mcesar84

Nothing wrong with financing as long as it's a fair rate and free of any excessive origination fees or prepayment penalties. I financed my RSX-S new when rates were 2.49% APR and CDs were still paying 5% APY. I had the cash but was going to actually come out about $200 a year ahead by financing and keeping the money invested. Once rates tanked, I paid off the car.

It's been a while since I took an accounting class, but I believe that the car itself is considered the asset, and the payment (or outstanding loan balance) is considered the liability. Assets (value of the car) = Liabilities (total of remaining payments) + Equity ($ already paid into the car)

magician

Almost: Equity isn't dollars already paid into the car; Equity = Assets - Liabilities, so it's the value of the car less what you still owe. Because the car is a depreciating asset, equity will be less than what you've paid; indeed, it can be (and frequently is) negative.

llckll

Just keep saving up until you can pay for it with cash.

When you take out loans, you no longer work for yourself.