What a weird and useless metric to think of when buying a new car. They will pay you just less then the cost of a replacement, so why does buying a car with a higher book value mean anything? Like are you just picturing yourself in an crash when looking at cars?
This is like asking whether you would like more money and saying no. It’s also troubling some people have already forgotten the lessons of the 2008 financial crisis.
Cars crash; 6 million crash annually in the United States. They get sold. If you finance a vehicle, it may not be on your schedule. Loans are based on income, not residuals. Lose the income and the residuals are all that prevent negative equity. Crash the car and you may end up with a loan but no car.
If you are so high income or wealthy it doesn’t matter, congratulations. Otherwise, naivete is not a great financial strategy.with tens of thousands of dollars.
What a weird and useless metric to think of when buying a new car. They will pay you just less then the cost of a replacement, so why does buying a car with a higher book value mean anything? Like are you just picturing yourself in an crash when looking at cars?
This is like asking whether you would like more money and saying no. It’s also troubling some people have already forgotten the lessons of the 2008 financial crisis.
Cars crash; 6 million crash annually in the United States. They get sold. If you finance a vehicle, it may not be on your schedule. Loans are based on income, not residuals. Lose the income and the residuals are all that prevent negative equity. Crash the car and you may end up with a loan but no car.
If you are so high income or wealthy it doesn’t matter, congratulations. Otherwise, naivete is not a great financial strategy.with tens of thousands of dollars.