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Old 01-19-2005, 05:30 PM   #1
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Porsche986: You talk about the "feeling" of knowing you have debt and how you don't like that. You should take some finance classes. The way the world works, the way huge corporations are successful, etc, etc, is that they borrow money at a certain rate, and use it to return a higher rate. This money that is borrowed is debt. Good debt is good. Bad debt is bad. Good debt means that you are making more off of your debt than you are paying for it. For example, if I finance my new car at 4% and invest the money I would have used to buy it, and get a 6% return, my net return is 2%. If you are capable of making money above and beyond the cost of financing the car (which currently, is not hard to do), then you are financially better off to finance it. It's called opportunity cost.

I agree that it "feels better" to pay cash for a car and not have a payment, but I make my decisions based on spreadsheets, not feelings, that is my only point.
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Old 01-19-2005, 05:46 PM   #2
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I see your point, all i am saying is i am the same as randell, i only buy a car with money i have or i dont buy. Any figures you have no matter how good means the car is never yours untill debt is cleared no matter how good the apr is. At the moment it happens the av APR in the UK is 15%.

We are talking about buying a car with cash or finace. No investing... ect..
I see what you mean about investing yes... but again i speak from a UK point and the idea of any kind of lease, finance, loans is in my view a bad idea.
I dont claim to be an expert in investing but i do know basic facts to run a good company and thats own your items, stay clear of debt and loans. It is never a good idea of finace as if there were no finace we would all be getting superb prices for our boxster on trade.

tooooooo many people buy then cant afford payments, resulting in huge boxster stands at garages which in return means reduced price.
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