Used Car or The Stupid Tax
I’ve blogged once or twice before about our decision to buy a used car over new. My brother sent me a link where the importance of buying used is extrapolated for both the present and future. It could be one of the most important financial decisions you’ll ever make when you realize how much it could truly cost. And because we know how much money affects marriages it could be one of the most important decisions for your family. I highly recommend watching the Dave Ramsey video. Click Here.
I don’t know that I’ll ever be able to justify buying a car that is less than 4 years old. No matter what your income level you are literally throwing away thousands of dollars. As Dave says, “The Stupid Tax”.
Tags: cars, dave ramsey, used car
September 22nd, 2008 at 9:44 am
what if you have a paid for car that was given to you but costs $80 bucks everytime you fill it up. and then you have a car that isn’t paid for but gets good gas mileage and will last far beyond the time it’s paid off. his theory is accurate for some but not for a lot of people who don’t go buy a new car every six years.
so far I have found out budget meetings, envelopes and paying off debt is only a revolutionary idea if you have the cash to do it. he gives you some tools and wise ideas but doesn’t get you a new job that pays more in order to actually acheive those things.
September 22nd, 2008 at 10:04 am
I agree. I have found that many of his examples of people that have paid off tens of thousands of dollars of debt are able to do it so quick because they make a lot of money.
In many cases there are things you could change. You don’t have to have a truck or SUV that eats up all your money. That is a choice you have to make. And chances are that if you can’t afford gas even when its price is doubled you should have bought the car anyways.
Which is why moving out of our house even though it is not extravagantly expensive is on the table. We can afford to live in it but we are unable to make our money work for us. Technically the option is there it just isn’t always that easy. Which is why in the first Dave Ramsey video the “elders” say to the youth “DO IT” in an effort to make them realize what a series of bad decisions can lead too.
If we all lived by his wisdom printed on his billboard(”Act your wage”) then these points would not be relevant.