Dave Ramsey is Wrong on Car Buying Again

"JCAlan" (jcalan)
01/01/2016 at 14:21 • Filed to: None

Dave Ramsey is a noted financial guru in certain circles. I’ve read his book, he has some very good tips on how to keep your budget under control, and it is filled with stories of people who have made amazing financial recoveries using his advice. But he is not your personal financial advisor. Rather, he is a blanket financial advisor. One size fits all. His target audience are those in deep financial peril because of their own bad money management and simply spending more than they have. His advice is also strangely intertwined with religion, with his workshops often taught in church basements and fellowship halls across Middle America. People listen to him because he somehow comes across as having some sort of moral authority on the topic of finances. But more on that later.

In his latest Buzzfeed style top ten list that I’ve seen floating around Facebook at this year end, !!!error: Indecipherable SUB-paragraph formatting!!! , he again gets car buying wrong for most people. In his blurb about leasing, he just gets it wrong in general. Let’s start there.

Ramsey says:

Auto companies make more money when you lease the vehicle than if you just buy it outright.

Huh? The auto companies do not even own the car when you purchase or lease it, the dealer does. The dealer paid for it before it was even dropped off at the dealership. It’s a set price, listed on the invoice, maybe minus a holdback and possibly dependent upon whether or not the dealership chooses to participate in manufacturer advertising or not. But the price definitely doesn’t depend on whether the dealer intends to sell the car, lease it, demo it, or just let it sit and rust. Now, one cost in the sale that the manufacturer does participate in are the rebates. And admittedly, there are usually one set of rebates for purchase and one for lease. Sometimes one is higher, other times the other, but they’re typically comparable, and keep in mind these programs change every month depending on what the auto makers think is the best strategy to move units in the current market. But let’s just say this is what he’s talking about, and in a certain scenario on a certain vehicle in a certain month, the lease rebate is $3500 and the purchase rebate is $4250. From a consumer standpoint, the $3500 makes a much bigger impact on a 24 or 36 month lease payment than the $4250 does on a 60 or 72 month loan payment, so it’s still a win even though technically the manufacturer is coming out $750 ahead on the lease. But I honestly don’t think Ramsey has enough auto industry experience to comment on this, so I don’t think this is the point he was making anyway. I think he’s just making stuff up or repeating something he’s heard. And as I pointed out, just as often it would go the opposite way and the lease incentive would exceed the purchase incentive.

Next he states about leasing:

They charge super high interest rates

Super high? Hmmm. Well, no. Leasing rates, often computed as money factors can be a bit confusing. To me, the craziest thing is that they are not disclosed on the lease agreement the way that APRs are required to be on the Retail Installment Sale Contract by the federal Truth in Lending Act. Instead, the total finance charge on a lease is buried somewhere towards the middle as a line item called “rent.” Good luck trying to compute it from there. But I can tell you that currently the lease rates are just as favorable as loan rates. They range, depending on the current month’s program, anywhere from less than 1% up to 3-4%. So, definitely not super high. Just like any other situation where credit worthiness is evaluated, you could pay more if you have poor credit history. But back to Ramsey’s point, it’s often not even the manufacturer that is collecting that interest. Your lease may be through Wells Fargo, Ally Bank, U.S. Bank, or whatever. And if you are going through a manufacturer entity like Honda Finance Exchange or Toyota Motor Credit, you’re likely paying an even lower artificial “incentivized” rate.

He goes on:

and structure the deal so you pay more for the car than it depreciates. The result is a sweet profit for them.

Ok, time for some leasing 101 so that I can explain why this statement is so incorrect. In a lease, you simply pay the difference between the negotiated sale price of the vehicle, minus any rebates or money down, and minus a predetermined residual value. So say you get the vehicle for $30,000, and the rebate is $3000, and you put $3000 down, and the residual value is $14,000, then your lease payment is based on the remaining $10,000. This amount is of course subject to applicable state taxes and finance charges. The predetermined residual value is calculated as a percentage of MSRP, and really is just a best guess. The actual value of the vehicle at lease end will be determined by the market and other factors such as how many miles you’ve put on it. But this is the beauty of leasing, because the lease company is held to this number regardless of the market, not you. They have all the risk, you have none. In fact you get to play both sides of the coin, and can benefit from a strong market while not losing from a weak one. For example, let’s say that residual value of $14,000 ends up being high, and it’s only worth $10,000. You just walk away, and they take the loss when they sell it. But if it ends up being worth $18,000, you still have the option to buy it for the contractual $14,000, and you can actually make money off the transaction. So if, as Ramsey says, the situation occurs where you do pay more than it depreciates, you can actually get that money back.

