I love all the "anti-coprorate/big car company comments. It's ego and our own desire for status that causes us to seek out increasingly nicer vehicles- the car companies merely service that ego. It's never the fault of the business for selling the product, it's the fault of our society for creating the "need" to be in debt.
12% consistent annual return? I have nine mutual funds. The last year put me at 2%. The average return ranges from as low as -25% to 8%. If anybody has funds that are returning that well, even through the 2008-2009 time, please let me know! You could be a hedge fund manager!
I like this video but everyone bashes buying a brand new car. I dont see anything wrong with it. I love my new car.I saved a big down payment. im on my 3rd year having my car n its almost paid off. so all this talk about being enslaved by car payments for the rest of my life is hilarious to me. I think its called be smart and actually read before you sign anything n dont buy what u cant afford to pay off on a timely manner.
Even on a down year, the long term return would net you more. Even if you invested on September 10, 2001, or in 1980, or in July 2008, or heck, even before the great depression... if you invested and waited instead of bailed, you have received a return of about 12%.
all i know is that this makes sense, normal thinking and corporation propaganda on "easy car payment" brainwashed people into thinking their way is the only way. Banks are corporations, do not encourage them to be greedy bastards that they are now
I believe in the system, but my portfolio is flat, past 3 years I've lost $3 overall, $2,000 this year alone. Again, I'm all for the system, but which mutual funds specifically are doing well? I want to invest in them otherwise all I am doing is setting aside $500 (my goal) for the next 5 years and pre-paying for ever car, simply saving myself from interest payments.
iv been saying pay yourself first for a long time now trying to explain it to people but anyway if i save up to 1.6mill in 30yrs hell in 30 yrs that wont hardly be worth shit if ANYTHING just a statement great advise tho even tho most are to stupid to figure out the commonsense them self's i really wanna smack the guy who named commonsense cause its not common i dont think is ever was
Oh, and I'm glad there are a lot of morons out there who don't believe this. Thanks to them, I'll have a great used car that they lost their azzes on when it depreciated 25% when they drove it off the lot. If it weren't for the morons who buy new cars, we wouldn't have a used car supply. Let's give the morons a round of applause for taking the financial hit for us.
I love reading all the self-defeating comments on here. These people will be enslaved by the bank for the rest of their lives, at their own will. This plan is workable on so many levels. Even since the big "crash" in 2008, it's extremely easy to find a good mutual fund that has averaged 10-12% returns over the last 3, 5, and 10 years. Mutual funds vastly reduce the risks associated with investing.
It's all about paying yourself first. If you lease a car, you're ALWAYS making a car payment. I buy used (excuse me, "pre-owned") premium cars for cash and drive them until they die. In 2004 I bought a 2001 Infiniti Q45 for about half the original price. It had 30,000 miles on int and it now has 107,000 miles on it and drives like a dream. I haven't made a car payment in years, so I'm saving all that dough with a practically maintenance-free car.
I'm sure everyone who thinks this is ridiculous has a degree in finance and is a multi-millionaire from giving financial advice. Let's see, who should I listen to...?
You can blame him for the 12% return, or you can take the positive message and make a plan for the better. It's your choice to let ego or logic control your decisions.
The Post World War II average return on the S&P 500 is 12.57% from 1945-2010. If you invest in an S&P 500 index fund, this is the long-term annual return you can expect. (BTW, It's 12.93% from 1980-2010)
Remember, investing is for the LONG TERM. If you are going to need your money in 5 or even 10 years you would be better to put money in a money market savings account. But for long-term investing, an S&P 500 index fund historically gives you about a 12% annual return.
Also, this video does not take taxes paid on the interest income, or taxes paid on each vehicle into account, plus the extra maintenance and repairs required by an older vehicle.
Right, because car# 2 is not going to depreciate AT ALL in 10 months AND you'll be able to trade it in for the retail price. Fat chance. And 12% return? Sounds like Dave has his head in the clouds.
