conversation: User (dinklebot2000): "https://www.cnbc.com/2018/05/31/a-523-monthly-payment-is-the-new-standard-for-car-buyers.html\n\nSorry for the formatting, on mobile. Saw this article and thought I would put this up as a PSA since there are a lot of auto loan posts on here. This is sad to see as the "new standard.""
  Self: "You should never take out a loan on a depreciating asset. Sometimes life kicks you in the balls and you have no choice but it should otherwise be avoided (unless it is a good out the door price *and* a sub-prime loan but that is a whole different discussion about the time value of money). "
  Eric-1375 (Eric-1375): "By that logic you would never buy a new car right? Because would definitely not advise someone to drop 40,000 dollars in cash on a new car and then it gets totaled in an accident and the insurance company only gives you 32,000 and you are left with what eating 8k and not having enough to replace it\n\n"
  Self: "That's correct. Let someone else take the initial hit and buy a car about one to two years old. That way you still get some warranty as well.\n\nAlso, whatever you paid (for a typical car) you'll never get insurance to pay you what you paid.\n\nAlso for your scenario, you are still on the hook for that $8k. Your lender is still going to demand their money. "
  