DynastySS
So slow it's criminal
I must have some kind of luck because my german cars never fail me. Built like rocks
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So, Dave Ramsey....on car buying....
- Thread starter MC BumSlap
- Start date
I must have some kind of luck because my german cars never fail me. Built like rocks
TheRobSJ
May lose 10mm sockets if distracted
How about the new Genesis G70. Which is a Kia Stinger (so RWD or AWD) in a more premium wrapper, but damn it looks good inside and out. You get a lot for the money with those things. Nice long warranty. Could be a helluva lot worse places to be in to do lots of miles per day.
Based on a 10% annualized average return.
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I've listened to Dave Ramsey(syndicated AM radio show) quite a bit. His financial advice is for the most part fairly reasonable and practical. It's also universal enough to apply to a large swath of people across the US. However, considering the "situation" that most Californians are in some of the strategies are "challenging" to apply.
When you've got callers asking for advice on how to manage their $150k mortgage with their $40k combined income and what to do with the sparkly new F-250 that they're making $800 monthly payments on... yeah, its easy to make a plan based on that(get rid of the truck, moron). For Californians, our incomes and expenses are much larger numbers than much of the rest of the US. But if he's assisting with financial trouble, his advice would likely often include "get a second job", "sell everything you can until you can eliminate your debt", etc.
In my opinion, there's middle ground there somewhere. When you're only paying 3% or less interest on a vehicle, it's OK to leverage debt instead of living cash only. But his callers are usually in unsustainable financial trouble that require aggressive actions to correct.
When you've got callers asking for advice on how to manage their $150k mortgage with their $40k combined income and what to do with the sparkly new F-250 that they're making $800 monthly payments on... yeah, its easy to make a plan based on that(get rid of the truck, moron). For Californians, our incomes and expenses are much larger numbers than much of the rest of the US. But if he's assisting with financial trouble, his advice would likely often include "get a second job", "sell everything you can until you can eliminate your debt", etc.
In my opinion, there's middle ground there somewhere. When you're only paying 3% or less interest on a vehicle, it's OK to leverage debt instead of living cash only. But his callers are usually in unsustainable financial trouble that require aggressive actions to correct.
ScarySpikes
tastes like burning
https://www.nbcnews.com/business/bu...-employees-over-premarital-sex-court-n1262498
This guy?
A guy who started his adult life taking advantage of family connections and money to get into real estate, took on debts he could in no way handle, went bankrupt at 28, and then, again, used family connections to convince people that someone who went bankrupt at 28 despite being given every possible advantage would be a good person to take financial advice on.
Yea, sure.
People born rich who fail upwards their entire lives sure do love to blame poor people for their poverty.
This guy?
A guy who started his adult life taking advantage of family connections and money to get into real estate, took on debts he could in no way handle, went bankrupt at 28, and then, again, used family connections to convince people that someone who went bankrupt at 28 despite being given every possible advantage would be a good person to take financial advice on.
Yea, sure.
People born rich who fail upwards their entire lives sure do love to blame poor people for their poverty.
JesasaurusRex
On a break
Ya i don't think Dave Ramsey gives bad advice to the typical person at all. I listen from time to time. Okay not really, but i check out some click baity youtube vids here and there. I agree with a lot if not most of what he advises the callers. Most people are absolutely terrible with money.
jiffy
Member
You put an interesting narrative on someone you don't know. Ramsey has helped thousands if not millions of people get out of debt and reach their financial goals. He is very conservative in his financial plans and how he suggests people avoid debt. Many may not agree with his strategies, but you can't say they don't work, because they do. His strategies revolve around avoiding debt at all costs. It doesn't mean there are not other financial strategies that will work for you, but you can agree that many in the U.S. are burdened by debt and much of it is caused by owning too much car, house, or credit card debt.
Ramsey also says you shouldn't spend more than 25% net pay on a mortgage, including taxes and insurance. Let's get the forum all in a buzz on that one.
jt2
Eschew Obfuscation
If you put that amount into the S&P500 reinvesting dividends over 30 years, it would yield just over a million:
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kingmoochr
WHARRGARBL
It's not a universal statement, it's directed at people using takehome $ to buy the item. If you're contemplating paying cash for an expensive vehicle over financing it, don't. See example;
50k over 7 years comes to a monthly cost of $595.25. If you take 50k out of an investment opportunity, at a meager 8% return, and pay it back with that monthly payment, you'll have $63735. If you left it in the 8% yielding account, you'll have $85691. Even if you didn't score a 0% loan, a 2% loan would only cost you $3623 in interest.
This example doesn't apply to anyone who NEEDS the loan to purchase said vehicle, and the purchase can't impact any other savings avenues in place, or the relationship becomes much more complicated. In respect to Dave, people calling in and listening to someone repeatedly touting "get out of debt" as the calling card financial advice probably aren't in this situation.
50k over 7 years comes to a monthly cost of $595.25. If you take 50k out of an investment opportunity, at a meager 8% return, and pay it back with that monthly payment, you'll have $63735. If you left it in the 8% yielding account, you'll have $85691. Even if you didn't score a 0% loan, a 2% loan would only cost you $3623 in interest.
This example doesn't apply to anyone who NEEDS the loan to purchase said vehicle, and the purchase can't impact any other savings avenues in place, or the relationship becomes much more complicated. In respect to Dave, people calling in and listening to someone repeatedly touting "get out of debt" as the calling card financial advice probably aren't in this situation.
wazzuFreddo
WuTang is 4 the children
VicTim
Well-known member
If you own a business and the new car is used exclusively for that you can use it as a tax write off, even the interest I believe. You would be able to depreciate it over many years giving you a pretty good tax advantage.
MC BumSlap
Big Belly Bum Scud
JesasaurusRex
On a break
Even the ones that are, i don't think the majority of them are actually investing that money. They're just saying they could.
MC BumSlap
Big Belly Bum Scud
Reminds me of the smoker/saver debate:
Guy1: How much do you spend on cigarette?
Guy2: I spend xxx a week.
Guy1: If you invested that same money weekly you would have enough for a boat!
Guy2: Do you smoke?
Guy1: No!
Guy2: Where's your boat?
Guy1: How much do you spend on cigarette?
Guy2: I spend xxx a week.
Guy1: If you invested that same money weekly you would have enough for a boat!
Guy2: Do you smoke?
Guy1: No!
Guy2: Where's your boat?
JesasaurusRex
On a break
Killroy1999
Well-known member
Let's say all I can afford is a $2k clunker with issues. Oh fuck, trans all fucked up because I'm too poor to maintain it properly. Will cost $1k to fix. Well shit, now this $2k car has cost me $3k. Maybe I should have purchased a $3k car with less issues. Oh no! $3k car now has a blown motor because, again, I'm too poor to properly maintain it. I gots bills to pay and five kids to feed!
At what point should I use that $2k or $3k with my shit credit to go buy a better car to make weekly $100 payments at a local Credit Cars lot where if I miss a payment by a day, they repo my shit?!
Oh, Dave Ramsey. How do I ever get out of this suck hole?! I guess live like a pauper for 40-50 years then enjoy life with only what, 10, MAYBE 20 more years? Fuck that. I'll live within my means now, enjoy life and keep saving for retirement.
Remember no one cares if you die the richest person in the cemetery.
Dave Ramsey's advise is not always great, but I'm with him. He leans very frugal. Pay cash for cars and toys. Don't finance an asset that depreciates so much.
Also, don't buy a car with a transmission.
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alien
I’ve never had a transmission problem with any car I’ve owned or work truck
JesasaurusRex
On a break
def just jinxed it
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alien
That’s okay, still under warranty 