Not taking on debt, buying used, and saving are common sense ways to be financially responsible. That said, it's obvious plenty of people are willing to pay the price for a NEW car. I'm not, but someone has to in order for there to be a used car market.
All this is nonsense. He is just advocating not taking on debt, which should be common sense. You shouldn't even need to do his basic math to understand that paying interest costs more than not paying interest.
ok guys, I'm a complete illiterate when it comes to the stock market. When they say 12% (or whatever, 8%, whatever) does that mean your funds are gaining 8-12% per...what? Month? Year? Help is appreciated. Thanks!
Let's see how long they allow this...this is a good plan, but mutual funds DO NOT EARN INTEREST, tech speaking. Check out infinitebankingDOTorg & bankonyourselfDOTcom for an even better way. Cheers Team Ramsey!
The flaw in all this reasoning is the 12% return on the stock market. Historically speaking, over the last 6 or 7 decades, the average stock market return is less than 8%.
@mpsnerdley@girardisles My mutual fund has averaged 13% over the past 17 years. Dave Ramsey has a link to investors he endorses. 12% is not a RIDICULOUS assumption. A 12% average, long track record mutual fund is very easy to find. I tried playing stubborn and saying Dave Ramsey is unrealistic, but the fact is he isn't. His math is sound and his logic works.
@mpsnerdley Average stock market return is probably 8%; however, that number is an average. Dave Ramsey is talking about specific types of mutual funds which DO average anywhere between 12% and 15% which are not hard to find.
@mpsnerdley He's not talking about the stock market, though. He's talking about mutual funds. And I don't think 10-12% return is unfeasible. I have some money in an index fund, and last quarter it did something like 18%, and last year I think overall it made around 11%.
@mpsnerdley Even at 8% average return you'd still have $12,000 to $13,000 in your account every 5 years assuming only a $25,000 balance. More than enough to buy a dependable used car that will last 5 more years. The video isn't telling people to invest in random stocks. There are plenty of mutual funds that have averaged 10% to 12% returns over the last 3, 5, 10, and even 20 years.
this could work but you would have to buy a quality used car like bmw, toyota, infinity or something that will hold its value. try it with a kea and u can forget reselling for the same amount
@girardisles My mutual fund has averaged 13% over the past 17 years. Dave Ramsey has a link to investors he endorses. 12% is not a RIDICULOUS assumption. A 12% average, long track record mutual fund is very easy to find. I tried playing stubborn and saying Dave Ramsey is unrealistic, but the fact is he isn't. His math is sound and his logic works.
@girardisles My mutual fund has averaged 13% over the past 17 years. Dave Ramsey has a link to investors he endorses. 12% is not a RIDICULOUS assumption. A 12% average, long track record mutual fund is very easy to find. I tried playing stubborn and saying Dave Ramsey is unrealistic, but the fact is he isn't. His math is sound and his logic works.
@girardisles it is, but even a 5% fund would make more sense than dumping the money into financing a car, and what he's saying about saving the money and 'paying yourself' is a great idea.
@girardisles He's talking about growth stock funds which can make that over time. You need to look at the prospectus, and look at last 15 years (not 1 year or 5 year). Besides, as someone else said, you're still making out better even if you only get 5% back, which is low if you only invest in the S&P 500.
@girardisles I'm looking in my portfolio and I've got a mutual fund thats averaging 13% even in this horrific economy. and quite a few others that are averaging 11%, 12, and 10% but that does not include when things get well again I could be making bank. its not a ridiculous assumption. Stop drinking the Bank's koolaid and go find some investment instruments that get a good rate of return.
So who's got $475 car payments each month? I drive a seventeen year old car that I invest about $1000 in repairs each year. And I keep the oil changed.
And if you can afford $475 per month, what do you make per year?
