The prices of both new and used vehicles have gone through the roof. If you own your vehicle free and clear, it's definitely worth keeping it on the roadI haven't had a vehicle payment since 1999...I pay cash. I have not purchased a brand new vehicle since 1991...I buy used. I keep vehicles for a long time. My "newest" vehicle is a 2004.
Of course pre -covid that would have made sense-paying cash. My 2018 Silverado is now $20,000.00 more for a 2022 like model (Yes-I was at the dealer yesterday). So therefore to trying to save money to pay cash you would actually have been behind. With the average car payment and loan term-you would not be paying $20,000.00 in interest. Your statement of people being upside down is pure speculation and may or may not play out to be true. It certainly wouldn't have been true in the last three years with the escalation in prices.$0 i have paid cash for every vehicle and boat purchase.
i dont believe in taking out a loan for a depreciating asset. there are going to be a lot of people that are upside down on new cars and trucks in the next year.
and no, i am not "rich", i am patient and disiplined. either you pay your savings account before the purchase, or you pay the bank after the purchase. and you pay the bank interest.