pay cash vs finance 2022
- Thread starter IA Shelby
- Start date
It would be better to have paid cash in the first place and have a paid off car plus the cash in your pocket if things get funky.
If you dont have the cash to buy the car then you cant afford it regardless.
Financing a vehicle when you have the cash to buy it instead is just a waste of money.
If you rely on that little bit of money to grow returns on other investments then you cant afford that vehicle.
Best to buy what you can afford and youll never have a problem.
Financing a vehicle when you have the cash to buy it instead is just a waste of money.
If you rely on that little bit of money to grow returns on other investments then you cant afford that vehicle.
Best to buy what you can afford and youll never have a problem.
I always pay cash, and get blasted on here for doing so lol. Just paid cash for my 20' F150... I don't care as I have a strong emergency fund also, only a fool would empty his bank account in these crazy times.
Finance for investments -- cash for stuff. Vehicles are stuff.
Investments are protected by tax incentives...stuff is not.
You could also finance the car and periodically make extra payments toward the principal to pay it off more quickly and pay less in interest.
if you're holding large amounts of liquid cash you are GUARANTEED to lose 8-12% of your money every year for the foreseeable future.
Effectively the USD is just monopoly money ever since we left the gold standard. They could print another trillion tomorrow in the blink of an eye. Literally the worst investment ever, lost 86% of its value in 40yrs. A warehouse of toilet paper would have retained more value
Effectively the USD is just monopoly money ever since we left the gold standard. They could print another trillion tomorrow in the blink of an eye. Literally the worst investment ever, lost 86% of its value in 40yrs. A warehouse of toilet paper would have retained more value
IMO depends on the rate.
Some manufactures are offering 0% on some vehicles/trims.
I wouldn't pay up front if the rate is low.
Was debating paying off the wifes truck(bought in April) but only owe 23k and the rate is 2.9%. Not great, but at same time rather just hold onto the cash for long term investments/hurricane fund/coke.
Some manufactures are offering 0% on some vehicles/trims.
I wouldn't pay up front if the rate is low.
Was debating paying off the wifes truck(bought in April) but only owe 23k and the rate is 2.9%. Not great, but at same time rather just hold onto the cash for long term investments/hurricane fund/coke.
That math doesn’t add up.
Having your money work for you earning more interest than the loan you’re paying means you’re gaining capital vs just feeling good about paying for something with a fat stack up front.
Money now is worth more than money later, and if you’re getting a loan for 3% over 5ish years… it’s stupid to pay cash.
Can you make more money off your money than what your credit score and current interest rates will allow? No...flow chart that way...Yes....flow chart that way.
Be realistic for a moment. In theory it might be nice to think you will invest the cash you would have spent on a vehicle but chances are that won't happen partially or even fully. Talking about it is one thing and doing it is another.
But if you got a zero percent you could hide the money in the bed and you wouldn't lose money. Then investing could take you 100 ways and more in making money.
I generally agree with this except in cases where loan interest rates are low and return rates are high.
Say you had $55k cash to buy a new F150. You could drop cash on it and own it free and clear or you could put say $15k on it with a loan of $40k @2% (or under) and buy $40k of I-bonds, that are currently offering a guaranteed 9% rate of return, for you, wife and 2 kids.
Assuming that 9% rate holds for 5 years (which I know it won't), that $40k is now $61.5k all while only paying about $2k in interest over that 5 years at a 2% interest rate.
If you are willing to pass up a guaranteed 5 figure return with that money over the life of the loan then you don't really have to worry about money.
If you threw 100K in Bitcoin right now and waited it would pay off. It’ll go back up, when we get a new Republican President….lol.
I finance mine but only at 0%. Currently have 0% on my daily.
This is the pinnacle of sound financial advice.
Most likely the person will spend the money.
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