@shadow6463 Sounds like you haven't bought a good used car in a while, I have bought many used cars and shopped and got a good deal and 8 months later sold it for a grand more then I paid. It happens if you're smart
@shadow6463 His point is that used cars lose little value is a short time like 10 months. I once paid $2000 for a car and sold it for $2300 180 months later. Not just wishful thinking, just realistic thinking.
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so, drive a cheap,dangerous, unsafe car for 6 years and poof u get to to buy a safe expensive car... pity the cheap car didnt save kids life in that accident...
@daretb Technically you only have to drive a different car every 10 months. That means it exponentially gets better every 10 months because the money you spent for the previous car doesn't lose much depreciation in that amount of time and you can sell your car to add to the money to get a new car. I'm 21 and I plan on doing this. I already have a somewhat dependable car so I should just maintain it while saving the money in a mutual fund. It just makes sense!
if you dont like doing that, try keeping your maintainance schedule on your car and it should last you 15 - 20 years. Its amazing what a new air filter, plugs and regular oil changes can do to increase the lifespan of a car.
One thing they neglect is the escalating costs of maintenance as a car ages - luck of the draw no matter how good a care you take of the vehicle. Another option is lease takeovers where you cherry pick 1-2 year old, still in warranty cars, make far lower payments than financing and have a virtually new car every year or two - you can even buy out the residual and make a profit if you choose well.
I take back my comment on 12% average return on Mutual Funds being a dream. It seems like everyone who criticizes Dave Ramsey only looks at short term. Very short term thinking.
There's a difference between the stock market in general, and a good selection of mutual funds. Also, not all mutual funds are "conservative". There are many different types. Do some research. There are plenty of mutual funds that average 11-12% over a 10 year or longer period. Don't look at the short term, and don't think index funds or the market indexes are the same as mutual funds!
This 12% mutual fund return is kind of rosy. Had you invested your money in the stock market 10 years ago, you'd have less money today and the money you have will be worth less than it was in 2000. I am not saying living debt free is not a good idea, but if you follow D. Ramsey's advice, you will lose money.
@christo930 It doesn't have to be a mutual fund. It could be a sinking fund or annuity or a CD. Maybe the interest rates won't be as high but you would not lose money. But Dave Ramsey is very strongly making the case that instead of the interest payments making money for the bank through that car loan, its better that that interest is making money for you through a sinking fund, annuity, CD or mutual fund. How will you lose money when that interest making money for you instead of the bank?
@conservative608 I agree with the idea of living debt free, but dave ramsey gives out bad advice. He tells people that 12% mutual funds are an everyday occut\r rance for example. 12% is an excellent return in any environment, let alone a mutual fund, which tend to be conservative. I once heard him tell a listener a stock market crash was IMPOSSIBLE, about 12 months before it went and crashed.
@christo930 - Perhaps he meant that it will always come back like it always has. Think about it! The word "crash" IS NOT a comeback word. If you CRASH your car, or there is a plane CRASH then neither the car nor the plane is coming back.
BUT THE STOCK MARKET ALWAYS HAS and always will! Maybe you did not understand Dave @Conservative608
12% in the U.S. happens to be the average of the stock market. So even if you make 10% or ONLY 8% would you complain to Dave? (:-)
@conservative608 CD's are paying a rate below inflation. I agree with the idea of living debt free, and I don't even have a car at the moment (although I have owned a car most of my life) and I always buy used cars, preferably 4 years old where the big depreciation has already occurred but the car still has plenty of useful life in it.
@christo930 Wrong. Dave Ramsey said that the stock market could not collapse and it can't. I am not arguing with you about mutual funds at 12 % being a dream. I am saying that other financial funds such as annuities, sinking funds and CD might be substituted in this video and you have the interest making money for you instead of the bank.
@conservative608 - CD's are okay but not for a lifetime investment because the rates are too low.
ANNUITIES are also not usually the best method of investing. If you don't believe that you should see Bob BRinker at his website bobbrinker "do" com. I listen to his show on Saturday evenings from 4- 7 I believe it is Easter Time and he says and the market agrees that stocks earn more in the long run and a good mutual fund with good stocks can bring you a good return.
