Why Getting a Car Loan Is a Bad Idea

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[noshpetunia]

Whenever I get close to getting a car loan I just come and watch a Dave Ramsey video on car loans and I'm fine again for the next 6 months

[aliannacone]

"Debt is always easy until you have it" --- Dave Ramsey

[stephenmartin]

I’m not going to lie, God used Dave to renew my mind and begin to be patient with saving money.

[stayathomemarine]

My husband drives a 2002 Toyota Camry and I drive a 2011 Hyundai Sonata. Both paid for. We are going to drive those suckers into the ground before we ever think about getting another car!!

[FiladelfiaStudios]

Save up for a decent used car, I hit the jackpot found myself a 2007 Camry with 35k miles on it and bought it for $7k in June, what a blessing. I’m gonna drive it into the dirt and maintain it as much as possible. Took me few weeks of looking for it but it was worth the wait

[MilysJourney]

I am not mediocre nor broke and I have a car loan. I have no debt besides my house. 401k in place, investments, college for my kids . I even have a Roth and a CD. Work full time and have a college degree.. Make good money . I dont think you can take all those millions to your grave my friends. 75 years old with 10 million you can't spend. Life not enjoyable. My school friend just passed away age 39. Life is short.

[InvestingHustler]

Cuz ur going into debt and paying interest on a vehicle that is slowly depreciating in value !

[gristlepounder]

Had a company car most of my career and my wife drove the used cars we bought from the company. That was a huge benefit.

[KayleeCee]

This is what I keep trying to tell my husband. One of our cars is on its last leg. I want to use it only for short trips and try to make it last until we can get 4-5K saved up to buy a decent used car, which would only take us a few months. He wants to finance. We have good credit and would get a low interest rate, but I don't want to pay any interest at all. I would rather save the 3 or 4 hundred a month that a car payment would take up and invest it in something that won't depreciate in value.

[__Diaz__]

This video stopped me from taking out a loan. I will protect my existing car (that runs fine) til the very end and I will continue to enjoy 'clean' pay days where I owe no one. Thanks again!

[roseve]

I have a 2004 honda, and it's almost at 200, 000 miles. Transmission was giving out. All we did was paid 1700 to rebuild it and some new parts and she is driving agian!

[maestroadam]

I just paid off my car loan. Never again!

[Plantbased]

Exactly! Also, when you get a car loan, your car Insurance goes up a lot until the loan is paid off.

[holec]

Hey Dave, I put a 2K deposit on a brand new pickup truck with a 37K price tag, and went through all the paperwork. My finances are great, but after watching your show, I decided to cancel the deal. I never had a car payment before and realized if I can't pay it cash, then I probably shouldn't buy it. I'm 28 and earn over 6 figures. My coworker is selling me a 10yr old honda civic fully loaded for $1500. I'll continue saving my money, and rent a truck when I absolutely need it. One day, I'll buy the toys I want with cash. Now I gotta go to the dealer and fight for my deposit or at least part of it. If I lose part of or all of the deposit, it's a much cheaper lesson learned. Thanks for the great advice.

[TheChicago]

You don't have peace worrying about if this car is going to die on me on the way to work on the hwy. Have peace of mind with that car note, you sound disciplined enough to handle it. Everything doesn't work for everybody. Do what's best for you and your situation.

[Will-isod]

I’m young and don’t know much about cars. Thank you for being clear and getting right to the point

[keviinkins]

Step 1: Buy a used Toyota
Step 2: Refer to step 1

Thank me later

[susanquigley]

As a CFP I can tell you this video makes little sense to me. 1 - if having a car is needed, then it's not an option to just wait. 2 - why does he assume that the person is going to spend $507 for 7 years. 3 - Why does he assume he is ALWAYS going to have a car payment? If he buys and maintains a decent car, he can drive the car for 10-15 years. 4 - where is he getting that 5.6 million ? What rate of return is he assuming? This feels like advice from someone who gets to preach but doesn't get to work with real people anymore. I just sat down with a 25 year old who is trying to decide on a $250 a month car payment for 5 years vs listening to this advice, but the cost of getting to work would be almost as much, if not more, than the $250 and he would have nothing to show for it other than a favorite seat on the City train (and no car for weekends or anything else) After 5 years he would have a reliable car and no payment for at least 5 years or more. And, yes, Millionaires haven't had car loans. Great. They can write a check. But how about advice for people living in the real world? I have a successful practice and my share of millionaire clients, but I also do a lot of free work in the community and have clients that aren't millionaires. General advice is great people. He is right - debt is bad when it's abused. Don't buy a new car with a new loan every 4 years like some people and don't lease. But do remember to think for yourselves and question when you hear general advice like this.

[PhuccinAyee]

If your in a situation where you need a car to get around due to a job or being involved in an accident & your establishing credit, Have little to no debt, and are a responsible person A car payment will help you in the long run credit wise if you're applying for a mortgage etc. Doesn't mean you have to get the most expensive car. You can get by with a 5k-8k loan for 24-48 months depending on your income being disciplined.

[DebtFreeDee]

So true Dave! Thankfully paying mine off in the next few months! 😁 I plan to NEVER borrow again!