Some say that Dave Ramsey’s harsh judgment of people with car loans is just misplaced anger. After all, 2024 is already full of incredible financial pressure for the middle class. It’s hard to pay any amount of the cost of a car in cash. However, a closer look at his feedback loop on car payments might be, well, good advice. Moreover, Ramsey doesn’t just judge regular folks for signing up for a years-long car loan. He tells rich people to cut it out, too.

Most commonly, you’ll see TikToks floating around of Ramsey on his show. The vids repeatedly display how annoyed he gets when he sees luxury cars or hears about a car note.

@daveramsey

Remember that $30,000 car you bought (sorry, financed)? Well, after the five-year term you agreed to, you’ll end up actually paying $33,223 total.    On top of that, cars go down in value. The dealer won’t tell you that your awesome new car will lose 60% of its value within the first five years. So by the time the new car smell wears off, you’ve paid $33,223 for a car that’s worth maybe $12,000.   I know the idea of not having a car payment isn’t as easy or as flashy as the car commercials make financing out to be. But with some hard work, determination to stay out of debt, and some patience, your life could be dramatically better five years from now. #moneytok #cartok #carpayment #newcar #debtfree

♬ original sound – Dave Ramsey

On The Ramsey Show, Dave often rehashes how he believes car payments hold people underwater.

@daveramsey

When people don’t waste money trying to LOOK wealthy, they have money to actually BECOME wealthy.   A good used car that is less than three years old is as reliable or more reliable than a new car. A new $48,000 car (the average cost last year) will lose about $9,600 of value in the first year you own it. That is almost $175 per week in lost value. #carsoftiktok #moneyadvice #wealthymindset #carpayments

♬ original sound – Dave Ramsey

Critical comments suggest Ramsey is out of touch on how difficult it is to avoid car payments. However, last fall, a wealthy digital marketing company owner made Ramsey almost hysterical over his car payment.

The caller claimed to be paying $3,200 per month in car payments. After Ramsey nearly had a meltdown over the number, he asked for the details. The caller explained that he drives a Rolls Royce Ghost. “I guess!” Ramsey exclaimed.

The guest shared that he made an incredible $320,000 monthly before taxes. That adds up to $3,800,000 per year.

Ramsey goes on to ask how old the caller is. “I’m 24,” the guest responds. “That’s just insane,” says Ramsey.

While Ramsey congratulates the caller, he still comes through with his unwavering hatred for car payments.

“Listen, write a check, and pay for the car. And smile while you’re driving it.”

@daveramsey

If you can’t write a check for a car on the spot, you can’t afford it. It’s time to ditch the payments, because the sooner you’re debt-free, the sooner you can start investing and the more wealth you can build! #wealthylifestyle #richlife #carpayments #moneytok

♬ original sound – Dave Ramsey

Why the sore attitude? The same reason he hates credit card debt: interest. To Dave Ramsey, loan interest is a total waste of your money. After all, you’ll spend more money over time than if you hunkered down and planned ways to avoid a car payment.

While it might be a huge challenge, avoiding entering a car loan in the first place is the safest bet. For those who already have one, strategizing how to get into a lien-free vehicle as quickly as possible is challenging but usually possible with some “grit.” At the very least, having the smallest car payment possible on a highly reliable, low-maintenance vehicle helps.