Well I see you missed the point E150. My point was just someone finances a vehicle new or used doesn't mean they can't necessarily afford it! If you bought a home within the last 4 yrs. go and try to refi and see what happens in regards to the value of your house then and now. Unless you bought the home way under market your home today is a depreciating asset, and yes it has appreciation potential and trends have generally been that real estate does appreciate. Cars are depreciating assets so your are guaranteed to lose money on that expense. I realize that there are collector cars that do appreciate. I do agree that financing a car that is worth $2,000.00 is not wise, but the value of the used car was never mentioned. For all we know he could be buying a used Ferrari.