You Financed a Honda for $60k to Drive Uber?

Summary

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The Ramsey Show Highlights

Episode: You Financed a Honda for $60k to Drive Uber?
Date: October 13, 2025
Host: Dave Ramsey with a Financial Coach
Guest: Joseph

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Episode Overview

This episode focuses on a common financial pitfall—overextending to finance vehicles for gig work. Joseph, a 29-year-old Uber/Lyft driver in San Francisco, calls in to share how he ended up deeply in debt by financing expensive cars to boost his ride-share income, only to find himself upside down on both loans. Dave Ramsey and his co-host provide a candid, tough-love financial intervention, outlining where Joseph's plan went wrong and what steps he should take to recover.

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Key Discussion Points & Insights

1. Joseph’s Story: Financing for Gig Work

• Joseph explains he became a full-time gig worker and, following advice from other drivers, financed two vehicles at inflated prices aiming to maximize his Uber/Lyft earnings.
  • Quote:

    "I financed it for 50, 60K. This was in 2020, like the beginning of 2022."
    — Joseph (00:29)

• Initially, Joseph bought a Honda CR-V for about $59,000, but when his earnings dipped after Uber shifted policy (removing 'Uber Green'), he financed a second car, an Acura MDX, putting $30,000 down and financing $54,000 more.
  • Quote:

    "Because I had savings of 50,000. I put down 30,000 to get the...Acura MDX."
    — Joseph (02:03)

  • He now owns both vehicles, as the dealership would not fully cover his CR-V due to negative equity.

2. Shocking Financial Realizations & Tough Love

• Dave is incredulous at the financial decisions Joseph made solely on peer advice.
  • Quote:

    "You got financial advice from other Uber drivers?...You just said that out loud."
    — Dave Ramsey (00:58, 01:03)

• Joseph believed he was making good money ("about $2,700 a week easily"), but Dave points out he never factored total vehicle depreciation, gas, repairs, and hidden costs.
  • Quote:

    "No, honey, you weren't making any money doing Uber and Lyft because you haven't been smart enough to factor in all the losses on your vehicles."
    — Dave Ramsey (03:07)

  • Joseph admits:

    "You're right." (03:13)

  • Dave:

    "By the time you do all of that, you didn't even make money on all this. You've been working for free for Uber." (03:24)

3. Joseph’s Current Situation

• Joseph is now in a traditional job making $22/hour, far less than his subjective peak Uber days.
  • Quote:

    "Currently? Yes, I do have a job...about 22 an hour."
    — Joseph (03:52, 03:55)

• The co-host and Dave drill down on his vehicle situation. Joseph owes more than the current market value—he’s upside down on both cars despite substantial down payments.
  • CR-V and MDX both lost value rapidly, due to high mileage and inflated purchase prices.
  • Joseph’s credit has also suffered due to missed payments.
    • Quote:

      "No, it's. Yeah, it's kind of bad because I'm. I'm late. I've been late for a month."
      — Joseph (06:14)

4. The Hard Math and Car Value Drop

• Dave is especially stunned that, even after $30,000 down on the Acura, Joseph is $6,000+ underwater after just a year and 30,000 Uber miles.
  • Quote:

    "You had to lose $30,000 in value before you got upside down."
    — Dave Ramsey (05:45)

• The financial coach questions Joseph’s math, as the rapid depreciation and high negative equity don’t line up with typical scenarios, even with high usage.

5. Dave’s Action Plan & Warnings

• Immediate advice: Do whatever it takes—multiple jobs, cut expenses—to pay down the cars and cover loan gaps before selling, and avoid repossession at all costs.
  • Quote:

    "I want you to work a bazillion hours and not at Uber. Actually, you got two cars sitting there. You could go make some money with Uber now and pile up some cash really, really fast."
    — Dave Ramsey (06:37)

  • He cautions against letting the cars go back to the lender:

    "If you just turn these cars in, they're going to sell them for 50% of what you think they're going to sell them for, and they're going to sue you for the difference." (07:46)

• Joseph’s location in the high-cost San Francisco market is another negative; Dave suggests moving could ease the burden, but the real key is hard work and urgent expense cutting.

