I was listening to Dave Ramsey last night, and he started out his broadcast with a rant about cars and car payments. He said a whole lot, but the thing that stuck with me was that if you took the average car payment (I think he said $484.. holy cow, that’s more than the mortgage on our first home was!), and instead of “always having a payment*” invested it in some good mutual funds, from age 30 to 60 or 70 (I don’t recall which), that fund would have… millions in it. Millions, people! Wow.
Today on facebook, Dave Ramsey linked to a short video that explains how you can get your dream car (and even a millionaire-retirement!) while avoiding the 25% hit when you drive off the lot (this is obviously for a ‘new’ car), all without having to walk everywhere. 🙂
*Believe it or not, I had never heard this “conventional wisdom” until a few years back when my mother-in-law mentioned it. She said something like, “you know how they say you’ll always have a car payment…?” I had to look blankly for a moment, because I really didn’t know “they” said that! I had only briefly lived that way, and it certainly hadn’t been the norm in my family.