I understand the concept of conpounding interest, and I hear a lot of people talking about how rich you can become by signing up to a fund that will generate between 10% and 12% over periods of years..... but no-one talks specifics as to where exactly you can find theese funds..... Why?
@FreddyStarman people don't recommend funds because is that is "giving advice" which calls down gov't entities demanding you be licensed. There is a world of terrible funds, but there are quite a few good ones also. Maybe try going to Dave Ramsey's website and look for what they call "endorsed local providers." These guys are licensed and able to help you and have to jump through tons of hoops to get on Ramsey's list.
I have yet to own a car made in the 21st century. My newest vehicle I bought at an auction in October 1999 for cash, a 1999 Ford Windstar mini van with a window sticker of $34,457. I paid $15,000 cash. It was still a new car for 3 months.
I drive my cars until the wheels fall off , then I sell the pile of bolts that are left.
Great video!!! We haven't had a car payment since 2006, and to top it all off the car we are driving we got free because my mother-in-law bought a new car and gave us her old one. I like that system!!! Dave you have change my families lives, thank you! all we have left is a mortgage, and that's only got a few years left.
I love all the "anti-coprorate/big car company comments. It's ego and our own desire for status that causes us to seek out increasingly nicer vehicles- the car companies merely service that ego. It's never the fault of the business for selling the product, it's the fault of our society for creating the "need" to be in debt.
dawsonmckay 1 month ago
12% consistent annual return? I have nine mutual funds. The last year put me at 2%. The average return ranges from as low as -25% to 8%. If anybody has funds that are returning that well, even through the 2008-2009 time, please let me know! You could be a hedge fund manager!
jfudgeelder 1 month ago
I like this video but everyone bashes buying a brand new car. I dont see anything wrong with it. I love my new car.I saved a big down payment. im on my 3rd year having my car n its almost paid off. so all this talk about being enslaved by car payments for the rest of my life is hilarious to me. I think its called be smart and actually read before you sign anything n dont buy what u cant afford to pay off on a timely manner.
newnatural445 1 month ago
Even on a down year, the long term return would net you more. Even if you invested on September 10, 2001, or in 1980, or in July 2008, or heck, even before the great depression... if you invested and waited instead of bailed, you have received a return of about 12%.
eveRideorg 2 months ago
the 8 dislikes were car dealers.....
iTzBRYANT113 2 months ago
I would love the name of a mainstream fund with normal risk that delivers consistent yoy growth of 12%+. Seriously send me names.
girardisles 4 months ago
all i know is that this makes sense, normal thinking and corporation propaganda on "easy car payment" brainwashed people into thinking their way is the only way. Banks are corporations, do not encourage them to be greedy bastards that they are now
lifemetall 4 months ago
I believe in the system, but my portfolio is flat, past 3 years I've lost $3 overall, $2,000 this year alone. Again, I'm all for the system, but which mutual funds specifically are doing well? I want to invest in them otherwise all I am doing is setting aside $500 (my goal) for the next 5 years and pre-paying for ever car, simply saving myself from interest payments.
1n1usaf 4 months ago
I love you so much! Thank you..
salvyx3 5 months ago
Who would take out a 6 year loan for $475 a month?
SaviourSole 6 months ago
@SaviourSole apparently one 3rd of americans. people are stupid.
slsslc 6 months ago
@SaviourSole You'll be surprized with how many idiots would.
vfIskullangel 4 months ago
iv been saying pay yourself first for a long time now trying to explain it to people but anyway if i save up to 1.6mill in 30yrs hell in 30 yrs that wont hardly be worth shit if ANYTHING just a statement great advise tho even tho most are to stupid to figure out the commonsense them self's i really wanna smack the guy who named commonsense cause its not common i dont think is ever was
OneWitness
witness402 6 months ago
@witness402 It depends on were you invest it.
vfIskullangel 4 months ago
Want some practical advice,invest in GOLD and SILVER!
lsreborn 7 months ago
Oh, and I'm glad there are a lot of morons out there who don't believe this. Thanks to them, I'll have a great used car that they lost their azzes on when it depreciated 25% when they drove it off the lot. If it weren't for the morons who buy new cars, we wouldn't have a used car supply. Let's give the morons a round of applause for taking the financial hit for us.
