Harry Guerrilla
DP Veteran
- Joined
- Dec 18, 2008
- Messages
- 28,951
- Reaction score
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- Gender
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- Political Leaning
- Libertarian
After I posted an answer to you, I thought about it a little more. Think about this way.... if you buy a $20,000 car at 5 percent interest. The moment you drive it off the lot is goes down in value probably $2,000 to $4,000 immediately. You are paying interest on that depreciation...even though you never gained at all from it. I guess that theory works a little better on new cars than used cars though, because used cars don't generally lose as much in value when they are driven off the lot. Anytime you borrow money on something that depreciates though, you are in essence paying interest on the lost depreciation.
When you don't buy a reliable car, you can't get to work on time or at all.
I'd rather have a $20k reliable car, than a $5k unreliable car.