How much are you putting down vs. financing

I will finance 100%. With auto loan rates at 4% compared to the 10% I'm earning on my company stock and mutual funds I can come out ahead 5% or so. I've never understood paying cash for an asset that depreciates when the cost of funds is so low and you can use your cash to get higher returns in the market.

100% cash. No trade in.

Yes, it's a depreciating asset. Yes, I could get a good loan and eek out a percent or two in investments. Yes...


BUT... I will not have car payments (I have none now). My house will be paid off in a couple years.

You left out a Credit Card
Paid off our house 2 months ago, woohoo!

personally I don't mind the monthly payments...I prefer to keep a capital reserve fund......I recently sold a condo my ex-wife lived in, so while I could pay cash, I prefer to have the cash in hand - even if I don't invest it, there are money markets paying just over 2%, so with the finance rates still being relatively low it is not a big deal..

I'll probably end up financing it. If I can get a 4% loan on the car vs. a 6% loan on whatever house I get in the next few months, I'd rather pay have the payment on the lower-interest short-term loan and minimize my long-term liability. It may only be a savings of a few thousand dollars in the short term, but an extra $40k down on a house could save $100k of mortgage payments over 30 years.

I'll probably finance some but since I have until Dec-04/Feb-05 until I get my car it gives me enought time to save. Also gives me enought time to figure out colors and options I'll get to see and read more about it.

If I change my lifestyle and have dinner at home instead of dinning out every night that will do the trick.

Miguel

Randy Chase said:

100% cash. No trade in.

Yes, it's a depreciating asset. Yes, I could get a good loan and eek out a percent or two in investments. Yes...


BUT... I will not have car payments (I have none now). My house will be paid off in a couple years.

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What Randy said, except that I still have my truck payment for another year.:wave: :clap:

Writting a check!

A friend of mine bought a car with a bag full of cash. He carried it around in a shopping bag because he thought it would be less suspicious on the tube

i ain't as rich as you older guys. so i'll be putting down no more than $5k.

My plan is to pay cash. I've never had a car payment and would rather avoid one now. But some of you make good points about keeping the money in investments instead. For me this is further complicated by two other factors:

* The car payment could impact my ability to direct money into my corporate employee stock purchase plan (15% guaranteed pre-tax return over 6 months). This makes me want to pay cash.

* We may be buying another house soon as an investment/rental property. This makes me want to hold onto cash to provide more of a buffer for unexpected expenses.

Looks like I need to spend some time in Excel to model alternatives...

Modern Wedgie said:

A friend of mine bought a car with a bag full of cash.

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Drug dealer?

Personally, I only sell drugs to kids

(waiting patiently for someone to get offended and cry about this post)

I will be paying in full by cash from my Nigerian bank account. Unfortunately, my bank's policy only allows me to write checks in $10,000 increments, so I'll have to write it for $4000 over & have Symbolic refund the overage.

BrianK said:

I will be paying in full by cash from my Nigerian bank account. Unfortunately, my bank's policy only allows me to write checks in $10,000 increments, so I'll have to write it for $4000 over & have Symbolic refund the overage.

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My name is Jibouti Smith IV, I your am late uncle of president capacities. You am only relationite remaindering. Please to send me USD $120,000 for postage stamp to send you inheritance very much quickly.

MikeAR303 said:

Personally, I only sell drugs to kids

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Thats disgraceful that you sell drugs to kids. What about all the adults out there who want them?

MikeAR303 said:

Drug dealer?

Personally, I only sell drugs to kids

(waiting patiently for someone to get offended and cry about this post)

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I am offended and there are tears welling up.

P.S. Kids are not your best market, very little disposable income.

P.S. If the cash is all in ones.... then it's not a drug dealer. Either a very successful waitress at Dennys... or an exotic dancer.

Not sure. My plan was cash. But, if interest rates are good when my car finally arrives, I might just finance a substantial part of it and have a pool installed.