Reportedly, Dave Ramsey is a financial expert, and he has some strong feelings about SUV purchases. While discussing common financial mistakes, he goes off about people being ‘stupid’ for buying $44,000 SUVs while making $85,000 a year. 

Dave Ramsey loses it over a dumb SUV purchase 

The average new price for cars hovers around $50,000. This leaves drivers with limited options unless they shop used. But financial expert Dave Ramsey doesn’t give you any wiggle room. 

During The Ramsey Show, he absolutely loses it over people failing to do basic math before making major financial decisions, such as buying a vehicle. 

According to Yahoo, he shares, “We get ourselves into trouble when we don’t bother and do the math before making a transaction,” and “Adults devise a plan and follow it, children do what feels good.” 

He explains that buying a $44,000 SUV when you make $85,000 a year is stupid. Even if you pay cash for it. When you finance it, it’s double, triple stupid. 

Ramsey advocates for having self-control instead of making an impulse buy. Judge the affordability of SUVs by monthly payments. Impulse buys are often made by operating at a four-year-old level. 

However, he doesn’t offer any advice on affordable vehicle options. Some folks in the comments recommend buying used American or German cars instead of Toyota models with over 100k miles. 

Another points out that the average transaction price back in 2000 was $21,000 while the medium income was $42,000, so it was about 50% of the income. Now, new cars average at about 63% of income. 

Also, some folks feel like there could be more to the story. For example, what if your house is paid off, and what’s wrong with buying in cash if you have the funds?