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Financing should never be used for a depreciating asset.
by systemtest 7y ago
Financing 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)