Dave Ramsey: don't buy new car without $1 million net worth

[Jim1921]

Originally Posted by MinivanDriver

In truth, the level of consumer debt payments as a percentage of household income is at a level we haven't seen since the late 70s.

Plenty of debt statistics. Saw this one today:

https://www.dailymail.co.uk/news/art...ly-stable.html

[selhars]

No modern day Acura will be trouble free, they are full of extra electronics and will be a pain to deal with after about 6 or 7 years. Their transmissions are really reliable either. Gone are they days where Acura would last as long as a Lexus.

Well, as much as I love Acuras, If and when I ever need another can they'll lose my loyalty -- as far as my own purchase. I would still recommend them for others and think it's a great brand....based on my experience of owning two of their cars. (The newest being the '06.)

BUT Acura doesn't want my business. They stopped making a two-door hatchback..... that is, other than the racing/sports car NSX that's 150K.... They wanted out of the smaller car market, wanted to move all their cars up in price. They don't make what I buy, so as much as I love the brand, I'll say goodbye to it, and take my business elsewhere. I know Acura can't stay in business on just a few buyers every 15-20 years. But as for THIS customer I hate the decision they made.

[Lincolnian]

I buy new cars at the end of the model year and often at significant discounts to MSRP. In many cases I have purchased a new car for less than the same model used with 25,000 to 30,000 miles on it. There are certainly some good deals on used cars but that is not always the case depending on the area. I have also known people to dump cars right before the warranty runs out because they are problematic. The point is there is no one best answer for everyone and people should explore all options. Living closer to work, driving less, and utilizing public transportation can reduce or eliminate the need for purchasing an expensive car.

A prime example is the purchase of a Subaru Legacy for my in-laws. A friend purchased a used one because he believed that used is always better. He paid $18,000 for one that was three years old with 60,000 miles. I found one for my in-laws at the same time discounted for $19,900 brand new. It was one model down in trim but with all the same essential features. Is the $2000 "savings" truly worth it? I don't believe so but my friend has been convinced that you never should buy a new car and instead should always buy one a few model years old used. The savings are often compared to an inflated MSRP when new. This model supposedly was $28,000 new so he said he saved $10,000. The one I bought had an MSRP of $25,500. So basically the savings on the used one was really only the cost between trim levels. On top of that within 10,000 miles he needed to do brakes and have several other expensive service items done.

[mkpunk]

Originally Posted by Rocko20

A new car is only a waste of money if you don't put a substantial down payment down, essentially offsetting the depreciation before it even happens. Then you're left to finance a car that is worth more than what you owe on it with a solid warranty to cover any repairs.

But it doesn't matter, a used car is a waste of money too so long as there are cheaper options for transportation out there, which there are.

So unless you're taking a bus to work everyday, you're wasting money on a car including insurance, maintenance, repairs (unless you have an extended warranty), registration, inspections, and gas at the very least just like everyone else who is driving a car.

Not everyone lives in an area with good transportation systems whether bus or rail though. If you do, you can easily do without a car. For me unless I work in Phoenix, I have to use a car to get anywhere because there isn't any bus lines. And the express route to Phoenix only really runs on weekdays. Forget doing anything on the weekends.