Memes circulating with this dude right now, even if positioning him as a chud, are a way to launder this dude as just a legit money guy. Sure, he has some basic, broad financial advice you can consider if you can see through all the Jesus and have no other options, but more than anything else, he’s a vile human being.
Eat religious shit dave ramsey.
I was looking for a new car a few years ago, but i didn’t have to rush, i didn’t have a car for almost two years and just used my work car if i really needed one. Then covid hit and i was still sometimes browsing cars. People were selling the cars they no longer can afford and i was fucking shocked to see people selling cars saying that the monthly pay off is like 1200 or shit like that. Who would think that is a good idea? If you can afford it there is no reason to pay it off, and if you can’t, it’s too expensive. That is just the car payment, no insurance or road fees or anything.
$1200 is ridiculous. That’s how much my mortgage is.
Dave Ramsey hasn’t tried to buy a reliable used car in the last decade, at least. You aren’t going to find anything under about $10k that’s actually reliable where I am. A mid-90s Toyota with 300,000 miles maybe, but not anything under 150,000.
With the $554 average new car payment in the original post, you can afford that $10k new-to-you used car outright in cash every 18 months.
Average price of a used car in the US, right now, is $29,000. Which means that for a $554 payment, it’s going to be 5.4 years rather than 1.5. From there, you need to figure out how many miles you put on a car in a year, make some rough guesses about how many miles the average car has left before the cost to repair exceeds the cost of replacing, etc. Obvs. a high mileage used car is going to require significantly more maintenance than a new car will (…in most cases, as long as you aren’t buying a new Land Rover or Jaguar), so you’ll need to figure that in as well. You’ll probably want good insurance, even if you’re only required to carry minimal liability insurance, because any accident could be catastrophic for your finances if you can’t afford to repair your car.
It’s a bit of a death spiral; wages are still too low, car prices are too high.
Sure, but in 2023, someone could already be selling a 2022 as used. That $29k number is going to be skewed by those who sell younger cars. You can still find used cars much cheaper than this.
For that $554 payment, you would need $6648 in additional yearly maintenance costs on an older vehicle to compare. That’s like a new engine or transmission, every year!
Anecdotally, I drive a 32-year-old car that I purchased, coincidentally, for $3200 around 7 years ago. I haven’t spent even close to $6648 in maintenance that entire time (probably not even another $3200).
I walk or bike to about 90% of the places I need to go. That said, I also recently bought a vehicle for $1200. Works fine except the fuel gauge is broke so I have to just keep it topped off. My neighbor is trying to sell his Kia Rio for $1500. Works fine. It’ll last at least another 3 or 4 years. Likely more. I have a friend whose son totaled out his car. He wanted another. I recommended a car that was in the $1000 to $2000 price range. He didn’t want it. He took out a loan and got a very nice, very sporty car. Then he got in another wreck and totaled it out too. So then he goes and gets himself another expensive car. I just don’t understand.
If I took my bike to town, it would take me about an hour, give or take. To get home would be about four hours. It’s 15 miles, one way, with about 2200’ of elevation change.
Sounds like you need a zip line! 😂
That’s just one of the many fun things about living in the mountains.
Dave Ramsey is an out of touch asshole though.
Normies love larping his boomer takes tho haha
Never buying a vehicle I can’t pay upfront for again if I can help it. Hated those payments the first time I had to go through it. I do more real work with my 80’s era pickup than the yuppies who need their “toy haulers” do that sit almost twice as high. Plus, once I get the diesel swapped in and I’m running biodiesel, I have less emissions as well. Did you know that modern American diesels are so tuned for regular diesel that they can’t run biodiesel? I assume the Euro models can though.
Usually biodiesel compatibility is a function of fuel pumps and injectors, the high performance ones are $$$. I wouldn’t assume Euro models are biodiesel compatible, the VW diesels weren’t after the ‘Pumpe düse’ era.
I assume the euro stuff is all compatible because biodiesel is more common there and they have different emissions standards. Material wise, you just need synthetic rubbers, which have been standard since the 90’s. The tuning issue comes from biodiesel being slightly more viscous. This effects injector diameter and injector pump pressure. The ignition point is also slightly different and timing can be adjusted, but I’ve never bother. Older diesels had enough tolerance that these things never mattered much, but newer ones aren’t rated for more then 20% and I haven’t heard of someone who’s actually tested that.
