How much are you Paying for a SS monthly?
#22
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CPAs are generally conservative.
For example, I have never used financing (debt) to purchase an asset that declines in value (cars are the best example). This is just a dumb idea that will perpetuate indebtedness and impair the building of wealth now and in the future.
In this environment (declining home values and T-bills yielding 2%), it is OK to use debt if it is relatively low cost (say 4% interest) and your income source is fairly safe.
For example, I have never used financing (debt) to purchase an asset that declines in value (cars are the best example). This is just a dumb idea that will perpetuate indebtedness and impair the building of wealth now and in the future.
In this environment (declining home values and T-bills yielding 2%), it is OK to use debt if it is relatively low cost (say 4% interest) and your income source is fairly safe.
I completely agree that CPAs are conservative though. I am one also.
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In a world of mortgage pmts, credit cards, college tuition, insurance, property taxes and a slew of other house hold bills I don't see many being able to pay off a $38K dollar car in 3 years. With the price of vehicles soaring im starting to see more and more advertisements for 6 years. Buy hey if you got it like that, more power to you.
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In a world of mortgage pmts, credit cards, college tuition, insurance, property taxes and a slew of other house hold bills I don't see many being able to pay off a $38K dollar car in 3 years. With the price of vehicles soaring im starting to see more and more advertisements for 6 years. Buy hey if you got it like that, more power to you.
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Just because they offer the loans for that long (on a depreciating asset no less), does not mean they are a good deal for those buying it. My own rule of thumb is a four year loan, not that it matters to anyone else. Perhaps a buyer might want to explore the idea that a 72 month loan does mean that they cannot afford that particular car. Probably upside down on it for over four years, stolen, wrecked, tired of it, whatever, you end up owing more than it is worth for a very, very long time.
I think its crazy to buy any car brand new IMO. Buy it used and let someone else take the hit.