Quote Originally Posted by scfire86 View Post
I would agree there are times when buying on credit is appropriate. Depreciating assets is rarely one of them.
Actually, I would disagree with that blanket statement as well. I will give a perfect personal example. I heat my home with oil at a cost of about $2,000 per year, this also heats my hot water. I can put in an outside wood boiler at a cost of around $8,000. Since I have access to free wood this cuts my annual cost from $2,000 down to around $500. An annual savings of $1,500. The lifetime of these boilers is 25 years or more. However at an annual savings of $1,500 I can pay the cost of the boiler off in 6 years. And with the $1,500 tax incentive that currently exists it would be foolish not to put it in this year. Hence, in this case it makes 110% sense to purchase the boiler on credit, an item that depreciates in value.

In my case the system I am getting comes in an indoor model for $5,200. So I am building a 30 x 30 garage to house the unit and the wood. The total cost for everything is around $12,000, half of which I have saved.