[ehnto]

Imagine the myriad of scenarios that exist between your two extremes.

You know you need this car for 10+ years, you want it to suit you and your family, so you get a 20k loan and get the one you that will be best now. Why waste your time and money with the beater? You would spend morein the long run than the cost of the interest on the loan (essentially the cost of purchasing now not later)

Debt is a calculated risk, with a clear cost, and plenty of people are fully capable of doing the math.