This question is not so simple. For our purposes, we will just focus on the money side of it. The question is loaded because it is smothered and covered with grey. People's realities are different and each one has a separate set of cards that could be played. An individual making $50k a year and having a $40k car loan is not wise. Conversely, an individual making $200k with a $40k car loan seems like a completely different story. Now both individuals could take out a $40k car loan even though they have drastically different incomes. Most would tell the $50k a year individual not to do it because the car is too expensive for their income. What would most people tell the individual making $200k? "Sure, you can afford it", but I would ask can they really? The reality is if you cannot pay for it in cash then by definition you cannot afford it.
This brings us back to the question should the 200k individual take out a car loan to get the 40k car? The answer is no. This person's income is fantastic. All they would need to do is spend a little less for a short amount of time and they could then buy the car in cash saving lots of money from the interest on the loan.
The main issue in this example is instant gratification. Both individuals could take out a loan and drive the car home today, but in reality both should not. Is it unethical or morally wrong if they do? Not at all. It is more about implementing the type of discipline and control that is necessary to stay on your desired path. The next time you decide to make a major purchase, or any major decision, stop and ask yourself if you should.
