LDS Living Magazine - Why Not Just Buy It Outright?

FEATURE STORIES HOME & FAMILY TRAVEL & DESTINATIONS FHE SUNDAY LESSONS SHOP

Why Not Just Buy It Outright?
by Dave Ramsey

Dear Dave,

My wife and I are trying to decide how to buy a new truck. We have a net worth of about $2.2 million, so we can afford to buy it outright. She thinks it would be smarter to get a zero-interest deal, put the money in an interest-bearing checking account, and just have the payments deducted each month. What do you think?

David

Dear David,

You’re certainly in good enough shape to absorb the butt-kicking in depreciation that comes with buying a new car. It’s not what I’d do, but I’ve got no problem with folks buying brand new vehicles with cash once they reach millionaire status.

It’s a great time to buy a truck if you can deal with the pain at the pump. The bigger ones are gas hogs, so prices have dropped way down. You should be able to save thousands of bucks right now.

Do some Internet shopping, and really wear down the salespeople. Don’t just show up on one dealer’s lot and flash your cash. Then, when you find the one you want at a good price, cut a check and be done with it!

– Dave

Comments on this article	ADD COMMENT
Buying a truck Posted by Sandy from Mesa, AZ Please be kind to the salesperson. They are trying to make a living too. If they don't treat you right, move on. Don't go to the dealership with a pre-concieved notion that all salespeople are shisters. =)
Where's the answer Posted by Mary from IL Dave, where's the answer. Would it be better pay cash or use the 0% finance option?
Ridiculous Posted by Karen from Utah What kind of question is this coming from someone who has 2.2 million dollars? He can purchase anything he likes. The rest of us are just trying to keep our old vehicles running and try to maintain in this economic crisis!
The answer is there Posted by William from Spanish Fork As a regular Dave listener I'll chime in to the question of the answer. He said it right at the end of this statement: "I’ve got no problem with folks buying brand new vehicles with cash..." WITH CASH, Dave doesn't ever encourage people to play with snakes (debt and creditors) and no one in their right mind would borrow money on their paid off car to invest it in the stock market but that is what this man's wife is suggesting he does because she is looking at it backwards. Hope that helps.