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An OT topic reminded me of something Dave Ramsey is flat out wrong about
Posted on 6/8/15 at 11:20 pm
Posted on 6/8/15 at 11:20 pm
LINK /
Don't get me wrong as I enjoy Dave's show and think he's right about alot of things and makes the right call on alot of his advice, but one thing that he STILL pushes today in 2015 the same way he did 10 or more years ago when I first heard his show is the "$1,000 beater car."
He's totally out of touch with the reality of the used car market these days. He still thinks that the used car market has enough $1,000 cars to go around and the vehicles actually run and will get you to work and back each day. He also seems to think that the market still has a ton of two year old, low mileage cars that are 30% or more less than what they cost new. Constantly he tells people that you can find something like a two year old Camry from $15,000 etc.
One day last week I remember him telling a young guy that drove a beater that he should take about $5,000 cash out of the bank and move up in car. He told the guy something along the lines of "That should buy you a five times better car than what you're driving now. You know, something reliable and a couple years old with low mileage, something that someone's grandma drove once a week."
Anyway the OT topic got me thinking about this, but the money board seemed like a better spot to mention it since I know alot of us here are fairly well versed in Dave's idioms.
Don't get me wrong as I enjoy Dave's show and think he's right about alot of things and makes the right call on alot of his advice, but one thing that he STILL pushes today in 2015 the same way he did 10 or more years ago when I first heard his show is the "$1,000 beater car."
He's totally out of touch with the reality of the used car market these days. He still thinks that the used car market has enough $1,000 cars to go around and the vehicles actually run and will get you to work and back each day. He also seems to think that the market still has a ton of two year old, low mileage cars that are 30% or more less than what they cost new. Constantly he tells people that you can find something like a two year old Camry from $15,000 etc.
One day last week I remember him telling a young guy that drove a beater that he should take about $5,000 cash out of the bank and move up in car. He told the guy something along the lines of "That should buy you a five times better car than what you're driving now. You know, something reliable and a couple years old with low mileage, something that someone's grandma drove once a week."
Anyway the OT topic got me thinking about this, but the money board seemed like a better spot to mention it since I know alot of us here are fairly well versed in Dave's idioms.
7
Posted on 6/8/15 at 11:29 pm to Huey Lewis
Posted on 6/9/15 at 6:47 am to Huey Lewis
DR is wrong about something?
Posted on 6/9/15 at 7:17 am to Huey Lewis
I'm in the market for a vehicle, and it sucks.
Want something decent under $10k? You're going to get a true beater. A vehicle that has at least 125k miles on it if you're lucky.
Perhaps you can find a deal here and there. That's what I'm hoping for. I scour Craigslist and the classifieds and other websites daily hoping to see that one deal pop up.
The other issue is that banks don't like lending money for older cars.
So for someone like me who is just now getting my finances in order, I don't have the cash in the bank to throw $10k at a new vehicle.
Want something decent under $10k? You're going to get a true beater. A vehicle that has at least 125k miles on it if you're lucky.
Perhaps you can find a deal here and there. That's what I'm hoping for. I scour Craigslist and the classifieds and other websites daily hoping to see that one deal pop up.
The other issue is that banks don't like lending money for older cars.
So for someone like me who is just now getting my finances in order, I don't have the cash in the bank to throw $10k at a new vehicle.
Posted on 6/9/15 at 9:14 am to Huey Lewis
There are a few issues here
1) Dave is very wealthy now, and good for him, but he's remembering what it was like to be poor 10-20 years ago.
2) Cash for Clunkers sucked a bunch of used cars out of the market and replaced them with new cars that are still running very well
3) Dealers are playing games on trade-ins, offering artificially high prices om trade-ins to get people into a new car. They then believe this artificially high price is the base at which they must now sell this used car.
4) There is still one way to get an awesome deal on a used car: the auto auction. However, you need to be a dealer to go and bid. My FIL bought a 10 year old compact car for my niece for $900. Had 104k miles. Needed new tires and about $300 in engine work and it runs like a top now. His buddy has a dealer license so he went with him to get it.
1) Dave is very wealthy now, and good for him, but he's remembering what it was like to be poor 10-20 years ago.
2) Cash for Clunkers sucked a bunch of used cars out of the market and replaced them with new cars that are still running very well
3) Dealers are playing games on trade-ins, offering artificially high prices om trade-ins to get people into a new car. They then believe this artificially high price is the base at which they must now sell this used car.
4) There is still one way to get an awesome deal on a used car: the auto auction. However, you need to be a dealer to go and bid. My FIL bought a 10 year old compact car for my niece for $900. Had 104k miles. Needed new tires and about $300 in engine work and it runs like a top now. His buddy has a dealer license so he went with him to get it.
Posted on 6/9/15 at 10:32 am to Huey Lewis
The principle is sound though.
$3,200 got me a 97 Camry with 117,000 miles on it rom craigslist for my teenagers. Runs great and has cold AC. As soon as I got it home I took it to the dealer and had a new water pump and timing belt put on it for $800.
5 years later my teen daughter drove it for her 16-19 years and now my teenage son has driven it for his 16-18 years.
And all that time it's getting 30+ mpg and I'm just carrying minimum liability on it.
I will sell it next year for $3,200....
$3,200 got me a 97 Camry with 117,000 miles on it rom craigslist for my teenagers. Runs great and has cold AC. As soon as I got it home I took it to the dealer and had a new water pump and timing belt put on it for $800.
5 years later my teen daughter drove it for her 16-19 years and now my teenage son has driven it for his 16-18 years.
And all that time it's getting 30+ mpg and I'm just carrying minimum liability on it.
I will sell it next year for $3,200....
Posted on 6/9/15 at 11:25 am to Huey Lewis
He also still uses 12% growth as his assumption. In his "never have a car note again" example, it really shows its flaw IMO
Posted on 6/9/15 at 1:43 pm to Huey Lewis
My son just sold a Kia Optima with 100K miles for $1200.00, it had some minor cosmetic damage, but was a great running car that had at least another 50K miles in it.
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