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Old 01-02-2020, 11:19 AM
  #22  
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Originally Posted by SonicFlyer View Post
Ehhhh debt on things that depreciate is never a good thing. I understand sometimes it is necessary but should be avoided if possible.

Very good point, but you forget to factor in risk. If for whatever reason you go bankrupt, in many states they can't take your primary residence. Having a house that is paid off increases your financial security.
It's irrelevant whether you use cash or debt to fund the purchase.

What matters is how much of either you use. Paying in full for a $50k car is way worse than $5k, as the $50k car will cost you more in one year in depreciation what the $5k cost you total, and the little amount of interest you'd pay pales in comparison.

Plus, at the rates/interest you pay for car loans these days, you'd would've made 10x that had you had it invested in one year alone.
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