pay cash vs finance 2022

[IA Shelby]

SVTP

For the past several years it seems like annually a thread pops up discussing whether to pay cash for a vehicle or finance it.

This usually ends up in a debate with the finance experts calling the cash buyers shortsighted. They always claim they can invest their money and generate higher returns than what they pay in interest.

Curious if that opinion still holds. Inflation is currently eating into the value of what a dollar will buy. Interest rates are rising quickly and the market returns have been poor.

What do the financial experts say now?

 

[Tezz500]

SVTP

For the past several years it seems like annually a thread pops up discussing whether to pay cash for a vehicle or finance it.

This usually ends up in a debate with the finance experts calling the cash buyers shortsighted. They always claim they can invest their money and generate higher returns than what they pay in interest.

Curious if that opinion still holds. Inflation is currently eating into the value of what a dollar will buy. Interest rates are rising quickly and the market returns have been poor.

What do the financial experts say now?

Im no financial expert, but I prefer to use OPM and put my cash to work for me.

 

[gimmie11s]

SVTP

For the past several years it seems like annually a thread pops up discussing whether to pay cash for a vehicle or finance it.

This usually ends up in a debate with the finance experts calling the cash buyers shortsighted. They always claim they can invest their money and generate higher returns than what they pay in interest.

Curious if that opinion still holds. Inflation is currently eating into the value of what a dollar will buy. Interest rates are rising quickly and the market returns have been poor.

What do the financial experts say now?

401k loan and pay yourself back the interest over a short term like 2 or 3 years ( I doubt markets recover by then and show + gains vs December 2021).

But im a long way away from a financial expert, so ignore me.

 

[rborden]

Cash is King.

With the volatility of the economy and the unknowns of what this moronic administration and the Head Clown will do, I’d personally prefer to pay cash. That way it’s mine. No one can take it if I lose my job or run into hardships.

That’s just my two cents for what that’s worth.

 

[13COBRA]

Cash is King.

With the volatility of the economy and the unknowns of what this moronic administration and the Head Clown will do, I’d personally prefer to pay cash. That way it’s mine. No one can take it if I lose my job or run into hardships.

That’s just my two cents for what that’s worth.

Flip side... if things get real bad, wouldn't you rather let someone take them and still have all of your cash?

 

[Tezz500]

Cash is King.

With the volatility of the economy and the unknowns of what this moronic administration and the Head Clown will do, I’d personally prefer to pay cash. That way it’s mine. No one can take it if I lose my job or run into hardships.

That’s just my two cents for what that’s worth.

But if you have the cash, you could always pay for it if things get funky...

 

[13COBRA]

But if you have the cash, you could always pay for it if things get funky...

Great, now I'm thinking like you.

 

[Tezz500]

Great, now I'm thinking like you.

Great Minds something something.... lol

 

[Tezz500]

Honestly Cash is a terrible investment. It doesnt produce anything and only EVER goes down in value....

Again, No financial expert here... Just an Ape trying to get to the moon.

 

[rborden]

Flip side... if things get real bad, wouldn't you rather let someone take them and still have all of your cash?

Nope. My emergency fund is separate from my liquid cash. So I’d still have the car and the cash.

 

[TerminatoRS]

Good thread! As I contemplate if I really want another toy...lol

 

[Roots-type]

Flip side... if things get real bad, wouldn't you rather let someone take them and still have all of your cash?

I'm definitely not an expert either, but to flip it again, if things got really bad he could sell the vehicle if he owned it. He would be out the vehicle in either scenario. Buying outright he also avoids interest.

 

[13COBRA]

I'm definitely not an expert either, but to flip it again, if things got really bad he could sell the vehicle if he owned it. He would be out the vehicle in either scenario. Buying outright he also avoids interest.

If it gets really bad...who's buying his vehicle? Except for pennies on the dollar.

 

[DiB14-SAFD]

I always prefer to use the banks money rather than my own. Having immediate access to funds if needed is better than trying to get money out of an asset when you are not in a great negotiating position.

 

[Rb0891]

If it gets really bad...who's buying his vehicle? Except for pennies on the dollar.

Very true, but if it gets crazy bad, money may not be worth much either. Still more than a toy car though I suppose.

 

[Roots-type]

If it gets really bad...who's buying his vehicle? Except for pennies on the dollar.

These days the value of cars is stronger than money. I also forgot, if he owns and sells he doesn't wreck his credit. Again, not an expert..

 

[5.0 Hatch]

I'm in the camp of paying cash if you have an emergency fund saved. If something happens that you need $, just sell it or get a loan on it. Besides... some on this board claim auto prices are never coming back down

 

[13COBRA]

I'm in the camp of paying cash if you have an emergency fund saved. If something happens that you need $, just sell it or get a loan on it. Besides... some on this board claim auto prices are never coming back down

I don't think anyone is claiming that.

 

[Bullitt1448]

For me it depends on the interest rate, I have generally paid cash but when they were offering 0% interest, I had no problem taking them up on it.

 

[GOTSVT?]

Pay cash for toys