My kids are always telling us to get a new car because we can afford it. I tell them over and over that’s it’s harder to spend money you have in the bank than money you’ve yet to earn. Earning and saving gives one a real appreciation of the value of money and makes you frugal. Debt is an insidious trap and should be used sparingly. Now that my wife and I are debt free we are reluctant to spend for anything but actual necessities. The psychological security of having money means more to us than the crap we could spend it on. And consequently our wealth grows rather than diminishes.
D.R. would say to avoid it like the PLAGUE.
Let’s say I buy a pickup for $40k. I borrow the full amount for 72 months. I have the car a year and I total it. I owe $37k but the insurance company only gives me $30k. So now I have to buy another truck but now that same truck costs me $47k.
That’s why I don’t borrow money to buy a car.
That’s how my sister ended up with a $525 a month payment on a used truck. She traded down so she is now paying like $350 for 72 payments for a 10 year-old suv that won’t even pull her trailer.