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Comment by superuser2 | Hacker News Reader

Never borrow money? You've just completely eliminated car ownership for a good chunk of the middle class, and homeownership for pretty much everyone but the very rich. That's probably a defensible position, but it's definitely not normal financial advice.

If putting $7,000 away for retirement right now nets you more by retirement age than the lifetime cost of a car loan, you should take the loan.

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I've owned cars since I was 17 year old, and never had to borrow money for a car till I decided to buy a brand new car years later Since then, I've decided to do the following: So you make "car payments" into your savings account every month, and after 1 - 3 years you can get a usable or very nice used car. Then continue to make car payments into your savings, and 5 years afterwards you can get a brand new car -- one that will last you for 15 years (at least). Then, in the last 5 years, do the same thing if you want to continue to drive new vehicles.

Buying brand new cars is not good financial advice either. Instant depreciation, no time for problems to blow up in someone else's face first, tiny longevity gain over buying a 2-3 year old car for drastically less.

Oh, I agree with that in general. I've just never been able to get a 2-3 year old car to be worth keeping for more than another 3-5 years (either previous owner got rid of it early because it was a lemon, or didn't take care of it [oil changes, garage kept, easy driving, etc]). Whereas a car I've owned from day one (since year 2000) has only needed minor repairs (most of which I do myself, except when the fuel pump went out far from home). Once it starts costing me more than a couple thousand a year for repairs, or becomes unreliable, it will be time to trade up. If I keep it for a couple more years, it comes out to about $1500 a year. Heck, I may keep it for 20 years. I just can't see me wanting to keep a car I bought used for 20 years though (or till the car is 20 years old even).

Human beings are not perfectly rational automatons. Sometimes they want brand new stuff.

I have a friend who is 15 years older than me and very financially savvy. He grew up in India in a poor family and his father spent all his free time repairing their ancient clunker that kept breaking down. That memory is enough that he only buys new cars.

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