Dave Ramsey says: No one needs a car that’s worth nearly all of their yearly income

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  • georgiaonmymind1 Lawrenceville, GA
    Sept. 9, 2013 3:24 a.m.

    I agree with Lindsay! We have had beater cars in the past and have taken care of them only to have more and more bills for car repairs! I don't mind making a reasonable car payment if I know the car is going to start when I need it too! We have had way too much experience with broken cars. I think we are cursed!

  • Lindsay Payson, UT
    Sept. 5, 2013 9:16 a.m.

    The problem with buying a $2,000 beater is the repair bills that will end up costing more than the car! Which is why we're now replacing our '02 SUV with a newer model. But a $17,000 vehicle with a $20,000 income is silly.

  • Dr. Thom Long Beach, CA
    Sept. 4, 2013 9:40 p.m.

    No one "needs" a $38,000 handbag either but if people didnt buy them companies wouldn't make them

  • TiCon2 Cedar City, UT
    Sept. 4, 2013 3:26 p.m.

    Purchasing a vehicle with cash is good in theory, but much more complicated in practice. If you have $10k in savings, you shouldn't blow it all to purchase a car outright if that is going to leave you open to bigger risk down the road.

    Financing a vehicle is fine if you need to, just make sure you never owe more than the car is worth. In most scenarios, that involves paying upwards of 50% down and making more than the monthly minimum payment.

    I understand the Ramsey-love, but some of his stuff just shouldn't be preached like an end-all solution. Take the time to do your research and make a decision based on your situation. Never put 100% of your trust in someone who has a financial stake in your behavior.

  • DaveKnowsWhatsUp Bloomington, IN
    Sept. 4, 2013 11:41 a.m.

    as is expected, very sound advice. I used to have a truck payment of around $300, add in insurance and gas, and it cost me nearly $700/month to drive that thing. Now we have a little beater truck that we paid for with cash, sure it's not as nice as the other vehicle I had payments on, and I still miss the other truck, but I can still haul things, it gets me to and from work, runs well, and after gas and insurance it costs about $150/month to drive. I wish I had learned that lesson before, but I'm glad I know it now.

  • JSB Sugar City, ID
    Sept. 4, 2013 11:13 a.m.

    I'm now in my seventies and have owned quite a few cars over the years. One thing I have never done is to make a monthly car payment. It I didn't have the cash, I didn't buy it. A couple weeks ago I paid the most I have ever paid for a car, $4,500. It's a Toyota Sienna with 107,000 miles on it. It runs great, is comfortable and provides everything I need in transportation. Another advantage to not owning expensive cars is that you pay a lot less for insurance. I figure I have saved thousands of dollars by following this plan.

  • That's A Good One Salt Lake City, UT
    Sept. 4, 2013 10:33 a.m.

    My wife's and my contribution to my kids' higher education was to teach them at a young age that nothing in life is free and that they should 1)Plan to continue their education beyond high school, 2)Do everything in their power to work and save up to pay for it, and 3)Don't live beyond their means, whatever those means turn out to be.

    The result is that all of my children graduated with baccalaureate degrees that they worked for, saved for, and paid for by the sweat of their own brow. We contributed where we could towards housing, transportation, etc but the bulk of their education was paid by their own ingenuity and hard work. And, I might add, they all graduated without one red cent of student loan debt.

    They've proven it can be done and that a student can survive on a shoestring budget and even marry and enjoy the ride along the way. Best of all they are productive members of society today and have the pride of knowing they have learned what self reliance is without a silver spoon in their mouths from mom and dad.