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To add my own anecdote: I've never paid more than $3k for a car. Worst case that has occurred so far is that my most recent one threw a rod less than a year aft

To add my own anecdote: I've never paid more than $3k for a car. Worst case that has occurred so far is that my most recent one threw a rod less than a year after owning it and I had to spend another $2.5k on replacing the engine. So now I'm $5k down, but that's still a hell of a lot better off than $10-$15k let alone $50k or whatever the fuck insane price new cars are these days.

dirktheman 7y ago
Same here. I usually get 10-15 year old Japanese cars, and I'm fairly capable of identifying major flaws during a test ride. I spend 2500-3000 euros on the car, and another 500-1000 to get it sorted. Our last family car, a Mitsubishi Grandis, lasted 6 years without major repairs. We traded it on for our new car, a Mitsubishi Grandis, and I got 1000 euros for the Space Wagon. The Grandis is still going strong after 5 years and no major bills other than regular maintenance. It's just beyond me why people would buy a brand new car on loan. Only if you're poor/living from paycheck to paycheck and absolutely rely on a car to get to your job I understand why it would make sense on some level to get a car loan.
- Raidion 7y ago
  There are a ton of reasons taking a loan is better than buying outright if you have any sort of risk tolerance and you can get a low APR. Over 5 years, on a 20k car, inflation would have eaten ~2k purchasing power of the loan, while the car's value isn't affected. 2014-2019, S&P500 has returned >10% (inflation adjusted). AND you can always trade money for a lien free car, but it's a lot harder to trade the car for money (you're gonna still need a car and title for loan deals aren't great). Taking a loan out for the car means I'm buying a 20k car for 18k, being able to return 10% a year on the money I borrowed, with the ability to pay off the car anytime I want. Buying a car in cash is for those who can't get a low APR loan and/or are too risk averse to use debt properly.
  - scarface74 7y ago
    You’re not going to get a low apr on a 7 year loan - the entire subject of the submission.

dirktheman 7y ago

Same here. I usually get 10-15 year old Japanese cars, and I'm fairly capable of identifying major flaws during a test ride. I spend 2500-3000 euros on the car, and another 500-1000 to get it sorted. Our last family car, a Mitsubishi Grandis, lasted 6 years without major repairs. We traded it on for our new car, a Mitsubishi Grandis, and I got 1000 euros for the Space Wagon. The Grandis is still going strong after 5 years and no major bills other than regular maintenance. It's just beyond me why people would buy a brand new car on loan. Only if you're poor/living from paycheck to paycheck and absolutely rely on a car to get to your job I understand why it would make sense on some level to get a car loan.

Raidion 7y ago
There are a ton of reasons taking a loan is better than buying outright if you have any sort of risk tolerance and you can get a low APR. Over 5 years, on a 20k car, inflation would have eaten ~2k purchasing power of the loan, while the car's value isn't affected. 2014-2019, S&P500 has returned >10% (inflation adjusted). AND you can always trade money for a lien free car, but it's a lot harder to trade the car for money (you're gonna still need a car and title for loan deals aren't great). Taking a loan out for the car means I'm buying a 20k car for 18k, being able to return 10% a year on the money I borrowed, with the ability to pay off the car anytime I want. Buying a car in cash is for those who can't get a low APR loan and/or are too risk averse to use debt properly.
- scarface74 7y ago
  You’re not going to get a low apr on a 7 year loan - the entire subject of the submission.