'You're About To Turn $38K Into $8K So Fast You're Gonna Blink' Dave Ramsey Slams Caller Who Used Company Stipend To Lease A New Vehicle

When a caller named Alex phoned into Dave Ramsey's show for financial advice, he likely didn't expect to hear a warning that he was about to lose tens of thousands of dollars. But that's exactly what happened.

In a TikTok clip Ramsey shared, he responded to Alex's question about using a company stipend to cover a $38,000 vehicle loan — and he didn't hold back.

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A Company Stipend Sparks a Costly Decision

Alex had recently accepted a job that involved heavy travel. As part of his compensation package, the company offered him a monthly vehicle stipend. "So I went out and bought a brand new vehicle," he said, explaining that the stipend helped cover the car payment.

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The loan, however, was entirely in Alex's name. "I owe about $38,000," he told Ramsey, adding that his household income was around $95,000 a year.

When Ramsey explained that the company does not require employees to have a loan or lease to receive the stipend, Alex confirmed they didn't. The only requirement was that the vehicle be within four model years of new to qualify for the reimbursement.

Ramsey Breaks Down the Financial Pitfall

Ramsey was quick to point out that Alex had misunderstood the purpose of the stipend. "They are asking you to use your car for work, and so they are giving you a vehicle stipend," Ramsey said. "They did not require you to have a payment in order to get the vehicle stipend."

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The financial expert emphasized that tying a stipend to a car loan was a costly mistake, especially when the car would lose value quickly due to the high number of miles Alex drives for work. "You’re about to turn $38,000 into $8,000 so fast you’re gonna blink," Ramsey said.

The Problem With Overinvesting in Depreciating Assets

One of Ramsey's key points was the risk of putting too much of your income into depreciating assets. In Alex's case, his household had about $53,000 tied up in vehicles — $38,000 for his and around $15,000 for his wife's. That's more than half their annual income.

"You don't get rich tying up a large, substantial amount of your money in things that are going the wrong way," Ramsey said, referencing vehicles, boats, motorcycles, and other motorized machines that lose value over time.

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A Smarter Strategy for Road Warriors

For someone in Alex's situation — traveling frequently and putting significant mileage on a vehicle — Ramsey advised treating the car as a business tool, not a luxury.

"You want to lose as little money on vehicles that you’re destroying the value as possible and still get the job done," he said. That means choosing a reliable, reasonably comfortable, used car within the company's requirements — ideally something three years old that you can replace more often and pay for in cash.

Ramsey wrapped up the segment by reminding listeners that if Alex's job ended tomorrow, the stipend would disappear — but the $38,000 loan wouldn't. That's the risk of relying on a benefit instead of sticking to a solid financial plan.

Bottom Line: Before taking on debt for a vehicle, especially one tied to work, it's wise to look beyond the short-term benefits. Consider the long-term impact on your finances — and what happens if the job goes away but the payments stay.

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