Then he concludes:

For you, it’s the most expensive way to operate a vehicle. Steer clear of this setup.

Leasing absolutely is not the most expensive way to operate a vehicle. Just compare lease payments to buy payments. Then factor in that the lease will be under warranty for the duration of your driving experience, and may even include maintenance. But yes I know, he’s not comparing payments. He wants you to have no payments. He wants you to drive an old broken down beater and behave like the POS broke loser you are.

Here’s his advice on what you should do if you have a car payment. Keep in mind, there’s no qualifying this statement. This is his advice for everyone :

!!!error: Indecipherable SUB-paragraph formatting!!! that the average car payment is $483 a month! If you’re paying on your car, you’re paying too much. Sell the vehicle and buy something used with cash. Then you can save that $483 a month, upgrade to a $6,000 vehicle in one year, and be well on your way to driving cash-only cars for life.

So take a hit by selling your reliable newer vehicle that is likely under warranty, and buy yourself an older, less safe, less reliable vehicle that you will hate driving, and spend tons of money on repairs instead of on building equity. But don’t lose heart, because someday you might be rolling in a sweet $6000 Dodge Stratus!

My biggest problem with his advice is that there’s no grey area with him. No adjusting the advice to apply to different situations. If you have a car payment, sell the car. Period. The thing is, this may actually be ok advice for certain people in certain situations, but for most people it’s just not. First off, most people in financial peril can’t sell the car for what they owe anyway. And let’s face it, not everyone is a Jalop. Lots of people aren’t comfortable selling a car on their own, and dealing with a buyer that could be a scammer, and dealing with a payoff and transfer of title. Likewise, lots of people have no business buying their only mode of transportation from the sketchy world of budget car lots, or worse- craigslist. And most people are ill-equipped to deal with a breakdown when it happens. For a Jalop, it’s no big deal. But for someone who is not a car person, it can be a very rough life event. Where do you take it? How much will it cost? How much should it cost? How will I get to work and pick the kids up? I maintain that most people on a budget belong in a safe, reliable, newer car with a warranty. If that also comes with a fixed monthly payment, that’s a good trade off.

By the way, here’s a little insider secret: you lose money every time you trade cars. It’s difficult to save money by making yet another large purchase. We had to explain this to people everyday during the high fuel prices around 2008. People wanted to trade their gas guzzling trucks for fuel efficient small cars, and were often not able to do so because of their equity position. We had to explain to them that selling their trucks while their values are low, and paying a premium for fuel-sippers while their values are high just won’t save you any money overall anyway, no matter the MPG difference.

But Ramsey’s advice has little to do with savvy car buying, and more to do with a life philosophy of being debt free as a Christian virtue. Imagine your pastor is leading a Dave Ramsey workshop, and he’s telling you that having a car payment is dangerous, reckless, and wrong. He’s telling you that it’s a sign of weakness and poor judgment. He’s telling you that you’re being showy and conceited by having such a nice car that you don’t deserve anyway. He’s basically telling you that it’s a sin. He’s backing these claims up with scripture. I guess with that sort of pressure, you just do what he says.

Photo credit- moneywatch.us

JCAlan is an automotive professional with nearly two decades of dealership experience. He also has a business degree, and has never been bankrupt. He is certified by the Association of Finance and Insurance Profressionals, and knows how to write a great sounding three line bio .

DISCUSSION (38)

Chasaboo > JCAlan
01/01/2016 at 14:43

Never heard of this guy until yesterday. Dudes at work worship him. From what I have seen so far from him is just common sense, something Americans seem to be lacking in spades.

Urambo Tauro > JCAlan
01/01/2016 at 14:45

Auto companies make more money when you lease the vehicle than if you just buy it outright.

My first thought was the same as yours upon reading this. He’s probably one of the many people who don’t understand how a franchise relationship works.

But he got lucky in how he worded it. There are many businesses that could be described as “auto companies”, including manufacturers, dealers, insurers, and more.

JCAlan > Urambo Tauro
01/01/2016 at 14:57

True, I hadn't considered that aspect of it.

Dr. Zoidberg - RIP Oppo > JCAlan
01/01/2016 at 15:07

But yes I know, he’s not comparing payments. He wants you to have no payments. He wants you to drive an old broken down beater and behave like the POS broke loser you are.

