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First, while cars are depreciating assets, the depreciation curve is a decaying exponential. This means that while the first year you go into the red, after 3-4 years you are back around the black again.

Second, interest free loans are practically better than spare cash. How do you know your parent didn't have $35,000 in spare cash, but wisely took the interest-free loan to leverage himself? You certainly cannot dismiss the possibility, as the poster must at least have respectable credit and/or income to qualify.

Third, your parent was merely making an observation on interest-free loans, which was pertinent to the parent of said post. Where do you fit in, criticizing his/her financial decisions and telling them what they should be doing with their money?

(My first two cars cost a total sum of $1200)



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