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Personally I believe any kind of consumer lending is bad. It is for consumption, it is for profit, and ultimately creating new liability for borrowers. Chinese
by powerapple 7y ago
Personally I believe any kind of consumer lending is bad. It is for consumption, it is for profit, and ultimately creating new liability for borrowers. Chinese companies are learning from west financial institute for this lucrative practice, which in long term is bad for Chinese economy. In short term, it may stimulate consumption. Also as a Alipay user, I didn't intend to have a Huabei account, it was created automatically, and all my purchases on Taobao go through it automatically. I didn't bother to change it. I believe most accounts are created this way.
- pjc50 7y agoConsumerism exists largely because of financing. It's pretty much essential for big-ticket purchases, which is why so many places in the West offer it for free.
- systemtest 7y agoFinancing should never be used for a depreciating asset.
- sub7 7y agoFalse - if I needed a loan to buy a car so I could get to work that's worth it. The work pays off the loan over time, I'm left with an asset and it's a win win for me, my employer and the car salesman.
- djmobley 7y agoThis is a poor rule of thumb. In reality these things depend entirely on the circumstances.
- givehimagun 7y agoAgreed - how would anyone buy a car without financing?
- systemtest 7y agoYou save up around €3000 to buy a second hand car, such as a 2010 Peugeot 207. After a while, you save up another €3000 and trade in the Peugeot 207 for a 2012 Renault Laguna. You repeat that a couple of times until you are able to afford a new car or until you are no longer able to upgrade to something better. That is how hundreds of millions of people do it here in Europe.
- pjc50 7y agoSomebody somewhere has to buy a new car. Europe is not devoid of car loans. https://www.ft.com/content/8b6607de-6304-11e7-91a7-502f7ee26895 https://www.ft.com/content/8b6607de-6304-11e7-91a7-502f7ee26... (Yes, I'm a secondhand car person myself, but heavy car commuters tend to buy new or even lease because the quality of car affects the quality of life for hours a day)