How to Make Smart Car Decisions on a Limited Budget

🚗Selling a car with problems may not be worth the cost of repairs and may only fetch a fraction of its value.

💰Consider selling the car yourself on platforms like Craigslist to potentially get a higher price than what the dealership offers.

👵🏼💸If your parents owe money on the car you're driving, work with them to sell the car and negotiate a solution together.

💵Save money by buying a reliable, used car within your budget instead of stretching for an expensive new car.

📈💸Create a car payment fund by paying yourself a monthly amount instead of taking on car loan debt.

What should I do if my car has significant problems?

—If the cost of repairs exceeds the car's value, it may be best to sell the car and use the money towards a more reliable option.

Should I sell my car to a dealership or on my own?

—Selling the car yourself on platforms like Craigslist may get you a higher price than what the dealership offers.

What if my parents owe money on the car I'm driving?

—Work with your parents to sell the car and find a solution together. They may need to contribute to the sale or loan repayment.

Should I buy a new or used car?

—Buying a reliable used car within your budget can save you money compared to stretching for an expensive new car.

How can I avoid car loan debt?

—Create a car payment fund by saving a monthly amount, allowing you to buy a car with cash instead of taking on a loan.

00:00A viewer named Shelby introduces herself and her situation as a new registered nurse planning to go back to school.

00:10Shelby explains her car problems and the cost of repairs she needs to make to keep it running.

00:38Dave advises Shelby not to spend more on repairs than the car is worth and suggests selling it instead.

01:04Dave recommends selling the car herself on platforms like Craigslist to potentially get a higher price.

01:31Shelby reveals that her parents owe money on the car she's driving and expresses her reluctance to give it back.

01:47Dave advises Shelby to work with her parents to sell the car and find a solution together.

02:19Dave suggests buying a reliable used car within Shelby's budget instead of going into debt for an expensive new car.

03:00Dave encourages Shelby to pay herself a monthly amount to create a car payment fund instead of taking on a car loan.