Posted on 03/06/2016 8:53:47 AM PST by NRx
By trading real assets for money.
Stated a different way:
"When you owe the bank $10,000, the bank has you over a barrel. When you owe the bank $10,000,000, you have the bank over a barrel."
No asset has ever gained value in a debt deflation, in the history of the world.
Everything gets cheaper relative to cash. Including gold.
It’ll be an awesome time to get a used car off lease or repo.
All those leases benefit buyers like us. Ever since leases started we’ve paid cash for less than 1 yr old, low mileage luxury cars. The last one was in 2013. Less than one yr old Mercedes GLK 350 with 8k miles on it.
It’s about time! Let the debt regime fall.
Our last 3 cars have been bought that way. Less than yr old cars with ultra low mileage. I decide more or less what I want and then start the hunt.
Even used cars are too expensive in my opinion. Have been since cash for clunkers. I’ll just hang onto the two I’ve got as long as they’re functional and don’t cost more to keep going than getting another one would cost.
We drive cars a very long time. My car is a 2006 Jaguar S Type. Can’t find any reason to get rid of it yet. I’ve test drove other cars and don’t like them any better than my Jag so why spend the money. When it starts giving me real trouble I’ll get rid of it.
Jags were beautiful cars, not so wild about the newer ones, they seem to have lost that Jaguar look and style. Maintenance hasn’t been a problem with your 06? I understand that Ford put some effort into straightening out a few eccentricities while they owned them, maybe they succeeded.
That’s the only way to come out on vehicles. They’re not an asset, they’re a liability. They DECLINE in value, unlike an asset.
Long ago, I figured out the reason most people by new cars is to impress their acquaintance. I call it the S.W.I.G. Factor: See What I Got.
I’ve known a few people who search for low mile granny cars, mid-late 90’s GM with the 3.8 V6, surprisingly economical to own. They drive them until they fall apart, then go find another one. Probably the cheapest way to keep a comfortable, reliable car. They’re immune to style and status I guess, lol.
Has been a really good car so far. Only thing out of ordinary maintenance was an oil leak. Some joint somewhere or something. Don’t know much about mechanical. I leave that to hubby. Lol Only problem with the luxury cars is it costs a lot to have them fixed. That oil leak was $1800. I figure in a 10 year time period that’s not bad. :)
Heard a dealership in opelika, AL today on the radio claiming that if you make 350 aweek, you can get up 36,000 in credit. Crazy.
Wow! Those people are going to end up living in that vehicle.
Style and status has sold many, many cars to people who should have save their money. Houses, too.
I’d be in far better shape than I am, if I’d always been such a tightwad. Wouldn’t have had nearly as much fun, though. I’m not to the point of outright regret over youthful spending habits, but I’m close.
I bought a Ford Thunderbird in 1986, made lease and purchase payments for 7 years, and then drove it six more years with no payments. Still had trade in value. I bought a Ford 500 in 2006, paid on it for 6 years, and have been driving it free for the last 4 years and still going strong.
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