11–20 of 95 posts
Why do people borrow money to buy a car? Why not save money, maybe invest in something safe(ish), and buy your car in cash, preferably used? I get it that people get emotional about cars, but good heavens, this impulse puts you in the hole for years. It's almost as bad as cheating on your wife (and far, far worse than cheating on a gf).
Why do people borrow money to buy a car? Why not save money, maybe invest in something safe(ish), and buy your car in cash, preferably used? I get it that people get emotional about cars, but good heavens, this impulse puts you in the hole for years. It's almost as bad as cheating on your wife (and far, far worse than cheating on a gf).
Why do people borrow money to buy a car? Why not save money, maybe invest in something safe(ish), and buy your car in cash, preferably used? I get it that people get emotional about cars, but good heavens, this impulse puts you in the hole for years. It's almost as bad as cheating on your wife (and far, far worse than cheating on a gf).
Also, buying a new car is much less of a hassle than buying a used one. The price difference between used and new ATM isn't so much to cover the extra hassle for many buyers. You want the car to be something that doesn't cause stress in your life, like many want a spouse/partner who isn't a constant drain on their emotions.
And then there are the many conveniences that are nice if you can afford it, but only if you can. It is purely a lifestyle upgrade, and not important to everyone, but it definitely makes some people happier, especially if they drive a lot.
That’s an interesting data point. makes me wonder what other unconventional metrics could be considered to get a temperature on our economy.
Here I was imagining actual explosives hampering repo efforts, when they merely speak of a rising rate of auto repos. OK. I fell for it.
Why do people borrow money to buy a car? Why not save money, maybe invest in something safe(ish), and buy your car in cash, preferably used? I get it that people get emotional about cars, but good heavens, this impulse puts you in the hole for years. It's almost as bad as cheating on your wife (and far, far worse than cheating on a gf).
Cheap financing close to 0%, and long term contracts. In fact, financing on new vehicles is far far better than financing a used vehicle. Why would anyone vinance a used vehicle? Because even used they cost more money then most have in their bank.
Used cars require repairs, meaning they require a place to do these repairs or extra income to cover a mechanic. Also how does one recover from vehicle related downtime in a car centric society? These things should be priced in.
So, how much money does one need to get into a used vehicle and how much safety net do they require? Mind you, during covid car market flipped on its head, new cars were (and still are) 3-6-12-24 months wait, and used car market saw a massive increase in prices.
Why do people borrow money to buy a car? Why not save money, maybe invest in something safe(ish), and buy your car in cash, preferably used? I get it that people get emotional about cars, but good heavens, this impulse puts you in the hole for years. It's almost as bad as cheating on your wife (and far, far worse than cheating on a gf).
Car financing is a good way to build credit before buying a home. I regret that my credit score actually went down when I paid off my car loan early. The rules are really weird here. Using some credit is better than using no credit if you think you might need credit in the future (mostly to buy a house). Also, buying a new car is much less of a hassle than buying a used one. The price difference between used and new…
I've heard people say this, but it's never made sense to me and sounds like something the loan industry has convinced people of just to sell more loans. Is it actually true?
Every time I've gotten a mortgage, they seem to just care about my income and whether I've had any missed payments on credit cards or other bills before.
And credit scores aren’t everything. Even with an >800 and money in the bank, after my startup was acquired, I couldn't get a mortgage because I didn't have any income I could show them.
Why do people borrow money to buy a car? Why not save money, maybe invest in something safe(ish), and buy your car in cash, preferably used? I get it that people get emotional about cars, but good heavens, this impulse puts you in the hole for years. It's almost as bad as cheating on your wife (and far, far worse than cheating on a gf).
Financing for new cars is often available at rates that are so low, you'd be completely foolish to pay cash.
> preferably used?
Yes, the amazing financing is certainly one of the incentives for buying a new, rather than used, car. That's why the manufacturers offer it.
That’s an interesting data point. makes me wonder what other unconventional metrics could be considered to get a temperature on our economy.