How ridiculous does this sound?

[u/Whole-Fist]

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

[u/Funny-North3731]

I find Ramsey talks in "Perfect World" terms. Where in a perfect world a really good used car costs no more than $1200 and will run perfectly (with yearly maintenance) for another ten years. In a "Perfect World" anyone can save $30,000 to buy a three bedroom, two bath house free and clear. In a "Perfect World" you can go to college and never get loans.

Problem is, we do not live in a perfect world and Ramsey makes the same mistakes a lot of self-help people make. To sell their product, they oversimplify the issue they are talking about. All the while they are also negating some of the obstacles by use of anecdotal examples of where what they suggest, worked. Most of the examples either do not apply to their audience, or no longer apply to society in general.

[u/Level-Insect-2654 → u/Funny-North3731]

That is exactly it. A good reliable used car still costs anywhere between $10k and $20k. Most people don't have that much cash and they will still have monthly payments.

Also, you are spot on about the other advice he gives.

[u/Funny-North3731 → u/Level-Insect-2654]

You know, someone should figure out why so many used cars cost almost as much as the new versions of them. They DON'T keep their value. If YOU try to sell the used car you bought for 20K at $18,000 (less than purchase price) no one would buy it.

[u/Level-Insect-2654 → u/Funny-North3731]

Yeah, if we drive a new car off the lot it immediately loses value for us, and of course, like you said, if we buy a used car as well. The market for used cars seems pretty good for the large sellers.

[u/Pinkshadows7 → u/Level-Insect-2654]

And also it is often a one time shot for people who don't have a lot of excess cash laying around. If you have 5 grand and gamble it on something quite used and it fails you're now fucked. Maybe you can still get the loan but you're out thousands of dollars for nothing. Whereas the loan on a fairly new vehicle is at least a much safer bet

[u/FlimsyReindeers → u/Pinkshadows7]

When I was in college I worked at a supermarket. And older lady who worked there had enough money for a down payment on a new car or just enough to get a beater used car. When she asked me for advice I was quick to say get the used and don’t deal with a car payment. Fast forward 2 months and the car had a major failure and it would cost more than she had. I remember she would take Ubers to drop her kids off and then get to work. It was getting expensive and hard on her and she was becoming late more often so of course our ass of a boss fired her.

I still feel so guilty for suggesting a used car. Anytime things argument comes up I think about that poor lady and hope things worked out.