It’s also less relevant as HVO based diesel also comes from veg oil and is much, much closer to regular diesel then biodiesel is.
I care about what kind of car i drive and all of mine are broken because they’re old garbage.
Honestly if someone were to have said that garbage to him 40 years ago he prolly would have called it unAmerican and communistical.
It is weird to watch the ethical scoliosis happen in real time over the decades.
That’s really exorbitant insurance. I don’t know where he lives or what is situation is but $350 a month is insane.
You can buy a very nice e-bike every year with that money.
I’d put money on a pretty messy driving history for the insurance to be that much.
Two cars (~$50k each), two adult drivers, one accident in the last 7 years, no tickets = $453/mo. Fuck California and the weak cunt Newsom that can’t get these greedy fuckers under control.
I was unemployed for most of last year and let my insurance lapse. I’d be lucky if anyone would insure me for $350/month.
“No one cares about what car you drive” has such Boomer energy to it, and it’s completely false.
Our 2nd car (ie. the one we use if my wife or I need to commute individually - suburban sprawl means we live in a public transportation desert), is a beat-up 15yo Hyundai hatchback.
We both love it because it’s economical, surprisingly reliable, cheap as anything to maintain, and we don’t particularly care if it gets dinged at a parking lot.
But the looks we get from our peers when we drive to our respective offices (we usually WFH), holy crap! Constantly having to explain ourselves is tiresome, and our line managers have both made off-handed comments sarcastically asking if we’re not being paid enough. 🤦🏻♂️
Maybe it’s different in your social circle. I work with engineers and technicians and keeping an old car going is respected not derided.
I wouldn’t want to hang around with people that look down their noses at me because I drive a car with 100,000 miles on the clock.
You have a point, but you need to not care about some else’s bullshit opinion. You don’t need to explain yourself. Save your dough and you’ll have money for whatever suits you down the road.
Paying cash for big items like cars isn’t always the best idea, but less debt never hurts.
My boss did joke about giving me a raise to get me a car and I’m all for it.
Given the community, you should probably finagle that raise and just put it towards friendlier commute alternatives if possible!
Boss: “Hey, I have you that raise - where’s the car?” You: “Oh, I put that towards an e-bike instead!”
I can milk it for more going “I’m saving for a Hummer, I’m not settling for anything less of course. If I only had a couple hundred bucks more each month…”.
Yeah, instead of “no one cares about what car you drive” it should be “you shouldn’t concern yourself with the opinion of anyone who cares about what car you drive”.
15yo Hyundai hatchback
surprisingly reliable
You’ve been lucky then. That I believe is in the era of Hyundai/Kia where they’d chew up replacement engines like crazy. But I guess it didn’t affect all engines.
The car was a hand-me-down from one of our grandparents, with ~100K miles on the odometer.
They owned it since new, and like most old people’s cars - it was religiously serviced. Keeping up with maintenance goes a long way towards keeping most cars on the road (unless they’re BMWs, but that’s a whole other story).
Keeping up with maintenance goes a long way towards keeping most cars on the road (unless they’re BMWs, but that’s a whole other story).
Ironically, well maintained BMWs have significantly better durability than Hyundais of that era, just not reliability.
I see M57 engined BMWs doing 500k+ km all the time. ZF 6HP transmissions are pretty good too. Yet the BMW E60/E61 and similar era 3 and 7 series that had these engines and transmissions are considered very unreliable, because everything else around that super solid core breaks down every now and then. They last forever, they’ll just leave you stranded crying when some plastic pipe in the god damn cooling system breaks again.
2 words that any BMW owner from that era fears: VANOS pump.
Oh yeah, definitely.
German cars of the past are the epitome of “durability, not reliability”. Now they no longer have that durability, but have increased reliability in the first part of ownership I think.
My old E-class must’ve had like 700k km or more in reality (it’d been nicely adjusted to <400k km, but some modules showed higher mileage… hmmmmmm) and the engine still ran just fine, transmission shifted just fine… But the power steering failed, sunroof leaked and ruined the sunroof control module, and the parking sensors didn’t really work either… Oh and I had the dreaded injector seal issue multiple times.
