Quote:
Originally Posted by Mallow
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.
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I agree completely. I have the exact debates with my mother-in-law all the time (she purchased a Hyundai Santa Fe for cash, because she didn't want the "debt looming over her head" as she's going into retirement. My argument was that they were offering 0% financing for 4 years at the time. Why you wouldn't take advantage of a free loan is beyond me.