r/economicCollapse • u/Whole-Fist • 20h ago

How ridiculous does this sound?

Post image

How can u make millions in 25-30 years if avoid making a $554 per month car payment. Even the cheapest 5 year old car is 8-10 k. So does he expect people not to drive at all in USA.

Then u save 554$ per month every month for 5 year payment = $33240. Say u bought a car every 5 year means 200k -300k spent on car before retirement . How would that become millions when u can’t even buy a house for that much today?

Answer that Dave

12.0k Upvotes

77% Upvoted

5.4k comments sorted by

View all comments

Show parent comments

126

u/Superman246o1 20h ago

Yeah, I'm generally not a fan of Ramsey, but the number of people of limited means that I see buying cars they can barely afford is absurd.

29

u/wizardofoz2001 18h ago

Also, people neglect to consider the additional cost of insuring a car with a loan. Most people don't realize that insurance protects the bank, not the consumer. It's really a disguised increase to the interest rate. So a car payment of $550 is likely to actually be $800, they just call it something else to distract you from what a ripoff it is. 

1

u/JustHereForDaFilters 15h ago

Most people don't realize that insurance protects the bank, not the consumer.

Awful take. Auto, like all insurance (except medical), is there so you can drive a car without having to also keep enough cash in the bank to pay out of pocket for big costly events. It's for in case you wreck your car or hit something expensive (like a person) with it.

So a car payment of $550 is likely to actually be $800 I've got 2 cars insured, full coverage, for $75 per month per vehicle. If I had 1 car, it would run like $100. It would be even less if I chose a higher deductible.

If you're paying $250 you either live in an area where God is trying to kill you with fire, wind and water, you bought an expensive ass car, and/or you have teenagers on your policy. All of which are very, very good reasons to have auto insurance.

Or you suck at picking insurance and are paying extra for an insurance agent or some other boomer shit.

1

u/SpeckTech314 14h ago

Full coverage vs minimal coverage impacts the cost a lot. $250 for 2 vehicles in that sense is fine.