AlexanderRozhenko 8 months ago
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I love reading all the self-defeating comments on here. These people will be enslaved by the bank for the rest of their lives, at their own will. This plan is workable on so many levels. Even since the big "crash" in 2008, it's extremely easy to find a good mutual fund that has averaged 10-12% returns over the last 3, 5, and 10 years. Mutual funds vastly reduce the risks associated with investing.
AlexanderRozhenko 8 months ago
It's all about paying yourself first. If you lease a car, you're ALWAYS making a car payment. I buy used (excuse me, "pre-owned") premium cars for cash and drive them until they die. In 2004 I bought a 2001 Infiniti Q45 for about half the original price. It had 30,000 miles on int and it now has 107,000 miles on it and drives like a dream. I haven't made a car payment in years, so I'm saving all that dough with a practically maintenance-free car.
moneytv 8 months ago
I just checked the performance on the 5 mutual funds in my portfolio. The Annual returns show in real time as 11.1%, 12.3%, 14.9%, 16.9%, and 20.2%.
Why is 12% a bad assumption? Have you not noticed that the stock market has come back up since March 2009?
CookieB984 9 months ago 2
I just checked the performance on the 5 mutual funds in my portfolio. The Annual returns show in real time as 11.1%, 12.3%, 14.9%, 16.9%, and 20.2%.
Why is 12% a bad assumption? Have you not noticed that the stock market has come back up since March 2009?
CookieB984 9 months ago 19
@CookieB984 Very impressive! :)
ClarenceStinson 3 months ago
I'm sure everyone who thinks this is ridiculous has a degree in finance and is a multi-millionaire from giving financial advice. Let's see, who should I listen to...?
ayces92 9 months ago 2
Is the world really full of mornons that buy a car on payments and emideatlybuy the next one after the agrement runs out?
reafdaw01 9 months ago
LOL i made 10% last month Stock on sprint baby
isk3602007 10 months ago
You can blame him for the 12% return, or you can take the positive message and make a plan for the better. It's your choice to let ego or logic control your decisions.
claw787 10 months ago
The Post World War II average return on the S&P 500 is 12.57% from 1945-2010. If you invest in an S&P 500 index fund, this is the long-term annual return you can expect. (BTW, It's 12.93% from 1980-2010)
Daniel885 10 months ago 2
Remember, investing is for the LONG TERM. If you are going to need your money in 5 or even 10 years you would be better to put money in a money market savings account. But for long-term investing, an S&P 500 index fund historically gives you about a 12% annual return.
Daniel885 10 months ago
LOL this is stupid at a brand new level of stupidity.
what was the point - to sell used cars to stupid people?
letascreatures 10 months ago
1-year CD 1.25% APY ($500 min. balance)
3-year CD 2.00% APY ($500 min. balance)
5-year CD 2.75% APY ($1000 min. balance)
12%? are you talking about inflation rate?
dante21222324 10 months ago
Also, this video does not take taxes paid on the interest income, or taxes paid on each vehicle into account, plus the extra maintenance and repairs required by an older vehicle.
rambo76098 10 months ago
Right, because car# 2 is not going to depreciate AT ALL in 10 months AND you'll be able to trade it in for the retail price. Fat chance. And 12% return? Sounds like Dave has his head in the clouds.
