselves will not directly affect the price of a used car."
(02:22)

Media Influence and Consumer Behavior

Jade and Ken discuss the significant role media plays in shaping consumer perceptions and driving urgency in the marketplace:

Jade:
"Media pressure is real."
(07:01)

Ken:
"There's an old phrase they use in broadcast journalism: If it bleeds, it leads."
(07:08)

They caution listeners against succumbing to media-induced fear, advocating for informed and rational decision-making instead.

Future Market Opportunities for Used Cars

Looking ahead, Ken provides a strategic outlook on the used car market, predicting opportunities for savvy buyers:

Ken:
"I can promise you a year from now, there are going to be some people who are driving around a car payment of 700 or more. And here comes Ally and her family with Kazash."
(07:53)

He highlights the likelihood of an influx of overextended car payments, creating a surplus of used cars available at discounted prices. Jade echoes this sentiment, emphasizing the cyclical nature of the car market and the balance that eventually restores itself:

Jade:
"These things have a way of balancing themselves out a lot of times."
(08:41)

Conclusion and Final Advice

Jade and Ken collectively advise against making hasty financial decisions driven by uncertainty or media rhetoric. Instead, they encourage listeners to evaluate their financial readiness, prioritize needs over fears, and take advantage of future market dynamics to make beneficial purchasing decisions.

Jade:
"Whether you do it today or tomorrow or next spring, you have the money. And don't do anything out of fear."
(06:25)

Ken:
"There will always be a very nice used car that is available at a discount."
(08:54)

Notable Quotes with Timestamps

• Ken Coleman:
  "We have no idea what the tariff situation is going to be."
  (01:32)

• Jade Warshaw:
  "Don't do anything out of fear. Are we ready to buy the car today?"
  (06:08)

• Ken Coleman:
  "There will always be a very nice used car that is available at a discount."
  (08:54)

• Jade Warshaw:
  "Media pressure is real."
  (07:01)

Key Takeaways

1. Assess Financial Readiness:
   Before making significant purchases, evaluate your current financial situation, including available savings, investments, and income stability.

2. Avoid Fear-Based Decisions:
   Make purchasing decisions based on necessity and financial readiness, not on external pressures or fears of future price changes.

3. Understand Market Dynamics:
   Recognize the difference in how new and used car markets are affected by tariffs and economic shifts.

4. Leverage Future Opportunities:
   Anticipate market changes to find advantageous deals, especially in the used car sector, when others may be overextended financially.

5. Trust Expert Advice:
   Rely on insights from financial experts rather than succumbing to media-induced urgencies.

This episode of The Ramsey Show Highlights provides a balanced perspective on car purchasing decisions amidst economic uncertainties, empowering listeners to make informed and financially sound choices.