Thats really weird. Your coworkers are strange
In this land of legalised extortion in the form of insurance my friend who is in his mid 30s and been driving over a decade with no claims has to pay £700 per month.
My mum wanted to add my sister (again mid thirties and driving for nearly 20 years now with no claims) to her policy so she could borrow her car for a week and then maybe use the car once a month if that and they wanted an additional £1000 a month for the privaledge.
Fucking scum.
yeah of fucking course. you guys are forced to buy insurance in the US, they have a big juicy captive market.
There’s tons of car insurance companies. We can shop around. Most people don’t, for some reason.
Car insurance is expensive because cars are both risky and highly destructive. Hence, making a market for them involves high prices.
Regardless of what you think of insurance companies, there’s just no way around this - you could nationalize car insurance and it would still either be really expensive, either on the policy level or else born by taxes.
Certainly not. I just put in some data in an insurance broker thingy and I would be able to get insurance for approx. 120€/month with partially comprehensive coverage (including obligatory liability insurance). These outrageous prices are definitely a US thing.
The U.S is different in that car insurance has to cover medical expenses for others when you are at fault, combined with the risk of driving quite frankly being higher in the U.S. With medical costs being extremely high in the U.S, prices follow that fact.
Stop throating the boot of exploitive companies.
They’re not, they’re complaining about the problems inherent to cars.
Which is ignoring the problems inherant to auto insurance, which is fundamentally a greater force in the price/cost of car insurance than the danger of cars.
Yes, cars can be dangerous, but that’s not why car insurance is expensive, it’s expensive because car insurance companies have a completely captive market in the US- one that must pay whatever the insurance comapny dictates.
As a result, they set the price as high as they can get away with, and then refuse to actually pay it out anyway.
Don’t make excuses for the insurance companies. The risk is the whole point, and certainly does not excuse their gouging.
You’ll notice other countries do not, in fact, have to deal with this level of price gouging, which implies it’s nothing to do with the cars themselves- it’s just the insurance companies, and it always has been.
The risk is the whole point, and certainly does not excuse their gouging.
The risk is the point though. High risk activities will cost more to insure because they’ll need to be paid out more often. Couple that with the high destruction possible, and you have frequent accidents that can all cause very expensive damage, necessitating a high base price for insurance.
The price gouging is just capitalism, and I doubt anyone here is going to argue that capitalism isn’t bad.
Per month?! Wtf are you driving? (Late 40s here, paying around £400 per year for my electric mini insurance)
My bad, i wrote per month but i meant per year, that was my mistake. He is driving a 1.4 turbo new shape VW Scirocco (sp). My mothers car is a 1.3 Citroen C3 so hardly expensive, luxury or even quick cars. Even £400 is disgustingly over priced in my opinion though, the way this country does insurance is vile.
Australia’s system of buying registration which then covers your basic insurance (third party cover) which is like a tax and insurance cost combined for the car is much more logical, then if you want to you can buy additional fully comp cover for the car none of this insuring per driver per car bullshit.
Now if there were a /c/fuckinsurance - I’d be all over that. I love my cars, I HATE insurance companies.
I love that I only have liability at $100k but my cost still goes up every year. My coverage is actually worth less to inflation and those crooks want more money? For what?
Go with a different company.
You can shop around for insurance, you don’t have to just take what they give you.
Dave Ramsey is a hack.
broken clock tho
Yeah but what if the clock is broken so it’s like 15 minutes off all the time? Then it’s never right. The right twice a day is just big idiom propaganda
If it’s always off by 15 minutes, it’s not broken, it’s misconfigured.
Damn, that’s a critical error. Good catch.
That’s…the point of the saying.
Time is continuous, not discrete
Well most clocks are not continuous though.
He’s right for most people first beginning to improve their financial health. He has probably gotten more people out of debt than any other ‘guru’. If that’s a hack, so be it, it works.
He once fired a pregnant employee because she wasn’t married and therefore must have had premarital sex. They’ve fired 9 people for pre marital sex. Wacky
Nah he’s alright. There is no nuance in his advice but for the majority of his listeners that’s probably a good thing.
