I wonder how finance worked. Today a car might cost 3 months of salary, but I can get a loan to pay it off over 6 years. If I had to buy a new car without a loan I couldn't afford it because I don't normally keep that much savings. (Ignoring retirement savings which technically I could tap into)
In Romania something like this happened with house prices. I bought my first flat just as credit was becoming available for the general population - it costed me 27k USD; at that time, it was customary that you'd pay in full for an apartment, people were actually looking suspicious at you for involving the bank!
One colleague of mine wanted to keep saving and pay for an apartment in full; he didn't manage to, even though he was more senior (read: earned more money; also he lived alone, could save more than I could). What happened was that prices increased faster than his savings rate - effectively by waiting he lost money, and eventually gave up and took a credit. Now... there were multiple factors for the increases in the housing market, credit being available was not the only one, but I do believe it was one of the main drivers.
