Nov 16, 2025
Alexander from Idaho called into The Ramsey Show with a money question surrounding a $200,000 inheritance, as well as a motorcycle he’s been eyeing to purchase. The motorcycle in question is the Harley-Davidson Low Rider S, which would cost around $30,000 with all the bells and whistles (1).
Dave Ramsey agrees the motorcycle would be fun. But he doesn’t think Alexander should jump into this purchase, especially when he learns more details about the household finances.
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“Right now, we are spending more than we make,” said Alexander to The Ramsey Show hosts (2).
The couple brings home around $85,000 per year to support their family of four. But they currently spend around $1,000 more than they make each month. With a recent inheritance of around $200,000 split between a savings account and a mutual fund, Alexander plans to pay for the bike in cash.
To top things off, the couple hasn’t paid off their mortgage, even though the funds from their inheritance could likely wipe out their remaining balance.
After hearing the story and realizing that Alexander seemed to be explaining away all the reasons they don’t need to pay off the house, Dave Ramsey said, “I don’t think we’re going to be able to help you, honey.”
The financial ripple effect of a motorcycle purchase
Ramsey left the caller with no uncertainty on his opinion: It’s not a good idea to buy a motorcycle right now.
Like most vehicles, motorcycles are depreciating assets, meaning they lose value over time. Some experts, including Premier Motorsports, estimate that motorcycles lose 15% to 25% of their value in the first year alone, before going on to lose an estimated 7% to 10% in value for several more years (3). With that, Alexander’s $30,000 bike purchase may be worth around $22,500 after just one year of enjoying it.
Beyond the purchase price of $30,000, other hidden costs go into maintaining this bike purchase. For starters, Alexander will need to pay for insurance, which typically costs around $164.23 for a 12-month policy in Idaho, according to Progressive (4). Plus, gas and maintenance costs can add up quickly.
In addition to the actual costs of owning the bike, there’s also the opportunity cost of using this money for a bike purchase instead of other financial goals. For example, let’s say they chose to invest the $30,000, it could be worth $59,000 in 10 years, assuming a 7% rate of return.
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Alternatively, if they chose to use the $30,000 to pay off some of their mortgage, they could shave years off their loan, according to the Federal Reserve (5).
In any case, opting to use $30,000 in savings to pay for a motorcycle when the family is spending more than they make each month is a bad idea. It’s not a practical vehicle that the whole family could enjoy, and it will slow down their progress toward hitting major financial milestones, like paying off the mortgage or building a robust retirement account.
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Protecting a family’s finances
When it comes to building a bright financial future for your family, paying off debt is a good place to start. But paying down your consumer debt shouldn’t be the end of your financial journey. Instead, it should mark the beginning of a new chapter.
Without any consumer debt on the books, you can focus on bigger financial goals, such as paying off the mortgage or saving for a secure retirement. Even if you aren’t able to focus on those goals, learning how to spend less than you make is the bedrock of any long-term financial stability.
At this stage, depleting the family’s finances to buy a motorcycle is a risky decision. If their income drops or an unexpected expense throws their finances for a loop, they may wish they had put that $30,000 to better use.
If you’ve paid off your consumer debt but aren’t sure which money goal you should tackle next, consider working with a financial advisor to map out a long-term plan. With a plan in place, you may realize you don’t have as much wiggle room as you thought if you want to hit other financial goals and build a healthy retirement nest egg.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Harley-Davidson (1); The Ramsey Show (2); Premier Motorsports (3); Progressive (4); Federal Reserve (5)
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Sarah Sharkey is a personal finance writer who enjoys helping people make optimal financial decisions for their situation. She loves digging into the nitty-gritty details of financial products and money management strategies to root out the good, the bad, and the ugly. Her goal is to help readers find the best course of action for their needs.
