Dave Ramsey Says If You Want To Know What Driving A New Car Really Costs, ‘Open Your Car Window Once A Week And Toss Out A $100 Bill’
From Yahoo Finance: 2025-04-10 18:30:00
Financial expert Dave Ramsey warns against the allure of new cars, highlighting how a $72,000 BMW can cost you your financial future. With average new car loans at $40,927 and monthly payments of $734 for over 5 years, the depreciation makes driving a new car equivalent to tossing out $100 bills weekly.
Ramsey emphasizes that even a “reasonable” $28,000 new car can lose around $17,000 in value over four years, equating to $100 a week in depreciation. He dismisses 0% interest as a distraction from the substantial loss in value and asserts that owning a new car isn’t feasible unless you’re a millionaire.
Until you have enough money to lose thousands without flinching, Ramsey advises against indulging in the luxury of a new car. He stresses the importance of financial stability before considering such purchases, as they can significantly impact your long-term financial well-being.