Dave Ramsey is hardly known as a shrinking violet; he has strong opinions about most topics in personal finance — including how you should buy a car. One of Ramsey's boldest positions is simple: never finance a car. No, not when rates are low.
Not when you're desperate for reliable transportation. Not even when a monthly payment seems manageable. To Ramsey, a car loan isn't just a necessity of modern life — it's a financial trap that keeps you buried in debt while your vehicle loses value every day.
Here's why he refuses to back down. You're impressed with your new set of wheels. Your Instagram is full of photos of your latest ride, and you're no stranger to the car wash.
Heck, you might even have a nickname for it. Unfortunately, Ramsey has some characteristically blunt news for you. If you financed your car, he says it isn't really yours.
Ramsey Solutions, his personal finance company, puts it this way: "Just to be clear, you don't actually own a car when you finance. The bank (or whoever else lent you the money) owns the car. They just let you drive it around — as long as you make your monthly payment, that is." In Ramsey's view, until the loan is paid off, you're driving an asset controlled by the lender — not building ownership or wealth.
And, he argues, that's only the beginning of the problem. Taking to X (the social media platform formerly known as Twitter), Ramsey expanded on one of his core beliefs: Your car starts depreciating in value as soon as you roll off the lot. "Things that have motors and wheels go down in value, and I can't finance them," Ramsey said.
Extract — continue reading at the source.
