Dave Ramsey hates Mavericks

[Rob Cactus Gray]

Uhhh....I think I'd have to say the idea of not going into debt is garbage to be garbage.

We've got college graduates lamenting their trillions of dollars in student loans and how it is crippling their ability to buy a car, a house or otherwise started in life. We have politicians wishing to buy votes by wanting to make other Americans who had no say in making those loans eat the cost of those loans.

The financial crisis of 2008 was tied to stupid use of debt and people who couldn't afford a house being offered a way to buy one --- and THAT crippled the economy for sure.

The only "good" debt does is enrich those lending the money. The borrower is slave to the lender. The closest one might come to "good" debt is a home mortgage because in the vast majority of cases the value of the asset purchased will go up over time.

So your buying the Maverick with cash? You won’t do a 3 year zero interest finance? You won’t invest the cash while you have that debt?

Apple has 113 billion in debt, why?

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[eRay]

My dad used to say buy a brand new car and drive it until the wheels fall off. When I was young I bought lots of used cars and had lots of problems. For the last 30 years, I have bought only new for me and my wife. I buy a new one and drive it 10 years before I sell it and buy another new one. This system has worked great for me.

 

[Packer Bill]

My dad used to say buy a brand new car and drive it until the wheels fall off. When I was young I bought lots of used cars and had lots of problems. For the last 30 years, I have bought only new for me and my wife. I buy a new one and drive it 10 years before I sell it and buy another new one. This system has worked great for me.

I agree with this advice. For the past 20 years, we have only bought new vehicles and kept them for 10 years. We have had very few car repairs because we buy reliable brands (Mazda is my favorite) and do regular maintenance.

 

[Pop2020]

No, I am financing part of it, but I'll be putting down 30-40%. If I have a 0%, 3 year loan I would "invest" money in paying off the Maverick in less than 3 years. Guaranteed return with zero risk. I will be tied to the lender as long as I have a note, but I'll also have enough cushion to dispense with the Maverick and get something for cash if needed or pick up a side job to make a few hundred bucks to pay the car note.

Just like I told each of my kids when they got "car fever" after getting their first jobs as teenagers and their eyes were bigger than the cash on hand and they took a car loan instead of a couple of them paying cash for an older vehicle: taking on a car note has the risk that if your economic circumstances change or you wish to go a different direction, that car note may limit what you can do. All three of them had situations where they either couldn't make a change they wanted (such as having to try to figure out how to pay a car note while taking an unpaid internship while in college) or had to work more than they wanted at times because they were obligated to make a car payment. Debt free is called financial freedom for a reason.

Why does Apple have 113 billion in debt? Don't know. What of Lehman Brothers, Worldcom, General Motors, Chrysler, Sears, Remington, ToysRUs? Did they have their loads of debt for any different reasons than Apple?

 

[UpNorthBuckeye]

I know a few people that never ever buy new cars, they buy fairly new and save a ton of money… honestly I’ve looked at them and every one of them looked brand new, except for the mileage.

I feel that this can work for those people who get tired of their car after a couple of years. To me, if that happens, that means you either didn't know what you wanted when you bought it, or you bought the wrong car period.
I've bought "commuter" cars this way. When I had a 42 mile commute one way, I'd buy a $5000 car, not really caring too much about anything other than dependability, FWD, AC...
But when I buy a new car, I know what I want and I plan to keep it for 200,000 miles.
My F150 Supercrew was new in 2001, I sold it in 2016 to my son in law. My 2016 Expedition has about 71,000 miles on it, and I'll keep it for at LEAST another 10 years. And it is exactly what I wanted, ordered it the way I wanted it. Because I keep these vehicles a long time, it works out better than buying a "decent" used car every 4 or 5 years.
So stick it, Dave!!
I guess my point is you can't give the same car advice to all car buyers. It depends on so many variables, including access to reasonably priced service work.
I just had a sobering thought: I do the same thing with my clothes!!! I definitely have some 15 year old shirts... Hmm, no wonder my kids roll their eyes at my "style".

 

[Doug Wildman]

I’m about to google Dave Ramsey. Never heard of him.

I googled him and it says radio financial advisor. I don’t listen to the radio.

 

[YazYaz]

I am jealous too that he gets rich selling garbage that people eat up over and over again. But more importantly he sells the idea debt is bad and that pisses me off. Limiting people from debt is crippling in our economy. The idea to pay things off in cash is great but investing in one self often takes a lot of debt.

Do you mean like going $200,000 in debt to obtain a college education knowing full well you can
never pay it back? Then demanding the federal government cancel all of that debt?

 

[Bushpilot]

I am fairly certain that he does not say, "never buy new." That is generally not a bad idea for many, but I have never heard Ramsey say that. Though I don't listen much anymore.

Ramsey certainly does say to never borrow to buy a vehicle. I agree with his advice, but to each his own.

I am 57 years old, and have never bought a new vehicle. This is my first, and expected to be my last. I hope next time I am shopping for a vehicle, the used market is not quite so thrown out of kilter. But it is nice getting this new vehicle for a similar (or maybe better) price than a similarly-equipped used one.

If they offer me free money when I buy it (zero percent finance), I will take it, otherwise I will pay cash. I don't pay interest, ever.

 

[olderbudwiser]

He helps financial illiterate people fear debt. Debt is a tool if used appropriately will unlock capitol gains (wealth growth). He plays on peoples ignorance and makes debt they enemy.

Come on man, I gonna have to report you again for using common sense and logic.

 

[olderbudwiser]

Do you mean like going $200,000 in debt to obtain a college education knowing full well you can
never pay it back? Then demanding the federal government cancel all of that debt?

I suppose if one ends up with a MD license and not a lot of pictures from ski resorts you used the money on. 200K debt may work out.

 

[olderbudwiser]

So your buying the Maverick with cash? You won’t do a 3 year zero interest finance? You won’t invest the cash while you have that debt?

Apple has 113 billion in debt, why?

Just stop heads are exploding..........

 

[YazYaz]

His advice for existing debt isn’t even great. I’ve been tossing the idea of making a YouTube channel for years, I should do it.

Wow. It sounds like you listen to him a lot.

 

[atomguy245]

Many people are bad with money, and bad at managing credit cards. Dave Ramsey is for them. People who get surprised every month that the credit card company sends a bill just shouldn't have credit cards, plain and simple.

 

[Rob Cactus Gray]

[/QUOTE]

Just stop heads are exploding..........

I think I just got fired from my day job.

 

[Rob Cactus Gray]

Do you mean like going $200,000 in debt to obtain a college education knowing full well you can
never pay it back? Then demanding the federal government cancel all of that debt?

isn’t that we’re supposed to do? I know I want someone to baby me and take care of my whole life. (Intense sarcasm)

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