Am I crazy or is this the worst time ever to buy a vehicle?

[Buster]

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My comment was only meant to be a general shitpost at 89c's expense for my own amusement - that's about all I'm good for here.


Edit: but i'll bite.
Yeah...on one hand there are people who take on more debt than then can service and it bites them. On the other hand are people who can sustainably manage the debt they take. Taking a finance loan on my car instead of paying for it in cash frees up cashflow for me to invest and earn a greater return than the cost of the financing; I come out ahead, versus saving and dumping that cash into car as a lumpsum.

The counterpoint to that view is I could have not taken the car loan at all and instead invested everything and come out even more ahead over the same period of time. Very true, and that lifestyle could work for some people - but what's the impact to me of living like that? I didn't want to ride the bus, so I made the discretionary decision to take some debt which I assessed as being within my means to service, to get what I wanted. I don't mean to assert that this debt brings a greater degree of financial stability to my life, but it fit the value equation of my life and brings positive impacts to other areas of my life vs. hoarding all my shekels until I could buy the car as a lump sum. These are the decisions we make as consumers.

I interned for a medical startup which avoided debt like the plague and grew only when they could internally sustain it. It was a very safe, stable way to grow the business and avoids the risk of growing unsustainably, or too quickly. They ended up getting bought out and the owners made a pile of money. One could argue they could have grown faster, or achieved a higher valuation, had they taken on some debt to fund growth. Could be true, could not be - but ultimately the proposition of debt didn't fit their value equation. These were the decisions they made as operators.

For one to say that 'all debt (aside from a mortgage) is the devil' and you just need to 'work really hard and grind for what you want' and 'if you have to take debt, you're entitled and just not working hard enough' and then flex superiority for living that way is a naïve simplification, and in my opinion not a very well-reasoned outlook - so i'll bust some balls over it for my own amusement.

you have it right here.

A cash purchase or taking on debt amount to the same thing.

[ExtraSlow]

Maybe it's because I know so many poor people, but I think for people starting out, or with difficult finances, cash purchase and debt purchase are totally different.

Let's face it, debt makes the most sense for people who don't need to use it. If the only way you can afford a new car is with a long loan, then you shouldn't be buying it with debt, or at all. If you have the freedom to just pay cash, then debt is a very valid option.

Although, I still think that most people would be better served by keeping their finances as simple as possible. That means fewer loans and fewer different investments.

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My comment was only meant to be a general shitpost.

I like this energy.

[flipstah]

Cash is king if you have tons

[Buster]

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Maybe it's because I know so many poor people, but I think for people starting out, or with difficult finances, cash purchase and debt purchase are totally different.

Let's face it, debt makes the most sense for people who don't need to use it. If the only way you can afford a new car is with a long loan, then you shouldn't be buying it with debt, or at all. If you have the freedom to just pay cash, then debt is a very valid option.

Although, I still think that most people would be better served by keeping their finances as simple as possible. That means fewer loans and fewer different investments.

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I like this energy.

Debt is simply creating an interest expense in exchange for using some "thing" for a period of time. So if it allows you to use that thing for two extra years, then who is to say it is less virtuous to do so? People might think spending XXX dollars is worth it for XXX time with that thing. This assumes it is a discretionary purchase, or a discretionary car upgrade, etc.

[vengie]

As always - Don't be poor.

[ianmcc]

I recall reading many many years ago the following advice:
Purchase appreciating assets and lease depreciating assets.
The current used car market is not sustainable but traditionally vehicles depreciate over time so from a business perspective you would have to earn quite a high ROR to offset depreciating assets.

[Buster]

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I recall reading many many years ago the following advice:
Purchase appreciating assets and lease depreciating assets.
The current used car market is not sustainable but traditionally vehicles depreciate over time so from a business perspective you would have to earn quite a high ROR to offset depreciating assets.

That advice has never made any sense.

[jaylo]

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As always - Don't be poor.

The only way to mitigate this is to be smart with whatever money you have, whether you start off as rich or poor.

Don't be lazy. Time is money. Stay away from social media, news, reality shows.
Invest early in appreciating assets over time (house, land, equities, guns, guitars, etc...)
Buy life insurance, RRSP, and pension plan
Find the highest rate of return on your savings
Pay for little to no interest when borrowing, make banks fight for your business

[Buster]

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The only way to mitigate this is to be smart with whatever money you have, whether you start off as rich or poor.

Don't be lazy. Time is money. Stay away from social media, news, reality shows.
Invest early in appreciating assets over time (house, land, equities, guns, guitars, etc...)
Buy life insurance, RRSP, and pension plan
Find the highest rate of return on your savings
Pay for little to no interest when borrowing, make banks fight for your business

I say buy low and sell high

[jaylo]

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I say buy low and sell high

Same idea. Time in the market will pay off eventually.

[BavarianBeast]

You can pretty much but any supercar right now, take delivery sell it and profit. It’s a pretty easy equation

[jaylo]

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You can pretty much but any supercar right now, take delivery sell it and profit. It’s a pretty easy equation

Not so smart to buy a depreciating asset... Unless you are willing to take the risk.

Plus, you have to finance. You'd be under your initial investment and barely making a profit, paying for interest rates and auto insurance.

One scratch, curb or dent will depreciate the vehicle.

What if the market corrects itself all of a sudden?

Now you are stuck with a depreciating asset.

Are you from Deerfoot Suzuki?

[Buster]

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You can pretty much but any supercar right now, take delivery sell it and profit. It’s a pretty easy equation

Well, you can't buy them is the problem.

[jaylo]

https://www.scotiabank.com/ca/en/per...alculator.html

Financing a Tacoma TRD Pro at 3.79% will add on $6,700 interest on top of what you agreed to pay.

[you&me]

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Well, you can't buy them is the problem.

Crap... And here I was just about to head out to buy up some 992 GT3s and SP3 Daytonas. You mean to tell me the cars that are all selling for over MSRP aren't readily available?

[Buster]

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Crap... And here I was just about to head out to buy up some 992 GT3s and SP3 Daytonas. You mean to tell me the cars that are all selling for over MSRP aren't readily available?

I had placed an order for a couple of F8's and a GT3, but they haven't shown up yet. Come to think of it, I haven't heard back from the dealer on my emails.

[BavarianBeast]

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Not so smart to buy a depreciating asset... Unless you are willing to take the risk.

Plus, you have to finance. You'd be under your initial investment and barely making a profit, paying for interest rates and auto insurance.

One scratch, curb or dent will depreciate the vehicle.

What if the market corrects itself all of a sudden?

Now you are stuck with a depreciating asset.

Are you from Deerfoot Suzuki?

I’ve bought both of mine in cash. Sold the first one for a nice gain after driving for 3 years. Second one won’t be any different.

[Buster]

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I’ve bought both of mine in cash. Sold the first one for a nice gain after driving for 3 years. Second one won’t be any different.

Love to hear it, but you were lucky. It's not really a strategy.

[BavarianBeast]

Luck doesn’t have anything to do with my car strategies. Pretty much everything I’ve boughten in the last 7 years has appreciated.

[gretz]

Not in buying multiple Porsche territory yet, but found a great deal at a dealership for the first time in my life lol. A solid $6k less than private sales with considerable less kms. It seems with the crazy used car market, dealerships almost make sense. And couple that with current gas prices, I’m basically driving a free new car with warranty for what my 08 gs350 used to guzzle