Quote:
Originally Posted by jacobsed
Your most powerful wealth building tool is your income. If it is tied up making making payments then you can't use it to build wealth (even on 0% loans.) If you have debt then its a pay now or pay later situation and somebody else is getting your money and its not working for you. And you're making payments on a very expensive throw away item. People crack me up when they think going into debt playing spreads financing car loans is the smart way to go. The big picture of the whole scenario is laughable. I'm not calling anyone stupid but they are wrong regardless of being ignorant or not.
The smart play is to pay cash for a car you can afford and move on. People hate hearing this because the reality is they don't actually have any money. But somehow they can justify making payments!!!
|
Agreed, that's why a failing small business with a fleet of nice cars makes no sense, as if leasing is automatically justified. Business owners are always looking to lower expenses, not increase them.
The avg 3 buyer had an income of 140k+ back in 2005, I saw marketing material which stated that. The figure today should be considerably higher. Given the current state of the economy, it may not be the case.