Is it Wise to Purchase a $25,000 Car? Financial Guru Dave Ramsey Gives the Green Light — Find Out Why

Finance expert Dave Ramsey is making waves with his advice on buying a $25,000 car. Known for his no-nonsense approach to money management, Ramsey believes that purchasing a used car with cash is a smart move that can help individuals build wealth.

In a recent segment of his show, Ramsey advised a caller who was hesitant about spending $25,000 on a used car to go ahead and make the purchase. He emphasized the importance of avoiding high financing and lease payments, as these can eat into your income and hinder your ability to save and invest.

Ramsey argues that buying a cheap clunker or continuing to lease a vehicle are not wise financial decisions. He believes that going too thrifty can lead to higher maintenance costs in the long run, while leasing or financing a car above your means is essentially giving your money away to car manufacturers and loan departments.

According to Ramsey, all of the millionaires he has interviewed have built their wealth by saving and investing their income wisely. He stresses the importance of paying cash for a car upfront and avoiding debt, as this is the best way to make a purchase.

While strict budgeting is important, Ramsey acknowledges that there are exceptions when it comes to making big purchases like a car. He encourages individuals to make informed decisions based on their financial goals and to prioritize building wealth over unnecessary expenses.

In conclusion, Ramsey’s advice on buying a $25,000 car is clear: if you can afford it with cash and it aligns with your financial goals, go ahead and make the purchase. By following his common-sense tips, individuals can make smart financial decisions that set them up for long-term success.