Originally Posted by jacobsed
You could be building wealth with that payment money. Think about what that $500/month payment could be in 30 years if you invested it. The numbers are crazy!! This is a free country and people have the right to be wrong and do stupid things.
You can die rich having lived a shitty life. Very good. The purpose of life is not to accumulate money, it is to have enough money to live the dream. Sometime, to live the dream before you are 50, you have to get some debts, but everything has cost, so you should not have -too much- debt. My thinking is not based on evangelical arguments that "debts are evil", since they are a convenience that has a cost, and that cost may very well be offset by the return you get. It can be in terms of financial amortization, like for buying a house versus renting, owning a small inexpensive car that gets you to work in time. But it can also be in terms of enjoying early in your life luxuries that couldn't have been enjoyed otherwise (or much later). Granted, it is a net cost, but it does have some value to enjoy life, and many people are ok to spend money on having fun, going to the cinema, buying a TV and anything that's fun cost money and prevents you from acquiring "real wealth", whatever that means. You just have to not over indulge, otherwise it gets to decrease future enjoyment (you have to repay you debts AND the interests), and debt collectors are certainly not fun.
I think the op is making a mistake to get that much debt for a luxury when 1. he has no fixed revenues yet, 2. other costs that are more important are piling up (student loans, etc), 3. he cannot afford it, as illustrated by the fact that the loan proposed to him are of predatory nature (balloon loans are very expensive, and there is a significant chance that he will default on it, being left with no car, bad credit history, and having paid still more than the face value of the car). Getting in debt in his situation is probably unwise.