Not taking on debt, buying used, and saving are common sense ways to be financially responsible. That said, it's obvious plenty of people are willing to pay the price for a NEW car. I'm not, but someone has to in order for there to be a used car market.
rambo76098 10 months ago
In the world without inflation, maybe.
drlex 11 months ago
All this is nonsense. He is just advocating not taking on debt, which should be common sense. You shouldn't even need to do his basic math to understand that paying interest costs more than not paying interest.
girardisles 11 months ago
ok guys, I'm a complete illiterate when it comes to the stock market. When they say 12% (or whatever, 8%, whatever) does that mean your funds are gaining 8-12% per...what? Month? Year? Help is appreciated. Thanks!
jtwidmer 1 year ago
Drive a BRAND NEW CAR for FREE! Watch At w ww. free-car (dot) tk
Boshuis7 1 year ago
Believe me in 5-10 years from now 11000 USD wont be worth as much as 11000 USD Today. even if you get those 12%
zloben9000 1 year ago 2
Let's see how long they allow this...this is a good plan, but mutual funds DO NOT EARN INTEREST, tech speaking. Check out infinitebankingDOTorg & bankonyourselfDOTcom for an even better way. Cheers Team Ramsey!
royhobbs34 1 year ago
The flaw in all this reasoning is the 12% return on the stock market. Historically speaking, over the last 6 or 7 decades, the average stock market return is less than 8%.
mpsnerdley 1 year ago 4
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@mpsnerdley @girardisles My mutual fund has averaged 13% over the past 17 years. Dave Ramsey has a link to investors he endorses. 12% is not a RIDICULOUS assumption. A 12% average, long track record mutual fund is very easy to find. I tried playing stubborn and saying Dave Ramsey is unrealistic, but the fact is he isn't. His math is sound and his logic works.
noslenac 1 year ago
@mpsnerdley Average stock market return is probably 8%; however, that number is an average. Dave Ramsey is talking about specific types of mutual funds which DO average anywhere between 12% and 15% which are not hard to find.
noslenac 1 year ago
@mpsnerdley He's not talking about the stock market, though. He's talking about mutual funds. And I don't think 10-12% return is unfeasible. I have some money in an index fund, and last quarter it did something like 18%, and last year I think overall it made around 11%.
mrich1976 8 months ago 2
@mpsnerdley Even at 8% average return you'd still have $12,000 to $13,000 in your account every 5 years assuming only a $25,000 balance. More than enough to buy a dependable used car that will last 5 more years. The video isn't telling people to invest in random stocks. There are plenty of mutual funds that have averaged 10% to 12% returns over the last 3, 5, 10, and even 20 years.
AlexanderRozhenko 8 months ago
this could work but you would have to buy a quality used car like bmw, toyota, infinity or something that will hold its value. try it with a kea and u can forget reselling for the same amount
bruceericlee 1 year ago
i could also steal a car for free in 10 minutes and make my money work for me right away!
aviator45 1 year ago
12% in a mutual fund is a RIDICULOUS assumption.
girardisles 1 year ago 15
Comment removed
noslenac 1 year ago
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@girardisles My mutual fund has averaged 13% over the past 17 years. Dave Ramsey has a link to investors he endorses. 12% is not a RIDICULOUS assumption. A 12% average, long track record mutual fund is very easy to find. I tried playing stubborn and saying Dave Ramsey is unrealistic, but the fact is he isn't. His math is sound and his logic works.
noslenac 1 year ago
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@girardisles My mutual fund has averaged 13% over the past 17 years. Dave Ramsey has a link to investors he endorses. 12% is not a RIDICULOUS assumption. A 12% average, long track record mutual fund is very easy to find. I tried playing stubborn and saying Dave Ramsey is unrealistic, but the fact is he isn't. His math is sound and his logic works.
noslenac 1 year ago
@girardisles it is, but even a 5% fund would make more sense than dumping the money into financing a car, and what he's saying about saving the money and 'paying yourself' is a great idea.
jtwidmer 1 year ago
@girardisles He's talking about growth stock funds which can make that over time. You need to look at the prospectus, and look at last 15 years (not 1 year or 5 year). Besides, as someone else said, you're still making out better even if you only get 5% back, which is low if you only invest in the S&P 500.
okgamecock 11 months ago 2
@girardisles Staying in debt all the time is a RIDICULOUS way to live.
