Originally Posted by
livedarklions
Depends on the amount, 100% of what? What's the repayment term? Also, it makes a lot of sense to finance 100% of a service if you need it now but can't get the money to pay for it if you don't get the service. Obvious example--your bank account is empty, and you need to get your car fixed to get to work.
But more often than not, I'd agree with you. The overfinanced car is a real financial burden.
100 percent of the purchase price. That's generally what "100% Financing" means - no money down, no equity. You start off in the hole because as soon as you drive the car off the lot, you're thousands of dollars in the hole, because it's ALREADY worth less than you owe.
Regarding financing service? That's a different matter. That goes to the question of the OVERALL affordability of a vehicle - if you can afford to buy it, but not service it without borrowing, you've got a problem.