Car debt is a big deal, don’t take it lightly. There is an obscene amount of car loans being issued now (especially subprime car loans).
Commonly, once you start using debt to buy a car it never ends. You are offered an interest free loan on a new car, you just don’t have the cash to afford the car that checks your boxes, or your car dies and it’s not worth fixing so you’re seemingly forced into buying a car you don’t have the cash to buy. Whatever the cause, lots of cars are bought with a loan involved.
I have bought a car with a loan. It was zero percent interest so it doesn’t count, right? I had a payment mindset versus a wealth mindset then. Now, I’ll never use debt to buy a car. Once I had the mindset shift to wealth building, I chose to drive cheap cars until I could afford to comfortably pay cash for good cars. Dare I say, new cars paid for in cash. Paying a car payment means if you don’t pay them then they come take your car. That doesn’t sound financially liberating to me.
The bottom line is this key question: How can you be financially independent when you have to send a payment to someone and if you don’t they’ll come take something from you?