Dave Ramsey at it again

Stuff like this is just so lazy… I had to reply. Of course nobody will see it or believe me because I’m not “Dave Ramsey”. How is he still a thing while Suze Orman got sent to the dustbin of history? What kind of car does Dave Drive? I bet his company leases them too.

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Yeah, but do you have a mildly condescending southern drawl that makes you more believable?

For example, in your best Dr. Phil voice, say “if you lease cars the only question is whhhhhhat kind of stupid are you?!”

:bat:

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Jpdinan, Great post. And I thank you for replying to Mr. Ramsey.

I feel bad for people who are so naive to think there is always an “always” answer like this.

I stopped taking Ramsey seriously when he argued that Private Mortgage Insurance is always a bad thing. That is another perfect example of his level of ignorance.

Can people get in trouble with bad lease deals? Absolutely! Just like people can get in trouble making bad mortgage decisions. That doesn’t mean it is good to not even do the research!

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We need people making poor leasing decisions, allows for our unicorns :unicorn:

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You mean “FLEECING” decisions. That’s what the h e double hockey sticks we call renting a car for three years here. You know they charge 14% interrrst I hope.
:bat:

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Well at least someone agrees with me…

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the real question is…is Dave Ramsey ever right ?

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I had a nice back and forth with some CNBC d-bag on Facebook about the same thing. Peoples parents told them leasing was dumb and they continue on the tradition. Cars are your second biggest expense. It’s amazing how little research people do for this and Mortgage’s.

I put 3% down on a recent rental property bc pmi was only $40/mo. I guess it would have been smarter to come out of pocket $40k instead…

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“Drive like no one else now, so later you can drive like no one else in whatever car you WANT”

:thinking:… I got a feeling that even if I drove econo-boxes for the next 30 years, I still wouldn’t be able to get that 2049 Rolls Royce Phantom hovercar.

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Exactly. It’s as if all the maintenance and repairs come from some magic money tree and they don’t count. And is it really worth it to drive a cheap clunker that you own and have to come out of pocket when issues arise, so you can eventually use all the “savings” to purchase an expensive car outright, and immediately lose all those savings driving it off the lot? It’s just really smooth brained thinking.

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Who is Dave Ramsey? Gordon Ramsey’s lost brother?

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My default position is to side against anyone who advises using a debit card instead of collecting thousands of dollars a year in credit card rewards.

With that said, buying and holding highly-reliable used vehicles until they approach death’s door is generally going to save money over the long term compared to leasing something new every 2-3 years.

And most people will not settle for a $92/month Hyundai Coloniq.

People freak out over a $2,000 repair, but only because they didn’t budget for it. Compared to a $400 lease payment you can have something of that magnitude go wrong every five months (which statistically speaking won’t happen on a well-chosen car) and still break even financially.

Any car is going to get boring as hell to drive after a few years, but that’s an entirely different matter.

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Buddy of mine followed this thought process. Then his clap trap Acura CL seized on the 405. Big accident. Big scare. Fortunately no injuries.

I reject this if for no other reason to not be that one who’s less lucky or impales someone else with a 1994 Camry spoiler.

Just my $0.02. Put $499.98 with it and you can replace a water pump.

:bat:

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I think that Ramsey misses two points, but I can excuse it somewhat because his target market is the credit challenged trying to get on track in that regard. Point 1: For someone with at minimum “good” credit, leasing an affordable (call it ~200/mo) car is almost always doable for a buyer simply looking for appliance-like transportation. Barring ebbs and flows in surrounding areas that can influence this (cheap money, overall health of the industry), this is almost always doable. Point 2: For people who like something a bit more than appliance transportation and want to punch above their weight a bit, leasing can make that possible without being prohibitively more expensive than his philosophy, if done properly. There’s nothing wrong with that, provided that you are being responsible in other areas. Some people like to buy expensive foods or collect something that takes away from their discretionary income. Other people like to drive a nice new car every few years.

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You’re rejecting my financial observations over a perceived safety matter. :slight_smile:

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I agree that for his target demographic the message needs to be dead simple.

I’m also a big fan of life’s luxuries… as many as one can reasonably afford.

It just drives me crazy when people get a new car every 2-3 years and then try to slap an austerity label on it.

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This was the biggest point I was trying to drive home. That cheap, all cash used car is great until it’s not. It could just be a failure or repair not worth paying for that junks it. Or it could be that your rear drum brakes just weren’t up to task when you swerved to avoid something that a newer, better car could have handled. The other issue is that I’m sure that he’s not advocating these people to carry comprehensive on their crapcans, which makes sense until you get into an accident and find yourself woefully under insured because it seemed like a good idea at the time.

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I’m not a fan. But his audience can’t be all stupid people who need caveman simple logic. Nothing is that cut and dried.

:bat:

If you add up stupid, naive and misinformed, I bet you get to 80%.

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Totally, but the used market that Ramsey seems to believe holds all the answers for people would cease to exist without leasing.