AlexanderRozhenko 8 months ago
@girardisles I'm looking in my portfolio and I've got a mutual fund thats averaging 13% even in this horrific economy. and quite a few others that are averaging 11%, 12, and 10% but that does not include when things get well again I could be making bank. its not a ridiculous assumption. Stop drinking the Bank's koolaid and go find some investment instruments that get a good rate of return.
vfIskullangel 4 months ago
So who's got $475 car payments each month? I drive a seventeen year old car that I invest about $1000 in repairs each year. And I keep the oil changed.
And if you can afford $475 per month, what do you make per year?
eastportland 1 year ago
In other words, just be smart.
ElPopularVale 1 year ago
Why would selling your $6250 used car still net you $6250? Some wishful thinking right there.
shadow6463 1 year ago
@shadow6463 Sounds like you haven't bought a good used car in a while, I have bought many used cars and shopped and got a good deal and 8 months later sold it for a grand more then I paid. It happens if you're smart
reddirtshow 1 year ago
@shadow6463 His point is that used cars lose little value is a short time like 10 months. I once paid $2000 for a car and sold it for $2300 180 months later. Not just wishful thinking, just realistic thinking.
ham022806 1 year ago
Choose a 4 yr old car with less mileage which stands in goodstead on its further life provided you treat it aesthetically.
singisking2008 1 year ago
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so, drive a cheap,dangerous, unsafe car for 6 years and poof u get to to buy a safe expensive car... pity the cheap car didnt save kids life in that accident...
daretb 1 year ago
@daretb mmmhhhh better not say anything..not worth it
dominiomatic 1 year ago
@daretb Technically you only have to drive a different car every 10 months. That means it exponentially gets better every 10 months because the money you spent for the previous car doesn't lose much depreciation in that amount of time and you can sell your car to add to the money to get a new car. I'm 21 and I plan on doing this. I already have a somewhat dependable car so I should just maintain it while saving the money in a mutual fund. It just makes sense!
nthenson1 1 year ago
WHAT IF !?
derman077 1 year ago
if you dont like doing that, try keeping your maintainance schedule on your car and it should last you 15 - 20 years. Its amazing what a new air filter, plugs and regular oil changes can do to increase the lifespan of a car.
TheCaptainLulz 1 year ago
One thing they neglect is the escalating costs of maintenance as a car ages - luck of the draw no matter how good a care you take of the vehicle. Another option is lease takeovers where you cherry pick 1-2 year old, still in warranty cars, make far lower payments than financing and have a virtually new car every year or two - you can even buy out the residual and make a profit if you choose well.
bradinancouver 1 year ago
everyone wants to get rich quick!!! but there is no magic pills or secret diet. its just plain hard work and not being a iddiot with your money.
rduncan999 1 year ago
I take back my comment on 12% average return on Mutual Funds being a dream. It seems like everyone who criticizes Dave Ramsey only looks at short term. Very short term thinking.
conservative608 1 year ago
There's a difference between the stock market in general, and a good selection of mutual funds. Also, not all mutual funds are "conservative". There are many different types. Do some research. There are plenty of mutual funds that average 11-12% over a 10 year or longer period. Don't look at the short term, and don't think index funds or the market indexes are the same as mutual funds!
rcav8r 1 year ago
This 12% mutual fund return is kind of rosy. Had you invested your money in the stock market 10 years ago, you'd have less money today and the money you have will be worth less than it was in 2000. I am not saying living debt free is not a good idea, but if you follow D. Ramsey's advice, you will lose money.
christo930 1 year ago
@christo930 It doesn't have to be a mutual fund. It could be a sinking fund or annuity or a CD. Maybe the interest rates won't be as high but you would not lose money. But Dave Ramsey is very strongly making the case that instead of the interest payments making money for the bank through that car loan, its better that that interest is making money for you through a sinking fund, annuity, CD or mutual fund. How will you lose money when that interest making money for you instead of the bank?
