I've Been Paying On My Car For 8 Years (And Owe More Than It's Worth)

Summary

Podcast Summary: The Ramsey Show Highlights – "I've Been Paying On My Car For 8 Years (And Owe More Than It's Worth)"

Release Date: August 5, 2025
Host/Author: Ramsey Network

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Introduction

In this episode of The Ramsey Show Highlights, the host from the Ramsey Network addresses a listener's predicament regarding an extended car loan. The discussion delves into the challenges of subprime lending, high-interest rates, and the repercussions of prolonged debt accumulation. The hosts provide actionable advice to navigate such financial setbacks.

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Caller’s Situation

[00:06] Caller (B):
"I am calling because I have an issue that's going on with my car situation of the vehicle I purchased and it is still not cleared even after year number seven."

The caller explains that he has been paying off a 2016 Ford Fusion since 2017. Originally scheduled to be paid off by April 2023, it is now July 2025, and he still owes $17,494.31—a sum exceeding the car's worth.

[00:47] Caller (B):
"So I have a 16 Ford Fusion that I've been paying on since 2017. At this point, my loan was supposed to mature back in 2023 of April. We are now in 2025 on July. And I owe more than what the car is worth, and I need to figure out what I actually owe in terms of all these late fees and extensions that were taken out."

He reveals that the loan carries a high-interest rate of 18.95%, obtained from a subprime lender, which has significantly inflated his debt through accumulated late fees and extended payment terms.

[02:00] Caller (B):
"They did print all the payments and the fees so far. But I believe there is some missing because the information that I received from the company themselves, calling them numerous times to try to get information, I came up with numbers on my own with the printout that I've been asking for over three months, and I just finally got it."

Despite having documentation, the caller disputes the lender's total owed amount, suspecting discrepancies in the calculated fees and charges.

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Hosts’ Discussion of Options

[03:01] Host A:
"So you're thinking that there's somewhere south of $10,000 owed, but something is owed. That's what you're thinking, right?"

The host assesses the situation, suggesting that the actual owed amount might be less than the stated $17,000, but acknowledges that some debt remains due to high-interest rates and additional fees.

[04:00] Host A:
"You have two options. Well, you've got three options, and one of them is not a good option. So you have two good options. One is continue the fight that you're doing... Or you got to hire a lawyer. That's your second option."

The hosts outline three potential paths:

1. Continue Negotiating with the Lender:
   Persist in dealing with the subprime lender to clarify and possibly reduce the owed amount. This involves confronting the lender's questionable business practices and striving to reach a mutually agreeable settlement.

2. Hire a Lawyer:
   Engage legal assistance to contest the debt, potentially suing the lender for the disputed amount. This route is advised if negotiations fail, though it may involve additional costs and complexities.

3. Surrender the Vehicle (Not Recommended):
   The third option is to return the car, which the hosts strongly discourage due to the adverse impact on credit scores and the likelihood of continued disputes over debt.

[05:56] Host A:
"Because when you do something stupid. Here's the thing. Doesn't mean you're stupid. It means you did something stupid."

The hosts empathize with the caller's frustration, emphasizing that financial mistakes are learning opportunities rather than reflections of one's intelligence. They stress the importance of avoiding repeated financial missteps.

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Advice and Insights

[07:12] Host A:
"I've done dumb with zeros on the end. I've got a PhD in dumb. The trick is, my goal has always been, and it's worked real well for me, is don't do the same stupid thing again."

Drawing from personal experiences, the hosts advocate for learning from financial errors to foster better decision-making in the future. They highlight strategies such as:

• Avoiding High-Interest Loans:
  Steering clear of subprime lenders that offer loans with exorbitant interest rates, which can trap borrowers in cycles of debt.

• Joint Financial Decisions:
  Making significant financial decisions, like purchasing a vehicle, in agreement with a spouse or partner to ensure accountability and mutual understanding.

• Budgeting and Financial Planning:
  Utilizing tools like the EveryDollar app to create and maintain a budget, ensuring that financial commitments are manageable and aligned with one's income.

[08:04] Host C:
"You literally drive off relief. You tried to read it. You know, I just. I just want. Just give me some wheels. I got to get to work. ... And at 18% interest. Well."

The hosts critique the lender's practices, pointing out the unrealistic expectations placed on borrowers who may feel trapped by circumstances, such as needing a vehicle for employment but facing prohibitive loan terms.

