“You’re Hurting These People!” – Low-Income Earners Being Priced Out of New Car Market

In this short clip, Patrick Bet-David and Tom Ellsworth talk about low-income earners being priced out of the new car market.

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Low-income earners earners in America Are being priced out of new cars Market While high earners are buying more than Ever before spending on new cars by the Lowest 20 percent of earners reach its Lowest and 11 years while spending by The top 20 reached its highest on the Record according to 2021 consumer Expenditure survey so by the way what They're saying is the rich are getting Richer and the poor getting poor which I'll have my point on this one here in a Minute the average price of a new car in U.S hit forty eight thousand eight Dollars in March up 30 percent from March of 2020 and the demand for cheaper Models have been shrinking for years the Problem preventing many Americans from Buying new cars are twofold one Rising Interest rates have made car loans far More expensive with the average monthly Payment reaching 7 30 in April of 2022nd The supply of Cheaper cars have been Shrinking as manufacturers focus on more Expensive high-end models the global Chip shortage caused by the pen pandemic Has forced automakers to ration their Components reserving them from more Profitable Vehicles Tom what are your Thoughts on this I got some thoughts but I want to hear from you first Um well this is this is what's you know When um when money is no longer free and You can no longer get you know that

Two-year lease with those teaser rates Yeah um you know and let's face it a lot Of people are aspirational about their Cars what I mean by that is they run to The payment that they think they can Afford to get the glitzier vehicle Very few people are thinking like you Know Dave Ramsey and other people that Says hey be very practical about your Personal budget in the car you get think About safety think about what you can Get but right now what I see I see this Um a friend of mine turns in a Mercedes GL SUV now remember this is we're not Talking a G wagon just Mercedes GL and He had it on a three-year lease in the Name of his company he goes into the Dealer and he says what's my buyout on This because the vehicles are expensive I'm just going to buy the vehicle Um and says give me the number and he Said we'll give you two numbers here's The bio number that's in your contract And here's fifteen thousand dollars he Said what's the fifteen thousand dollars We will buy that vehicle from you right Now for fifteen thousand dollars and he Said yeah but if I walk back in the door To get another new one on the lease What's that going to be and so the Economics didn't add up and so he paid About forty eight thousand dollars Bought out the Mercedes GL had very low Miles on it

Um after three years and then it's like Oh my gosh the high-end cars the demand Is there to the point that that was a Local Mercedes dealership going to do That yeah first person can't do that Though no the average person can't do That but that's the point they're making About what's happening in the high end Now in the on the low end What's what's happening is the American Public has been a payment based public Right the average person is payment Based oh I can afford that payment so I Can get something a little financing Everything And they do they do the payment to Lifestyle I can afford that payment so I Want to step up so I can get the Lifestyle out of it and what's happening Is the interest rates are up and the Little mini lease and the cheap lease Two year three years the party's over And now they're having to go in and look At wow that's forty eight thousand Dollars plus 10 and everything so it's 53 out the door and I'll put you know Five grand down if they've got that so Forty five thousand over five years Bingo 700 bucks you know and it's um and There's the pinch point and I think the Pinch point is the reality and the Average American doesn't want to go in And get the base model you know Toyota Corolla that's not what they want

You don't have a choice still but but Here's what I will tell you here's what I will tell you to the people who talk About the rich get rich and the poor get Poor and they complain about it you have To realize every one of these things That you're seeing happen that's Destroying Middle America folks The the concept of well you see you know What what about the middle American Income you know what they can't afford a Car like this well let's talk about why What's causing this what is causing this To destroy Middle America that they Can't afford something like this because The guys in the middle that are working Their tails off for 22 bucks an hour 28 Bucks an hour trying to do what they can For their kids their families you know They're sitting there saying I cannot Get a new car I I can't get a new car I Have to go finance a used one and it's Backfiring on me bad policies have Consequences many policies seem Noble Today I'm reading a book it's called Toxic uh charity I don't know if you've Read this book toxic charity And I'm going through it and he starts Off the book Tom by saying the following He says I have to read this to you he Says uh uh uh man I gotta find this to Tell you there it is okay he says over a Trillion dollars of Charity was given to Africa do you know what percentage of

The money that was given to Africa was Actually used and went to the people 15 85 of the trillion dollars that was Given to Africa to help everybody was Like we're gonna help Africa We are the World we are the children This is what a great cause let's keep Raising money did only 150 billion out Of the trillion dollars went to the People what happened to the 85 trillion Dollars and then he continues talks About never do for the poor what they're Capable of doing for themselves this is A guy that's been doing charity for 40 Years and he says I'm here to tell you More churches and Charities are Destroying communities coming from a Good place but they're hurting them so I'm listening to this recording has Nothing to do with politics all he's Doing is calling our churches and he's Calling our Charities and I said I'm Like what is this guy's point you know Look at the subtitle right there Tom how The church hurts those they help and how To reverse it this is a guy that's a Christian guy that's been raising money For 40 years and he's saying this the More you read the book the premise is You think you're helping people by Giving them money you're actually not You're hurting these people so when These guys were talking about let's send Money to people

Let's do another trillion dollars let's Do another trillion dollars let's do two Let's take care of these people let's do What's Andrew Yang's plan about a Thousand dollars every month being given To people what did he call that uh Ubi Universal basic income let's send people Money this is we can afford it we can Afford it we can affordable because they Need a living wage wait who determines What the living wage is and the Government starts turning the dial on What a living you know what a living Wage should be a Ford pickup so I'm Going to turn the dial up oh is it Election year we're giving everybody a Truck now They send them the money And then all of a sudden you know what They did with all this money they sent To help the poor you know what they Really helped they're rich Because what they don't realize Poor People's problems is their habits listen When I was broke and if it was fifty Dollars in my bank account all I knew What to do with the fifty dollars was What to spend it if I had five hundred Dollars guys let's go out it's on me if I had four hundred dollars I had such a Poor broke mentality with money until That changed nothing was going to change So rather than trying to help these Folks with the money you sent to them

