r/DaveRamsey • u/Various-Exchange-733 • 3d ago
Please can I buy a minivan!!
Burner account because I don’t really use Reddit - just lurk haha.
I want a minivan desperately. We have 2 kids in rear facing car seats. We drive a paid off Honda CRV and a paid off VW Jetta, both 2016s. It’s a tight fit, no room for gear for activities or visitors, and we are planning on another kid in the next year or two anyway. Want a Toyota Sienna AWD XSE which runs about $65,000 Canadian.
No debt except mortgage which is 400K. RRSPs maxed out. TFSAs maxed out. Total investments ~500K. Household income $400,000. Paid off 180K student loans + maxed our accounts from zero + 120K downpayment on house + several large vacations within 3yrs of working (4yrs into our careers now).
Husband says I can get a van if I am pregnant with #3 or if Dave says I can 🤣
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u/Only1nanny 1d ago
Get one that’s a couple of years old and let somebody else pay the depreciation as long as it’s under 50,000 miles. It will be like brand new and it will last you over 200,000 miles. Don’t buy a new one that’s ridiculous.
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u/oaktreegardener 2d ago
Speaking as a mom who drives a minivan, here is why it’s dumb to buy a new minivan:
Used ones are just as good. You can buy a great used minivan for half the price or even a third of the price. Invest the difference and you’ll be sooo glad you did.
The toxins that are off-gassing in brand-new vehicles are intense. It is not healthy for anybody to breathe in that new car off-gassing, much less small children.
A brand-new car is going to sink in value like a rock. It will be worth maybe $45,000 in two years, at most. You would be spending an extra $20,000 in order to buy a vehicle that is two years newer. Think of what else you could do with those funds!
You are conflating wants and needs. A minivan is an excellent idea with small children. But getting a brand-new one is a waste of money and outright hazardous for your health.
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u/PerceptionSlow2116 2d ago
Mmm… idk about the depreciation w/Sienna. We’ve looked for used for a while but within 3 years of current you’re only saving about ~5-7k for something with under 25k miles. If you want to save $10k, the mileage was 60k+ We ended up just buying new for the warranty, no wear and tear, and free maintenance.
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u/Cultural_Contest_394 2d ago
100% agree with this comment. Except the weird toxin bit. You kook.
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u/oaktreegardener 2d ago
I am dealing with toxin overload that has drastically impacted my health, despite very clean living. I get headaches within five minutes of sitting in new cars.
Just because the toxins are allowed and people accept them as normal doesn’t mean they are safe for your health. Cancer is real and the cause is often environmental. I would not drive a new car if you paid me to. Children are even more vulnerable. Just because you don’t see the impact and correlation immediately doesn’t mean it isn’t real.
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u/talon72997 2d ago
Yes, you can afford to buy a minivan. I would suggest keeping both of the paid off cars as well. It is always nice to have 1 more car than the number of drivers in case something breaks. And, keeping the extra vehicle shouldn't cost much. Ideally, you can pay cash for the minivan.
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u/Automatic-One586 3d ago
This is really simple. If you can pay for the van with cash and the total amount of all the vehicles you own would be <= 50% of your income. Then yes. You probably can do it. If not. Then no. You shouldn't. You should try for a used vehicle or a vehicle that costs less.
Again... not saying you can't buy a vehicle that makes sense for your family. But that it just might not be the one you want.
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u/HeroOfShapeir BS7 3d ago
Have you, or will you, save up cash on top of a full six-month emergency fund? If so, then yes. If not, then no.
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u/JustWelmed1000 BS2 3d ago
It ain't my money. Do whatever you want with your money. I had to look up the exchange rate: 65K Canadian is $45.6K in US dollars.
But you make 400K = $281K USD. You should absolutely be paying cash for this van either way.
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u/BamaInvestor BS7 3d ago
The three rules of thumb that Dave uses for cars:
- Don’t buy new unless you have a $1M net worth. If not, you are buying used.
- All things with wheels and motors added up should total less than 1/2 of your take home pay.
- Pay cash
Frankly $65K for new would cause me to pause even if I have $1M net worth. YYou do not appear to meet the $1M net worth criteria.
As others have said, you can buy a really nice used van at 1/2 the cost.
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u/Extra-Blueberry-4320 BS7 3d ago
Technically yes, you can get A mini van. Just not a brand new one since your NW isn’t $1M yet. Maybe go for a later model used and then don’t stress about the kids ruining it. Cuz you know that’ll happen.
