<VV> re Reflections on newer cars

[Sethracer at aol.com]

In a message dated 12/26/2010 1:06:34 P.M. Pacific Standard Time,  
RWhitt1245 at aol.com writes:

I  subscribe to the philosophy of talk radio financial guru Dave Ramsey. If 
  
you have to finance a car (an item that goes down in value) you cant  
afford 
it  even if you CAN make the payments.
 
The last "car" I financed was my Avalanche in December 2001. I got a big  
discount AND 0% interest. I could have paid cash, but the Chevy dealer  
wasn't paying anything to GMAC for the financing, so they wouldn't take more  
than the $6500 off. I left the money in the bank to earn interest, and paid 
GMAC  each month for 36 months. Still have the truck. 
 
Or - Was this a trick question? Buy only cars that go up in value? Like old 
 Corvairs?
 

He also  says that if you don't have a 
net  worth of an least one million  dollars you should not buy a new car 
period, only  used  ones.
 
However, if you can get an exceptional deal, and not "have" to finance, Why 
 not? You can get exactly what you want/need.  Buying a new car can be  a 
great feeling. Each person will have to decide that one for themselves. It  
also really depends on the relationship you have with your car. I have bought 
 many more used cars than I have new ones!!
 

He also  says that you should not have more than 15% of 
your yearly  income in  cars and recreational vehicles.
 
Sorry - I do not understand this one. More than 15% of my income in  
payments? - Boy that is for sure! Would not want to do that. More than 15%  in 
current value of rolling stock in the driveway? When I retire -  that will be 
instantly violated, I'm afraid.  Could you elaborate?  


Seth Emerson