Quote:
Originally Posted by Undertoad
If you need the car to drive to work to make money to buy the car, then you buy it.
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Or you take mass transit, or car pool, or move near to work, or get a job you can afford ... a car is not a necessity. Almost anyone can get a car without taking out loan. There are plenty of simple working cars for only a few $thousand - no car loan required.
Car loans keep creditors as creditors. Do you buy your clothes using a loan? Of course not. Those are also necessary for a job. But only a fool or the financially destitute take out loans for clothes.
They *need* the SUV? Therefore they need a car loan? Nonsense. This is how debtors remain debtors. To make it easier to remain a debtor - gap insurance? Just another bill to make it easier for a debtor to remain a debtor. To make it easier to finance a luxury car he does not need and cannot afford.
There are many solutions - all without car loans. The person who *needs* a car loan is typically so financially destitute as to be one step away from bankruptcy. No financially responsible person needs a car loan. But car loans are how to live fast today - while enriching the creditors and remaining a debtor.
Equally foolish are the many who will maintain a credit card balance so as to keep money in a savings account. Just another way to remain a debtor and just as foolish as taking out a car loan.