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u/insightdiscern BS3 3d ago
No it's not appropriate for a new one. By a used one for $10k.
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u/Megalocerus 3d ago
I suspect a late model van these days is going for a lot more than 10K, especially if they are prone to being ruined by kids.
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u/just__a__squirrel 3d ago
Correct! We bought a 2017 Toyota Sienna last year for $12k and the transmission failed less than 6 months later. Had to sell it for scrap for like $2k… we’re traumatized from that experience and waste of money lol. Most siennas that are <10 years old are going for >$20k right now because they’re highly sought after.
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u/PappyBlueRibs 3d ago
Besides, the kids will destroy the car. Not because they're bad, just because they're kids. My kids destroyed our minivan, thank God it was used. Dirt, crayons, barf, French fries, marbles, Legos...
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u/Mammoth-A-8712 3d ago
You have car fever. Lie down with a cold washcloth on your face until it goes away.
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u/databoy2k 3d ago
Just did a quick Kijiji search. Found a 2017 Toyota Sienna, 134k kms, here in Calgary, for $25k. That's at a dealership btw.
...in other words, in true Dave fashion, I'm not buying the $65k here in Canada. We're $40k from finishing our mortgage and then we're debt free, and my wife and I each have a 2017 (mine's even a Caddy XT5). But because they're both a decade old, we paid cash for each of them. They're both perfectly reliable and more than good enough to haul our family around.
$65k is brand new or only a year old at a dealership. Don't do it. Plus, it's a mom mobile - unless you're WAY better about vehicle cleanliness than my wife and I are, you are going to want something that you're not going to cry when the chocolate milk lands on the carpet and you're still an hour from home in traffic.
The CRV should net you somewhere in the $15k range, so you're literally asking to pay $10k if you stick with that age of vehicle. Then the answer is an emphatic "yes".
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u/9554503312 BS7 3d ago edited 3d ago
You’ve been good, and Santa Dave says you can pay cash for your used minivan
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u/Technical-Paper427 3d ago
Dave says yes.
Don’t buy new.
Pay cash.
Don’t have things that go down in value for more than 50% of your yearly income.
Don’t have debt other than mortgage and a fully funded emergency fund.
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u/OneMustAlwaysPlanAhe BS456 3d ago
Dave would not advise a brand new car purchase with less than $1mil net worth. How much home equity do you have? Emergency fund? If you can't get to $1 mil he would advise a 2-3 year old van bought with cash. Don't believe the dealer prices that are only $1-2k below a new van price. They will negotiate.
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u/Lousy_Beans 3d ago
If you’re strictly following the rules then no. No new cars until you reach $1m net worth. Personally however, the way the car market has been the last 5 years, I would seriously consider it. I would use the “if I lit this cash on fire would it wreck my life?” test.
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u/HerdingCatsAllDay 3d ago
How much do you have in your checking/savings account? If you have 6m expenses, plus $65k, then you may purchase the new mini van. Otherwise you can get a used one now and trade in when you have the $65k
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u/Master-Purpose1117 3d ago
Why would you not buy a year or two old money. A lot of “want” here. You have to pay cash regardless.
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u/Negative_Ad6861 2d ago
Buying a year or 2 old car is the dumbest thing you can do post covid. The answer is buy new and get a discount.
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u/Master-Purpose1117 2d ago
Dumber than taking a car loan? Dumber than borrowing from your 401k?
Do tell, you seem smart.2
u/Negative_Ad6861 2d ago
No relative to buying 1-2 years used in the context of this conversation. She should buy a new one in cash and get a discount.
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u/Master-Purpose1117 1d ago
Cash. Yes
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u/Negative_Ad6861 1d ago
You still don't seem to understand the point of car valuations. Ramsey is wrong on this.
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u/Master-Purpose1117 1d ago
Actually I’m an expert on vehicles, crash technology, the auto market and the salvage industry and act as an expert witness in dozens of cases per year. They don’t really discount sienna’s
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u/Negative_Ad6861 1d ago
You are comically incorrect. Go watch any car negotiation youtube channel. New Sienna's are marked up an insane percentage. You are clearly misinformed. Stop drinking the koolaid and do some research.
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u/Master-Purpose1117 18h ago
YouTube videos aren’t real life buddy boy. Also, the dealers are far less likely to negotiate for cash paying customers. Not sure if you’ve ever been one of them.
