"These Numbers Are Just Horrendous" ($43,000 Upside Down)

Summary

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Podcast Summary: "These Numbers Are Just Horrendous" ($43,000 Upside Down)

The Ramsey Show Highlights | April 14, 2026
Host: Dave Ramsey
Guest: Michael
Guest Host: Chris Hogan

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Episode Overview

In this episode, Dave Ramsey takes a call from Michael, a 25-year-old who finds himself in a dire financial situation after purchasing an RV that has drastically depreciated in value. Michael explains he owes $63,000 on an RV worth only $18,000–$20,000, leading to a frank and instructive discussion about the pitfalls of financing depreciating assets, the reality of being “upside down” on loans, and concrete steps for digging out of a financial hole. Chris Hogan joins Dave to provide additional commentary and tough love.

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Key Discussion Points and Insights

1. The Scope of Michael’s Problem

• Initial Decision: Michael, at 23, bought a used RV for $68,000 and lived in it for six months before purchasing a house.
• Current Situation: Owes $63,000; dealers and private buyers only offer $18,000–$20,000 for the RV ([00:06]–[01:23]).
• Reason for Disparity: Dealer and private sale offers confirm true market value is far below the loan balance.

2. How Did the Loan Balance Get So High?

• Insurance Complications:
  • Forced-place insurance added $5,000 to the loan because of a lapse in coverage, and Michael is still struggling to contest or remove the charge ([01:48]–[02:36]).
  • “No matter what, for a month? Yes, sir. I don’t know what calculations or how they came up with that number, but yes.” – Michael ([02:26])
• No Substantial Savings: Michael and his wife are “at the very bottom of the debt snowball,” despite earning $130,000/year ([02:39]–[02:54]).

3. The Reality of Depreciation

• Massive Loss in Value:
  • Dave remarks: “So in three years, it lost $52,000 in value?...Most things that have wheels and motors go down in value, but apparently RVs are the worst of everything out there.” ([00:45]–[04:39])
  • “Talk about burning money. That’s like lighting hundred dollar bills on fire and just standing there, holding them till your hands get hot. Wow.” – Dave ([05:00])

4. Options for Action

• Sell the RV, Cut Losses:
  • Dave advises selling the RV and negotiating with the lender (Alliant Credit Union) to sign a note for the deficiency ($43,000 gap) ([04:03]–[06:00]).
  • “At least the bleeding would stop...maybe negotiate some of that away because...their collateral is gone...It’s going away really, really fast.” – Dave ([04:03]–[04:53])
• Stop Additional Expenses:
  • Michael is paying $950/mo for a vehicle he can’t use: $722 loan payment, $100 storage, $115 insurance ([03:33]).
  • “At least the bleeding would stop because you’d have no insurance and no storage fee...” – Dave ([04:09])
• Negotiate “Jingle Mail” Strategy:
  • Dave suggests threatening to return (“hand you the keys”) the RV to the credit union in order to negotiate a better settlement ([05:00]).
  • “Just say, hey, look, guys, I’m getting ready to hand you the keys to this thing back...Or I’ll sign a note for the difference and work my way through it because I’m the idiot signed up for this trip...” – Dave ([05:20])

5. Understanding the Broader Lesson

• Depreciating Assets Are High-Risk:
  • “All of you listening that were thinking about ever buying an RV, you should have just went, ‘I don’t think so.’” – Dave ([07:43])
  • Most buyers want new, so used RVs (and mobile homes) have little demand and plummet in value ([07:14]–[08:31]).
  • Chris Hogan: “There’s no demand...most people are buying something new, so therefore low demand.” ([07:14], [08:26])

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Memorable Quotes and Moments

• On the True Cost of an RV:
  • “That means it was a 100 grand when it was new. Approximately eight years later, it’s worth 20. Talk about burning money.” – Dave ([05:00])
• On Making Risky Decisions:
  • “You went and bought a house in the middle of this and that really puts you at further risk. It’s added to this mess. And you bought a house, by the way, where you can’t park your RV.” – Dave ([06:00])
• On Facing the Mess:
  • Chris Hogan: “It’s a lot of work in your future. The good news is you’re young and you guys need to be working multiple jobs and get after this thing like crazy.” ([06:24])
  • “No eating out, no vacations until we get the RV paid off. That’s an irony. No vacations till we get the RV paid off.” – Dave ([08:31])
• On RVs as an Investment:
  • “Most things that have wheels and motors go down in value, but apparently RVs are the worst of everything out there.” – Dave ([04:45])
  • “I never bought a camper, never bought an RV. Somehow managed to avoid that one mistake.” – Dave ([07:44])
  • “You get stuck in them. And poor Michael’s just stuck, stuck, stuck, man.” – Dave ([08:31])

