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Originally Posted by Sliver
Yeah, I'm still not seeing any evidence of that except for your word. Why would a hnw person use a line of credit to purchase a car just to sit on it and pay interest on a line of credit? If they're getting credit so cheap and risk free that the cost of borrowing is lower than their returns elsewhere, why aren't they just maxing out the loc and investing that? I don't get why they'd turn to credit to speculate on exotic cars.
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I know lots who would qualify as high networth, and from what I see and hear - I agree with you on this. Pay in cash, not infrequently pre-owned. Exactly right, there is no need for credit on a car. They save their debt to leverage actual investments with return.
The exception would be the ones who like having a new car every year, and it's much less hassle to do a short term lease than do the purchase/sell cycle. These are the people that would sign up for a car subscription service if it ever comes to Calgary.
The only guy I know who uses credit to speculate on exotics and flip the occasional Learjet is Kulu, but that's actually his business.