People Believe Writing Off Expenses Saves Them Money, But Dave Ramsey Says Otherwise. 'It's Dumb, Dumb, Dumb. Don't Do It'

Core Viewpoint - The discussion centers around the financial implications of leasing versus buying a car, particularly in the context of tax write-offs, with personal finance expert Dave Ramsey strongly advocating for purchasing over leasing due to the unfavorable financial trade-off involved in leasing [3][4]. Group 1: Financial Analysis - Leasing a car may seem advantageous due to the ability to write off lease payments as a business expense, but the actual tax savings are limited. For example, a CA$10,000 lease payment only results in CA$4,500 in tax savings for a couple paying approximately 45% in taxes [3][4]. - Ramsey emphasizes that trading a dollar for 45 cents in tax savings is a poor financial decision, highlighting that wise financial management should not involve such unfavorable trades [4]. Group 2: Value Depreciation - New cars typically lose 60% to 70% of their value within the first four years, which further complicates the financial rationale behind leasing [4]. - The argument that leasing keeps the car under warranty does not outweigh the significant depreciation loss, reinforcing the case for purchasing a vehicle instead [4]. Group 3: Personal Finance Philosophy - Ramsey critiques the tendency to rationalize leasing as a smart financial move, suggesting that it often stems from a desire for a nicer car rather than sound financial reasoning [5]. - The instinct to avoid unnecessary debt, as expressed by Lauren, is praised by Ramsey, indicating that gut feelings can sometimes align with better financial practices [5].