How did you purchase your car? Finance or cash?

[ntron1]

I fail to see the point of the OP's thread.....

[1086]

6-8 months x $3,000/month is $18,000 roughly, or more! I am low balling on the $3k/month too. That is a decent amount of money to just have as back up sitting there. However, I wouldn't just let that many "dollars" sit there. I would put it into something that had more long term value since the dollar is pretty much garbage. Silver is a good investment. Obviously, don't put all your eggs in one basket, but its good to be diverse in where your putting your money.

[1086]

I see, so you are also taking into account the value of being able to use it as freely as you wish in any way you want, etc. So one gets more out of it in many different ways rather than just focusing on the dollar amount.

[Namuna]

Could've paid cash, but I opted to put down $5k and finance the rest at 1.9%.

Why...?
1. I'm of the mindset that if the finance APR is low enough, I'll take the loan to keep/build better credit.
2. I'd rather have the cash in my bank, making me more money...or at least as a "cushion" for any life emergency. Dropping that kind of money at once, on a vehicle just isn't in my DNA.

[Andrew025]

Originally Posted by ntron1

I fail to see the point of the OP's thread.....

That's because there isn't one.

[86-tundra]

Originally Posted by Wilso

Who ever says a car is an asset is a bafoon.. A depreciating item is never an asset.. a house.. now that's an asset

A depreciating item is never an asset? Have you ever looked at a balance sheet??

[Prog]

Originally Posted by Andrew025

Stocks... if you know what to do.
I get a guaranteed return of at least 5%

Stocks are not guaranteed to return anything...unless you know something we don't, and I believe that's called insider trading, and is illegal.

[ayau]

Originally Posted by Prog

Stocks are not guaranteed to return anything...unless you know something we don't, and I believe that's called insider trading, and is illegal.

Nothing is guaranteed in life except for death and taxes, lol.

[Prog]

Originally Posted by whatsinaname

While I didn't say guaranteed, most well known low to medium risk ETFs/MFs have averaged 5-10% annually over the last ten years. Hell, a couple of my MFs did 25%+ last year, and I invest very conservatively.

There is a still a risk associated with those funds, so even if you normally do well, you have to keep in mind that that risk does not go away. And yeah, most people's retirement funds go into funds with varying types of risk, but it's just something to keep in mind. You may not have said you could get a guaranteed 5-10% back on your money, but your wording kind of implied it.

That said, grats on the well-performing funds.

[Prog]

Originally Posted by ayau

Nothing is guaranteed in life except for death and taxes, lol.

Yeah, and f**k both of those.

[tommy]

This is such a silly argument, the only right answer is to do whatever will help you sleep at night. People have different risk tolerance.

The most common argument against cash buyers is they can invest the money instead and make more than the interest. The keyword I don't see mentioned often is you can 'potentially' beat the interest. That is to say, you can lose money on your investment and also have to pay interest on your loan. I'm not arguing the likelihood of either outcome, you can of course employ various strategies like selling cover calls, but generally to make 5% you must be willing to lose 5%.

Paying cash is just a way of mitigating risk, you lose and gain 0%.
Financing could net you +2% (5% gain, 3% interest)
It could also net you -8% (5% loss, 3% interest)

It's also worth mentioning that neither option is going to make you rich or poor anyway, 2% of 30k is only $600 annually.

[AznBRZer]

Originally Posted by tommy

This is such a silly argument, the only right answer is to do whatever will help you sleep at night. People have different risk tolerance.

The most common argument against cash buyers is they can invest the money instead and make more than the interest. The keyword I don't see mentioned often is you can 'potentially' beat the interest. That is to say, you can lose money on your investment and also have to pay interest on your loan. I'm not arguing the likelihood of either outcome, you can of course employ various strategies like selling cover calls, but generally to make 5% you must be willing to lose 5%.

Paying cash is just a way of mitigating risk, you lose and gain 0%.
Financing could net you +2% (5% gain, 3% interest)
It could also net you -8% (5% loss, 3% interest)

It's also worth mentioning that neither option is going to make you rich or poor anyway, 2% of 30k is only $600 annually.

This is all true, but one of the biggest reasons to finance, provided your credit score is high enough and your APR is low enough, is that debts are worth less over time because of inflation.

To me, beating the market is a fool's errand because it's prone to huge swings and not something you can really predict. All it takes is a bad day and you're screwed, whereas inflation is relatively stable in comparison. If you get a 2-3% APR, you're effectively getting an interest-free loan in real-world purchasing power. If you're beating it, then the car is effectively costing you less than your purchase price.

[AznBRZer]

Originally Posted by Prog

Too many people think they're entitled to the things that they want. Heads up everyone; you're not entitled to anything except the things you earn.

Does being born to the right family count as "earn?"

[humfrz]

Originally Posted by AznBRZer

Does being born to the right family count as "earn?"

Well, AznBRZer, I'm not certain that question is relevant to a FR-S/BRZ discussion......

If one was born "to the right family" ...... why would they be buying a FR-S/BRZ .. ?? .....


humfrz