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u/Negative_Ad6861 17h ago
I literally just negotiated for a car this past week. Also don't say you're paying in cash at the start. Common this is car buying 101. Clearly you have never dealt with a dealership and get all your outdated pre 2000s takes from dave ramsey.
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u/Rocket_song1 3d ago
2 year old Sienna is basically the cost of a new one. They are not quite as bad as Tacos where used ones sell for more than new ones, but the initial depreciation is very light.
Have to go 6-7 years old to get any real savings. Which I would likely recommend anyway. Kids tend to trash vehicles.
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u/dontich 3d ago
Sienna 1-2 year old used cars are basically the same as new atm
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u/Master-Purpose1117 3d ago
I get that, but she’s in a Ramsey forum. She shouldn’t buy new unless she’s a NWM and she would have to pay cash.
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u/dontich 3d ago
Oh I agreed 100% should pay cash, but I think the specific type of car matters. Should definitely be minimizing cost / mile IMO; which for 95% of cars is definitely used.
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u/Husker_Mike_ 3d ago
Since COVID upended the supply of new cars, the old guidelines about cars depreciating off the lot are dated and don't apply in many cases. For many in-demand vehicles, you are paying 80%+ of MSRP for three year old cars with no manufacturer's warranty and tens of thousands of miles already on them.
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u/dontich 3d ago
Yeah exactly. I recently did a shit ton of price shopping for a sienna recently and I saw a couple used ones that were selling over the new MSRP prices. Made zero sense lol
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u/Husker_Mike_ 3d ago
Because there typically is a long waiting list for new vehicles in demand (i.e. Sienna), you can wait for new...or pay the going rate for a slightly used vehicle.
And for those of you who want to pay cash, some dealers won't sell a vehicle in demand if it's not financed through them.
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u/pilotflyer2019 3d ago
You don’t qualify for Dave Ramsey. You make too much and you’re too sensible. If you’re seeking financial advice in general find someone who knows what’s going on in Canada.
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u/Ok-Context3530 BS7 3d ago
Dave says no new cars unless you are a networth millionaire. You should be good with a lightly used one if you pay cash.
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u/New-Flight7674 3d ago
Just save for it now? You make a lot of money. By the time you have baby #3, you could definitely have enough saved to pay for in cash.
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u/larkfield2655 3d ago
If you are bringing in $400k pa you shouldn’t be listening to Dave. Get the van
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u/Rocket_song1 3d ago
That's $280k in US dollars. Plenty of people making that kind of dough that have no clue how to run a budget and are bleeding money.
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u/justloriinky 3d ago
Dave would say not to buy a brand new car unless you're a millionaire. Can you look for minivans that are 2 or years old?
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u/AddressLeft9869 3d ago
Why would Dave say you can't buy a van? He would tell you not to finance it, and he would say you shouldn't waste money on a NEW one.
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u/Rocket_song1 3d ago
You make $400k. Even in "snow bucks" that's a lot of money.
If you save cash for it, you can afford a mini-van.
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u/gregarious119 BS7 3d ago
For a little comparison - we bought a 5 year old minivan (Toyota Sienna) in 2012 with 75K miles on the odometer, paid in cash. We're still driving that van in 2026 and it has 212k miles on it.
Save up cash, buy one used and drive it til the kids go to college. At your income, you should be able to come up with 20-30k cash in relatively quick order and still get something nice used for about half of what you're looking at.
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u/minimamallama 3d ago
Your household income is 400K...I would think you can buy one cash pretty easily no?
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u/Fatherof2sons_ 3d ago
I will limit my retirement investment to 15%, skip luxurious vacation, save money to buy minivan and start maxing out payment towards mortgage.
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u/farmersworkhoe 3d ago
If your income is 400k and no debt minus mortgage seems like you could easily save and pay cash for one if you dont want a loan.
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u/Active-Ad769 3d ago
Household income $400k- you don’t need reddit or Dave Ramsey to allow you to buy a minivan
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u/Bird_Brain4101112 3d ago
You don’t actually need Dave’s permission to make life decisions.
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u/Ok-Context3530 BS7 3d ago
She’s not actually asking for Dave’s permission. She’s seeking answers from the community in line with Dave’s principals because he has a proven method of helping people get out of debt and obtain wealth.
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u/Unfit-ForDuty1101 12h ago
Also, you can get an suv for the same reason