As the title states, taking out an auto loan to upgrade to a newer car should NOT be a financial goal because you are acquiring a liability, not an asset. By definition, an asset is any possession that you own and can be converted into income. It can also a possession that will increase in value or increases your net worth. A liability, however, is a state of being liable for something. It is having a possession that you may or may not own that will decrease your net worth.
In this video, I explain in detail why an auto loan attached to a car is indeed a liability for you and takes you of track to becoming a wealth-builder.
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