I some dees on it.

 

Yeah like I said it depends... if you have "decent" credit it might not be worth it, or if you can't make the money over time.

If you have excellent credit you end up with 2% financing and if you have real money in a high yield savings you're better off than putting $35-40k into a car and then get rid of it in a couple of years. You're literally throwing money out the window... but to each their own.

 

$10K on Alaska Airline Credit Card. Personal check for the balance. Anything for those miles. I would have put the whole thing on the card if they would of let me.

 

Whether you pay cash or or finance you "eat the depreciation" all cars have. With financing you also eat the interest charges. I don't know about where you are but here "high yield savings" are lower than a good loan rate or even a secured credit line. Your interest income will also be considered taxable, reducing your real return.

Therefore financing = losing more money.

I don't know anyone that keeps a car forever. The scenario I presented holds true if you keep the car for a typical financing period or beyond.

You can probably guess what I chose to do with my car.

 

I've known people that have 1.9% interest rates -- or better on financed cars... and by high yield I mean "real" high yield... 4-5 year jumbo CDs with $100k on deposit or more.

But like I said, to each their own... I put down $10k on this car but not a dime on the Maxima I had before, but $17k on the Benz that I just paid off in December. I look at where my money is, where my credit situation is and pull the trigger... some people might do better or worse, so whatever works for you.

 

I put $10k down on mine and financed the rest.

 

paid cash full

 

why wouldnt you just invest your money instead?

 

vicg35: for me it's all about balance. The only money I owe is on real property, where I can write off all interest & most expenses. I have not had a car payment since I was 26. It's what works for me.

 

I will be shelling out cash for my car. Just waiting until the end of the month for the money to mature and off to the toy store I go.

 

Cash money.

 

This whole thread should be retitled "Show me the cash baby".

 

I agree with your your last sentence. I would look at all factors as well. My first post was in response to your original post below. Depreciation is separate from costs of financing and happens to everyone that gets a car whether by leasing, financing or paying it outright. As I mentioned before I can't really agree with your blanket statement saying it makes no sense to buy a car outright. In most cases it is the wise choice, if you can do it, unless you are able to have a higher after tax return versus financing which isn't common.

Yes, I've known people that have that rate too from a special manufacturers financing offer. That's not a frequent occurrence however IMHO and I've not seen it on an Infiniti. Also the highest rate a person could earn on 100K+ wouldn't apply in your example since the car doesn't cost that much. The most you would be financing is the amount of the car - 40K US or so. Here in Canada the best you can get on a 5 yr. GIC 100K+ is 4.87% and borrowed money costs more, without considering the highest tax paid on savings interest.

Good luck with the G.

 

I laid out the cash for my G!

 

I guess we're the minority here. Why pay it off outright when you could be making 10+% on investments? The opportunity cost of paying "cash" is too great.