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Old 03-29-2017, 02:56 AM   #17 (permalink)
vskid3
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Join Date: Jun 2008
Location: Utah
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Civic DX (sold) - '97 Honda Civic DX
90 day: 34.15 mpg (US)

GTO (sold) - '04 Pontiac GTO
90 day: 22.62 mpg (US)

Green Brick (sold) - '06 Ford Escape Hybrid
90 day: 31.93 mpg (US)
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Quote:
Originally Posted by oldtamiyaphile View Post
The real issue is that when you buy on finance, you still have to pay the whole (or a good deal of) the interest even if you sell immediately.
Maybe it's different down there, but in the US, I believe that's not the norm. I've paid off several loans for used cars early and the only extra charge over the remaining principal is the interest accrued since the last payment.

Let's not forget that buying a new car and financing a car are two separate issues that can compound on each other, but neither is necessarily a terrible decision. With a low enough interest rate and a responsible individual, financing can actually save/make money over paying with cash, provided that cash is invested instead. Some models depreciate so slowly that it can make sense to buy new over a 2 or 3 year old used specimen (I almost did this when I was strongly considering a Honda Fit 5-6 years ago). Of course, most people make choices that put buying new, financing, or both, firmly in the terrible decision box.

I am thankful for those who buy new cars that I'll eventually want, without them I wouldn't have used options that are a fraction of the price of new. I just wish more of them would buy cars I'm interested in so I could have a bigger selection.
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