Ah, good ol’ Dave Ramsey! You can all the time depend on the monetary pundit to show down his nostril at any form of luxurious buy. Cars are actually no exception — however by Ramsey’s personal recommendation, proudly owning any form of new automobile is one thing that solely the already rich ought to contemplate.
Are you already rich? Do you may have $1 million sitting within the financial institution? Then, and solely then, says Ramsey, you may hit that new automobile lot.
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A brand new automobile is the biggest buy most of us make that truly goes down in worth and it goes down in worth "like a rock." That's the place Chevy acquired the road!
Let's put the numbers in perspective. If you purchase a brand-new $28,000 automobile, it's going to be value $8,400 in 4 years.…
— Dave Ramsey (@DaveRamsey) August 7, 2023
“A new car is the largest purchase most of us make that actually goes down in value and it goes down in value ‘like a rock,'” he writes on August 7. His put up then goes instantly to numbers.
“If you buy a brand-new $28,000 car, it’s going to be worth $8,400 in four years,” he says. He’s not flawed — it is tough on the market. “That means you’re losing $408 every month in depreciation.”
“If you think you can afford that hit, then try this: once a week on your drive to work, roll down the window and throw a hundred-dollar bill out. Can you afford that? I don’t think so.”
“There is no such thing as a good deal on a new car,” Ramsey says. “The instant you drive it off the lot, you are immediately losing money, and you can’t drive that car fast enough to catch up.”
So when is it okay to purchase a automobile brand-new? “When you have a million dollars in the bank and can actually afford the financial hit of throwing tens of thousands of dollars away just for fun.”
The closing takeaway? “Until then, do what most millionaires do: buy slightly used and pay with cash.”
Source: www.thestreet.com”