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> I really disagree with this on so many levels, and I believe the market will ultimately reject it too. I wish this were true, but unfortunately, I think too many consumers don't think critically when making purchases, even on things as large as cars, and that's exactly why we see the proliferation of this awful subscription for everything model. Just look at how most people buy cars. Every ad and salesman talks about "How much do you want to pay per month?". And most people are fine with that line of reasoning, when even a little bit of thinking reveals how dumb it is. I'm fine with a $6,000 a month payment, for example, so long as the duration of the loan is two months. Likewise, a $400 a month payment on a used car can look quite reasonable, unless you're looking at an 84 month loan at 3.5% interest. Looked at in isolation, the amount of the monthly payment is irrelevant when it comes to the actual cost of the car, but that's all most folks look at, and that's exactly why car salesmen love it. It makes me shudder even more when people talk about house purchases. I heard someone say something like, "I bought a $350,000 house with $50,000 down". No, at 3.5% interest on a 30-year mortgage you just bought a $534,968 house with $50,000 down. But you can bet your life that it was sold to them as, "A beautiful home for only $X dollars a month". |