conservative608 1 year ago
@conservative608 I agree with the idea of living debt free, but dave ramsey gives out bad advice. He tells people that 12% mutual funds are an everyday occut\r rance for example. 12% is an excellent return in any environment, let alone a mutual fund, which tend to be conservative. I once heard him tell a listener a stock market crash was IMPOSSIBLE, about 12 months before it went and crashed.
christo930 1 year ago
@christo930 - Perhaps he meant that it will always come back like it always has. Think about it! The word "crash" IS NOT a comeback word. If you CRASH your car, or there is a plane CRASH then neither the car nor the plane is coming back.
BUT THE STOCK MARKET ALWAYS HAS and always will! Maybe you did not understand Dave @Conservative608
12% in the U.S. happens to be the average of the stock market. So even if you make 10% or ONLY 8% would you complain to Dave? (:-)
-Financial-Peace-Now Blogspot
cpedley 1 year ago
@conservative608 CD's are paying a rate below inflation. I agree with the idea of living debt free, and I don't even have a car at the moment (although I have owned a car most of my life) and I always buy used cars, preferably 4 years old where the big depreciation has already occurred but the car still has plenty of useful life in it.
christo930 1 year ago
@christo930 Wrong. Dave Ramsey said that the stock market could not collapse and it can't. I am not arguing with you about mutual funds at 12 % being a dream. I am saying that other financial funds such as annuities, sinking funds and CD might be substituted in this video and you have the interest making money for you instead of the bank.
conservative608 1 year ago
@conservative608 - CD's are okay but not for a lifetime investment because the rates are too low.
ANNUITIES are also not usually the best method of investing. If you don't believe that you should see Bob BRinker at his website bobbrinker "do" com. I listen to his show on Saturday evenings from 4- 7 I believe it is Easter Time and he says and the market agrees that stocks earn more in the long run and a good mutual fund with good stocks can bring you a good return.
cpedley 1 year ago
@christo930 - Over time you WILL NOT. It is only if you are looking short term. True the last 10 years has not been great for the average investor.
But QUIT being average! Be ABOVE average and you will do better!
cpedley 1 year ago
Car dealers and banks probably hate this video. Only around 665 views. Darn! Where are all the liberals that hate banks?
conservative608 1 year ago
I understand the concept of conpounding interest, and I hear a lot of people talking about how rich you can become by signing up to a fund that will generate between 10% and 12% over periods of years..... but no-one talks specifics as to where exactly you can find theese funds..... Why?
FreddyStarman 1 year ago
@FreddyStarman look at ticker PRPFX -- no load and no advisor required -- just boring solid growth
thefatbiker 1 year ago
@FreddyStarman people don't recommend funds because is that is "giving advice" which calls down gov't entities demanding you be licensed. There is a world of terrible funds, but there are quite a few good ones also. Maybe try going to Dave Ramsey's website and look for what they call "endorsed local providers." These guys are licensed and able to help you and have to jump through tons of hoops to get on Ramsey's list.
thefatbiker 1 year ago
I have yet to own a car made in the 21st century. My newest vehicle I bought at an auction in October 1999 for cash, a 1999 Ford Windstar mini van with a window sticker of $34,457. I paid $15,000 cash. It was still a new car for 3 months.
I drive my cars until the wheels fall off , then I sell the pile of bolts that are left.
talfacprez 1 year ago
Great video!!! We haven't had a car payment since 2006, and to top it all off the car we are driving we got free because my mother-in-law bought a new car and gave us her old one. I like that system!!! Dave you have change my families lives, thank you! all we have left is a mortgage, and that's only got a few years left.
ChadAlanEvents 1 year ago
its finally on YouTube!!! I Love this Video!!
jribe 1 year ago 2