Do you think financial advisors like Dave Ramsey..etc give people good or bad car buying advice on car buying? (F150, vehicles)
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What about 0% financing offered by manufacturers? So while making those interest free payments, you can invest your cash. Or how about paying off your cc balance each month so you can get freebie rewards? Does he ever talk about these? I honestly don't know cause I don't listen to his show.
His perspective seems to be that from a multi-millionaire who can pay cash for everything. I bet if he were just another radio jockey making $30k his views would be quite different.
Yeah I agree he can help completely clueless people, but I cringe when I hear some women say after listening to him, now Im going to go buy a $2000 car so I dont have payments...whats the matter, do you think its really that hard to find a reliable $2000 car.
For me there is no way I would pay $10K or $20K for a used car vs just finance one with a very low interest rate. I feel more at east with a $200 car payment and $8K set aside incase I need it for other things or major repair vs having a paid off car and if anything happens you now have to come up with $2-3000 for a repair.
Ive have tried to explain to many people that listen to him, if you buy a $1500-3000K beater car, it can easily cost you 1-2 yrs of car payments if you have a transmission failure or major engine problems.
Have you heard of the "Toyota Camry"?
I just sold a 2010 black Camry with a bit over 24k miles in ONE day on Craigslist in Boca Raton.
Buyer paid $10,200 and was stunned that the engine looked 'brand new'.
He paid cash on the spot.
That car - and there are others like it - will run trouble free for many years.
Ask my gf, who is still driving hers after almost 18 years and 170,00 miles.. with NO repairs except a cracked engine mount.
She says her next car will be a Lexus RC 350.
He gives "advice" based on A) assumption and B) keeping up with the joneses!
Financial advice needs to be based on whatever ppl actually make, not based on how much they can "borrow" based on "what they make". Meaning, just because someone makes $50k, and can borrow $50k or more for a car or whatever else that doesn't mean they should.
A society based on DEBT is not a free society.
Quote:
Originally Posted by SAAN
Ive heard Dave Ramsey and many similar financial advisors comment on how car payments are a waste, and if you have to make payments, you cant afford the car, so you should save up and buy cars cash. Then they will usually quote the average payment is $450-650 a month for 6-7yrs at average 8-10% interest. Im not sure how many Americans are actually buying $30-50K cars where they have to make 6-8 year payments at such high and almost insane interest rates.
Then the next advice that is given is for pheople to buy a $1500-$3000 car and then save the $4-600 a month on car payments to buy the next car cash, while pretty much neglecting the topic of upkeep on old beaters. As per many threads in this forum, we can all agree that a $1500-$3000 car will most of the time need $1000-3000 of work to be in top shape, reliable , and give you a piece of mind that it will start and not leave you stranded, unless you are a DIY person or got a previously owned well maintained car.
Many of my friends are now buying into this car advice, so my questions are:
Are they getting good advise or setting them up for trouble?
Do you consider car payments a waste or bad debt?
Should you buy a car cash only?
If you cant afford to buy a car cash, do you consider it that you cant afford the car and living above your means?
For people that take his/her advice, if your car broke down and you need a car ASAP, what other options do you have other than car payments if you dont have $3000, $5000, $10K set aside for a car?
Would you trade in your current car for a 10-15yrs old $1500 car, just so you dont have car payments aka debt?
Ive heard Dave Ramsey and many similar financial advisors comment on how car payments are a waste, and if you have to make payments, you cant afford the car, so you should save up and buy cars cash. Then they will usually quote the average payment is $450-650 a month for 6-7yrs at average 8-10% interest. Im not sure how many Americans are actually buying $30-50K cars where they have to make 6-8 year payments at such high and almost insane interest rates.
Then the next advice that is given is for people to buy a $1500-$3000 car and then save the $4-600 a month on car payments to buy the next car cash, while pretty much neglecting the topic of upkeep on old beaters. As per many threads in this forum, we can all agree that a $1500-$3000 car will most of the time need $1000-3000 of work to be in top shape, reliable , and give you a piece of mind that it will start and not leave you stranded, unless you are a DIY person or got a previously owned well maintained car.
Many of my friends are now buying into this car advice, so my questions are:
Are they getting good advise or setting them up for trouble?
Do you consider car payments a waste or bad debt?
Should you buy a car cash only?
