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Pay in cash? I find it hard to argue for getting a car loan when the car's value is above a certain amount. Certainly if the car provides value greater than it

Pay in cash? I find it hard to argue for getting a car loan when the car's value is above a certain amount. Certainly if the car provides value greater than it is worth (i.e., ability to provide mobility to/from employment location) but a Tesla is more in the "luxury" category.

BoorishBears 8y ago
Sooo many people saying this not understanding that tying up 60 thousand dollars in a depreciating asset in one go when interest rates are hovering a little above 2% shows a certain level of financial illiteracy that is not conducive to getting good returns on your money.
- outworlder 8y ago
  If 'finantial literacy' is an issue, why would these people (or anyone else for that matter) buy a new car? They are taking the massive first year depreciation hit.
  - BoorishBears 8y ago
    People parrot this too, someone has to buy new cars for old cars to exist. Buying a new car lets you take advantage of warranties, free maintenance on some brands, having new tech years ahead of what’s otherwise availble (if you’re interested in that), not worrying about a questionable history (I’ve seen cars seriously damaged by driving habits in hundreds of miles of driving by abuse), and a myriad of other factors. At the end of the day money is not just for hoarding. You can want to buy a new car as a treat, or a reward, and still do it a financial literate way. Financial literacy != only spending money in the most utilitarian and minimal way possible, otherwise we’d all eat rice and legumes and live in shoeboxes to show how “financially literate” we are.
    - Sohcahtoa82 8y ago
      > not worrying about a questionable history (I’ve seen cars seriously damaged by driving habits in hundreds of miles of driving by abuse) This is especially true with sports cars. At one point I was considering buying a Nissan GT-R. I could get a brand new one for $120K, or a 5 year old one with 35k miles for a hair under $70k. You'd think the used one is a no brainer! But we're talking a car with ~550 horsepower, something someone could quite likely have been taking to a race track on a regular basis, putting untold amounts of wear on the engine and drive train. I admit $50k is a lot to pay for peace of mind, but when you're like me and own a car until it dies, I like to know how it's been treated, and being the only owner is the only way to know that.

BoorishBears 8y ago

Sooo many people saying this not understanding that tying up 60 thousand dollars in a depreciating asset in one go when interest rates are hovering a little above 2% shows a certain level of financial illiteracy that is not conducive to getting good returns on your money.

outworlder 8y ago
If 'finantial literacy' is an issue, why would these people (or anyone else for that matter) buy a new car? They are taking the massive first year depreciation hit.
- BoorishBears 8y ago
  People parrot this too, someone has to buy new cars for old cars to exist. Buying a new car lets you take advantage of warranties, free maintenance on some brands, having new tech years ahead of what’s otherwise availble (if you’re interested in that), not worrying about a questionable history (I’ve seen cars seriously damaged by driving habits in hundreds of miles of driving by abuse), and a myriad of other factors. At the end of the day money is not just for hoarding. You can want to buy a new car as a treat, or a reward, and still do it a financial literate way. Financial literacy != only spending money in the most utilitarian and minimal way possible, otherwise we’d all eat rice and legumes and live in shoeboxes to show how “financially literate” we are.
  - Sohcahtoa82 8y ago
    > not worrying about a questionable history (I’ve seen cars seriously damaged by driving habits in hundreds of miles of driving by abuse) This is especially true with sports cars. At one point I was considering buying a Nissan GT-R. I could get a brand new one for $120K, or a 5 year old one with 35k miles for a hair under $70k. You'd think the used one is a no brainer! But we're talking a car with ~550 horsepower, something someone could quite likely have been taking to a race track on a regular basis, putting untold amounts of wear on the engine and drive train. I admit $50k is a lot to pay for peace of mind, but when you're like me and own a car until it dies, I like to know how it's been treated, and being the only owner is the only way to know that.