• OrkneyKomodo@lemmy.sdf.org
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    15 days ago

    I’ve never understood buying a car on credit. My car’s 17 years old now. Bought it when it was 8 years old. Insurance is €390/yr.

    • JayleneSlide@lemmy.world
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      15 days ago

      Liquidity. Buying a car on credit is mostly stupid, but there are cases when it makes some sense. My last car loan was 3.54%. My combined accounts were earning ~8%. Paying cash in that case would be throwing away money. Well, throwing away money on top of wasting it on a car.

      • explodicle@sh.itjust.works
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        15 days ago

        I’m doing the same thing, but I still don’t understand it. Why are creditors offering 3.54% car loans instead of just getting 8% themselves?