Dave Ramsey, a financial guru and radio show host, generally advises against taking out a car loan. He believes that paying cash for a car is a better financial decision because it allows you to avoid paying interest and reduces the risk of being upside down on your loan (owing more on the loan than the car is worth).
Ramsey also advises against leasing a car, as he believes it can be a costly and risky financial decision. Instead, he recommends saving up and paying cash for a used car that is reliable and within your budget.
However, Ramsey recognizes that not everyone is able to pay cash for a car and that there may be circumstances where taking out a car loan is necessary. If you do decide to take out a car loan, he advises keeping the loan term as short as possible, making a large down payment, and shopping around for the best interest rate.
It's important to remember that financial decisions, including whether or not to take out a car loan, depend on your individual circumstances and financial goals. A financial planner can help you understand the costs and benefits of taking out a car loan and assist you in making informed decisions about your finances.