FINANCE expert Dave Ramsey has warned millions of college graduates not to make a specific purchase after leaving education. According to Ramsey, buying a car is “Extremely” stupid, he told Ava, 23, from Massachusetts on a recent episode of his show. Financing for vehicles There are 3 main types of car finance - personal car loans, Hire Purchase (HP), and Personal Contract Hires (PCH). HP finance is secured against the value of the vehicle, so if you’re unable to stick to your monthly installments, the finance company could take the car back. The third great option, with PCP finance, you won’t own the vehicle during the agreement – it will instead belong to the finance company.