Ramit Sethi critiques luxury car purchases using an anecdote about a couple who spend $2,495 per month on two luxury cars (a BMW and a Mercedes). He argues that such high car payments contribute to debt and emphasizes buying a car you can afford rather than one you think you should have.
$2,495 per month.
A BMW and a Mercedes.
Look, a lot of you cannot afford the big ass trucks that you're driving. I recently saw one of the highest car payments I've ever seen while talking to a couple on this podcast. They spend $2,495 every month on their luxury cars. This couple is drowning in debt and the cost of their cars, a BMW and Mercedes are definitely contributing to that mess. But they chose these cars because according to them, they'd always had luxury cars. Again, the key thing when buying a car is you have to start by choosing one that you can afford, not the car you think you should have. Most people do not do that. Read my lips. Don't do this. You're going to cause yourself a huge amount of trouble.
