To not think loans for luxury items are a good idea?

I don't understand why it makes you 'giggle' - she has different priorities to you. Surely you can see that everyone is different?

I have no debt but couldn’t care less what others choose to do.

We do have one friend that doesn’t understand why we don’t get better cars ‘on credit’. Apparently it’s a no brainier which makes me giggle as I completely disagree.

Completely different. You could afford it just a different way to pay.

@MetalFences
So that doesn't apply to you then. It doesn't mean it's wrong.
Pretty much yes, with the conditions I stated.
Buying luxury things isn't always to impress others.
If there's ways of affoding it that works for you, why not?
If something is going to be time limited , like the op has stated and it can be bought, again why not.

It's about being financial savvy and realising debit/ credit can work in your favour.
If you're on your arse and there's no way you can afford it, then that's stupidity.

Wrong. I could afford to to pay cash for a piece of art I love. However it made more sense to buy it on credit. It was 0% purchase and I was protected by credit card ts and Cs.
The piece cost me £3000 5 years ago and I absolutely love it! It makes me smile every time I walk into the room it's in and it wasn't bought to impress anyone

So that doesn't apply to you then. It doesn't mean it's wrong.

Buying things you don’t need with money you don’t have to impress people you don’t know is the absolute height of stupidity. With the exception of a mortgage, if you have to take out a loan to buy it, you can’t afford it
Wrong. I could afford to to pay cash for a piece of art I love. However it made more sense to buy it on credit. It was 0% purchase and I was protected by credit card ts and Cs.
The piece cost me £3000 5 years ago and I absolutely love it! It makes me smile every time I walk into the room it's in and it wasn't bought to impress anyone.

I don't see anything wrong in having a splurge now and again if you can afford to pay it back.
You just need to be wise which payback option you use.

These days, if I see someone flashing conspicuous luxury goods, I assume they’re purchased with credit. Those items are made for and marketed to people on average incomes who want to display their ‘wealth’ to other middle and low income people. Buying things you don’t need with money you don’t have to impress people you don’t know is the absolute height of stupidity. With the exception of a mortgage, if you have to take out a loan to buy it, you can’t afford it.

Talking around 5-8k on the type of much longed after item that will not be available forever (rare) so that makes the saving up for it over time tricky.
If you can afford the loan,whatever it is, isn't going to be around forever and it's something that will make you happy, why not?
Look round for best interests rates, preferably 0% ones and enjoy your item.
Life doesn't have to be sackcloth and ashes and if it'll give you joy, go for it.
As long as you aren't getting loans upon loans for everything and it's not your typical lifestyle o can't see the problem.

It depends. I have savings, but i have no loan history. I want a home improvement loan at some point.

I could have just bought it, but i didn't want to dip into my savings (psychologically) so I got a loan for a handbag and paid 40 pw for about a year. I just chose to do it that way. But I've no car loan, and atm, no other loan.

Obviously if you fall into a pattern of go-to "ill get a loan!" thinking, for any thing that you want, that ain't good.

I agree. It's so easy for people to get into debt. I've never had credit for anything - I refuse to pay the shocking interest rates.

YANBU
As you say, circumstances can change and I'm much more of the opinion "if I don't have enough money for it then I can't afford it."
Yes half the time this, means I don't buy myself quite enough nice stuff but at least I'm debt free and have relative peace of mind 😁

Having said that I am very strict with money, debt etc and can be trusted to do this with a credit card and not spend frivolously or incur charges/interest. I don't have any actual debt other than our mortgage and previously student loan. I've always saved to buy what I need

Sometimes I use credit because the interest on the loan is less than the interest I am earning by keeping my money in the bank.

I do this, so for example I have the money for next summer's holiday in the bank, it's in an account attracting 4.75% interest, paid for the holiday on my 0% credit card, because I use it for other expenses such as petrol which I pay off immediately I meet the minimum payment requirement easily each month, and the only money that sits on there is the holiday, by the time next July rolls around I will pay off the holiday and the interest pays for the hire car.

Things that someone might really really want and arguably could make them much happier in life, but involve taking a bank loan to pay over a length of time

Do you mean tens of thousands of pounds or even just a couple?

We save but still borrow a few thousand from credit union every year to put towards our big summer holiday (save up through the year for smaller ones) we just add in a bit extra for the loan every week on top of our usual CU savings and have it paid back by the next holiday and repeat.
I suppose a holiday is indeed a luxury and a loan is debt, but it doesn't feel like that.

It definitely does make me happier😅

Debt is inherently bad if you waste money on interest. It really doesn’t there if you can afford the payments in the long run. If you pay twice for a holiday or a handbag than you would have paid by saving in advance, then it is wasteful. You could have two things instead of one with a bit of patience.

Sometimes I use credit because the interest on the loan is less than the interest I am earning by keeping my money in the bank.

aside from something like a house, an education, or maybe a car, most purchases can wait until you have the money. Luxury purchases absolutely can and should wait.

Ultimately debt is only bad if you can’t afford to service it - and if you can’t afford to service it, it doesn’t matter whether you’ve taken it out for a designer watch or a replacement washing machine. If you can afford to repay it, it also makes no difference whether you’ve taken it out for a designer watch or a replacement washing machine.

I used to think like that OP. However I have changed my stance.
I'm not really into luxury items, however if I wanted something I would consider taking an interest free loan. it would make financial sense for me to. I have plenty of money in savings. I would not be eating into my savings and paying off monthly and amount that I can afford

Also it would help my credit rating. I currently have no mortgage as I have paid it off, I have no debit card debit, no loans and my council tax and utilitey bills are up to date and I paid for my year old car by bank transfer so on paper I am not a good credit risk.

Debit isn't necessary a bad thing. It is a money management tool.

I wouldn’t take out a loan for anything apart from a mortgage for a house.
If I can’t afford it at the time I can’t afford it. I’ll save up and buy it when I can.
Im risk adverse, you never know what the future holds.

Of course it's not a good idea. Loans should really only be used for very big ticket but essential items which reasonably nobody can save up for, basically houses. I'm not even keen on car loans myself. But pretty conservative with money, we very much live within means going without if needed.

I'm pretty debt adverse, and wouldn't take out a loan for any of those things personally.

But I also agree life is short, enjoy it while you can. So if it's taken on with eyes open, with a realistic plan to pay down and an understanding of how much interest it will cost, then people can plan their own finances as they wish. With the exception of cosmetic surgery, home improvements etc, anything with a value high enough to need a sizable loan over a long time will likely have a resale value so could be sold as damage limitation in the event of a big life change.

I think it is irrational, unless it is an item that will increase in value.

I think car loans are fine although we don't have any. Dh has a company car and we bought my car and DD's car outright. I think it's daft to get massive SUVs when you don't need them.

Where do you stand on car loans?