Quote:
Originally Posted by Captain Morgan
But don't forget to consider the risk involved with going into debt. That risk is MUCH higher with a commission structured job, such as the one he has. I stand by my statement that he doesn't need to go into debt on a vehicle in order to present a good image. Maybe the mustang presents an image of immaturity and he wants to present a better image to potential clients. Fine, I can handle that. However, he doesn't need to go 15 or 20k in debt to present an image of stability and maturity. He can pick up a used Camry for 5 or 6k (or any reliable vehicle that has a better image than the 'stang). If he trades in the mustang and pays cash for a used vehicle, he's ahead of the game. He can then trade into a better vehicle down the road after he starts seeing some residuals from prior sales. I think pauldun hit this one on the head with his post on "image."
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I think that Ramsey needs to start a church....
Avery, not everyone is going to wreck their lives going into debt. I'm not telling the kid to buy a Porsche but if he ever plans on buying a house someday, unless you Ransey-ites don't allow credit for that anymore, he's going to have to build some credit. Buying a car is a good way to do that. You nor I know the EXACT situation he is in but the Mustang has some value for trade against the new vehicle and for all you know, he may already have some cash. Again, my 22 year old GF bought a $10,000 bike cash last year. It's amazing how much a "kid" working part time can save when Mom and Dad are paying the bills...
Anyway, here's an example of what I'm trying to say, $15,000 Murano - $4,500 trade for the Mustang - $2,500 cash = $8,000 loan with a $166/month payment @5% over 60 months. You could donate plasma to make that payment. I agree with you and the Reverend Ramsey for the most part with these two exceptions; 1. a house and 2. a vehicle. are the only reasons I'll take out a loan/go into debt ever again.