Hope or Hype?
A short bio on Ramsey: Dave was born in Tennessee, which you immediately hear in his twangy accent, and by the early 1980s his real estate empire was worth around $4 million. As Dave preaches (and he does preach), his fall from grace came via overspending and debt he couldn’t afford to pay back. Pay no mind here the Tax Reform Act of 1986 leveled the real estate industry because Dave doesn’t mention that. What he does tell us is how we too, even though we are in debt, can become debt-free and forever live in financial peace—just like him!
I remember a few years back driving along the road and accidentally landing on a satellite radio station show hosted by Dave Ramsey. So I listened and after that one show, I listened a few more times during my road trip travels.
At first, I found him funny, offering up advice to a husband-to-be on how he best look out because his wife-to-be sounded like a princess (she liked shopping). He did seem to provide some people comforting advice and always God-blessing them—religion and finances don’t mix Dave—but after a few listens, I became annoyed.
Loyal readers of mine know I’ve owned and operated auto dealerships and Dave doesn’t like car dealers—he’s real blatant about it too. In fact, straight from his advice on his website “Say No to a New Car," he points out:
“Thinking about buying a new car? Try this instead: Take your current car out for a drive, open the window and repeatedly throw $100 bill out of the window. Now that sounds dumb doesn’t it? But when you buy a new car, you’re doing the same thing the moment you take it off the lot."
Dave loves to give advice too. When he responded to a college student asking about buying a new car on NEMS360, he said:
“Who gives a crap what the car dealers want? This is your purchase, not theirs. Besides, the only reason they want you to finance is so they’ll make a lot more money off the deal."
Play fair here Mr. Ramsey, you are also making money, so why pick on car dealers?
Dave also urges his flock to never buy a new car because car dealers make too much money so he suggests buying a used car. Wait a minute here Dave—every single car dealer or used car lot make way more money on selling a used car than a new car. The profit margins on new cars are around 2 to 3 percent while they go as high as 15 to 20 percent on a used vehicle. So this advice is not the best when it comes to debt or what to invest in.
If you really want to learn how to buy a new car, you can find out what you really need to know right on Bright Hub for free.
But that’s not my only pet peeve—now you can follow Dave Ramsey’s investment advice!