[video:youtube]http://video.foxbusiness.com/v/3951927/ramsey-never-ok-to-finance-a-car/?#sp=show-clips[/video] This video was dated in 2011, but maybe still true, well, we all have opinions , you decide...
Dave Ramsey on new car purchases.
- Thread starter CourierDriver
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Dave will bust some egos here.
I know a dingbat who traded a plymouth sundance (paid $7k brand new) on a 4 door GMC sonoma, with a piddly 4-foot bed. Said he/she'd use it "to take recycling to the dump".
When someone wants to justify buying a new car, they'll find the means, no matter how lame.
And someone has to buy them so the rest of us can get the hand-me-downs.
When someone wants to justify buying a new car, they'll find the means, no matter how lame.
And someone has to buy them so the rest of us can get the hand-me-downs.
Good advice for the buy here pay here car lot morons.
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Mr. Ramsey is preaching to the choir, this would be a better PSA if it played outside of auto row USA.
FWIW, it also occurs in Canada, but we buy smaller cars
)
FWIW, it also occurs in Canada, but we buy smaller cars
)
I like Ramsey and he helped us a lot, however he lives in a different world than we do when it comes to cars (or just about anything else for that matter).
I tried his car plan and ended up with old cars (all I could afford and still a stretch for us to buy) that were tag team "thousand bucking" us every time I turned around. The cars alone kept our so called "emergency fund" in the red all the time. Far more expensive and frustrating than a couple newer vehicles with a payment.
With the demand and crazy prices used cars are fetching these days, newer cars make more sense than ever.
I tried his car plan and ended up with old cars (all I could afford and still a stretch for us to buy) that were tag team "thousand bucking" us every time I turned around. The cars alone kept our so called "emergency fund" in the red all the time. Far more expensive and frustrating than a couple newer vehicles with a payment.
With the demand and crazy prices used cars are fetching these days, newer cars make more sense than ever.
Not sure I agree with his view that "if you can't write a check for a car you can't afford it". New cars aren't cheap these days, so people who want a nice new car need to make a large down payment and then get a good interest rate. Get the vehicle you want and keep it for 10~15+ years to average out the interest cost over that time period of ownership.
I have the ability to write a check for a new truck if I wanted, or I could finance the entire purchase save for $1k at 0% for 72 months.
If said capital is kept in my business I will earn a very nice return on it, and in 7 years it will be worth a heck of a lot more than $35k. The truck will be worth about $5k in 7 years regardless of how it's purchased. Also I think we can all agree that a dollar today will be more valuable than a dollar will be in 2022.
So David old buddy, why would I sacrifice 35k of my hard earned soldiers who are ready, willing, and able to go out and capture many more for me on the alter of a Ram truck today, when I can sacrifice someone elses for no cost whatsoever. In fact I might even get a small rebate for doing so!
If said capital is kept in my business I will earn a very nice return on it, and in 7 years it will be worth a heck of a lot more than $35k. The truck will be worth about $5k in 7 years regardless of how it's purchased. Also I think we can all agree that a dollar today will be more valuable than a dollar will be in 2022.
So David old buddy, why would I sacrifice 35k of my hard earned soldiers who are ready, willing, and able to go out and capture many more for me on the alter of a Ram truck today, when I can sacrifice someone elses for no cost whatsoever. In fact I might even get a small rebate for doing so!
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"Car payments are a way of signing up for middle class and staying there...."
I have to agree with that one statement of his. My parents gave me an incredible role model with vehicles/finances as they have only owned 3 cars outright my entire life and their home bought cash.
I have to agree with that one statement of his. My parents gave me an incredible role model with vehicles/finances as they have only owned 3 cars outright my entire life and their home bought cash.
Cars have never been cheap, can remember my Dad saying that new Plymouth he wanted was 2200 bucks in the fifties, brand new...mercy
Whatever happened to establishing good credit history by taking out a loan?
Or that taking out a loan below the inflation rate is effectively MAKING money? Getting 1.99% or better isn't hard these days.
Again, Dave's opinion is just that...his opinion.
Or that taking out a loan below the inflation rate is effectively MAKING money? Getting 1.99% or better isn't hard these days.
Again, Dave's opinion is just that...his opinion.
Financial institutions make more money on cars than the manufacturers of these vehicles. Marketing enterprises sometimes make a big chunk of those car dollars as well. So, you must pay attention to the marketing and when you receive your instructions go to the dealer, pick out your vehicle and sign the loan papers. And remember, when your current vehicle is almost paid off you must repeat the process. Please, follow all instructions and stay in the loop until you come to a compete stop and can no longer participate in the process of life.
