Cash on the barrel head.
I owe a mortgage on my house (about a third of it's worth), and that is it. And I bought it for a song, damaged, and repaired it.
I have never owned a new car, and I never will. I have had exactly two loans for vehicles in my entire life. Car loans are for suckers.
The only thing I bought new that I can think of in the last ten years is a Lazy Boy chair... And that was on a clearance discount... I prefer used, and used and broken even more... But then I am well tooled, and fairly handy, so fixing most things is just a matter of time, and just what I do - I am a tinker by trade, and a son and grandson of a tinker.
Credit is a monster. Life is hard, and you WILL get into a trick bag... When that happens, your payments will destroy you. Work hard and save your money... When you want something, wait... It'll come along... And you will pay pennies on the dollar. Learn to fix things, and wear them out. And live well below your means. You'll be surprised at how much easier it is.