Even if you know nothing about cars, you can do 30 seconds of research online, or just using word-of-mouth, and shop for a good, reliable used car. I don’t think I’m depriving myself of anything by owning a reliable used vehicle. In fact, it helped us save to buy a house, and our ceiling for what our max mortgage payment that would approved by a bank was that much higher by not financing for a nice car, which I’d much rather have than a new Camry. Also, not all used cars are beaters, nor do I think of myself as “POS broke loser.”

Ultimately, people should be allowed to do whatever they want with their money.

Dr. Zoidberg - RIP Oppo > Chasaboo
01/01/2016 at 15:15

Yeah there’s nothing groundbreaking or enlightening here. New cars cost money. If you spend X on a car monthly, you know have X less dollars! Incredible! Shit, if you want something and can afford it, do it.

AMGtech - now with more recalls! > JCAlan
01/01/2016 at 15:26

I spend $1200/month on rent, but I could just as easily break my lease and go buy a tent for cash!

JCAlan > Dr. Zoidberg - RIP Oppo
01/01/2016 at 15:26

Ultimately, people should be allowed to do whatever they want with their money.

I couldn’t agree more. I guess that’s why all the shaming of people making payments bothers me.

Tom McParland > JCAlan
01/01/2016 at 15:27

Ugh...fucking Ramsey again. Excellent analysis and breakdown on this post! Every piece of Ramsey financial advice should come with a disclaimer...

“Do you not understand how math works? Do you make poor financial decisions and are up to your eyeballs in debt? If so, listen to this guy. If not feel free to ignore what he has to say and enjoy your life.”

MontegoMan562 is a Capri RS Owner > JCAlan
01/01/2016 at 15:30

Some of this guys strategies are stupid, my wife is interested in a bunch of his articles. This one he doesn’t really know what he’s talking about, but he does have a point in a used car.

Both of our daily driver vehicles are used and I don’t have a problem with that. I can’t really fathom the idea of $400+ car payments. Our two used vehicles payments combined equal that.

CTSenVy > JCAlan
01/01/2016 at 15:38

For the longest time I told myself I would never lease a car. But when I realized it was time to change out my pickup I noticed that used market is still ridiculously overpriced and by the time you figure in thinks like maintenance and service I came out ahead leasing a new truck instead of buying a used one.

JCAlan > MontegoMan562 is a Capri RS Owner
01/01/2016 at 15:43

You’re paying too much -Dave Ramsey

Lol. I'm all for letting someone else take the initial hit on a new car to save me money.

d15b > JCAlan
01/01/2016 at 15:44

He’s telling you that you’re being showy and conceited by having such a nice car that you don’t deserve anyway. He’s basically telling you that it’s a sin. He’s backing these claims up with scripture. I guess with that sort of pressure, you just do what he says.

Fantastic way to tie it all together.

JCAlan > d15b
01/01/2016 at 15:45

Thanks!

Blunion05 drives a pink S2000 (USER WAS BANNED FOR THIS POST) > Dr. Zoidberg - RIP Oppo
01/01/2016 at 16:34

Your last line is exactly correct. Giving information on how to manage money is fine, or expressing that what people are spending their money on seems like money wasted, but don’t declare it that they are wasting their money like its fact. If people blow their cash and make poor financial decisions, that’s on them and not on us. They will either learn or continue to make poor financial decisions.

they-will-know-my-velocity > JCAlan
01/01/2016 at 17:28

Oh yes, from what I’ve read about leasing I’ve developed the handy shorthand for car buying/leasing

If you’re poor - You have no business buying a new car. Buy a used car in whatever condition and mileage/trim you prefer/can afford.

If you can afford to refresh your fleet every few years to keep a new car (and payment) and stay in warranty then you should lease.

If you absolutely positively want a new vehicle and WANT it new and will KEEP it for many years because it is a dream car - think twice and then think again and then buy it new.

For those of you with plenty of money - keep buying new cars so I can buy them in a few years.

