Do you think financial advisors like Dave Ramsey..etc give people good or bad car buying advice on car buying? (car rental, Opel)
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I wonder if Ramsey's car driving advice might be partly psychological? If you have frivolously spent your way into debt, especially credit card debt, perhaps he sees a benefit to being humiliated into a vehicle you would have never been caught dead in in your previous blantantly audacious lifestyle?
I wonder if Ramsey's car driving advice might be partly psychological? If you have frivolously spent your way into debt, especially credit card debt, perhaps he sees a benefit to being humiliated into a vehicle you would have never been caught dead in in your previous blantantly audacious lifestyle?
Why would you wonder about that? His advice is for those who are drowning in debt. The way out is much easier if you don't have a huge car payment. That's the reason for his advice. If you're not in that situation then his advice isn't for you.
I make a little more than that, but take home over $5K per month. The Texan and I think you really need to move to a no-income-tax state.
If there was work, I might. But, I've been in this job 15 years as an employee and 2 years prior as a contractor. This is where the work is. Moved here from the PNW specifically for this job. At 53, I'm not going to be getting another job easily, so moving is out of the question until I retire.
I make a little more than that, but take home over $5K per month. The Texan and I think you really need to move to a no-income-tax state. Getting a bit off topic but while many in HCOLA states/localities like to say "they get you one way or another" - it ain't necessarily so. The total local tax bite really does vary quite a bit. Maryland is not good.
As for me, I live in a paid-off house that I bought some years ago on a 15 year mortgage. And I paid it off.
Almost all of my cars I have bought cash, majority of them are in better shape than when I bought them - although this is no doubt true with you as well, Tiffer.
Many financial gurus regard a car as a money pit that one uses to get from A to B, they know nothing about cars, wouldn't appreciate a fine car if it ran over them. The thought of me going out in the M for a blatt, back out of the garage, go blatt a bit, then go back into the garage without having performed any "mission" as they might think of it, is inconceivable to most money mavens.
They are pitiful to me, like winos who drink cheap wine just to get drunk.
Well, Texas is no income tax state, but the property taxes are huge. In the end of the day there is no free lunch, imo.
Dave Ramsey's advice is good for those who have poor credit or those who don't know how to use credit to their advantage.
I have been able to save more cash without having to make sacrifices such as buying and driving beaters by simply building up my credit score and using credit wisely. Why would I dump a large sum of liquid cash into certain depreciating assets such as a car when I can use someone else's money with very little or sometimes no interest and keep my cash in the bank?
Many times Ramsey is dealing with people who are totally broke.....and these people have a LOT of money going towards car-payments. So yes, ditching a car that you cannot afford is very good advice in these situations.
IDK if Ramsey would be so harsh with a person, in very good financial-shape, who wanted to finance a car???
Many times Ramsey is dealing with people who are totally broke.....and these people have a LOT of money going towards car-payments. So yes, ditching a car that you cannot afford is very good advice in these situations.
IDK if Ramsey would be so harsh with a person, in very good financial-shape, who wanted to finance a car???
He would still advise you to pay with cash, but why would you listen if you're doing well.
He would still advise you to pay with cash, but why would you listen if you're doing well.
That's not always the best option for some people.
I have a business that requires me to have lots of cash on hand. The more cash I have the more money I make. So why would I dump a lump some of cash into a depreciating asset if I can hold on to it and use it to make more money? I lease a new vehicle every 3yrs and write it off come tax time as the vehicle is used for business purposes.
What works for some may not work for others, and paying cash is not always the best option.
Like I stated earlier... Dave Ramsey's advice is good for certain people. Those who have poor credit or little money. Or those who aren't financially savvy and dont know how to use credit to their advantage. Some of the richest people became rich using someone else's money.
Dave Ramsey's advice is good for those who have poor credit or those who don't know how to use credit to their advantage.
I have been able to save more cash without having to make sacrifices such as buying and driving beaters by simply building up my credit score and using credit wisely. Why would I dump a large sum of liquid cash into certain depreciating assets such as a car when I can use someone else's money with very little or sometimes no interest and keep my cash in the bank?
I can't speak for you, but for me, I am certain that what I earn on my deposits will never be enough to justify paying interest on a car loan, unless I buy brand new - which usually (but not always!!!) involves excessive depreciation.
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