We are regular listeners to Michael Savage’s radio talk show. On a recent show, Michael remembered conversations with his father where his father refused to borrow money for cars because it was cheating. By this he meant that people were expected in those days to pay for cars with cash. If you borrowed money to buy a car you couldn’t afford to pay cash for you were living a lie!
What an idea! We’ve forgotten this completely. A 2007 New York Times story stated that about 11% of car buyers paid cash for the deal. Many others borrowed money using home equity loans to take advantage of tax deductible interest.
Another widely listened to talk show host, Bruce Williams used to preach that you should always drive exactly the car you want, just buy it a couple of years old. That’s something that you could probably do paying cash, and start living better-and honest.