Re:Vietnam’s Richest Man Bets $2B to Sell Cars to Americans
by aianus on Tuesday December 10, 2019 @12:03AM
(#21749744)
What's wrong with taking an 8 year loan for an asset that you will possess and use every day of those 8 years? As long as the interest rate is good (less than 4%, say) it sounds like a prudent decision that frees up cash flow.
Re:Vietnam’s Richest Man Bets $2B to Sell Cars to Americans
by WA on Tuesday December 10, 2019 @06:16AM
(#21751471)
A car is not an asset, but a liability. It doesn't generate money, it costs money.
If your 8-year-car is going to make you substantially more money than a cheap car that maybe doesn't require you to take a loan, you have a point. But since cars are about to go from A to B and the status symbol itself doesn't pay for anything, a cheaper car would do.
Re:Vietnam’s Richest Man Bets $2B to Sell Cars to Americans
by nkrisc on Tuesday December 10, 2019 @08:03AM
(#21752033)
Unless you consider the status utility worth paying for. Some people think it is. I think they're wrong, but who am I to say how they spend their money?
Why do people by expensive clothes that are no better than clothes a fraction of the cost?
Re:Vietnam’s Richest Man Bets $2B to Sell Cars to Americans
by toomuchtodo on Tuesday December 10, 2019 @08:49AM
(#21752368)
There’s evidence that people make decisions about others based on their clothing, even when directly informed not to during studies, so it appears there might be some utility in more expensive clothing.
The appearance of status might beget more status.
http://wws.princeton.edu/news-and-events/news/item/split-sec...
Re:Vietnam’s Richest Man Bets $2B to Sell Cars to Americans
by mrep on Tuesday December 10, 2019 @10:49AM
(#21753528)
I'm with you. I bought my first car last year and while I had moved some money into my checking account and even got a few checks for the first time for the down payment, they offered me 0 down with 2.9% interest which I took without hesitation. At that rate, they are barely beating inflation and I just moved my money back into vanguard ETFs.
Re:Vietnam’s Richest Man Bets $2B to Sell Cars to Americans
by tonyedgecombe on Tuesday December 10, 2019 @02:39AM
(#21750468)
Most of them won't keep the car for 8 years, they will roll the loan over in a couple of years for the newest shiny object.
Re:Vietnam’s Richest Man Bets $2B to Sell Cars to Americans
by toomuchtodo on Monday December 09, 2019 @09:06PM
(#21748940)
No no, you’re right. I’m just demonstrating that $35k for a new car isn’t crazy, comparatively speaking.
which is absolutely insane in my opinion, to have a shiny quickly depreciating status symbol. the amount of interest paid over the life of a 72-84 month loan is nuts. but people are short sighted and look at the monthly loan payment amount only. dealerships of course know this, and start naive people off in the negotiating with "how much do you want to pay a month?". they'll never show an amortization table.