Purchasing with Cash or Financing

[reni]

Originally Posted by juliog

If you can afford to do cash, you're not buying the most expensive car you can afford. Step up to an M4 or a Porsche!

/First world problems

Yes, you should take on the maximum amount of debt the banks will allow. It worked so well in 2007...

[Rampage]

Bear in mind that if you decide to finance the car before you buy the house it may lower the amount you can qualify for to buy a house. I would buy the house first and then buy the car. It is also a good idea to have some cash reserves after buying any house. You will be amazed at the expenses you will incur even with a brand new house.

[ZionsWrath]

Originally Posted by Rampage

Bear in mind that if you decide to finance the car before you buy the house it may lower the amount you can qualify for to buy a house. I would buy the house first and then buy the car. It is also a good idea to have some cash reserves after buying any house. You will be amazed at the expenses you will incur even with a brand new house.

This. I should have moved out before buying my BRZ but yolo

[Chad86]

Originally Posted by Rampage

Bear in mind that if you decide to finance the car before you buy the house it may lower the amount you can qualify for to buy a house. I would buy the house first and then buy the car. It is also a good idea to have some cash reserves after buying any house. You will be amazed at the expenses you will incur even with a brand new house.

Picking up Monogram on Monday! Meeting with the bank today.



Things will be great...

[thill]

Buy your house first. Live in it a while. Then buy the car. Houses always cost more than you think and the more you put down the better especially if you can avoid PMI and a higher interest rate.

[DarkSunrise]

I think you'd need to compare what your interest rate would be on a car loan and on your mortgage (also factor in PMI, as others noted).

Go with the route that has less interest. For example, if you could get a 0% interest rate on your car loan, it'd be better to maximize your car loan and dump that money into the downpayment on your house.

[Kimsey47]

Not sure why everyone is freaking out about buying the house first... After moving back to the US from working overseas I had to buy two cars and a house! (Cars came first to get to work and to search for new house.) Didn't have any issues buying any of those and they were all within a few weeks of each other!

LESSON: If you take care of your credit it will be there when its needed.

[ZionsWrath]

Originally Posted by Kimsey47

Not sure why everyone is freaking out about buying the house first... After moving back to the US from working overseas I had to buy two cars and a house! (Cars came first to get to work and to search for new house.) Didn't have any issues buying any of those and they were all within a few weeks of each other!

LESSON: If you take care of your credit it will be there when its needed.

Buying a twin is not a sensible choice when you want to buy a house also if your finances are impeccable.

Buying 2 beaters and a house is a lot cheaper than a twin lol

[Whitigir]

Go with your instinct. I always prefer paying my mortgage before car. Because I eat, make Love, host party, park my car, work, raise kids, sleep, relax, entertainments in it. Cars, it is only to have some stupid moments here and there, which may last 30 seconds to several minutes max, and may be a few times of hot performance laps once in a while

[Sonolin]

Replying to the thread title, not the banter in the thread...

"Purchasing with Cash or Financing"

Here's the pros and cons in my book, throwing everything else out the window (I can live in a car, can't drive my house... well unless its an RV )

Pros of Purchasing with Cash

- No car payment!
- No car payment!
- No, really, read above - no car payment!
- You 100% own the car, no credit/loan hassles
- No paying thousands and thousands in interest charges (even at 3% interest you're still paying at least $2000 on a brand new car over 5 years - and I'm pretty sure if you're posting this question you won't fall into the 3% category, I should know )

Pros of Financing

- Can enjoy the car now, not later
- Can put the money towards other things that *could* be investments/returns (negligable with higher interest)


Your choice in the end

[Sonolin]

Originally Posted by mav1178

You should speak with a financial adviser.

-alex

I don't know how I missed this, I agree wholehartedly.

[Mikem53]

Originally Posted by vroom4

At 2% rate, my money is better off in the market.

If you stay in long enough , otherwise short term can hurt you..
Too many variables and complexity for this thread ..

[Akari]

Really it all comes down to interest rates IMO. I was in a similar position but getting a sub 2% interest rate on the car put me in a position where it was better to not put any money down. To put it in perspective I've invested that 26k and in less than a year made 18-20% on it. Yes there's a little risk involved in this but it's one you're more likely to come out ahead in.

See what interest rates you can dig up and decide from there.

[Chad86]

Is there a reason why people call a dealership the stealership...?
I ended up putting 50% cash down-payment. So I will own half right away.
This gave me the best payment amount and I should be able to have the car paid off fairly quickly.

My only issue is, that after adding the total protection package, 5 year ECP, detailing package and taxes, the price ended up being way more than I expected.

So much for approximately $26,000 CAD

How much did everyone else pay for their Monogram in Canadian funds?
Mind you, I did get fully loaded.