If you cant afford to buy a car cash, do you consider it that you cant afford the car and living above your means?
For people that take his/her advice, if your car broke down and you need a car ASAP, what other options do you have other than car payments if you dont have $3000, $5000, $10K set aside for a car?
Would you trade in your current car for a 10-15yrs old $1500 car, just so you dont have car payments aka debt?
You have already created the justification that you need to not follow Ramsey's advice. Is anything in this discussion going to change your mind?
Car payments are for those who can't afford even an used car or trying to keep up with other Jones.
Just about everyone I know has no car payments or when bonus times comes indulges on a leased BMW but would never finance a depreciating asset. But cheap well maintained new looking used cars.
That's absurd, you can use the banks money and pay zero or.9% and keep your money. How exactly does spending your bonus on a lease (of all things) with no return in the end, save you money? My last 2 car's were financed at 0%. That's called a win/win.
Last edited by Northeaster; 12-14-2015 at 06:04 PM..
You have already created the justification that you need to not follow Ramsey's advice. Is anything in this discussion going to change your mind?
Im not saying I need to be convinced to worship Ramsey. What I am getting at is him and similar financial advisers give the same advice on telling people to buy cash like everyone has $5-10k under their pillow or get a beater cars so they can have cash and car payments are bad debt, but ignore the numerous repairs that come with beater cars that cost more than car payments themselves sometimes. I have been told by many that follow him and other advisers that I am wrong for thinking a very low car payment isnt considered bad debt and I see it as exchanging money for safe and reliable transportation, not wasted money. Plan B is the city bus.
I am trying to see is it just me or does some of this guys advise not sound realist or apply to people with responsible credit.
I have no student loans, no credit card debt, 800 credit score, owe about 7.8K on a 2012 car, and 65k on a house w/570 mo payment and I would be considered someone who has bad debt or a slave to my lender, even though Im doing better than 70-80% of Americans. Ill take a nice home and decent car anyday over having $50K in the bank and living in the projects and taking the bus.
Totally, totally agree with everything you wrote, especially the bolded part. There are some things more important than dollars, and safety is one of them, whether it's for yourself or somebody you care about.
Right, and if you pay it off in 5 years you may get $10,000 when you sell it. and buy new again.
For most folks, Ramsey is pretty much on. That's because most folks are complete idiots when it comes to money and debt. There's 2 things you make payments on, a house and a car. If you're making payments on anything else, you're an idiot. If your car payment is over 400 a month on a 4 year note, yer an ID ten T. If your house payment is more than 1/4 of your household income, yer an ID ten T. If you can't pay off ALL of your credit cards at the end of the month, yer an idiot. He's right though, cash is king.
People buy, Boats, motorcycles, snowmobiles and things like that everyday. Enjoying life doesn't make someone an Idiot. if they make enough money, who are you to criticize how they spend it.
Im not saying I need to be convinced to worship Ramsey. What I am getting at is him and similar financial advisers give the same advice on telling people to buy cash like everyone has $5-10k under their pillow or get a beater cars so they can have cash and car payments are bad debt, but ignore the numerous repairs that come with beater cars that cost more than car payments themselves sometimes. I have been told by many that follow him and other advisers that I am wrong for thinking a very low car payment isnt considered bad debt and I see it as exchanging money for safe and reliable transportation, not wasted money. Plan B is the city bus.
I am trying to see is it just me or does some of this guys advise not sound realist or apply to people with responsible credit.
I have no student loans, no credit card debt, 800 credit score, owe about 7.8K on a 2012 car, and 65k on a house w/570 mo payment and I would be considered someone who has bad debt or a slave to my lender, even though Im doing better than 70-80% of Americans. Ill take a nice home and decent car anyday over having $50K in the bank and living in the projects and taking the bus.
Nice false dichotomy. But hey, whatever it takes for you to justify your actions to yourself. . .
He gives "advice" based on A) assumption and B) keeping up with the joneses!
Financial advice needs to be based on whatever ppl actually make, not based on how much they can "borrow" based on "what they make". Meaning, just because someone makes $50k, and can borrow $50k or more for a car or whatever else that doesn't mean they should.
A society based on DEBT is not a free society.
The economy is based on debt.We'd be a third world country without it. No one would make cars, there would be no dealerships of any kind. people would live in tents, there would be no jobs.
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