Should you follow his advice if you are thinking of buying a car?
the main points
- Ramit Sethi is a well-known financial expert.
- He recently wrote a post on Twitter about how buying a big truck can be a waste of money.
- In light of rising gas prices, his opinion is worth considering.
Deciding whether to purchase a car is a complex one that requires taking many different factors into consideration. This includes the initial price of the vehicle, plus ongoing operating costs.
Recently, a financial expert criticized the owners of a certain type of vehicle. It was the financial expert Ramit Sethi, who is best known for the best-selling book I will teach you to be rich, And who runs a blog of the same name.
That’s what Sethi said.
Sethi has some picks for new truck owners
Sethi took to Twitter on May 17, 2022 to blow up new truck owners for choosing their vehicles. Specifically, Sethi commented on how expensive truck owners often criticize the spending habits of others without realizing that their cars can be a huge waste of money.
Sethi wrote, “The truck owners would put down their beer and start a 13-minute rant about ‘wasting money’ with handbags, fancy clothes, and fancy hotels. Then, take their $75,000 truck with fake engine sounds to drive two miles home on flat roads.”
He also went on to comment that many large truck owners have been outspoken about gas prices and may not have thought about the long-term cost of the truck before buying — especially if they were just focusing on the monthly payments alone.
Finally, he wondered if many truck buyers really needed the vehicles they bought, noting that many buyers may only pull big things on very rare occasions.
Sethi is right that owning big trucks can have some big downsides
While Sethi’s words were harsh and he may be guilty of stereotyping all the truck drivers with his comments, there is some truth to what he says.
Many people Act Buying cars that are bigger than they really need without thinking about the serious downsides of owning them. Big trucks are often gas-guzzler vehicles, come at higher purchase prices and cost more insurance. Those who fail to consider whether all of these additional costs are within reach could find themselves struggling to pay for the car in the long run, especially with gas prices hitting record levels lately.
This can have dire financial consequences in the long run. In the worst case scenario, this could result in repossession of the vehicle if the payments become unsustainable. If gas and auto insurance prices are too high due to the size of the car and the cost of replacing it, it can also put pressure on your budget over time, making it more difficult to get other things done with your money.
Now, some people of course need the trucks they buy due to work commitments or have to buy larger vehicles because of the size of their family. For others, their car is their waste and buying an expensive car that consumes a lot of fuel is the luxury item that they want to “waste” their money on. There is nothing inherently wrong with that.
But the key is to think carefully about your purchase option when you buy a car and take the downsides of any car into consideration so you don’t end up with a car that damages your finances and makes your life more difficult.
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