Quote:
Originally Posted by trevorovert
wut.
Yeah you owe someone money.. but you turn around and sell the car and you have the money to pay for it..
your last sentence. Asset (car) has value, can be used to repay debt ( car loan )
|
And how much money do you lose in that process? Your $25k car will turn into $27k or $30k whatever the terms of the loan are. You are paying more for something because you can't afford it, so you keep yourself in that loop by constantly going into debt for things you can't afford.
If you have the money to pay for a car in full and you have some guaranteed way to make more interest on that money than you'd pay in financing, hell, perfect, go for it. Otherwise, no one should be kidding themselves that going into debt for a new car is a good idea when there are plenty of reliable used options.