An intelligent heart acquires knowledge, and the ear of the wise seeks knowledge.
His math doesn't quite work out. It doesn't take into effect the depreciation of the older car. Nor does it account for maintenance costs that would be covered under the new car.
Inspirational though. Ramsey is more about encouraging savings and debt reduction, I can forgive some of the missing things like Matt said, along with the psychological deficiency that most of us have in not thinking far ahead enough to actually plan for a car 1-3 years (he went in 10 mo chunks, i rounded up) out. most figure out the want or need a car almost in the past-tense and have to get something in the short term. It'd been nice of the host to press the concept of purchasing the lesser car as a viable option, having the brand new ride just isn't necessary, and causes many if not most to unknowingly live beyond their means in debt. A step in the right direction though. I do like the idea of plugging those savings into a mutual fund for extra growth, market risk could bite ya tho.
Model Price 2012 25065 2011 18050 70152010 16050 20002009 14375 16752008 12725 16502007 11500 12252006 10050 14502005 8350 17002004 7075 1275I just went to NADA to get car values. I added 15000 miles per year to the car (the average). This is for a very basic Chevrolet Impala. As you can see, after the first year the car depreciates by $7,015. After that it deprectiates by an average of $1567.86 per year. The first owner is taking the brunt of the depreciation.