Money magazine Comments - Ask Paul: We feel guilty about taking out a loan for a new car Kerry and Vicki bought a new car - the worst one they can bear to be seen in - but now they're struggling with guilt over the loan. https://www.moneymag.com.au/feed/latest?story=150592625 Wed, 04 Dec 2019 16:44:16 +1100 Wed, 04 Dec 2019 16:44:16 +1100 en-AU Copyright 2026 Money magazine 5 Money magazine Comments - Ask Paul: We feel guilty about taking out a loan for a new car https://media.moneymag.com.au/prod/media/library/Money_Mag/Logo/Logo_401x133.png Comment by Matthew Stuckings (Self)

Are you mad, Paul? Borrowing money for a depreciating "investment" is usually always a bad idea unless it's for something you can't live without and there is no other way of obtaining it. I reckon they should be wiping out the debt before doing anything else, and resolving to pay cash for any further car purchases.

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]]> Matthew Stuckings (Self) Wed, 04 Dec 2019 16:44:16 +1100 Comment by Jill Barwick (Not Applicable)

Matthew. Paul has to be diplomatic. The couple confessed to the debt. Their penance from Paul is to say 3 Hail Mary's.

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]]> Jill Barwick (Not Applicable) Wed, 04 Dec 2019 22:50:04 +1100 Comment by Mark Young (Propaint)

It's an investment if said cash which would have been used to purchase the car is invested and returns more than 5.99%.

5.99% is the interest rate they are paying for the loan. Most blue chip shares are returning up to 10% and more so I would say it's a smart investment! There, that should help ease the guilt!

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]]> Mark Young (Propaint) Mon, 16 Dec 2019 21:55:22 +1100