There is no reason to own a car that costs more than 20k

[BaldingSoHard]

having debt, no matter the amount is never better than not having debt. It is absolutely not "idiotic" to buy a car in cash if you have the means to comfortably do so.

Eh, different strokes.

No way am I gonna I drop 30k in cash on a depreciating asset when I can finance said asset at 1.75% while earning 10%+ on that 30k, but do you breh.

Your debt is only as bad as the interest it costs you, and in this era of bank-breakingly low interest rates, money is basically free.

 

[gho3st]

Eh, different strokes.

No way am I gonna I drop 30k in cash on a depreciating asset when I can finance said asset at 1.75% while earning 10%+ on that 30k, but do you breh.

Your debt is only as bad as the interest it costs you, and in this era of bank-breakingly low interest rates, money is basically free.

what happens if that investment fails and you lose a lot of money on said investment?

 

[BaldingSoHard]

what happens if that investment fails and you lose a lot of money on said investment?

Same thing that happens with every other investment that fails... you make it up over time.

 

[gho3st]

Same thing that happens with every other investment that fails... you make it up over time.

what if you incur more loss during said period of time?

 

[BaldingSoHard]

what if you incur more loss during said period of time?

I'm not sure what you're asking me. Are you asking me if I'd opt to drop cash on a car during a bear market? The answer is no. As long as interest rates remain below or near the rate of inflation, financing will always be the smarter move. Being able to invest that money successfully is just a perk.

 

[gho3st]

I'm not sure what you're asking me. Are you asking me if I'd opt to drop cash on a car during a bear market? The answer is no. As long as interest rates remain below or near the rate of inflation, financing will always be the smarter move. Being able to invest that money successfully is just a perk.

I was asking you what if in your attempt to make up said loss, you incur even more losses.


car is an asset you will almost always lose money on. The actual debt is not what you owed the bank. It is the future interest + depreciation. fact that you finance the car doesn't mean you are smart or anything like that. It means you are taking a gamble. Instead of having the asset(car), you choose to put a down payment on the 20K car and finance it. The rest of 20K is not new money. It is the value of the car(with no depreciation) subtracted by the down payment .
Now lets say your investment doesn't pan out and the money you lost is more than depreciation(and interest) the car would have accumulated. You still think it was good idea to finance it? And no investing it is not just a perk, you are trying to find ways to not incur any losses because you know the car is a necessary but depreciating asset. And dont forget the car is also an investment. shyt everything you buy is an investment


That's why i said it wasn't a good idea to compare houses and cars. It is much easier to appreciate the value of house than a car which is why it is smarter to finance it instead of paying for it outright.

 

[BaldingSoHard]

I was asking you what if in your attempt to make up said loss, you incur even more losses.


car is an asset you will almost always lose money on. The actual debt is not what you owed the bank. It is the future interest + depreciation. fact that you finance the car doesn't mean you are smart or anything like that. It means you are taking a gamble. Instead of having the asset(car), you choose to put a down payment on the 20K car and finance it. The rest of 20K is not new money. It is the value of the car(with no depreciation) subtracted by the down payment .
Now lets say your investment doesn't pan out and the money you lost is more than depreciation(and interest) the car would have accumulated. You still think it was good idea to finance it? And no investing it is not just a perk, you are trying to find ways to not incur any losses because you know the car is a necessary but depreciating asset. And dont forget the car is also an investment. shyt everything you buy is an investment


That's why i said it wasn't a good idea to compare houses and cars. It is much easier to appreciate the value of house than a car which is why it is smarter to finance it instead of paying for it outright.

I would disagree that a car is an investment. It's a necessity that has value, but an investment? Nah.

Financing in this era of low interest rates is always going to be a good idea. Whether my portfolio is up or down, paying 1.75% to use someone else's money will always be better than a 30k up front sunk cost.

 

[gho3st]

I would disagree that a car is an investment. It's a necessity that has value, but an investment? Nah.

Financing in this era of low interest rates is always going to be a good idea. Whether my portfolio is up or down, paying 1.75% to use someone else's money will always be better than a 30k up front sunk cost.

people dont like calling car investment because it is something you will almost always lose money non. But I see how you keep changing your point with no argument to back it up tho. Before you were talking about investment being a sucess now you are talking about portfolios and shyt..

And Like i said earlier, sunk cost is not the 20K you pay on the car.

 

[BaldingSoHard]

people dont like calling car investment because it is something you will almost always lose money non. But I see how you keep changing your point with no argument to back it up tho.

And Like i said earlier, sunk cost is not the 20K you pay on the car.

Changing the point? Breh if you wanna drop cash on your cars, go for it. I'm not trying to talk you out of it. And if it makes you feel better, you can assume every investment I make will fail. Doesn't bother me at all.

Personally, I pay myself first. You wanna pay someone else first have at it. It's your money breh.

Before you were talking about investment being a sucess now you are talking about portfolios and shyt..

 

[philmonroe]

what happens if that investment fails and you lose a lot of money on said investment?

Eh you take the L but if you do your research and feel good in what your doing why not? Seems like you live a scary life where you only think of the failures like you won't have success. Everytime you try some thing its a chance to fail but if you don't try we all know you definitely going to fail.

 

[gho3st]

Eh you take the L but if you do your research and feel good in what your doing why not? Seems like you live a scary life where you only think of the failures like you won't have success. Everytime you try some thing its a chance to fail but if you don't try we all know you definitely going to fail.

sensible post

but thats not what i was talking about. Dude tried to school people but ended up tying himself in knots I explained why i thought the way i did.

 

[philmonroe]

sensible post

but thats not what i was talking about. Dude tried to school people but ended up tying himself in knots I explained why i thought the way i did.

I think dude is on a similar vibe to me on this issue that's why I posted. If he isn't I'll take the L for being wrong on this.

 

[BaldingSoHard]

I think dude is on a similar vibe to me on this issue that's why I posted. If he isn't I'll take the L for being wrong on this.

Being wrong on what?

Dude likes to buy his cars in cash.
I don't.

...?

 

[philmonroe]

Being wrong on what?

Dude likes to buy his cars in cash.
I don't.

...?

Get out your feelings nikka cause I shouldn't have to explain.

 

[BaldingSoHard]

Get out your feelings nikka cause I shouldn't have to explain.