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Timestamps for Key Segments

• 00:06 – Michael introduces his RV problem.
• 01:04 – Dealer and private sale offers reveal true market value.
• 01:46 – Michael explains insurance-caused loan increase.
• 02:39 – Discussion of Michael’s income and savings.
• 03:33 – Michael details $950/mo in storage, insurance, and loan costs.
• 04:00 – Dave outlines drastic options and why RV value drops so much.
• 05:00 – Discussion of just how much money was lost in depreciation.
• 06:00 – Dave and Chris provide tough love about buying a house while still upside down on the RV.
• 06:32 – Chris urges “multiple jobs” and aggressive repayment.
• 07:03 – Why RVs plummet in value: limited resale market and low demand.
• 08:31 – Final life lessons and advice for others (budget, sacrifice).

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Takeaway for Listeners

This episode is a cautionary tale about financing depreciating assets—especially RVs—and underscores the importance of clear financial thinking before making major purchases. The hosts deliver hard truths and actionable steps for anyone facing similar debt traps, reminding listeners that avoiding “get-rich quick” temptations, understanding asset depreciation, and living within one’s means are critical components for long-term financial health.

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Transcript

[Dave Ramsey]

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[Michael]

I owe $63,000 on an RV that's worth about 18 to $20,000.

[Dave Ramsey]

How did that happen?

[Michael]

Well, I'm 25, and when I was about 23, I made a dumb decision and bought an RV and lived in it for about six months. And now I've bought a house, and I have nothing to do with that rv.

[Dave Ramsey]

No, I'm saying the rv. Actually, you bought it for how much?

[Michael]

So when I bought it, it was $68,000.

[Dave Ramsey]

How long ago?

[Michael]

Three years ago.

[Dave Ramsey]

So in three years, it lost $52,000 in value?

[Michael]

Yes, sir.

[Dave Ramsey]

Okay, based on what calculation? What they offered you for it at the dealer, or what the actual market value is if you try to sell it to an individual?

[Michael]

I've done both. I've looked at selling it on Facebook, those type of things, and nobody's willing to give over $20,000. In the RV dealership, the two that I've taken it to have only offered me about between 18 and 19,000.

[Dave Ramsey]

Well, if they're willing to give you $19,000 for it, they're able to sell it for 27 somewhere.

[Michael]

Yes, sir.

[Dave Ramsey]

They're not going to give you 19 for it when nobody is giving more than 20 for that. So your first Facebook thing, that part of the test failed. But we know what wholesale is because two dealers have offered you basically the same thing.

[Michael]

Yes, sir.

[Dave Ramsey]

And you owe how much?

[Michael]

I owe $63,000. There's a little bit of complications on to why I owe that much. You know, only a $5,000 difference. They just added some more onto my loan. We had some complications with insurance. I didn't realize I didn't have insurance. So for about a month, and they decided to throw on an extra $5,000

[Dave Ramsey]

onto my loan for forced place insurance? Yeah.

[Michael]

Yes, sir.

[Dave Ramsey]

Have they taken that back off now that you've gotten a policy in place?

[Michael]

Yes, sir. It's. It's not off. I still gonna have to pay that $5,000 is what they told me. No matter what, for a month? Yes, sir. I don't know what calculations or how they came up with that number, but yes.

[Dave Ramsey]

What do you make a year?

[Michael]

My wife and I, we make about $130,000.

[Dave Ramsey]

How much money do you have in savings?

[Michael]

Not very much. We are. We're at the very bottom of the debt snowball right now.

[Dave Ramsey]

And you bought a house?

[Michael]

Yes, sir.

[Dave Ramsey]

While you're broke?

[Michael]

Yes, sir. We're. We're not doing too good right now,

[Dave Ramsey]

Okay, I don't know how to get you out of this, Michael. I mean, you'd have to borrow the $43,000 and just have an unsecured loan of $43,000. Who holds the loan on this?

[Michael]

Alliant Credit Union.

[Dave Ramsey]

And what's the interest rate in percentage? Okay.

[Michael]

The bad part is I'm not only paying the monthly payment, which is $722. I've also got $100 storage fee and then $115 for insurance every month. So I'm paying about approximately $950 a month for something that I'm not using at all.

