1. Borrowing to buy depreciating assets
Problem: As soon as you leave a dealer’s lot with a shiny new car, it depreciates 10 percent, according to Carfax. And by the end of your first year of ownership, it will have depreciated another 10 percent. So a new car that costs you $30,000 is worth only $27,000 by the time you get it home and $24,300 one year later. ................
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- 1 borrowing to buy depreciating assets