Nov 18, 2025
While as many as one in 10 American workers rely on the gig economy for their primary income, these jobs aren’t always sustainable.
In fact, one young man is learning the hard way that the upfront investment he made wasn’t worth the money he earns.
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Recently, 29-year-old Joseph from California called The Ramsey Show to ask hosts Dave Ramsey and Jade Warshaw if he should surrender one of the two cars he financed to drive for Uber and Lyft (1).
Joseph explained that he first financed a Honda CRV for $60,000, thinking that he could pay it off with his earnings. However, while he was initially making about $2,700 per week, his earnings decreased sharply after Uber changed its eco-friendly program for hybrid vehicles. He then bought an Acura MDX to qualify for the UberXL program, putting down $30,000 and taking a loan of $54,000.
Now he’s given up driving and working another job making $22 an hour, but he’s behind on his car payments, which are $2,800 a month, and his credit score is tanking.
“You financed a Honda for $60K to drive Uber?” Ramsey asked dumbfounded.
Here’s the advice they had for him.
‘You've been working for free for Uber’
Ramsey had some harsh words for Joseph, who plunged into this work without understanding the costs and risks associated with it.
“You weren't making any money doing Uber and Lyft because you haven't been smart enough to factor in all the losses on your vehicles. When you factor that in, you didn't even break even … You didn’t take out gas and repairs either, did you?” he said. “You didn’t even make money on all this. You've been working for free for Uber.”
Joseph explained that Uber seemed like a more lucrative job compared to the minimum wage work he had been doing. However, his hasty decisions have led him to a bad place financially.
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Ramsey told him to get rid of the second car he bought, but explained that if Joseph allows one or both of the cars he has financed to be repossessed, he may find himself filing for bankruptcy.
“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,” he explained. “You're going to find out that your Uber career bankrupted you, along with some really stupid decisions.”
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What is voluntary repossession?
Voluntary repossession is when you surrender your vehicle to your lender because you’re unable to make the loan payments associated with it. While this is different from involuntary repossession — where the lender reclaims the car against your wishes — you should know that any type of loan default will negatively affect your credit. However, voluntary repossession is typically less severe than involuntary repossession.
Having your car repossessed is a serious issue, and can have an impact on your credit score for seven years, in addition to the number of missed payments you might have associated with your car loan.
Also, even after you surrender the car, you may still owe money on the loan. As Ramsey said to Joseph, the lender may sell the car for less than your loan price, leaving you on the hook for the difference. You can be sued by the lender if you can’t pay up.
In addition to these consequences your car insurance rate may go up, because your insurer considers you a bad risk going forward.
Gigging in the ridehailing economy — what you need to know
When you’re looking to get in on the ridehailing action, you should know that a car loan is, in this case, the same as a business loan. It’s a risk you’re taking on that you’ll be solely responsible for. Also, though it sounds obvious, driving for Uber, Lyft or another ridehailing company is not like a regular job: There’s no guaranteed minimum hourly wage, and a lot of drivers who are inexperienced can find themselves barely breaking even, or in the red after a shift.
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One driver named Clarke Bowman shared his experiences with Business Insider (2). “Imagine my surprise when I accepted my first [Uber Pool] ride, picked up two people, drove for 34 minutes and 24 seconds, completed the ride, and earned just $9.41,” he said.
Before investing in a new car, it may be worth it to drive your existing car for at least a few months to get a sense of how much you can make on average. That way, a few weeks of good earnings won’t skew your perspective the way it did for Joseph. Knowing how much you make, and tracking your expenses for insurance, gas, repairs, and car detailing services, can help you to get a good sense of how much you can afford for a new car loan.
Read More: Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Getting your finances back on track
If you find yourself in a similar situation, with car payments that you can’t afford, know that you’re not alone. More Americans are falling behind with their car payments than ever before, but there are ways to get back on track.
One way is to sell the car yourself. As Ramsey said to Joseph, “The best thing to do is to control the price of the sale.” By selling the car on your terms, you have a better chance of getting a fair price in comparison to a car sold through repossession, and you can make a plan to cover the balance of your loan.
Ramsey advised Joseph to do his best to earn as much as he can over the next few months, possibly even driving for Uber again when he has the time, so that he can pay off the loan fully and move forward with his financial lessons learned.
To dig out of a financial hole, consider the following steps:
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Track all your expenses: Joseph should get a clear picture of both his business and personal expenses over the last year by reviewing his bank, loans and credit card statements so that he really understands where his money goes and where he can trim.
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Pay down expensive debt: If Joseph is behind on any other high-interest payments, he should be working on making those payments as soon as possible to protect his finances and credit score.
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Build a $1,000 emergency fund: One of the core steps in Ramsey’s financial recovery program, a starter emergency fund can help Joseph handle any unexpected expenses that may crop up while he’s getting his finances back on track. Once his debt is paid off, he can focus on building up this fund to cover six months of expenses.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
The Ramsey Show Highlights (1); Business Insider (2)
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Rebecca Holland is dedicated to creating clear, accessible advice for readers navigating the complexities of money management, investing and financial planning. Her work has been featured in respected publications including the Financial Post, The Globe & Mail, and the Edmonton Journal.
