Quote:
Originally Posted by tzhu07
Ah yes, I always keep a comfy reserve of liquid cash as well. My account certainly did not drain down to zero after I bought my car.  |
It's not about being close to zero, I wouldn't have been either, I just don't see it being a good thing dumping that much cash into a depreciating asset when I got 1.9% financing. I would rather have more money in the bank making money, then to put $25k into something that loses money by the day. I come from a very well off family and my parents won't even buy cars cash because there are better things to do with that money, anyone with good credit can get a good enough rate to cancel out the risk of losing funds, especially if you know how to make smart investments. I guess to each his own, it all depends on how you manage your finances, but with $25k cash in my account, I can make more than 1.9% through investments to cancel out what i'm "losing" by financing the car.