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Conclusion

The episode underscores the pitfalls of high-interest, subprime auto loans and the long-term financial burdens they can impose. The hosts encourage proactive measures, such as negotiating with lenders, seeking legal counsel if necessary, and, most importantly, learning from past financial mistakes to prevent future debt accumulation. Emphasizing personal growth and financial literacy, The Ramsey Show Highlights offers listeners the tools and insights needed to navigate and rectify challenging financial situations.

Notable Quotes:

• [03:06] Host A:
  "And what was the interest rate? ... The interest rate that I had on the car was 18.95."

• [05:28] Host A:
  "Good luck with that because I'm going to countersue you and we'll see how that repossession thing goes."

• [07:46] Host C:
  "Or there's a $10,000 repo fee that got lumped into."

• [08:05] Host A:
  "I've done stupid with zeros on the end. I've got a PhD in dumb."

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For more financial advice and strategies, visit EveryDollar to start budgeting for free today.

Transcript

[A]

Brought to you by the EveryDollar app. Start budgeting for free today.

[B]

I am calling because I have an issue that's going on with my car situation of the vehicle I purchased and it is still not cleared even after year number seven.

[A]

Okay, explain to me what you're talking about.

[B]

Okay, So I have a 16 Ford Fusion that I've been paying on since 2017. At this point, my loan was supposed to mature back in 2023 of April. We are now in 2025 on July. And I owe more than what the car is worth, and I need to figure out what I actually owe in terms of all these late fees and extensions that were taken out.

[A]

Okay, so basically, is it a Ford Motor Company loan or is it a. A high interest rate loan?

[B]

High interest rate loan.

[A]

Okay, so you're dealing with a subprime company and you had a bunch of late fees over the years.

[B]

I did.

[A]

Okay. And those have not been paid. So they've been added to the balance.

[B]

They have.

[A]

Okay. Is that what the balance is is then? Or. I mean, is there something else wrong?

[B]

Not to my calculations, no. The amount that they're coming up with, I don't know where they're getting this numbers from. I have a full printout of all of my business and latency repossession that was on the account and it still.

[A]

They repossessed the car?

[B]

They did. For one day.

[C]

Okay, how much are they telling you you still owe?

[B]

$17,494.31. 31 cents.

[C]

You still owe that?

[B]

That's what they're saying. That's what I need investigated.

[A]

Yeah.

[C]

Have they printed you an itemized list of all the fees and how they've added up and how they got that number?

[B]

Not how they're added up, but they did print all the payments and the fees so far. But I believe there is some missing because the information that I received from the company themselves, calling them numerous times to try to get information, I came up with numbers on my own with the printout that I've been asking for for over three months, and I just finally got it.

[C]

Yeah, but they're not giving you a printout of what you actually owe, correct?

[A]

Yeah.

[C]

They mean they have to give you an itemized bill. If they've continued to jack up the.

[A]

Okay, well, you've got. You've got two options. Okay. What you're wanting to is to solve for the truth of what is really owed. And your guess is, based on your math, that it's not 17, but that you do still Owe something because you've got a bunch of late fees stacked up and you probably got some repo charges stacked up in there as well that were not paid at the time of the repo. That's my guess. So you're. You're thinking, you're thinking that there's somewhere south of $10,000 owed, but something is owed. That's what you're thinking, right?

[B]

Not that much, but yes, that is true.

[A]

I said south of 10,000. We don't know how much south.

[B]

Correct.

[A]

Between zero and 10. Right. But it's not 17 for sure. But you in your mind, because of the math you've done. Um, okay. And what was the interest rate?

[B]

The interest rate that I had on the car was 18.95.

[A]

Okay. Okay. All right. You have two options. Well, you've got three options, and one of them is not a good option. So you have two good options. One is continue the fight that you're doing, and your frustration is real. And I go along with your frustration. You're dealing with a subprime lender. They loan money to people who have bad credit. They loan money to people who don't pay their bills. They are not usually nice to work with. You have figured this out. Okay, this is not news to you. You already knew this. And so they're, you know, they're three notches above a loan shark. And so. And two notches above the tote, the note guy down in the bad end of town. That rips people off even worse. But they're for sure. It's not a clean business, and it's people who aren't as business like as you would get in a different situation. And you've already discovered all that. So your frustration is real. You've either got to plow through that and get to the bottom of this, dealing with the morons and incompetence and the I don't cares on the other end of the phone. Or you got to hire a lawyer. That's your second option. Hire a lawyer and sue them for $17,000. I'm suing them before I walk away. Okay, that's another option. I would try and say I'm going to devote one more month to this, getting to the bottom of this. And if you guys can get me a number that we can agree on, I'm going to get it paid off. But, guys, I got to get that, and I'm going to have to. Apparently, I'm going to talk to somebody's boss over there to find two people. Somebody has two Brain cells to rub together. So, you know, let's just keep pushing and fighting for a month. If you can't do that, then you say at the end of a month, if I can't get you guys to get to the bottom of this, and together we figure out what is really owed and why and come to agreement on that so I can get this paid, then I'm going to hire a lawyer and I'm going to sue you.

