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Ramsey offers simple black and white simple solutions to people's financial problems.
I actually agree with him on many things: Live within your means, avoid debt, be responsible for your own life and be honest.
But to me, that's just common sense. The only reason I occasionally listen to him is to hear stories about the real dilemmas that people do to themselves as a result of poor financial decisions. From that I've learned that my "common sense" is not prevalent in the real world.
Where I disagree with him is in acquiring an excellent education. I believe you ought to go to the best college that will accept you. If you are smart enough to get into MIT and you need to borrow responsibly to achieve that goal, go for it.
As for cars, I personally buy a slightly used car and I shop very carefully for it. Most recently, in December, 2012 I was able to buy a 2012 Ford Fusion from my company because they offered their fleet returns to employees at cost. The car had only 12K miles and my cost was just $14.3K, a significant discount from its new price. I still own it and it has been a wonderful car. It has had no failures.
wow, this guy is supposed to give savvy financial advice but what percentile of net worth do you have to be to have $1 million net worth? This would mean only a fraction of the population would buy new cars and the entire auto industry would bust.
Well, that's what you're supposed to believe. It's infotainment, with an emphasis on the -tainment.
Buying a very low mileage newer vehicle is not always a wise decision over new. I already mentioned my parents were looking for a SUV a few years back and if they were buying used it was going to have to be newer and worth it. The difference in prices between one with 20K and new was marginal, you simply could not justify buying used.
So one of the reasons I dislike these financial "gurus" is because they say asinine statements like this all the time without knowing anyones situation.
Now I buy new cars.
1) I keep my cars 10-12 years average.
2) I drive over 50 miles each way to work, my choice couple that with kids that went to school 600 plus miles away I generally put 40K-45K miles on my cars. Yes I want to be comfortable. when you spend that much time in a car it's improtant.
3) I have never had to pay more than 0.9% in interest on any car loan I've had. since I'm really not brand loyal I go for the best deal. currently I'm driving an Infinit G37. I got it with 0% interest for a 2 year loan.
wow, this guy is supposed to give savvy financial advice but what percentile of net worth do you have to be to have $1 million net worth? This would mean only a fraction of the population would buy new cars and the entire auto industry would bust.
So, what is your income criteria for car affordability? Don't buy a car more than 30% of your annual income is a good test in my view.
If you not in debt and have the funds to buy a new car, buy a new car. If you want something cheaper, consider buying a used car. Do not go into debt or further debt with a new car.
Buying a very low mileage newer vehicle is not always a wise decision over new. I already mentioned my parents were looking for a SUV a few years back and if they were buying used it was going to have to be newer and worth it. The difference in prices between one with 20K and new was marginal, you simply could not justify buying used.
Yup.
I wanted to buy my mom a Lexus for mother's day.
Difference between used and new was like a couple grand.
Wtf?
At that price point, buy new.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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When I bought my most recent (2017 F150) the discounts and deal I made brought it down $11,000 below the sticker price, and well below what dealers were charging for the equivalent used truck with 50,000 miles. With my down payment (trade) that brings instant equity more than offsetting the loss in value when driven off the lot. Besides, I like that new car (or truck) smell. Money is not the only consideration when buying a car.
I wanted to buy my mom a Lexus for mother's day.
Difference between used and new was like a couple grand.
Wtf?
At that price point, buy new.
That's what I was finding for the type of vehicles they were interested in. Financially it may have been a better deal but only by a little bit. It came no where near offsetting the risk of not knowing the history of the car, e.g. was some teenager driving it who was mashing on the gas constantly.
Ramsey presents any easy formula for winning at life. If you are responsible and follow his plan, winning is almost guaranteed. (barring major disability or some other catastrophe) So before you knock his method, realize there are always exceptions to a general rule and most Americans are losing at life and could benefit greatly from following his formula.
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