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Notable Quotes & Memorable Moments

• Financial Advice Gone Wrong

  "You got financial advice from other Uber drivers?...You just said that out loud."
  — Dave Ramsey (00:58, 01:03)

• Depreciation Reality Check

  "No, honey, you weren't making any money doing Uber and Lyft because you haven't been smart enough to factor in all the losses on your vehicles."
  — Dave Ramsey (03:07)

• The Math Doesn’t Add Up

  "You had to lose $30,000 in value before you got upside down."
  — Dave Ramsey (05:45)

• Dire Consequence Warning

  "You're going to find yourself in bankruptcy and you're going to find out that Uber, your Uber career bankrupted you along with some really stupid decisions."
  — Dave Ramsey (07:46)

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Key Timestamps

• 00:28 – Joseph explains overpaying for Honda CR-V
• 00:38 – Dave’s incredulous reaction to $60,000 Honda for Uber
• 02:03 – Joseph describes purchase of Acura MDX after CR-V
• 03:07 – Dave explains "working for free" as Uber driver
• 03:55 – Joseph admits current low-wage employment
• 04:44 – Joseph reveals how much he's upside down on Acura
• 06:14 – Joseph’s credit troubles surface
• 06:37 – Dave's urgent advice: take any work, raise cash, avoid repo
• 07:46 – Dave warns of bankruptcy and repo consequences

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Tone & Takeaways

The episode uses Dave Ramsey’s signature direct, sometimes blunt tone—combining tough love, disbelief, and practical advice. The key lessons are:

• Never take major financial advice from peers who aren't financially successful themselves.
• Always factor in total costs, not just revenue, when pursuing gig work.
• The high cost of vehicle depreciation and high-interest loans can easily wipe out gig profits.
• Selling the cars yourself and hustling to cover negative equity is vital to prevent financial ruin.

Final Message:
Joseph’s experience is a cautionary tale for listeners about the dangers of over-leveraging for perceived income opportunities, miscalculating true costs, and underestimating the long-term consequences of car loans and poor financial advice.

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Transcript

[Dave Ramsey]

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[Joseph]

So I've been a full time gig worker. I've been driving for Uber and Lyft, and I financed two vehicles. The first one I financed was a Honda crv. And when I bought it, I bought it at the peak when prices were so inflated, you know, dealerships were marking up prices and there was low inventory and, you know, the car prices were much higher.

[Financial Coach]

So what'd you pay?

[Joseph]

I bought it in 20. I financed it for 50, 60K. This was in 2020, like the beginning of 2022.

[Dave Ramsey]

You financed a Honda for 60K to drive Uber?

[Joseph]

It was, it was. Okay, so it was like 59 out the door.

[Dave Ramsey]

Well, I mean, you financed a Honda for 50 or 60 thousand dollars to drive Uber.

[Joseph]

Correct. Because I, I got. So the thing is, I got advice from other drivers that, hey, you can really make good money.

[Dave Ramsey]

You got financial advice from other Uber drivers?

[Joseph]

Yeah.

[Dave Ramsey]

You just said that out loud.

[Joseph]

Yeah. Wow.

[Dave Ramsey]

Okay.

[Financial Coach]

Okay. So you got the $60,000 car. What else?

[Joseph]

Yeah, and so it was just a regular suv. And so I was making decent money at first. I was making about 2,700 a week easily. And then I started seeing my earnings go down because then Uber, you know, they got rid of this one program called Uber Green, which most hybrid vehicles qualified at the time. And you know, Uber Green is like that feature that gives passengers the option to ride in a vehicle that's eco friendly. Right. And so a lot of them think that, you know, a clean hybrid vehicle or Tesla is going to show up to pick them up. So they got rid of that feature. So all hybrid vehicles don't qualify for that. So then my, I would say my earnings dropped by like five or six hundred dollars. Then I was like, shoot. I was talking to other drivers. They're like, hey, you might need to level up, get an Excel vehicle, which is like a three row seat suv. Right. So then what I did.