That they don't know what to do with it First thing we got to do is teach them About how money works but nobody wants To teach people how money works it's all The other stuff that people want to talk About this book psycho cybernetics this Guy Tom who becomes a a Surgeon he does cosmetic surgery for 15 20 years they ask and they said why did You become a cosmetic surgeon he says Because I wanted to make people happy And he says every time I would do Surgery this this book still by the way 35 40 million copies he said every time We do surgery I would look at their Faces they were so happy and I'm like Man I made somebody happy today breast Augmentation or face or whatever he was Doing he says you know what happened six Months later they went back to the same Depressed miserable people they were he Says I realize after doing this for 15 20 years you can make people happy from The inside from the outside you can only Make them happy from the inside so he Went and got away from that business and Started becoming a psychologist working With people on the mindset writes a book Called psycho cybernetic cells 35 Million copies what we're trying to Solve all these poor people's problems From the outset by sending money to them Why don't we work from the brain why Don't we work from teaching them

Mentally on how to deal with their Finances and other areas of their lives So the next time it comes to vote for Sending more free money to people just Remember this the more free money you Send to the market all you're doing is Making the rich richer and the rich keep Getting richer and the poor keep getting Being poor because your policies that Sound Noble on the outside actually Destroys Middle America Tom I I Completely agree and Pat you know where My charitable heart is but you also know That my charitable heart changed about 12 years ago because I was I was part of American mega churches and you know I Was a person attending there but then I Would look around and say no wait a Minute you know where can the church Have the highest impact during a Disaster Karina There's not people down there it you Know it didn't rain four foot of water And then you know uh Lake Pontchartrain Flood because of their habits it was Because of Hurricane Katrina and you can Go down and provide relief and you can Meet certain basic needs you and I both Know of a church in um in Dallas where We used to go and they operated a Medical clinic for people who did not Have medical insurance but they didn't Come in there to get a gift they came in There to get you know an antibiotic when

They had bronchitis and they had no you Know medical insurance or it was a Single mom that had inadequate insurance That is where Charities can stand in the Gap where 90 of that dollar is providing A bridge on something that is not Lifestyle related and what you're Talking about there are there are Organizations out there and they hate Them you remember the Auto industry Thought of JD Power the first time they Were putting out those Awards they were Like who is this SOB that's doing this And they hated it because the lists were Real and they couldn't just put million Dollar marketing around the list sorry Dude your SUV is not reliable and Therefore you don't get the JD Power Quality award now people you know that Kind of forced them what's happening in Charities Pat is there are organizations Out there that are looking at the two Taxes tax number one you give a dollar To a charity how much of that dollar Gets used up by the local Administration The people in America collecting the Dollar operating the office and if it's More than about eight to twelve percent That's an inefficient charity the second Is how much of the dollars so now let's Just say 10 now we have 90 cents over 90 Cents we're going to feed the children In Africa okay how much gets to them and What was it doing

And then you find out that there's a Government tax in there that the Government actually snatched 50 percent Of that or that you do the most terrible Thing is you buy commodity like flour And things like this that's a tradable Commodity guess who takes it half of it Is taken by the by the government and The government then sells it so the Average American doesn't know I gave a Dollar wait a minute a dime went to These guys Administration in the U.S and Then the rest got to Africa and that's Exactly what he's talking about this guy Let me let me tell you what he says he's So right about toxic charity here's what He talks about in the book he says he Says uh lupton's oath offers six basic Guidelines never do for the poor what They can do for themselves two limit One Way giving to emergencies yes empower The poor through employment lending and Investing using grants sparingly turn Reinforce reinforce achievements for Subordinate self-interest to the needs Of those being served five listen Closely to those you seek to help and in Particular listen to what is not said Be apparently felt and above them all Do No harm and then he talks about the five Cycle okay this this is very powerful The ever descending life cycle of Charity one-way charity give once and You listen give once and you elicit

Appreciation give twice and you create Anticipation you're gonna give it to me Again I anticipate it three times and You create expectation where's my money Give four times and it becomes Entitlement give five times and you Establish dependency okay very Interesting when you think about this Give once you elicit appreciation gift Wise you create anticipation give three Times you create expectation give four Times it becomes entitlement and give Five times you establish dependence well You know what this means and I'm gonna Make I'm not gonna make enemies here but I'm gonna upset some people so those of You that are Christian churches Preaching from the pulpit about how what Is welfare done look how welfare has Messed up our city they've created the Dependency of these people look in the Mirror because some of the stuff you're Doing is causing the same thing Yeah and it's happening I mean you you You you know and by the way I learned This the hard way in my third year in Business I was 24 25 years old 26 years Old I put on my own sales office and I Had a good friend of mine who was one of My sales guys and he starts making money But he starts dating this girl and he Buys her like a three four five thousand Dollar Rank and he takes her on this you Know place and he's spending all this

Money and he says I can't afford to pay Rent this month and he says but you make Money off me so give me a break for one Month I said no problem give me a break For a second month no problem give me a Break for third month no problem you Know what happened by the fourth month By the fourth month it was expected that He doesn't need to pay rent by the Eighth month when I ask for rent of the Previous eight months that I was paying Myself he became an enemy relationship Changed from that day on so as much as You're thinking you're doing good you're Hurting them when you go out of your way So if you like this clip and you want to Watch another one click right here and If you want to watch the entire podcast Click right here [Music]

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