Re:Wealthy use debt to buy future cash flow everyone else us...
by analyte123 on Sunday May 09, 2021 @08:19PM
(#27101220)
At the risk of being pedantic, some used cars have appreciated (mildly) over the past year due to shortages of new cars. Also, some older enthusiast cars can appreciate if you know what to look for, have a place to store them, and know enough about them to either work on them yourself or not get ripped off.
Re:Wealthy use debt to buy future cash flow everyone else us...
by TimBurr on Monday May 10, 2021 @09:50AM
(#27105963)
This even works for some non-antique cars. Jeep Wranglers (TJ generation) and Mazda Miatas (NA generation) have both appreciated somewhat in recent years.
Of course, no one's getting rich when a car appreciates from $5000 to $6000 or $3000 to $3500 over a few years. Net of repairs it's probably break-even. But it's nicer than losing value :)
One basic piece of information that is missing, for example, is explaining the difference between a car and a house. The land that a house sits on can appreciate over time, whereas cars will always depreciate over time. One can make money, the other will lose money.
A lot of people need a car in the US, and both Sam and Mark have one in this article. It doesn't explain why an expensive car is a worse investment than an inexpensive one, and it is because it loses a more value per year than a more affordable car. it doesn't go into the nuances between leasing and owning, either.
I feel like explaining how to use debt to secure future cash flow would need to build on top of those fundamentals, and it feels out of place in this piece without them.