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

[Music] brought to you by the Every Dollar app. Start budgeting for free today. >> So, I've been a full-time gig worker. I've been driving for Uber and Lift and I financed two vehicles. Um, the first one I financed was a Honda CRV. Um, and when I bought it, I bought it at the at the peak when prices were so uh inflated. You know, dealerships were marking up prices and there was low inventory and you know, the car prices were much higher, right? So, what did you pay? >> I bought it in 20 uh I financed it for 60 60k. >> This was in 2020, like the beginning of 2022. >> You you financed a Honda for 60k to drive Uber. >> It was It was Okay. So, it was like 59 out the door. >> Well, I mean, you financed a Honda >> for 50 or $60,000 to drive Uber >> and CRV. >> Correct. Cuz I I got So the thing is I got advice from other drivers that hey, you can really make good money. >> You got financial advice from other Uber drivers. >> Yeah. >> You just said that out loud. >> Yeah. >> Wow. Okay. >> Okay. So you got the $60,000 car. What else? >> Yeah. And so it was just a regular SUV. And so um I was making decent money at first. I was making about 2,700 a week um 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. >> Uh, and you know, Uber Green is like that feature that gives passengers the option to ride in a vehicle that's uh 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 $500 or $600. Then I was like shoot I was talking to other drivers. They're like hey you might need to level up get an XL vehicle which is like a three row seat SUV. >> Right. So then what I did was >> So did you trade in the CRV for >> No, no, no. I I went to the I went to the dealership. I put down because I had savings of 50,000. I put put down 30,000 to get the um it was an Acura MDX. So, you kept the Honda CRV and then got an Acura MDX. >> Yeah. They they didn't want to they dealership was like, "Hey, we take it. There's like a lot of negative equity." Da. So, I was like, "Maybe I should take maybe I should just keep this car." >> So, what' you pay for the MD first of miles? >> Um about 54,000. >> Oh, Lord. >> Um and I got this but I got this a little later. I I bought this one in like 2024. >> You financed 54. So you put down 30 and financed 54. So you paid 84 for it. >> Correct. >> Yeah. Stupid. Exactly. And >> I'm really pissed off at my >> Joseph. How old are you, Joseph? >> 29, sir. >> Okay. All right. Do you have a real job yet? >> Uh I did at the at the moment, but I was just I wasn't making the kind of money that I was making doing Uber and Lift. >> No, honey. You weren't making any money doing Uber and Lift cuz you haven't been smart enough to factor in all the losses on your vehicles. >> You're right. You're right. >> 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. >> Yeah. And I was going to get to that. Yeah. >> By the time you do all of that, you didn't even make you didn't even make money on all this. >> You've been working for free for Uber. >> That's true. Um because I I at first I saw the money was great. You know, like when I got >> No, the gross revenue was great. The net profit was not great. >> 3500, right? >> There's a difference. Yeah. >> Okay. So, now you're stuck in these two cars, honey. >> What a mess. >> Two car loans. >> And And do you have a job now? >> Uh, currently, uh, yes, I do have a job. What do you make? Um, unfortunately, about 22 an hour. Not a lot. >> Okay. What were you doing? >> I don't have many. I don't have I don't have a lot of skills, you know. >> What were you doing before your Uber escapades? >> Yeah, I was just I was working as an I was just doing regular uh minimum wage jobs, you know, like working in customer service industry, like fast food, restaurants, you know, service industry and then, you know, security. >> 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 >> there? Okay. So, if I were to sell it to a dealership, um, >> private sale, please. >> Private sale, not deal. >> Private sale. I've I've um private sale. I mean, it's worth on Kelly Blueick about 48 because >> And you owe what? >> And you owe what? >> Uh, 54. A little over 54. >> So, >> and but the problem is I don't have any money left over. So, I wouldn't even be able to pay the difference. >> 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. >> Yeah. >> Oh my gosh. >> Are you sure? Wait a minute. That is that That's what the dealer >> There's just no way. Yeah. >> I mean, how many miles put on How many miles you put on it? >> About 30,000. >> Oh, something doesn't add Is that Does that sound right? >> No. >> I was going to say that doesn't add up to me. >> Um, okay. So, well, here's the deal. >> Well, no, because it's a newer It's a 2024. That's why the value is not so low. >> That's why it dropped so much. Mhm. >> Still. >> Oh, no. Wait, wait. Did it I'm confused. Were you guys expecting a lower number than 40? >> Well, typically expecting a higher number. >> Yeah, because you put 30,000 down, which means there's that much room. >> You had to lose $30,000 in value before you got upside down. >> Right. Right. But when I bought it, it was brand new. had zero miles. I get 30,000 miles on it, >> which is not a lot. >> It is in one year, but it's not enough to devalue it that far. >> Um All right. And they're rough miles. Um >> 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? >> It's Yeah, it's kind of bad because I'm I'm I'm late. I've been late for a month. >> Okay. >> On one vehicle. And I assume both of these loans are with the car companies, right? >> Yeah, both with the same. Yeah. >> No, they're with the same. Who are they with? >> Uh, you know, Honda, what do you call it? Finance like >> Yeah, they have like their own financing. >> Yeah. Yeah. >> Yeah. Got it from the same dealership and so Yeah. >> Okay. Um, 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. Um, 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 $6,000? >> How fast you make $6,000 and just put that aside and get rid of this one car driving the other one, >> drive the Honda? >> So, 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. >> Listen, you can make $6,000 make doing anything. I don't care if you get a job at Target. >> I I I get that. It's It's not simple, you know, especially with like I gotta pay for like groceries. I got to pay for, you know, what market are you in? >> It's very California. >> I know. We're in California. >> Yeah. San Francisco. >> Okay. Yeah, you probably do need to move to a different market. You're in one of the most expensive markets in the world. >> Um the only good thing is there the Uber is expensive, but other than that, your cost of living is >> killing. It's going to >> 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, the the second car, cuz 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, um, 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