Again, we will only hear from 20 or 30 folks, well, it happens.. millions are use to car payments, just like cable TV, Americans love payments,,but , as a retired person, stand by, you will not love those payments then, imho.
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Originally Posted By: eljefino
I know a dingbat who traded a plymouth sundance (paid $7k brand new) on a 4 door GMC sonoma, with a piddly 4-foot bed. Said he/she'd use it "to take recycling to the dump".
When someone wants to justify buying a new car, they'll find the means, no matter how lame.
And someone has to buy them so the rest of us can get the hand-me-downs.
I like "so the grandkids can be safe" even though their CHILDREN rode without seat belts in a 4 door sedan.I especially like the plaid pants wearing salesdroid who told the older woman who bought a brand new Camry two years ago "they last forever" but NOW "you better think about a trade before big problems start". I called one of these droids personally recently and told him to STOP trying to get my mother to rrade her Camry with 15,000 miles on it.
I know a dingbat who traded a plymouth sundance (paid $7k brand new) on a 4 door GMC sonoma, with a piddly 4-foot bed. Said he/she'd use it "to take recycling to the dump".
When someone wants to justify buying a new car, they'll find the means, no matter how lame.
And someone has to buy them so the rest of us can get the hand-me-downs.
I like "so the grandkids can be safe" even though their CHILDREN rode without seat belts in a 4 door sedan.I especially like the plaid pants wearing salesdroid who told the older woman who bought a brand new Camry two years ago "they last forever" but NOW "you better think about a trade before big problems start". I called one of these droids personally recently and told him to STOP trying to get my mother to rrade her Camry with 15,000 miles on it.
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Originally Posted By: HerrStig
Originally Posted By: eljefino
I know a dingbat who traded a plymouth sundance (paid $7k brand new) on a 4 door GMC sonoma, with a piddly 4-foot bed. Said he/she'd use it "to take recycling to the dump".
When someone wants to justify buying a new car, they'll find the means, no matter how lame.
And someone has to buy them so the rest of us can get the hand-me-downs.
I like "so the grandkids can be safe" even though their CHILDREN rode without seat belt in a 4 door sedan.
and then there are those that just spent 23,000 on a car so they would save money on gas mileage,,,,what the...
Originally Posted By: eljefino
I know a dingbat who traded a plymouth sundance (paid $7k brand new) on a 4 door GMC sonoma, with a piddly 4-foot bed. Said he/she'd use it "to take recycling to the dump".
When someone wants to justify buying a new car, they'll find the means, no matter how lame.
And someone has to buy them so the rest of us can get the hand-me-downs.
I like "so the grandkids can be safe" even though their CHILDREN rode without seat belt in a 4 door sedan.
and then there are those that just spent 23,000 on a car so they would save money on gas mileage,,,,what the...
I find Dave Ramsey and his sister Suze Orman annoying.
Originally Posted By: CourierDriver
Originally Posted By: HerrStig
Originally Posted By: eljefino
I know a dingbat who traded a plymouth sundance (paid $7k brand new) on a 4 door GMC sonoma, with a piddly 4-foot bed. Said he/she'd use it "to take recycling to the dump".
When someone wants to justify buying a new car, they'll find the means, no matter how lame.
And someone has to buy them so the rest of us can get the hand-me-downs.
I like "so the grandkids can be safe" even though their CHILDREN rode without seat belt in a 4 door sedan.
and then there are those that just spent 23,000 on a car so they would save money on gas mileage,,,,what the...
"Better gas milage and a new six year note. But, the sheep sputter, "they" paid off my old loan.
Originally Posted By: HerrStig
Originally Posted By: eljefino
I know a dingbat who traded a plymouth sundance (paid $7k brand new) on a 4 door GMC sonoma, with a piddly 4-foot bed. Said he/she'd use it "to take recycling to the dump".
When someone wants to justify buying a new car, they'll find the means, no matter how lame.
And someone has to buy them so the rest of us can get the hand-me-downs.
I like "so the grandkids can be safe" even though their CHILDREN rode without seat belt in a 4 door sedan.
and then there are those that just spent 23,000 on a car so they would save money on gas mileage,,,,what the...
"Better gas milage and a new six year note. But, the sheep sputter, "they" paid off my old loan.
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