[Financial Coach]

Did you trade in the CRV for.

[Joseph]

No, no, I, I went to the, I went to the dealership I put down because I had savings of 50,000. I put down 30,000 to get the. It was an Acura MDX.

[Financial Coach]

So you kept the Honda CRV and then got an accurate MDX?

[Joseph]

Yeah.

[Dave Ramsey]

Why?

[Joseph]

They didn't want it. The dealership was like, hey, we take it. There's like a lot of negative equity data. So I was like, maybe I should take. Maybe you should just keep this call.

[Financial Coach]

So would you pay for the m. Disperse the miles?

[Joseph]

About 54,000.

[Financial Coach]

Oh, Lord.

[Joseph]

And I got this. But I got this a little later. I, I bought this one in like 20. 24.

[Financial Coach]

You financed 54, so you put down 30 and financed 54. So you paid 84 for it.

[Joseph]

Correct? Yeah. Stupid. Exactly. And how old are you? I'm really pissed off at my.

[Dave Ramsey]

Joseph. How old are you, Joseph?

[Joseph]

29, sir.

[Dave Ramsey]

Okay. All right. Do you have a real job yet?

[Financial Coach]

And.

[Joseph]

I did it at the moment, but I was just, I wasn't making the kind of money that I was making doing Uber and Lyft.

[Dave Ramsey]

No, honey, you weren't making any money doing Uber and Lyft because you haven't been smart enough to factor in all the losses on your vehicles.

[Joseph]

You're right.

[Dave Ramsey]

When you factor that in, you didn't even break even. And by the way, you didn't take out gas and, and repairs either, did you? No.

[Joseph]

Yeah, and I was going to get to that. Yeah.

[Dave Ramsey]

By the time you do all of that, you didn't even make money on all this. You've been working for free for Uber.

[Joseph]

That's true. At first I saw the money was great, you know, like when I got.

[Dave Ramsey]

The gross, revenue was great, the net profit was not great.

[Joseph]

3500. Right?

[Dave Ramsey]

There's a difference. Yeah. Okay, so now you're stuck in these two cars. Honey. What a mess. And, and do you have a job now.

[Joseph]

Currently? Yes, I do have a job.

[Dave Ramsey]

What do you make?

[Joseph]

Unfortunately, about 22 an hour. Not a lot.

[Dave Ramsey]

Okay, what were you doing?

[Joseph]

I don't have many. I don't have. I don't have a lot of skills.

[Dave Ramsey]

What were you doing before your Uber escapades?

[Joseph]

Yeah, I was just, I was working as an, you know, I was just doing regular minimum wage jobs, you know, like working in customer service industry, like fast food restaurants, you know, service industry. And then, you know, security.

[Financial Coach]

The acura. You put 30,000 down. You should not be upside down. You should be able to sell this vehicle. What's it worth.

[Joseph]

There? Okay, so if I were to sell it to a dealership.

[Financial Coach]

Private sale, Please.

[Dave Ramsey]

Private sale. Not.

[Joseph]

Private sale. I mean, it's worth. On Kelly blue book, about 48.

[Dave Ramsey]

And you owe what? And you owe what.

[Joseph]

54. A little over 54.

[Financial Coach]

So.

[Joseph]

And, but the problem is I don't have any money left over, so I wouldn't even be able to pay the difference.

[Dave Ramsey]

I understand that. I'm just trying to. You put down $30,000. You've driven it one year and you're already upside down.

[Joseph]

Yeah.

[Dave Ramsey]

Oh my gosh. Are you sure. Wait a minute. That is that. That's what the dealer offers.