E92M3 > Tom McParland
01/01/2016 at 20:57

Leasing is expensive if you do it over and over. Owning cars that are in their highest point in their depreciation curve (the first 3 years) is expensive. More so if it’s a never ending cycle for you. With that said if you are well off, go ahead. You only live once. Why not experience as many cars as you can? And the latest technology. If you aren’t well off, and want the best bang for your buck financing is okay too. If you buy new, and are commited to keep a car for 10 years. If you are a car enthusiast, and you aren’t well off my advice is to buy slightly used cars, and refresh them every 3-5 years. That way you aren’t losing so much in depreciation, and you still get to experience a lot of different cars in your lifetime.

ranwhenparked > JCAlan
01/01/2016 at 23:33

I don’t get how he throws around the fact that car companies make money when you buy or lease a new car like that’s a negative factor in the process. Obviously, whenever a good or service is purchased, someone makes money and someone pays out money in the transaction. As long as the person paying out money feels like they are getting a good product at a good price, there’s no negative in the transaction. The fact that someone is profiting off the transaction doesn’t mean you’re automatically getting screwed, that’s just how it works. The Truth is pulling the same crap in their latest anti-tobacco ads, which aren’t even trying to make logical sense anymore.

Used car dealers make money when you buy a used car - does that mean no one should buy a used car?

JCAlan > ranwhenparked
01/02/2016 at 07:08

All good points, and that aspect certainly rubbed me the wrong way too.

BiTurbo228 - Dr Frankenstein of Spitfires > JCAlan
01/02/2016 at 18:22

To be fair, he is right on the new vs used front.

I bought a Citroen BX diesel for £256 off eBay.

Even if I paid someone to fix what was wrong with it, it still comes in at maybe 2 or 3 monthly payments on any new car you can think of. As I did it myself (by far the best money-saver) I think I paid £300 all-told to get it roadworthy including the price of the car.

Hell, even if I have to spend a grand a year on maintenance (I haven’t, so far I’ve spent £120 including servicing) you’d still have to pay that year-in, year-out for a very long time for a new car to seem even remotely like a good deal.

Buy a used car with a proven track record for reliability and learn to fix things yourself. Easiest way to cheap transport.

gmporschenut also a fan of hondas > JCAlan
01/03/2016 at 18:08

“common sense isn’t so common”

I know a couple well to do folks that have the financial brains and standing of a teenager. Though at the same time taking major financial advise without your individual circumstances is also dumb.

LeafySeaDragon > JCAlan
07/26/2016 at 15:52

Nailed it!

I’ve owned a used car twice, I’ve owned a brand new car twice, and I’ve financed a used vehicle (worst decision ever btw). And I also worked in car sales long enough for my friends and family to call me before car shopping haha

In today’s culture, it’s hard to get around without a vehicle. Sure, there are buses. But what takes me 20 min on a highway would take 3 hours on the bus, according to the Google map. So, that tells us that a car is a necessity rather than luxury. My husband and I own one car right now, because the second one would be luxury since the budget is tight.

As far as buying a used car for cash, your best bet is to go with anything that was made before electronics and computers took over. Why? Because you can no longer fix that yourself, uNess you’re skilled, work in the auto industry, or know some people in the industry. My family member paI’d cash for his kids cars and his work truck. I can’t tell you how many weekends he spent at junk yard ripping out ignitions and digging into transmissions. Are you able to do that? Great, thenergy paying cash for your car is the way to go. For you. And for those who can drop 25 K cash on a vehicle. But for someone like me or my husband, the car breaks down - we’re screwed! That’s why when we bought our second brand new car, we weighed all our options, made sure the time was right (the end of each month is the time to buy a brand new car and the end of the year is even better), and when the dealership offered us more for our trade than we hoped for, we made the purchase. Just be wise when you buy a vehicle, don’t let the salesmen sweet talk you into something you’d regret later. And don’t listen to those self-proclaimed-know-it-all gurus. It’s your life, your money, your mistakes, if you make any ;)

Lcwlaura > Dr. Zoidberg - RIP Oppo
08/03/2016 at 02:10

I completely agree!! My husband and I have been DR followers for 7 1/2 yrs. We had just purchased my car and financied it; we were so upset about being in debt that my car was paid off in 1 1/2 yrs. I’m still in the same car, he’s still in the same old paid off truck. We have been saving for a car for many years. I’m soo excited because in the next month, we will be able to purchase me a new SUV. When I say new, I mean 2014 or 2015. Barely used and new to us. This has come to fruition with a lot of hard work and determination no doubt!!

NEVER finance!!!

If my husband and I both lose our jobs at the same time (we have 3 kids), the only debt we will be concerned with is our mortgage. We have 4 months emergency fund saved up. And of course, our monthly utility bills.

Dave Ramsey saved our lives and our marriage!!!

Lcwlaura > AMGtech - now with more recalls!
08/03/2016 at 02:15

Haha!!

I’m no crazy granola person,but if that’s what you need to do to live debt free......

GO FOR IT!!!

Try something different, discover the great outdoors!