Yeah he has some shit personally takes and I hate the way he runs his company. He does give pretty decent financial advice though
I can give better advice in a similarly easy to consume manner, applicable to most.
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Invest in a low cost target date fund. Look at Vanguard target date funds for examples and pick a year close to your expected retirement date.
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Pay your highest interest debt before lower.
Both of these pieces of advice make you more money than doing what Ramsay says and are equally easy to understand.
Yes, but do people do it? No.
Do people actually do what Ramsey suggests, even if it isn’t mathematically perfect? Yes.
You’re under estimating the human factor.
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Is he the idiot who demands you only pay for things in cash and store it in labeled envelopes?
Doesn’t that 1950s(?idk) advice kinda work for some people?
“Demands” though that’s odd
Dave Ramsey has excellent financial advice for a certain type of person. I bet 90% of people reading this need Dave Ramsey style advice.
All you need to know about Dave Ramsey: i worked on his Jaguar XK.
Is that a particularly expensive jaguar? When I was car shopping I saw some jags for 20k or less so owning a Jag means absolutely nothing when it comes to wealth.
The trick is that it costs an absolute fortune to maintain them, that’s why they’re cheap used. I believe there Is a saying that goes something like “the only car more expensive than a luxury car is a used luxury car”
Wtf does your neighbor drive that insurance is $350 per month on it? A Ferrari?
Regular Ford 2015? Nothing fancy at all.
A bad wreck history. Or Florida.
I thought the same. Also it’s much higher for young males under age 25. Tbf testosterone is a bitch and that demographic causes a lot of the most extreme preventable accidents.
Which ironically encourages people to ride bikes! If only that were not nearly a suicidal activity in the USA in so many places… 😢
Male under 25 with anything over 150hp will make you pay a fuck ton.
No kidding, I pay less than $100 month to insure 2 cars with State Farm. I’ve never had an issue with them paying a claim, and my agent meets with me every few years to go over my options and every single time I walk away with better coverage and less payment.
Example reason: https://mastodon.social/tags/FloatingCars
Could be multiple vehicles or they have a kid on the policy.
insurance is whats insane nowadays. i was paying 600 a YEAR for full coverage on my truck until last year when they spiked it to 2100. dropped to just liability and that alone is 650 a year now
some people care DEEPLY about what kind of car everyone drives. that’s literally why overpriced cars even exist
i prefer a well maintained shitbox 😎
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I think more-so, some people think everyone else gives a shit about what they drive.
If you drive a Nissan, I’m not going anywhere near you on the road.
As a bike rider, doesn’t that skew even more the relative advantage you get by not giving a fuck? If nobody wants a “weak” car, they should be even cheaper than in a sane market that values cars by their ability to go fast and accurately from A to B, no?
No, because they pay out the nose for huge SUVs these days which increases the chance they’ll kill us cyclists.
Eh, it also means relatively fewer weak cars are being built. So it helps, but not as much as you’d think.
I prefer to ride my bike. I have a little trailer so I can take my dogs with me. That said, I also have a car. It’s paid off and my insurance is about $60 a month.
Probably because of your usage.
My motorcycle insurance was $200 a year. They asked if it was my primary or just on weekends, and I do wonder if I said primary, id be paying 2-5x as much.
I am sure it’s due to not having any accidents at all.
I’m in the same place. I have a nice car, paid off. I cover my partner’s car AND my car, top tier insurance with everything possible ticked and low deductible. Around 120USD monthly for both cars. We have both never had any at-fault accidents or tickets.
I’ve been hit three or four times from behind. Super not at fault. One time I was blasted drunk. In my house. Playing games. The wheel fell off. I now refuse to park on the street.
You didn’t drive drunk and still had an accident. Impressive.
I’ve never driven drunk… I thought I was safe… The responding officers found it amusing, too.
I paid about 12k for the car… and had paid it off MONTHS BEFORE. Low mileage, older model. Had it for many many years. My insurance company gave me 8.5k and no increase to my premiums. I was very thankful. I loved that car but the A/C went out for the third time, and I was about to pay another 400-500 to get it fixed AGAIN.
Immense commiseration ensues.