[Financial Coach]

Just. No way.

[Dave Ramsey]

Yeah, I mean, how many miles. How many miles you put on it?

[Joseph]

About 30,000.

[Financial Coach]

Oh, something doesn't add. Is that. Does that sound right? No, I was going to say that doesn't add up to me.

[Dave Ramsey]

Okay, so. Well, here's the deal.

[Joseph]

Well, no, because it's a newer. It said 2024. That's why the value is not so low.

[Financial Coach]

That's why it dropped so much still.

[Joseph]

Oh, no, wait, wait, I'm confused. Were you guys expecting a lower number than.

[Dave Ramsey]

Well, well, typically expecting a higher number?

[Financial Coach]

Yeah, because you put 30,000 down, which means there' room.

[Dave Ramsey]

You had to lose $30,000 in value before you got upside down.

[Joseph]

Right, right. But when I bought it, it was brand new, had zero miles. I could 30, 000 miles on, which.

[Financial Coach]

Is not a lot.

[Dave Ramsey]

It is in one year. But it's not enough to devaluate that far. All right. And they're rough miles, Ubering.

[Financial Coach]

Okay, is your. Is, is your. Is your credit terrible? Can you go to the. Get down to the bank and get a loan for the difference?

[Joseph]

No, it's. Yeah, it's kind of bad because I'm. I'm late. I've been late for a month.

[Dave Ramsey]

Okay.

[Joseph]

On one vehicle.

[Dave Ramsey]

And I assume both of these loans are with the car companies, right?

[Joseph]

Yeah, both with the same.

[Dave Ramsey]

Yeah, no, they're with the same. Who are they with?

[Joseph]

You know, Honda, we call it finance. Yeah, yeah. They have, like, their own financing. Yeah, yeah. Got it from the same dealership. And so. Yeah.

[Dave Ramsey]

Okay, well, what I'm going to do is try to scramble and get out of these cars with car loans and extra work. I want you to work a bazillion hours and not at Uber. Actually. Actually, you got two cars sitting there. You could go make some money with Uber now and pile up some cash really, really fast. I mean, how fast can you make. You make $6,000 and just put that aside and get rid of this one car driving the other one drive the Honda.

[Joseph]

So that's what I was trying to tell my family members, that maybe I should move to a different market where I can make that money because my earnings drop.

[Financial Coach]

Listen, you can make $6,000 make doing anything. I don't care if you get a job at Target.

[Joseph]

Ma'. Am, I guess that it's. It's not simple, you know, especially with, like, I got to pay for, like, groceries I gotta pay for, you know.

[Dave Ramsey]

What market are you in?

[Joseph]

That's very California.

[Dave Ramsey]

I know, we're in California.

[Joseph]

Yeah. San Francisco.

[Dave Ramsey]

Okay. Yeah, you probably do need to move to a different market. You're in one of the most expensive markets in the world. The only good thing is there. The Uber is expensive, but other than that, your cost of living is killing you.

[Financial Coach]

That's gonna.

[Dave Ramsey]

So, yeah, you know, but, but I do want you to do something to earn a bunch of money as fast as you possibly can. And yeah, if you move, that's fine, but you've, you know, you've got to reverse the things that are killing you and that the first thing is to not be driving the Honda or the second car because we've got to get out of it. It's the one you have a chance of getting out of. The other one you're neck deep in it. And if you just turn these cars in, they're going to sell them for 50% of what you think they're going to sell them for, and they're going to sue you for the difference. And you're going to find yourself in bankruptcy and you're going to find out that Uber, your Uber career bankrupted you along with some really stupid decisions. But that's where you're going to end up if you don't fight your way through these. So voluntary repossession or straight up repossession are really, really bad for you, Joseph. So your best thing to do is to control the price of the sale, the sale price of the car and the hole that you're in that corresponds that by getting these sold, by covering the differences, create your free every dollar budget today. The simplest way to budget for your life.