Quote:
Originally Posted by 86'd
It might have been said already, but if you pay cash for the car, let's say you have 30k saved and pay 27500OTD.
You now have 2.5k sitting in your bank. Sure the car is paid off, but it's also not worth what you bought it for.
So now not only do you have less of a cushion if something goes wrong, you own a car that's worth less.
Basically if you finance it keeps your money liquid and able to do other things. If you have a LOT of cash saved then sure go ahead, but if you don't I would be very hesitant. Especially in the above scenario.
Credit isn't a bad thing. It just happens to be abused more than it should be. If you're smart you can use it to your advantage.
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I aggree. I had close to enough between investment and cash to pay for the car. But ended up putting down 10k and financing the rest. my payment is still low enough that I can still make it if I ever happen to find myself on an unemployment check. I wanted to make sure I have a comfortable cushion in case a rainy day comes along and I need to money. Dont want to end up putting my car up for one of those stupid car title loans which charge you over 25% interest. So LEVERAGE your assets.