In a recent episode of the Dave Ramsey Show, a caller, who is debt-free and earns $80,000 a year, considered spending $30,000 on a sports car. Ramsey advised against this, emphasizing that such purchases detract from building wealth because cars depreciate quickly. He highlighted the risk of financing a car, which can lead to unnecessary debt and prevent better financial decisions. Instead, he recommends buying used cars with cash to avoid costly payments and prioritize investments that appreciate over time.
"If you're going to build wealth, you have to keep as small an amount as possible going into things that go down in value."
"Cars lose a good portion of their value the minute you drive them off the lot. They are not by any definition an investment."
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