Dave Ramsey at it again

Ever think the fed would bailout the banks and print 10 trillion? I’m sure that wasn’t part of their mission statement either. They might not have many options if shtf then to go negative.

I’m sure they also recognized the failure of lots of global economies from reckless expansion of currency. But they’re still doing it. In fact I think they just injected another trillion last month

Don’t know what they studied but highly educated doesn’t always mean financially savy.

I have seen many doctors and lawyers who can’t manage their finances.

Just different areas of expertise.

6 Likes

Good used cars have to come from somewhere. If no one buys new then the supply of used cars will dry up in short order.

Guess DR hasn’t heard of chicken vs egg.

1 Like

I agree and you’re right
You would just think they could logically look at a scenario but apparently not!!!

Simple in my opinion. He’s aware most lease deals aren’t hacked, thus people are getting taken to the cleaners, generally speaking. We get to hack deals because others get swindled and allow for it.
As a statement to the general public (who thinks they know how to lease), I’d probably agree with him.

1 Like

One would think that, but 45 was in Davos saying it’s a great idea :roll_eyes: - been some interesting stuff on it this week. Personally I couldn’t be more against negative rates (I’d hit all of you with 100 basis points tomorrow if I was in Jerome Powell’s sweaty shoes).

Yeah they booed and hissed at Quantitative Easing, but nobody seems to notice how many emergency overnight injections the fed has made in the past 4 months. Anna Nicole took fewer uppers to get through a day.

https://www.wsj.com/articles/demand-for-fed-liquidity-rises-new-york-fed-injects-nearly-100-billion-11578409629

:face_vomiting::money_with_wings::face_vomiting::money_with_wings::face_vomiting::money_with_wings:

#tapthebrakes

2 Likes

I work for a major financial institution, and I’ll tell you negative interest rates are something we’ve already been adding language for in our loan documents, cash in trust accounts, etc.

There’s a reason the 1%'ers are taking possession of so much physical gold recently.

3 Likes

They seem to be doing everything in their power to cause hyperinflation but for some reason it isn’t happening. They can’t wait to destroy the dollar and get on a global currency. I figured we would have the “amero” by now.

In the meantime I’ll keep buying pms, good performing real estate, and undervalued companies (are there any left). About to start accepting btcs for broker fees! Haha

4 Likes

If you can’t hold it, you don’t own it. There’s gonna be a major squeeze on pms in the future. The paper contracts on each physical ounce is astounding. I don’t know if it’s true but I’ve read all the gold ever mined can fit in an Olympic sized pool. That’s fascinating.

And just remember negative rates doesn’t mean that you won’t lay interest. It’s just what the banks will borrow money for then tack on their usurious rates to.

2 Likes

IMO Ramsey is conveniently ignoring one of the most basic fundamentals of investing. That is Cash is King. Spending a lump sum on a used car is a horrible way to leverage your liquidity. Why spend $10k on a used car when I can get into a brand new car with $0 out of pocket and a marginal monthly payment? Over the 3 year term, that $10k earns compound interest with market rates in the double-digits. Factor in maintenance, depreciation, and taxes of buying a used car every 10 years versus putting that money into an annuity every 10 years and leasing starts making a whole lot more sense.

2 Likes

Forbes claims 3.3 Olympic pools, but same energy really.

1 Like

This just popped up on my Quora so if anyone want to read it : https://qr.ae/TxGs4O

I’ll give it to them in that it’s a nicely written example, but they goofed up the math, didn’t bother explaining the lease calculations and pulled numbers out of thin air.

  1. The residual value is based off MSRP, not net cap cost as they mention.

  2. In May 2019, the lowest residual value of any Accord model (touring) was 52%, not 50%. This also corresponded to a money factor of .00118, not .0021

  3. They blatantly ignore the fees portion of the financing, but call out specific fees for disposition and acquisition fee for the lease…

Dave Ramsey is a lurker for sure.

3 Likes

Not sure why anybody would compare a 3 year buy and sell to a 3 year lease. Buying and selling a new car every 3 years is perhaps the most expensive way to drive a car (except maybe leasing, depending on variables). That’s not the way to justify a lease. If you want a new car every 3 years and can afford that luxury then leasing is probably the way to go.

Most people can’t afford a brand new car every 3 years

1 Like

Someone should stick that guy with a subprime lender for a 20k car with 25% apr, with no warranty. I bet he’ll be singing a different tune. Leasing or financing isn’t for everyone.

No, it’s not. Many people out there don’t have much of a choice. They need to finance or lease because they may not have liquid cash fro a 4k/5k beater.

2 Likes

IMO Ramsey is conveniently ignoring one of the most basic fundamentals of investing. That is Cash is King. Spending a lump sum on a used car is a horrible way to leverage your liquidity. Why spend $10k on a used car when I can get into a brand new car with $0 out of pocket and a marginal monthly payment? Over the 3 year term, that $10k earns compound interest with market rates in the double-digits. Factor in maintenance, depreciation, and taxes of buying a used car every 10 years versus putting that money into an annuity every 10 years and leasing starts making a whole lot more sense.

Using this argument, financing and holding a used car for 10 years will have similar upfront costs and much less ongoing payments for which you can invest.

Leasing makes sense to people who can afford to buy new cars every 3 years, but a lease doesn’t hide the fact that many have no business buying a new car when they have a zero savings rate and no real savings.

1 Like

Right on time for the discussion

Autotrader - 2020 used cars under 10k

Not many to choose from and some are over 10 years old.

1 Like

Lease vs buy.

Lease a new car, find a great deal. Try to keep payments low.

Buy a used/slightly used car that can last more than 6+ years with low cost maintenance.

IMO

2 Likes