i'd love to be in a position where a car wasn't a necessity - but out here, PT isn't an option for most things - if you don't have a car, you have to rely on taxis. and they are a damn site more expensive long term! for some people, buying a car outright isn't an option. the car we're about to sell was bought outright only because my brother owed us money and i called him to help. we were in the middle of selling our house to move, had zero spare cash, DH had just lost his job, and the car we had was totally unsafe for anyone to use. so yes, we got that one outright, but if the only way to get a car that is safe is to take out a loan, i don't see a problem with it. i'd rather get a $5000 car on a loan than a $500 one that is roadworthy only because someone knows someone that will overlook those things that will make it unroadworthy if it's driven again...
Just to clarify - I don't have any problem with loaning money for a car - I did for my second car (first was an old clunker I paid cash for) - I would never, however loan a ridiculously large amount of money to own a 'fancy' car or to keep up with the Jones' so to speak... I personally can't justify investing large sums of cash in something that loses money as soon as you drive it off the car lot.
I think everyone is different, circumstances are different and you have to do what your comfortable with and what suits you.
I am very lucky to have a DH who is extremely good at budgeting always has been, we have always owned our cars outright and saved to upgrade them, we have never had a brand new car though but with DH being a car person he has always looked after our cars and made them feel like new.
We currently own a 2004 ford and a 2000 holden ute both in really good condition and low kms and they do us just fine.
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