How do people in countries with very high inflation make big purchases (house, car etc.)?

Question

Thinking Argentina or Turkey in the recent years – if the local inflation is so severe that the price of grocery in the morning vs evening (on the same day) is different, how do people make large purchases like a house or a car? How is the price determined and who would provide the long term financing?

In: Economics

Answer 1

If inflation is very high, i would put as little down as possible and have the longest loan as possible, assuming the interest rate is lower than the predicted inflation rate.