You won't be sorry.

katmando > JCAlan
07/06/2017 at 03:13

I tend to still agree with Ramsey even after your passionate rant defending what looks to me like a questionable deal at best - leasing.

I remind you that in any dealer purchase the buyer is at a stark disadvantage to the dealer because the dealer is expert at valuation, including guessing the future residual value. Why should anyone conclude other than most of the time the dealer guesses right.

I dont trust dealers to be honest about the purchase price (the starting price), let alone choose a fair (hard to decipher) interest rate if they know they can get away with a high one. They always act like your best friend during the purchase but turn into hard cold business people at the end. (“nobody forced you to buy at our [lousy] price” - you signed the contract)

I’ve had many friends who I have known at some point to be desperate to get out of leases, having limited options and none of them pleasant (continue to drive a car over the mileage limit and pay the expensive fee, dont drive the car at all, or purchase the car ready or not).

Lastly its also not cool of you to say he wants you to drive a beater like a loser. If you cant afford it, buy what you can afford. I like old cars myself. Ramsey is dealing with people who want to get hold of their finances not worry about outward appearances. He is helping them.

Sounds like you are just punching back at Ramsey who laid some pretty heavy and I think valid criticism on your business.

Dave > JCAlan
04/04/2018 at 12:34

I think all need to consider what Dave says because the advice he gives cannot hurt you, it would only make your life easier if you followed his advise.

Dave > JCAlan
04/04/2018 at 12:36

For those who find themselves strapped in debt knows what Dave Ramsey is talking about .

If you don’t then wait until life happens.

I don’t think I need to say more.

Dave > CTSenVy
04/05/2018 at 21:24

How do you come out ahead leasing when its costly based on the fact that monthly payment are involved?

I haven`t seen a car that required that much maintenance that it exceeded the monthly cost to lease.

In actuality just be honest and say its just a want

Dave > JCAlan
04/05/2018 at 21:29

Actually, people are allowed to do whatever they want with their money.

It doesn’t necessarily mean they make right decisions with it though.

I guess that why so many are cash strapped before the next pay period

and God forbid if you looses your JOB while owing all that money

Dave > JCAlan
04/05/2018 at 21:36

Dave Ramsey doesn’t state that you should always drive a beater.

The fact he makes is “live like no one else so later, you get to live like no-one else.”

The fact is , you can drive a nice car and own it as well instead of leasing the thing.

As far as maintenance is concerned, I know its cheaper to own a nice vehicle and pay for the maintenance than to continue to lease vehicles year after year.

also if you haven’t noticed, vehicles are lasting a lot longer than the older ones did.

CTSenVy > Dave
04/06/2018 at 00:49

My lease hasn’t even been 4000 dollars a year. My significant other’s paid off vehicle has cost us 5 grand in the last year.

In the two years and 3 months since my original comment I have to say leasing has worked out a lot better. Nice dependable number every month when figuring out the budget. No emptying the emergency fund because of car problems. As always individual results will vary.

evjt > JCAlan
07/31/2018 at 16:16

Yea he might be off on some of his car thinking but overall his principles make sense. Basically don’t buy things if u cant afford it and get into debt because of it. Alot of people can’t afford to buy outright a luxury car but can potentially afford a lease payment or finance payments. So this sometimes gets people overextended and not living within their means (i.e. paying extra interest for payments like credit cards etc....). Ramsey rather have that person not get into a lease/finance payment and save and invest that money instead until they are in a better financial position later to buy it outright.

Mônica > JCAlan
12/04/2018 at 23:08

This advice is specially for people in babystep 1-4 or even 5! And most people have a car which it’s to expensive for them even in maintainance.. so all he wants is to get people on track an achieve their goals.. he talks a way different to people in BS6&7 maybe you need to get some deeper information..

Most people which don’t like his way, are those who don’t wanna be disciplined in every part so they start to throw stuff on him.. if you on BS2 or 3 gonna be thankful you followed the advice and reached your goal sooner..!

It’s all about where you wanna be in life.. no one has to follow it, but those who do, arrive pretty fast where they dreamed to, I guess his plan is works quite well

AnomReader > JCAlan
04/05/2019 at 10:10

JCAlan, What is your net worth?

bob > JCAlan
08/14/2019 at 22:10

You’re statements on Dave Ramsey are factually incorrect. He does not make a blanket statement to sell your car if you are making payments. He says you should not own more than 50% of your yearly income in things with motors, if you do then sell. Auto debt is just another debt in his debt snowball.

