‘You are denied, denied, denied’: Suze Orman says cars are now a ‘huge financial risk’ as drivers make the same mistakes

June 2, 2026 - 18:48

Personal finance expert Suze Orman is sounding the alarm on a costly habit that is trapping drivers in a cycle of debt. In a recent episode of her podcast, the author and financial advisor broke down why rolling an old car loan into a new vehicle purchase is one of the most dangerous mistakes consumers are making today.

"You are denied, denied, denied," Orman said, describing the financial reality many face when they try to trade in a car they still owe money on. She explained that with rising interest rates and inflated vehicle prices, the typical strategy of transferring negative equity to a new loan has become a "huge financial risk." Instead of getting a fresh start, borrowers often end up paying thousands more in interest on a car that is already worth less than what they owe.

Orman pointed out that many drivers focus only on the monthly payment, ignoring the total cost of the loan. This short-term thinking, she warned, can lead to years of financial strain. Her advice is blunt: keep your current car as long as possible, pay down the existing loan, and avoid the temptation of a newer model until you are truly debt-free. For those already underwater, she recommends aggressive extra payments to break the cycle.