Personal Finance

Dave Ramsey thinks you're an idiot if you think you need a sports car to fit in

Joey Frenette

Published: March 5, 2025 12:29 pm

Listening to Dave Ramsey can be pretty good for your wealth. Indeed, Ramsey is known to express his true thoughts and blunt reactions to financial situations his callers get into without adding any sweetener. Though you could argue he’s too harsh with his opinions and viewpoints, I do view a dose of the cold, hard, truth as why the man is so popular — and entertaining!

In one of his recent radio calls — here’s the Youtube Short clip — a caller, who’s not exactly in a fantastic financial position, noted that one of his close friends said that he needs to get a sports car and that people would think less of him if he’s driving around in a family vehicle like a Volvo. Ramsey was quick to refer to the friend, Roy, as an “idiot” — I really couldn’t have said it better myself!

And in this piece, I’ll give my opinion and reaction to the all-too-common dilemma of whether a young person should do the smart thing by bettering their financial futures or go into debt to get a fancy sports car to better fit in or impress others.

Ramsey is right on the money: Listening to friends who encourage you to spend money you don’t have to impress people is quite idiotic.

For the sake of the caller’s financial future, I do hope they listen to Ramsey and not their friend Roy who’s encouraging them to make a splurge they probably can’t afford. Undoubtedly, going into debt to get a fancy car may get you more attention when you pull up into the driveway. But probably not the attention you were thinking. When people take a moment to take a picture of your car, they’re not holding you in high regard.

Rather, they’re engaging in a little psychological phenomenon known as “vicarious aspiration” or self-projection, as it’s more commonly referred to. They couldn’t care less about who’s in the driver’s seat. They’re envisioning themselves in your spot. And you’re probably the buy-to-fit-in or buy-to-impress mentality. Indeed, some of the wealthiest people on the planet (think Warren Buffett) are not known to drive fancy sports cars.

In fact, Buffett famously drives a modest Cadillac. While Cadillacs aren’t the cheapest of vehicles out there, they aren’t going to draw a crowd of picture-takers. If there are, it’s to take a picture with the man himself rather than his ride!

Furthermore, Ramsey was spot-on when he implied that having a fancy car just isn’t necessary to find the right significant other. Indeed, it’s not money and material goods that you need to find someone. In fact, if you flaunt wealth or “show off” with sports cars, it can be tough to tell if the interest you receive is for you or the perception that you have money. 

When aren’t you an “idiot” for buying the sports car?

Now, not all sports car drivers are idiots. Many financial experts would argue that if you’re in a great financial position, you have a sizeable nest egg, a good income, and the splurge fits within the budget, you’re in good shape. In my humble opinion, it’s more than just about financial position. Ultimately, I believe the reason for such a purchase is the most important.

Are you buying a sports car because you’re a gear head and it’s been a dream purchase all your life? Or are you merely doing it to impress someone, show off, or fit in? If it’s the former, I have no issue with making the splurge if the financial situation allows you to. However, if you’re in the latter category, perhaps making the purchase isn’t the best move in the world, even if you did have the money, as you’d be buying for all the wrong reasons.

The bottom line

I appreciate Ramsey’s brutal honesty when it comes to folks being encouraged by friends to splurge. For those in a similar situation, they should ensure they’re not only financially able to make such a splurge but that they’re also buying for the right reasons while acknowledging that they’re making a poor financial decision.

Once you drive that sports car off the lot, there goes a huge double-digit percentage chunk of its value! And it’s most likely never coming back.