Re:Many Canadians are living on credit rather than staying w...
by gwbas1c on Thursday June 08, 2017 @01:21PM
(#14515599)
"Good debt is one where you use other people's money to build your own wealth in appreciating assets."
I'd say a new car loan is good debt, even though it's a depreciating asset. For the last 15 years or so, the interest rates are so close to inflation that it doesn't even make sense to pay cash for a new car.
At times when I was in the market for a used car, I opted to buy new because the interest rate was lower on the new car and it was irresponsible for me to pay cash for the used car.
I'd say a new car loan is good debt, even though it's a depreciating asset. For the last 15 years or so, the interest rates are so close to inflation that it doesn't even make sense to pay cash for a new car.
At times when I was in the market for a used car, I opted to buy new because the interest rate was lower on the new car and it was irresponsible for me to pay cash for the used car.