Quote:
Originally Posted by Coachrhino11
As much as I like Dave Ramsey, I do disagree with many of his assumptions. I disagree with his 12% return every year, I disagree about being able to sell car a year later for same amount after driving for year, nonsense. I’d rather put about half down, pay off super early like I generally always do. Never had a 475 month car payment because we always throw good chunk down and pay essentially no interest because how quick we pay off loan. I paid less than $100 interest on my ‘17 Jeep we paid off in December.
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Yea, Ramsey's stuff can be a little too optimistic but some of it is just common sense and simple enough for folks that don't want to spend every hour of the day worrying about finances can still get ahead.
As far as the 12%, it's more of a long haul thing than a "year to year" but it can be done. I've got several funds in my 401K that have done that or better over the past 10 years even with downturns. Last year obviously helped that (some of them had >30% last year)
As far as selling a car a year later for the same price, you can on the low end of the market. I've done it myself, and have had a couple of occasions where I've driven a car for a year or more and sold it for more than I paid for it.
No, it won't happen with a new car, or even a car two or three years old, but once you get over five, the price becomes relatively stable over a 12 month period. Of course, with a lot of things the money is made at the buy not the sell.