Quote:
Originally Posted by snakebitekit
The way most people make their money is by OPM, "other peoples money". As long as you can make the payments without hurting the family budget go for it. I would rather have the money in the bank and use OPM to buy. Besides the interest is deductble. 
SBK |
The problem with that is if your financial situation changes and you can't make the payments you are screwed. I know plenty of people in the recent years that have bought cars, boats etc with little money down, and now they are upside down on these liabilities. Now their incomes have gone down and they can't even sell these toys for what they owe on them. The next step is the banks taking the stuff back and you get nothing except screwed up credit.
There are two sides to your argument. I have a Harley, a 49 Caddy, a boat, and the Cobra that are all payed for. If the crap hits the fan I can dump these items for some cash instead of having them taken back by the bank. My.02