[B]

Okay, Understood.

[A]

And if that doesn't work, the third option, which is not a good option, is toss them the keys. Tell them to come.

[B]

Yes.

[A]

Yeah, tell them to come get it and sue me. Good luck with that because I'm going to countersue you and we'll see how that repossession thing goes. You're going to get nothing if you do that, people. And so I can do that, but I don't want you to do that because two things happen. One is you further destroy your credit. And two is you lose control of the amounts and you start having to negotiate based on their weird numbers, not real numbers.

[B]

And how about just the fact that I just want my car, I've been paying on it all this time.

[A]

That's fair.

[B]

To keep it.

[A]

That's fair. But you don't want that car for $17,000.

[B]

Absolutely not. Because it's not even worth that.

[A]

I got that. I don't want that. So there is a point at which I don't really want this car. That the principal doesn't matter. Okay? The principle of the thing doesn't matter. Not the principle of the loan amount. Now, last question or last point to be made? I want to make real sure. Because when I do something like this and I've done stuff as dumb or dumber than you did when you bought this car at 18 freaking percent interest rate. Have you learned your lesson? Are you ever going to do this crap again? No, Dave. I'm going to pay cash.

[B]

That's right.

[A]

Okay.

[B]

Yes, Dave, thank you.

[A]

Love you, darling. Thank you for calling. Wow. Because let me tell you, if when you get. If you do 18% interest, it's because you were scared.

[C]

Oh, yeah.

[A]

And you think there's anything else? Life. There was no way. No. You feel trapped. No way. These things come out of your mouth that are not true. And you start making these absolute fatalistic statements. I've been there. I was forced. Like they had a gun.

[C]

Had to get a new car.

[A]

I had to get a car. And let me just tell you, there's two dumb things in this Ford Fusion and 18%. These are two dumb things in one sentence right here. Unbelievable. I'm surprised the dadgum thing lasted seven years, but, oh, my God, what a piece of crap of a car. And at 18% interest. Well.

[C]

And I guarantee you, it's like buying.

[A]

A Dodge Neon, you know, one of.

[C]

Those square Kias that are like cars, man. But here's the thing. If you miss your payment, I guarantee you that rolled from 18 in the fine print somewhere, it went up to 34% or whatever.

[A]

Yeah, I'd be willing to bet my have done that. They may be carrying a higher interest rate on the unpaid late charges. That's right. There's a possibility. That's in the contract. Yeah.

[C]

Or there's a $10,000 repo fee that got lumped into.

[A]

Because when you sign something that stupid, you don't read it right. I mean, relief.

[C]

You literally drive off relief.

[A]

You tried to read it. You know, I just. I just want. Just give me some wheels. I got to get to work. This other one keeps breaking down. It's a piece of crap, and it's costing me so much and cost you nothing like Ford Fusion. 18% money. I'm just. That's some serious money right there. And so. Oh, my God, what a mess. Bless your heart. I've been there. Guys, when you do something stupid. Here's the thing. Doesn't mean you're stupid. It means you did something stupid. I've done stupid with zeros on the end. I've got a PhD in dumb. The trick is, my goal has always been, and it's worked real well for me, is don't do the same stupid thing again. At least learn from it. In other words, now I might do new stupid stuff, but I've got a whole list of things that I don't do anymore. And not doing all of those things has helped me become wealthy. Just all the stupid stuff I used to do that I don't do anymore. You know, just. I don't do that. And I don't do that. Why? I don't really have to explain it. I don't do that. We don't do that. We don't do that. That. No, we don't do that 100% of the time. We tithe to our church 100% of the time. We don't borrow money 100% of the time. Dave and Sharon are in agreement before we buy something. Because when I do something without my wife's agreement, she does something without my agreement. We do stupid stuff. And so this is. This is. These are basic things that I've learned over the years. And that's why we have this show to help you guys do them. Create your free every dollar budget today. The simplest way to budget for your life.