LogFAQs > #908636155

bkkorps posted...

and if you actually understand the math, no the $300/mo payment is not cheaper.

I think you are the one who doesn't understand here.

I put cheaper in quotes for a reason. It is cheaper in the short term to just pay $300/month for reliable car than to try to save $5k while driving a car that is in dire need of repairs.

Notice my note to compare this with apartments and extended stay hotels. Many poor families can't save up the initial costs of an apartment (first and last month's rent + security deposit at minimum for most places) while living somewhere (which, they have to do).

So, instead, they stay at an extended stay hotel where, yeah, it costs more a month than rent at an apartment would, but they don't require it to be paid upfront. Plenty of people can scrape together $200 week for that first week and just live paycheck-to-paycheck after that. It is far more difficult to even attempt to save towards anything that requires a downpayment while living anywhere. Keep in mind that not everyone has the luxury of living with family to save up money in the meantime.