9 Reasons Dave Ramsey’s Advice To Drive a Beat-up Old Car Is Terrible

Cars are a necessary expense for many Americans. Unfortunately, from maintenance to insurance to fuel consumption, it can get costly.

What's the best way to cut down on car costs? Financial guru Dave Ramsey's money-saving take involves buying a cheap, beat-up car, also known as a hoopty.

However, purchasing an inexpensive hoopty may not be the financially savvy move that Ramsey makes it out to be. Here are 10 reasons why you should reconsider driving one.

A hoopty is an older car you can buy to save money. While it may be in bad condition, have tons of mileage, or be missing certain safety features that newer vehicles have, these old, beat-up cars can be cheap to purchase. You could even find one online or at a garage sale for a few thousand dollars.

Ramsey argues that the money saved on purchasing a hoopty can go towards reducing debt and building wealth. He considers new cars a luxury for people who have their finances in order. Temporarily putting up with a hoopty means you'll have the financial freedom to upgrade in the future.

But is a hoopty the right choice for you? Here are some factors to consider.

While new cars depreciate rapidly, they are unlikely to require much upkeep. Hoopties, on the other hand, are older. They will likely need increasing maintenance and repairs. Used car owners can expect these costs to rise over time.

A new car with a warranty has the potential to save consumers money, as maintenance and repair costs will be covered. That's money that stays in your pocket.

Modern cars are becoming more and more fuel-efficient. With a hoopty, it's likely to have experienced more wear and tear on the engine, which is going to mean worse gas mileage.

As such, newer cars generally cost less to fill up than a 25-year-old hoopty. In the long term, purchasing a new vehicle could save owners a lot of money at the pump.

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Used cars seldom have better financing options than new ones, particularly when it comes to interest rates.

To lenders, they're considered a risky investment since they're more likely to break down. As a result, used car loans typically come with higher interest rates.

Even though a hoopty might be cheaper upfront, consumers can save on interest by purchasing a new vehicle.

While used cars do sometimes come with warranties, those that come with newer vehicles are typically better. For starters, a new car's warranty is untouched.

Although used car buyers can choose extended or certified pre-owned vehicle options that come with decent warranties, those can cost extra and may be limited. Meanwhile, new vehicles that come straight from the manufacturer feature the best all-around warranties that cover repairs and replacements — and consumers don't have to pay extra for them.

Hoopties that frequently break down are a major inconvenience. However, this isn't just an issue for you. Think about everyone who relies on you to drive them around.

If you have elderly parents, kids, or other family members who depend on you to take them to school, doctor appointments, and run errands, they'll thank you for having a newer, more reliable car.

Thanks to increasingly stringent safety laws, newer vehicles are safer than ever. Many new vehicles come with safety features like blind-spot monitoring systems, lane-keeping assist, and adaptive cruise control that car designers of yesteryear couldn't even fathom.

Paying for peace of mind behind the steering wheel is a worthwhile investment. The money you save on a hoopty isn't worth it if you don't feel safe driving it.

In addition to better safety technologies, newer cars also have fancy gadgets that make them more enjoyable than older cars.

It's not just exciting infotainment systems with Apple CarPlay and Android Auto compatibility. Newer vehicle models also come with state-of-the-art navigation systems that make it easier and safer for drivers to reach their destination.

Selecting a used car isn't exactly smooth sailing — it requires a lot of research. From scouring the internet to hunting through used-car lots and dealing with private sellers, it can be exhausting for buyers.

However, shoppers in the market for a new vehicle simply head to the dealership, test some out, and finalize their purchase. The salesperson takes on most of the research, sparing buyers from much hassle.

It's nice to hop into a car you spent your hard-earned money on and not see any signs of wear and tear. There are no odd smells, no stains or tears in the upholstery, and no dents or dings on the exterior.

Plus, new cars are coming straight from the factory. Used cars, on the other hand, could have previously been involved in accidents that may cause maintenance issues down the road.

Dave Ramsey's hoopty had 478,000 miles on it. And while it barely cost him a dime, that doesn't mean driving one is as smart of a choice for you. While you may save money upfront with a hoopty, newer cars with better warranties, financing offers, and fuel efficiency can potentially save owners more money in the long run.

Even better, newer cars with better safety technology can help owners score better rates that can save them money on car insurance.