[leetcrew]

it can absolutely make sense to finance a depreciating asset.

example one: I have just been offered a good job that requires a car for commuting. I have no car and negligible other assets. it is rational to take out a loan for a reasonably priced car as long as I can comfortably make the payments on my new wages. if I later lose my job but am not upside-down on the loan, I am still better off than I started.

example two: I make $200k and have $500k in assets and I want to buy a $20k car. I could easily afford to buy the car outright by selling some assets, but then I would have to pay capital gains and forgo future appreciation. if the expected appreciation + capital gains tax on those assets is significantly higher than the loan interest over the full term, it is rational to finance the vehicle.

[clairity]

no, you're not considering opportunity costs or lower cost alternatives.

[leetcrew]

care to explain further, perhaps in regards to the two examples I gave? it seems to me that your original comment was not considering all the opportunity costs (in example 1, forgoing a higher income; in example 2, forgoing future appreciation and paying unnecessary tax).