Enough with the MPGs already

Who cares

 

You are not living in the real world

 

Don't entertain him. Every post he makes is moronic

 

This is correct, called corporate to find out how they came up with the numbers, no answer yet
Due to the amount of people not getting was they thought as far as m/g, I am inclining to tnink this numbers
are not true

 

1. $600+ per year due to less than advertised MPG is a good chunk. Lots of things you can buy with that money instead. BUT, I bought a truck to have a truck. Not a gas sipper. If you are concerned about gas mileage, there are plenty of other options.
2. If you have enough money to pay cash for your car, great. However, tying up a bunch of cash in a depreciating asset isn't really a good thing. If you can get a low or even 0% interest rate on a loan, take it, invest the cash you would have spent on the truck, and make a return on that investment that is greater than the % interest rate.

 

If the real world involves me borrowing money I don't have then you would be correct. I know not everyone has this luxury and luckily theres a plethora of affordable vehicles out there. Unfortunately, in the real world people buy what they can't afford.

 

Everybody should pay cash for their houses too

 

I agree, thankfully houses are an appreciating asset. Vehicles are not so much. Excluding the housing crash, people make money on their homes, lots of money.

When you really think about it does it make sense to borrow money and pay interest on an asset with no ROI? You are basically paying someone else to lose money...

 

Totally

 

Having a car payment is a good thing for someone, especially young people, trying to build credit. With everything paid in cash, you don't have credit that banks will consider. I know someone in their 30s, daddy paid for their house and cars, and recently when they went to get a car loan, they were turned down because they had no credit, even though their house and other cars were paid for. They've never had to learn about APR, etc., so an affordable car payment can be a very useful tool if used wisely.

 

So where do you live or who do you give money to while saving to pay cash for the house? Cardboard box and blow a junkie for extra cash

 

That's something you have to figure out on your own. I was in the military, they paid my housing while I saved, they paid my school, tax free while deployed etc etc.

Borrowing on a house isn't a bad thing, it appreciates. The argument is depreciating assets (eg. cars).

 

No people should pay cash for everything

 

I agree and disagree. My wife paid cash for everything her whole life, never had a loan or a credit card, anything. So in order to build her credit when we got married I added her to my charge card (charge is different than credit card). While teaching young people about debt is important, teaching them to stay away from it is a better lesson.

 

True, and this is why I stated using it wisely. I look at it as a tool, using the right tool for the right reason and the correct application is helpful, otherwise turns into a big mess quickly.

 

That's really not the same argument. Even though he entertained it and tried to make it so.


Even if someone doesn't have a huge savings an economical, used car can be saved up for. An efficient, economical home isn't likely going to be anywhere near the same price range (obviously).

It's a logical thing to say that if you're in debt or don't have a ton of money a$ 5-10-15k car, depending on what you can afford, is a smarter buy that a $30-40k 4x4 vehicle plus a few grand in superfluous extras just for looks that make it even less economical.

It's not nearly as attainable to save up right quick for a house...

 

The general rule of thumb in my finance world is that debt is considered reasonable if you are going to make (more) money on top of the expense of borrowing. What's true in the corporate world is true in the personal world.

For example- most people will agree that financing a house is considered an investment, depending on the market and rental conditions. No big argument there.

Also if you have a good paying job that requires you to have reliable transportation- borrowing money to obtain that vehicle may certainly be considered an investment as well. The mistake is buying a vehicle that exceeds economic rationale to get back and forth to said job. If you are smart you will, in time, be able to purchase subsequent vehicles with cash.

 

Yeah I don't really care , I'm just rattling cages

 

Finally a thread I can agree with, fuel prices are not that bad now.

 

I knew you wouldn't. Thought someone else may read and care. Or not. Either way.