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George Pearkes
@peark.es
Bluesky’s resident finance bro | Macro Strategist | Even the blind squirrel get a nut sometime. | QCR: Non Culto | American via Canada, not Scottish. *ALL CAPS HEADLINES LIKE THIS ARE FROM BLOOMBERG 📍 CLT
5.5k followers578 following15.2k posts
GPpeark.es

Some auto finance takes.... If you want to get a new car regularly, lease. If you want to own your car new, put enough down to prevent a negative equity situation. If you want to put as little as possible down, buy used. Unless you're putting down a *lot* (~1/2) gap insurance is your friend.

9

These are mostly pretty cold takes, but I'm not at all persuaded that negative equity on a car is a real problem that people should worry about, unlike houses

1
kcgreen.bsky.social

Certified pre-owned cars are great - generally 3 years old and covered under a new warranty by the car company. And generally hold up quite well for years after paid off on schedule.

0
JHjackharman.bsky.social

Though, surely this is true of every recently-purchased car (depreciation is ~linear, amortisation is not)

1
GPpeark.es

Leverage and debt are *not* inherently bad, but you need to understand the risk of a high LTV (lots of debt relative to value of vehicle) auto loan, especially since the damn things have a habit of getting totaled. Depreciation is a real cost too!

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KCthekenchilds.com

Bought one of the last stick shift Accords, it holds a gallon of milk in the cup holder (pictured) Gonna need something special to come out for me to get rid of this thing.

A gallon of milk in a he cup holder of a 2020 Honda Accord 2.0T MT
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bendwalsh.bsky.social

isn't this headline kinda just related to the fact that new cars depreciate 15-20% or whatever the first minute you own them but you still owe most of the non-depreciated price on the loan?

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PKphilkoop.bsky.social

So am I a moron for paying 100% and keeping the car forever? I can see the point in leasing if you replace the car every 3-4 years, especially if you can fiddle favourable tax treatment. But I just don't drive enough (2012 car, 45,00km) to make that attractive. I'm under Canadian tax rules, btw.

2

📌

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ORotizranchez.bsky.social

Pro tip: drive an 06 Toyota until the heat death of the universe, as a sort of challenge.

0
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George Pearkes
@peark.es
Bluesky’s resident finance bro | Macro Strategist | Even the blind squirrel get a nut sometime. | QCR: Non Culto | American via Canada, not Scottish. *ALL CAPS HEADLINES LIKE THIS ARE FROM BLOOMBERG 📍 CLT
5.5k followers578 following15.2k posts