Turn a depre­ci­at­ing asset into an appre­ci­at­ing asset.

A sim­ple and com­mon car pur­chase example:

Car cost $25,000  – term 4 years  – inter­est 7.87%

1) Finance car through bank or other lend­ing institution;

After 4 years you have paid the bank $25,000 + $4,222 = $29,222.00 prin­ci­pal and interest.

Sup­pose depre­ci­ated value of car is now $9,000, sub­tract that from total cost and that means this trans­ac­tion cost you $20,222.

2) Finance car through your own bank­ing system.

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