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Originally Posted by jacobsed
I would never by a new car because of the depreciation. 5 years used is the sweet spot.
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For 4 years the car has warranty and maintenance. At 5 years, it is also when the maintenance sinks starts to drain. You lose a lot of money the first year in depreciation, but you loose a lot of money on maintenance after 80k miles.
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Companies get loans on depreciating assets because those assets make them money. Your personal car will not.
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It gets you to your workplace, so it is a depreciating asset that permits you to get a job, in some sense it is the best of your assets, because if you don't have it, you get no revenues.
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You should only buy a car with cash and be debt free if you want to accumulate real wealth and have financial peace.
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I think you don't understand how monetary instruments works, and you should stay clear of them. For most people that actually understand what an APR and an opportunity cost are, it is just fine.
That being said, balloon payment is a big red flag. For the Op: Scratch a lot more on what that means for you, as usually, these types of loans are VERY expensive in the long run.