[Dave Ramsey]

Yeah,

[Michael]

Yeah,

[Dave Ramsey]

I truly do. I'm stumped. I don't know how you get out of this other than you just pay it down or sell it. And if you have any credit left at all and you can borrow the difference or work with the credit union to sign a note for the difference, at least the bleeding would stop because you'd have no insurance and no storage fee and sell the thing for 20 grand and sign a note for 43 and, you know, maybe negotiate some of that away because they got. They don't have any collateral. I mean, their collateral is gone. And so. And it's going, it's going away really, really fast. Wow. This is. These numbers are just horrendous. I mean, there's most, most things that have wheels and motors go down in value, but apparently RVs are the worst of everything out there.

[Michael]

It was already five years old when I bought it, so it was just, it was just all around bad.

[Dave Ramsey]

So that means it was 100 grand when it was new. Approximately eight years later, it's worth 20. Talk about burning money. That's like lighting hundred dollar bills on fire and just standing there. Hold them to your hands. Get hot. Wow. Yeah. The only thing I know to do, I. I think I would stop the bleeding by selling it and signing a note for the difference. If you can talk the credit union into doing that. And the way you do that is just say, hey, look, guys, I'm getting ready to hand you the keys to this thing back. Y' all can have it. You can have your little $5,000 insurance charge first place insurance is valid, but I'm not paying it and you guys can just sue me and. Or I'll sign a note for the difference and work my way through it because I'm the idiot signed up for this trip and I'll get to take it with you. But you're going to have to help me by letting me get Rid of it. And whatever it brings, we'll put that on the note and I'll sign a note for the difference. And that gets rid of the insurance bill and that gets rid of the storage bill and everything else. But also you've got to start thinking more clearly on your next moves on things. Because you went and bought a house in the middle of this and that really puts you at further risk. It's added to this mess. And you bought a house, by the way, where you can't park your rv.

[Chris Hogan]

That's right.

[Dave Ramsey]

That you already own before you bought the house.

[Chris Hogan]

It's a lot of work in your future. The good news is you're young and you guys need to be working multiple jobs and get after this thing like crazy.

[Dave Ramsey]

Long time to clean up $43,000. It's like $43,000 in credit card debt. How fast can you do it making 130. You can do it in a year and you know, pay it off in a year and be done with it. And then you just get to look back and go, yep, the dumbest thing I ever did in my life was that RV thing. And the good news is I don't have to do that dumb thing again. I'll have to find something new to do. Dumb.

[Chris Hogan]

Why, why does the. We've talked about this many, many times. You have a hint, hint as to why they drop in values because they're bringing out new models all the time. What would.

[Dave Ramsey]

Cause I don't think the market is large enough. I think the resale market is very limited.

[Michael]

Aha.

[Dave Ramsey]

The number of people buying a, in this case, 8 year old RV.

[Chris Hogan]

That's what it is.

[Dave Ramsey]

You're right. Would be very.

[Chris Hogan]

There's no demand.

[Dave Ramsey]

There's no demand. And so it's not, you know, it'd be like a 20 year old ski boat. You know, I mean it's really difficult to move that product now. I'm not talking about an expensive ski boat like a Mastercraft. I'm talking about just a, you know, stern drive baby, you know, your old Bryant's or something like that. That thing just deteriorates and nobody wants it. They'll just spend a little bit more and go get a new one. And so that's. I think that's what's going on here. But I. Good Lord. All of you listening that were thinking about ever buying an rv, you should have just went, I don't think so.

[Chris Hogan]

That's right.

[Dave Ramsey]

It's just one. I mean I've bought almost everything else with wheels. And motors at one time or another and have done some really, really dumb deals on those processes. But the one I've never bought, I never bought a. Never bought a camper, never bought an rv. Somehow managed to avoid that one mistake.

[Chris Hogan]

I just can't see you hauling down 65 in a giant Winnebago. You don't see me, people driving by

[Dave Ramsey]

going, I think that's Dave Ramsey driving that Winnebago.

[Chris Hogan]

You're waving at people as they drive

[Dave Ramsey]

by Chevy chasing it. I don't know. I. I'm not a snob. I just never had that one. And I never bought a trailer. I never bought a mobile home either.

[Chris Hogan]

That's another one concept on the mobile home as well. Most people are buying something new, so therefore low demand.

[Dave Ramsey]

So. And they just go down in value like rock. They're just horrible, horrible. You can't get out of them. You get stuck in them. And poor Michael's just stuck, stuck, stuck, man. Well, you are wise to be asking questions about it and to be gathering information and try to make the best decision you can and then just roll up your sleeves and live on nothing, including. No. No eating out, no vacations until we get the RV paid off. That's an irony. No vacations till we get the RV paid off. Create your free every dollar budget today. The simplest way to budget for your life.