How did you purchase your car? Finance or cash?

[Tbor]

i put 12k down, financed the rest at 1,9

[Derickie]

If you have more than enough cash for the car, mortgage, daily living, emergency funds and does not feel comfortable being charged interest for nothing (albeit you can invest and earn more but that's not 100% guaranteed), then why not?

[rgt]

I'd say finance to the shortest term lowest interest rate possible. Put down enough cash so that you are not upside down on your loan when you roll off the lot. Blowing all your cash on a depreciating asset is not a good idea to me.

[ZionsWrath]

Finance. I'm young and don't have stacks of cash

Originally Posted by Burrcold

To be fair, this will probably be her last car so resale is not an issue, and she has plenty of money in the bank (and a completely paid off house). It still just irks me to see free money being thrown away, regardless of ones situation. To each their I own I suppose. It's all about comfort levels.

I hope the last car I drive before I die is more exciting that a Santa Fe. If I couldn't do a sports car in old age I'd probably go for some kind of truck and lift it so I can do oil changes from my mobility scooter.

[Burrcold]

Originally Posted by ZionsWrath

Finance. I'm young and don't have stacks of cash



I hope the last car I drive before I die is more exciting that a Santa Fe. If I couldn't do a sports car in old age I'd probably go for some kind of truck and lift it so I can do oil changes from my mobility scooter.

She's a 65 year old woman that couldn't care less about cars.

[IntotheOcean]

Originally Posted by tzhu07

Yes, I'm well aware that most people finance new car purchases. But as I grew up I developed my own philosophies regarding personal finances. Within the topic of debt, I promised myself never to go into it over a car, no matter how much I liked a particular model.

If couldn't afford to pay cash for my FR-S, I would've waited until I saved up enough, or just purchase a cheaper car.

I waited and saved it up, since I'm going to school I cant have insane monthly payments.

[Prog]

Originally Posted by whatsinaname

Why would you pay cash when the loan is at 2-3%* and any decent investment will give you 5-10%+ return.


[* or lower if you have a great credit score; which you should if you can afford to pay cash]

Where the heck are you getting 5-10% guaranteed return over the same period time as a car loan?

[86-tundra]

Originally Posted by tzhu07

With my 2014 model, I paid in cash.

There are only a few things in life worth getting into debt over (just speaking for myself), and a car is not one of them. But that's a much deeper discussion...

I can't stand when people say stuff like this.

You aren't going into debt. Your car is an ASSET. The only way you're going into debt is if you put 0 down.

[86-tundra]

Originally Posted by Prog

Where the heck are you getting 5-10% guaranteed return over the same period time as a car loan?

there is no guaranteed 5-10% anywhere. we'd all be rich if there was.

there are definitely ways to confidently get 6-7% yearly, and relatively safely

[Prog]

Originally Posted by trevorovert

I can't stand when people say stuff like this.

You aren't going into debt. Your car is an ASSET. The only way you're going into debt is if you put 0 down.

That is an incredibly financially irresponsible reaction to OP's post.

If you are going to owe anyone money, you're going into debt. An asset is something you own. In fact, one of the definitions of "asset" is something that has value that can be used to repay debts.

[Prog]

Originally Posted by trevorovert

there is no guaranteed 5-10% anywhere. we'd all be rich if there was.

there are definitely ways to confidently get 6-7% yearly, and relatively safely

"Relatively safely" equates to there being some risk, though. If you cannot guarantee a return, then you can't make the claim (I realize it was another poster and not you) that 5-10% interest is available for you without throwing in the disclaimer that you may actually lose money.

[86-tundra]

Originally Posted by Prog

That is an incredibly financially irresponsible reaction to OP's post.

If you are going to owe anyone money, you're going into debt. An asset is something you own. In fact, one of the definitions of "asset" is something that has value that can be used to repay debts.

wut.

Yeah you owe someone money.. but you turn around and sell the car and you have the money to pay for it..

your last sentence. Asset (car) has value, can be used to repay debt ( car loan )

[Ammunition]

Financed - I think that I got a fantastic rate on the APR, and even if I could pay in full with cash I wouldn't do that in case of a medical, or other emergency/disaster where paying a lot at once may be my only option. Since I have options with my car, and this is my first major purchase, I'm glad that I'm financing it and therefore I have the opportunity to establish/build good credit (I'm 26).

[ZionsWrath]

Originally Posted by Ammunition

Financed - I think that I got a fantastic rate on the APR, and even if I could pay in full with cash I wouldn't do that in case of a medical, or other emergency/disaster where paying a lot at once may be my only option. Since I have options with my car, and this is my first major purchase, I'm glad that I'm financing it and therefore I have the opportunity to establish/build good credit (I'm 26).

Shouldnt credit be good enough if you got a fantastic APR?