[SP01715]

Originally Posted by RodKnock

There is absolutely nothing wrong with financing a car purchase, especially using a HELOC, depending on one's financial and employment pictures. What if this person has money tied up in Treasuries, stocks, bonds, gold, pork bellies, has adequate life insurance, kid's go to State schools or their education is being funded by a 529 plan or similar method? Blah, blah, blah. It all depends, but prudent and reasonable leverage is just fine.

I took out my Kirkham yesterday aftrenoon for a 100-mile drive. Loved every minute of it. It almost makes me forget about the money spent on it.

My financial guy had the same theory. I did not listen to him because I did not want to leverage toys to the point that I could not dump them without taking more cash out of my pocket. I paid cash for most of the stuff I own, and I have actually probably lost less money than if I would have left it in stocks. The only exception was a 250K boat that I put 100k down on because it was a write off, and I was still not upside down in it.

The problem is a lot of people were not reasonable when it came to using their house as a credit card.