Fair enough, but in context, I think the "brand new car" reference implied a high-end new car.

> The "brand new car" thing isn't a great example either. You can lease a new car for under $100/month which likely has lower insurance costs, is safer, and no maintenance fees other than gas (which you'll also need less of since its probably a more efficient vehicle).

Few people (like yourself) buy commodities in increments limited by their needs. Most people buy commodities limited only by their total borrowing capacity.

The unofficial Theory of Consumer Spending holds that "where credit is extended, it will inevitably be utilized." It's no coincidence retail chains push their own credit cards. Offered a $300K loan, people will buy a $300K house.

Most consumers are ignorant of terms. If the possibility exists to literally sign a dotted line and drive away in a new Range Rover, few people will opt for your plebeian Accord.