This Finance Celebrity Blasted New Truck Owners. Here's Why He's Right
- Ramit Sethi is a well-known financial expert.
- He recently wrote a Twitter thread about how buying a large truck can be a waste of money.
- In light of rising gas prices, his opinion is worth considering.
Should you follow his advice if you're thinking about buying a car?
The decision about what car to buy is a complicated one that requires taking many different factors into account. This includes the upfront price of the vehicle, as well as ongoing operating costs.
Recently, one finance expert criticized the owners of a particular type of vehicle. The finance expert was Ramit Sethi, who is best known for the best-selling book I Will Teach You To Be Rich, and who runs a blog with the same name.
Here's what Sethi had to say.
Sethi has some choice words for the owners of new trucks
Sethi took to Twitter on May 17, 2022 to blast new truck owners for their vehicle choice. Specifically, Sethi commented on how the owners of expensive trucks often criticize the spending habits of others without realizing that their own vehicles could be a huge waste of money.
Sethi wrote: "Truck owners will set their beer down and start a 13-minute rant on what a 'waste of money' handbags and designer clothes and luxury hotels are. And later get into their $75,000 truck with fake engine noises to drive 2 miles home on flat roads."
He also went on to comment that many owners of large trucks have been vocal in complaining about gas prices and may not have considered the long-term cost of the truck before purchasing -- especially if they focused only on the monthly payments alone.
And, finally, he questioned whether many truck buyers actually need the vehicles they purchased, indicating that many buyers may only haul large items on very rare occasions.
Sethi is right that owning large trucks can have some big downsides
While Sethi's words were harsh and he may be guilty of stereotyping all truck drivers with his comments, there is some truth to what he is saying.
Many people do purchase cars that are larger than what they truly need without considering the serious downsides of owning them. Large trucks are often gas-guzzling vehicles that come with high purchase prices and that cost more to insure. Those who fail to consider whether all these added costs are affordable can find themselves struggling to pay for the vehicle over the long term, especially with gas prices reaching recent record highs.
This can have long-term damaging financial consequences. In a worst-case scenario, it could lead to repossession of the vehicle if the payments become unaffordable. If gas and auto insurance prices are too high because of the size of the vehicle and its replacement cost, this could also put strain on your budget over time, making it more difficult to accomplish other things with your money.
Now, some people of course need the trucks they buy because of work obligations or they must buy large vehicles because of their family size. And for others, their car is their splurge and buying an expensive gas-guzzling vehicle is the luxury item they want to "waste" their money on. And there's nothing inherently wrong with that.
But, the key is to consider your purchasing choice carefully whenever you buy a car and take the downsides of any vehicle into account so you don't end up with a car that hurts your finances and makes your life harder.
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