I Owe $65,000 on a Broken-Down Audi!

[Music] brought to you by the every dooll app start budgeting for free today so I'm in a little dilemma that I've almost been dealing with for almost a year with my vehicle okay um after attempting to make a repair um I started having the same issues now I need a new engine um I still owe about $65,000 on this vehicle that I've only had for a year and a half $65,000 what kind of vehicle is it 6 $65,000 um and it's a Audi Q8 2019 um I did buy it so it was a bad decision I know now but I do not know what to do um on top of that I do have student loan dep about $32,000 and about $2,000 in credit card debth so I'm looking at around $100,000 that I made it so my question is I don't know what to do with this vehicle um the warranty company only wants to cover about $7,000 for a total repair that cost 20,000 so I would have to come out of pocket um I don't know if I should get rid of this vehicle I don't know how much they would give me for the vehicle the dealership um well they haven't given me that answer yet but I wouldn't give it to the dealership how what's it worth if you don't repair it what's it worth if you were to sell it um one now it doesn't have an engine right I would have to get a new engine so I'm thinking around $30,000 I honestly don't know and it's going to cost $7,000 out of your pocket you said to get it fixed no the warranty company is willing to give me 7,000 why are they only willing to cover a third of it I have no idea either they cover it or they don't I'm confused why they go well it's kind of our fault so guess we'll cover Seven Grand they Audi made a Audi made a repair um two weeks later I get my car well I get my car back after a few months and then two weeks later after I get my vehicle back I had the same issues but now my engine went out I would fight this to where they cover the full 20k that's personally what I would do is I probably would not sleep and I would just Badger them and wear them down until they go all right she's a squeaky wheel let's just cover this repair yeah I honestly we've been doing with the dwars company since November speak directly on your phone Danielle we're having a hard time hearing you sorry okay so they pretty much told me that um I've been dealing with this since November of 2023 so as you can see we're what are you driving now well um Audi gave me a loner vehicle so I've been driving yes I still have the laner vehicle do you have any money saveday I do not have any money saved um I got yes what do you make a year uh 65k girlfriend girlfriend girlfriend my goodness what were you thinking buying us how much do this car cost you 70 grand yeah around 75 grand oh do you yeah okay what's the payment on this am I know um the payment is high so I'm currently it's about $1,600 a month plus girlfriend 1,600 yes what's the interest rate 12% Jade's stretching she need she might need to take a walk I need take a walk I totally I totally got screwed over no you didn't get screwed you chose this let's be honest you chose it because here's I just want you to know I what I want to I need to be able to sleep tonight and so I need to understand that had you not had any engine problems let's just pretend this last year was gravy and you had no engine problems you're just paying 1,600 a month on a $75,000 vehicle when you make 65,000 I was hoping you were going to say yeah I make 200,000 I okay this tracks did you know it wasn't good like the the first two months were you like dang um honestly at first I was renting out that vehicle so I didn't have those payments um you renting it out like on turo or something yeah yeah so you fell for the scheme that I'm going to make money off this and they'll pay the payment for me pretty much and then um my other vehicle that I had it ended up getting stolen for me so I ended up using the Audi and then um someone stole your vehicle yes and they never found it they never found in now here's what I did insurance cover it yes I got insurance in gap so they did cover it and what did you do with the insurance money yes they didn't give me anything cuz I had still OD on that vehicle oh my it's not first rodeo making bad decisions yeah I know so this vehicle I I don't I don't know what to do so tell me again you said it before but I was writing down so uh warranty so far is only going to pay 7K what are you on the hook for that would have to pay the difference they said the total cost would be about 20K just to get a new engine okay so you're on SP 13 let's play out both scenarios let's say you sold it as is and you get 30k that's what you told us that means you're in the 35k where you need to go out and find $35,000 whether it's your own money or getting a loan you need to go into debt another 35k the other option is you're in debt 13 extra, to cover this engine repair because the warranty company's going to cover seven right yes so on paper option b is a better option they're both terrible but that's a better option right now is that you get the engine repaired and then you're able to at least sell it yes so that's what I would do if I was in your shes whatever you need to do to get this engine repaired do that and then sell the vehicle immediately but not to the dealer not to the they're going to screw you on this deal because they already did MH so you'd have to sell a private party to get the most value out of it and I want you to talk to I want you to get with somebody on this because cars I know you've been trying to make it your thing but I don't think it's your thing and so find the wisest person that you know I don't know if that's dad or big brother or a cousin or your best friend's brother whoever it is get with that person when it's time to sell this vehicle and when it's time to get this vehicle fixed because I don't want them taking you for a ride um figuratively when it comes to the price anymore on this I just feel like you've been screwed every way which way possible and I don't want that to continue for you um on the on the fixing or the sale of this vehicle and from here on out George tell her the rule on buying these cars from here on out I think you should buy the cheapest car possible Danielle at this point but the parameter Ramsey is you pay cash it's a used car unless you're a millionaire probably four plus years old and the value of the vehicle is no more than half of your annual income the value of all things with wheels and Motors so for you if that's one vehicle which do you have multiple toys or Vehicles no it's just this it's the only one okay and so right now that would mean with your $65,000 income you would buy no more than about a $30,000 car when the time comes in cash I still think that's you don't need to worry about that until you're out of debt completely you get the student loans knocked out the credit cards knocked out you have an emergency fund let's get the income up then let's save up and pay cash so this could be years down the road but for now we need to figure out a way to get that 13 Grand that might be you go to a credit union if you your credit's not shot already and go hey I need 13 Grand to cover the difference to get this engine fixed to then do you have the the car loan through someone um it's through um through W Fargo yes you might want to go to them and say listen you got bad collateral on this thing cuz it's only worth 30 right now I owe you 65 I want to get this loan paid off it's impossible right now unless you guys loan me this 13k on a personal loan to get this engine replaced yeah my credit's good um I don't have an issue with that it's then let's do it I made a bad decision yeah yeah so that's that's what I would do Danielle and it's going to hurt and God bless the USA when we can be $100,000 in Consumer Debt but we have great credit by gosh look at that Jade I got an 850 but I don't have 800 bucks in the bank account and I'm $100,000 in debt that is the American way I can't even respond I'm shth 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