Your tirade on his statement about the auto company making more money on a lease is made moot by a simple point: he simply misspoke and meant the dealership.

It’s interesting that you point out lease “interest rates” are comparable to auto loans, then say “good luck figuring it out from there” in regards to total lease amount compared to residual and msrp. Are you able to perform the math?

I find it highly unlikely they would overestimate the residual value of a leased vehicle. Sure, it probably happens on a rare occasion, but this in now way is typical. At the end of a lease you have nothing to show for the money you spent. Plan on getting another lease? Hopefully you have a few grand to drop to rent another vehicle. With a purchase, it’s all yours to sell or drive into the ground.

Your notion that an inexpensive car is going to break down is simply false. My 1k Honda ran for 6 years over 300k before any major issues. My 9k honda ran for 10 years before any major issues.

You put so much emphasis on needing a new cool ride lest you appear to be a broke loser. I suggest if you want to hammer Ramsey, you listen to his show for more than 5 minutes to truly understand his reasoning for his plan.

I currently have a 2015 Altime, paid off. Ill be driving this for at least 10 years and will have spent far less than you will have having leased 3 to 4 vehicles in that time. By then, I’ll buy another vehicle with cash.

Here’s something Dave says which I think is fitting for what appears to be your attitude:

People who are impressed by stuff, aren’t very impressive people.

bob > ranwhenparked
08/14/2019 at 22:10

He has addressed this many times and said they SHOULD make money. He has no issue with dealerships turning a profit at all.

bob > d15b
08/14/2019 at 22:12

That’s not what he is saying at all though. He humself has showy cars. The term “Dave car” refers to your nice awesome new car. That portion of this article is merely wrong about Ramsey.

Dave certainly does quote scripture, but it's not to deliver that message.

JCAlan > bob
08/15/2019 at 13:33

For some reason I am not able to reply to your other comment, so I’ll respond to it here.

Perhaps you missed the direct quote where he did make that exact blanket statement.

Your tirade on his statement about the auto company making more money on a lease is made moot by a simple point: he simply misspoke and meant the dealership.

If he did misspeak and meant dealership, then he is still wrong. The dealership gets the sale price of the vehicle, which is the same whether they lease or buy.

Sure, but you don’t have to. Like I said, it’s on the line called “rent.” My only point here was that lease rates are comparable to loan rates, not “super high” as Ramsey states.

I find it highly unlikely they would overestimate the residual value of a leased vehicle. Sure, it probably happens on a rare occasion, but this in now way is typical.

Well over-estimated residual values is exactly what bankrupted GM and Chrysler. The price of gas went up, truck values went down, and they lost a ton of money on every single one returned. Also manufacturers often use an incentivized residual, which means that they are calculating a lease on a higher residual value than is realistic in order to drive down the payment as an incentive to the customer. It’s a discount, just like a rebate.

At the end of a lease you have nothing to show for the money you spent. Plan on getting another lease? Hopefully you have a few grand to drop to rent another vehicle. With a purchase, it’s all yours to sell or drive into the ground.

Only legit point you made. This is definitely something to consider before leasing.

Your notion that an inexpensive car is going to break down is simply false. My 1k Honda ran for 6 years over 300k before any major issues. My 9k honda ran for 10 years before any major issues.

Ok, you got me there. Cars never break down. This anecdote proves it.

You put so much emphasis on needing a new cool ride lest you appear to be a broke loser.

My words had no such emphasis. I made a decent argument for why someone on a budget might be better off financially with a fixed payment and a car that is under warranty.

I suggest if you want to hammer Ramsey, you listen to his show for more than 5 minutes to truly understand his reasoning for his plan.

I wasn’t responding to a radio program, I was responding to an article.

Good for you. I’m glad that works. In the past I have leased new, bought new, bought used, financed, paid cash, you name it. That’s my point. Every person and situation is different, so different approaches are ok. I’m not telling you to lease, I’m just pointing out that Ramsey’s advice on leasing is not accurate, and not for everyone.

Here’s something Dave says which I think is fitting for what appears to be your attitude:

People who are impressed by stuff, aren’t very impressive people.

Which is exactly the point I was making about him shaming people. Thanks for insulting me.

Rob Delisa > JCAlan
02/10/2020 at 07:42

You are correct on all counts. Ramsey is also way to high on his example of a lease payment. He calls leasing fleecing, but any type of purchase can be fleecing if you make a bad deal.

https://carleasetips.com/2019/02/dave-ramsey-on-leasing-cars/