4 ms·
Replace the word TV with 'first household car'.
by rdrey 11y ago
Replace the word TV with 'first household car'.
- tomjen3 11y agoNo. Tv don't enable you to get a better job/keep your current. If you want the argument to mean anything then you have to trade like for like. A nice couch will last years and it is still a frivolous consumer spending object. Is it worth it to pay ~80 usd to have the couch a year earlier?
- lkbm 11y agoHere's what I just read: > > > > Here's my argument. > > > That argument's too weak. > > Okay, here's a stronger version. > No, you have to stick with the weak version. Personally, I want to hear the strongest version of the arguments when I'm making a decision.
- nostrademons 11y agoCurious what your point is? It's pretty common to pay cash for a used clunker as your first car because you don't have money to buy a new one, and then use it to get to work so you can save up more money to buy a new one. Or at least, it's pretty common among the folks I hang with. The car-loan phenomena is baffling to me; why would you pay interest on a depreciating asset?
- craigds 11y agoI think it's an American thing. In NZ it's pretty rare to buy a new car, far more common to get a 10-15 year old one for $5-10K. Paying cash is normal
- heywire 11y agoWell, someone has to be buying the new cars, or else there wouldn't be any used cars.
- dazc 11y agoA lot of new cars are sold to fleets and these eventually come on to the used market. (UK figures) https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/421337/vls-2014.pdf https://www.gov.uk/government/uploads/system/uploads/attachm... In 2014, 54% of all car first registrations were made by companies. Which is lower than I would have guessed, but still significant.
- kaybe 11y agoI think NZ imports a lot of cars from overseas. The used-car market is great!
- deleted 11y ago[deleted]
- repsilat 11y agoI don't know if it's still the case, but New Zealand used to import a lot of Japanese second hand cars. Cheap, reliable, fuel-efficient and left hand drive. Less common in Australia because they have (had?) a domestic market to protect -- import tariffs made it less attractive.
- saalweachter 11y agoWhy would you waste your liquidity on an asset so easy to secure a loan for as a car? A five year new car loan from a credit union -- no shopping around -- has a cost of something like $58 / $1000 borrowed. So even if you have $20k cash on hand to buy a new car, for a thousand bucks you can maintain an extra $20k of liquidity for expenses that are more annoying or more expensive to finance, like auto repairs.
- deleted 11y ago[deleted]
- markvdb 11y agoBecause you want to buy a house? If you are borrowing 8k for a simple car @2%, 5 years, you are repaying ~140/month. On a 20 year loan @2%, that same monthly payment would net you 30k. My native country has a central database of every single loan outstanding. Lenders have to consult that before granting a loan and stay within certain limits. So at least here, an outstanding car loan might disqualify you from a home loan because of a lack of solvability...
- spdionis 11y agoIf in those 5 years you decide to buy a house can't you just pay the rest of the car debt with the liquidity you have saved up meanwhile?
- dazc 11y ago> Curious what your point is? I took his point as: Some people buy an expensive car they can ill afford when they could buy a cheaper one that will do the same job. Like my TV example, but with a car.