this post was submitted on 20 Oct 2025
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[–] undefined@lemmy.hogru.ch 11 points 2 days ago (18 children)

Why do people get these huge loans? I’ve never had a car loan in my life and as I’ve moved up career-wise I’ve just never felt the need to put myself $20-50k in debt just for a fucking car.

[–] silence7@slrpnk.net 17 points 2 days ago (1 children)
  • cheap housing is far from work
  • they see local mass transit and cycling as impractical or socially unacceptable
  • so they need a car to work
  • they don't have the capital to pay cash for it
  • the social status value of a new car is seen as desirable
[–] No_Eponym@lemmy.ca 7 points 2 days ago
  • they have mobility needs that are incompatible with local transit and/or make typical cars more expensive.
  • they have family/other needs that mean they need a safer, more reliable car.
  • they will lose their job if they are ever late, so need to prioritize reliability.
  • they work multiple jobs, and/or have other requirements (child care, elder care, etc) that are incompatible with transit in their area and/or cannot be out off while a car is getting repaired.
  • they are unable to DIY repair older used cars, cannot accommodate potentially extreme repair bills, and can't assess if an older car is reliable to buy in the first place.
  • the financing company will not give them a loan for something that doesn't have enough value to avoid depreciating past the point of recouping losses over the life of the lease.
  • the insurance company will not insure older cars at a rate that is doable for the driver.
  • they don't have the lump sum savings to buy a car outright, and loans are the only way to go to be able to continue to live and meet their life demands.
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