This man pays $1,200/month for his $56k car, has $94k in debt and blames it on a weird ‘dynamic’ with mother-in-law

February 18, 2025

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This unemployed Texas man pays $1,200/month for his $56,000 car, has $94,000 in total debt — and blames it all on a weird ‘dynamic’ with mother-in-law. Dave Ramsey blasts him for it

American households carry $1.66 trillion in auto loan balances collectively, according to the Federal Reserve, and there are propably millions of different excuses that peoply may give you to justify taking on massive auto debt. For Emmanuel from Texas, that justification appears to be a “super difficult mother-in-law.”

As he explained to Dave Ramsey on a recent episode of The Ramsey Show, Emmanuel purchased a car despite being unemployed because he didn’t want to rely on his mother-in-law’s vehicle. Making matters worse, Emmanuel bought a car he couldn’t afford and now owes $56,000 on the auto loan, with the monthly payments coming in at $1,200.

“I’m sorry, there are no family dynamics that require a $56,000 car; That’s absolute bullcr-p,” said Ramsey. “What kind of ridiculous family dynamic causes you to buy a $60,000 car you can’t afford?”

As Emmanuel struggled to justify his purchase, Ramsey and his co-host Jade Warshaw were left incredulous. But the unfortunate reality is that Emmanuel is not alone, and his story highlights how an irrational car obsession has driven many Americans into unsustainable debt.

The rising cost of cars, along with rising interest rates, have created a double-whammy for the average American family’s transportation costs in recent years. As of January, 2025, the average new car price is $49,740, according to CarEdge. Meanwhile, the average auto loan interest rate is 6.84% for new cars, according to Edmunds.

Families are also increasingly burdened by the service costs associated with their vehicles. On average, American drivers spend 20% of their income on car-related expenses, while one in ten drivers spend more than 30%, according to Marketwatch Guides. Meanwhile, Edmunds reports that 4.2% of drivers are paying more than $1,000 in monthly car payments.

These numbers suggest that Emmanuel’s situation isn’t unique, but rather increasingly normal. However, his unemployment and the fact that he’s raising two young children makes this debt burden much more concerning.

Only 1.38% of auto loans are expected to be delinquent in 2025, according to TransUnion, but without a new source of income or adjustments to his debt burden, Emmanuel could easily become part of this tiny cohort.