this post was submitted on 07 Dec 2023
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Fuck Cars

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[–] [email protected] 13 points 9 months ago (1 children)

News flash, easily over 50% of cars on the road are bought with borrowed money and therefore debt.

[–] [email protected] 6 points 9 months ago (2 children)

Even people that don't need loans still do some sort of financing option for their credit score.

[–] [email protected] 4 points 9 months ago (1 children)

In our case, we were able to get a better rate from investing than the rate we're getting charged on the car loan. It was "cheaper" to take the loan than to pay up front! This economy is nuts.

[–] [email protected] 2 points 9 months ago

That's great if you can guarantee you beat the interest rate of the car. But as you've said the economy is nuts and anything can happen 🤣

[–] ImFresh3x 2 points 9 months ago

When borrowing rates are lower than investment returns borrowing just makes good financial sense.

I could pay off my home loan today, but at 2.5% interest why, when I can keep that money and leave it in a safe high return investment? I’d be losing 10s of thousands a year in returns for my retirement to save a few thousand in mortgage interest.

Same thing with cars.

Then again, I don’t even buy new cars. I just get a dependable used Japanese car and drive it until it dies at 300k miles.