View Poll Results: did you pay Cash Finance or Lease
Paid cash
62
53.91%
Financed
28
24.35%
Leased
25
21.74%
Voters: 115. You may not vote on this poll
did you pay Cash Finance or Lease
05-01-2019, 01:12 PM
#167
A few of the cash buyers in this thread seem to have serious insecurity or are terrified that normal plebs will get into a 911 through lease or finance when they haven't earned the right.
If you paid cash, then good on you for being in a position that the depreciation curve doesn't cause you brain damage.
If you financed, good on you for using a low-interest revolving loan that drives your credit score while you continue to invest your cash elsewhere.
If you leased, good on you for knowing that you will want another car in a few years and don't want to be stuck with a depreciating asset.
If you paid cash, then good on you for being in a position that the depreciation curve doesn't cause you brain damage.
If you financed, good on you for using a low-interest revolving loan that drives your credit score while you continue to invest your cash elsewhere.
If you leased, good on you for knowing that you will want another car in a few years and don't want to be stuck with a depreciating asset.
05-01-2019, 01:48 PM
#168
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Join Date: Aug 2016
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to be fair, you seem very put off by people that pay cash.
fwiw though, in my case, you are right. I do pay cash because I am insecure. But for different reasons that I think you say.
if I were a doctor or a lawyer with a high paying, relatively safe job, I might finance for sure.
but I am a small business owner. and in my lifetime, I have seen tons of wealthy people lose it all. those that had a lot of debt, were unable to get back on their feet. those that had minimal debt, had an easier time.
I have been lucky the last decade, and we are screaming busy. but I pay cash for literally everything. my home is also paid off. in fact, my rental properly is too. not because i think i am better than anyone else, as you allude, but because i am not secure in the future. as it stands, my rental pays for all taxes and fees for both homes. but what if my tenant screws the pooch? so I keep all of my costs as low as possible. my monthly nut is lower than when i was 25 (20 years ago).
and in my own way, i am glad to have the security of paying in cash. if something happens to the car, it is fully insured. if something happens in life, i can sell the car and get 100% cash back. sure, i will lose on the depreciation, but this car will hold value well enough. if ever I have to sell, i can likely survive for two years just on the sale alone. obviously, i hope it never comes to that. and i doubt it ever could. i have failsafe after failsafe in place. and i would sell watches before the car. but i think you get my point.
so as i state above, there is no right answer for all. we are all different with different goals and purposes.
fwiw though, in my case, you are right. I do pay cash because I am insecure. But for different reasons that I think you say.
if I were a doctor or a lawyer with a high paying, relatively safe job, I might finance for sure.
but I am a small business owner. and in my lifetime, I have seen tons of wealthy people lose it all. those that had a lot of debt, were unable to get back on their feet. those that had minimal debt, had an easier time.
I have been lucky the last decade, and we are screaming busy. but I pay cash for literally everything. my home is also paid off. in fact, my rental properly is too. not because i think i am better than anyone else, as you allude, but because i am not secure in the future. as it stands, my rental pays for all taxes and fees for both homes. but what if my tenant screws the pooch? so I keep all of my costs as low as possible. my monthly nut is lower than when i was 25 (20 years ago).
and in my own way, i am glad to have the security of paying in cash. if something happens to the car, it is fully insured. if something happens in life, i can sell the car and get 100% cash back. sure, i will lose on the depreciation, but this car will hold value well enough. if ever I have to sell, i can likely survive for two years just on the sale alone. obviously, i hope it never comes to that. and i doubt it ever could. i have failsafe after failsafe in place. and i would sell watches before the car. but i think you get my point.
so as i state above, there is no right answer for all. we are all different with different goals and purposes.
05-01-2019, 02:26 PM
#169
Wow so sorry to hear that in era of historically low mortgage interest rates and historically high stock market gains. Paying of 4-5% money instead of getting 8-10% in the S&P with that money is just just nuts. And the real estate appreciates just the same whether or not there is a mortgage on it.
If the markets drop big, and they eventually will (imho), I think a lot of people will be singing a different tune.
I believe the market will drop. And it’ll drop hard. When it does, I’ll dump the rest of the loot in. FWIW, most of my managed loot is in equity. So I believe I’m pretty well diversified.
And to me, peace of mind is priceless. I’ve never been about scraping every cent. It’s just not my style. I’d prefer to leave some money on the table to have the piece of mind I have.
Again, as I say above, it all depends on each person.
05-01-2019, 03:22 PM
#171
Rennlist Member
The idea of this thread is great (maybe without the poll though). Helps as a research tool for folks to determine what option may be best for them in their own situation (lease rates / finance offers / etc).
Unfortunately some people cant help themselves and feel as if they have to justify how they purchased their 911 to others who own and drive the same car.
Unfortunately some people cant help themselves and feel as if they have to justify how they purchased their 911 to others who own and drive the same car.
05-01-2019, 04:11 PM
#173
subjective. but i do understand your point.
for me, not so much. i even told my FA years ago when i started working with him that I want to be super conservative. I was okay with making small gains as long as i had minimal risk of loss. at the time, i was super heavy in fixed income. i changed that to mostly equity when i took the loot out to purchase the second home. i was okay taking more risk once i knew i was in a safer position.
anecdotal story. when i bought my home, less than 6 months ago, i had this whole conversation with my FA. and he explained that with most of his clients, he would strongly advise against what I was doing. but for me, based on my risk tolerance, he agreed with my methodology (i took money out of the markets so that I could pay cash).
i do realize when doing the numbers it can seem foolish.
BUT, if the bottom does drop, and the markets lose 30%, the people with a lot of debt in order to have more money invested, are going to lose 30% of their investments and still have all sorts of payment to make. At that point, i will likely be buying up a lot of cheap stocks and cars and watches. as there will be a lot of folks looking to free up some cash. all moot if the markets keep doing what they are doing. But how long can that last? in todays volatile world, imho, not much longer.
i would rather have safe money, and less, than take it out too late, and lose it all.
for me, not so much. i even told my FA years ago when i started working with him that I want to be super conservative. I was okay with making small gains as long as i had minimal risk of loss. at the time, i was super heavy in fixed income. i changed that to mostly equity when i took the loot out to purchase the second home. i was okay taking more risk once i knew i was in a safer position.
anecdotal story. when i bought my home, less than 6 months ago, i had this whole conversation with my FA. and he explained that with most of his clients, he would strongly advise against what I was doing. but for me, based on my risk tolerance, he agreed with my methodology (i took money out of the markets so that I could pay cash).
i do realize when doing the numbers it can seem foolish.
BUT, if the bottom does drop, and the markets lose 30%, the people with a lot of debt in order to have more money invested, are going to lose 30% of their investments and still have all sorts of payment to make. At that point, i will likely be buying up a lot of cheap stocks and cars and watches. as there will be a lot of folks looking to free up some cash. all moot if the markets keep doing what they are doing. But how long can that last? in todays volatile world, imho, not much longer.
i would rather have safe money, and less, than take it out too late, and lose it all.
05-01-2019, 04:12 PM
#174
The idea of this thread is great (maybe without the poll though). Helps as a research tool for folks to determine what option may be best for them in their own situation (lease rates / finance offers / etc).
Unfortunately some people cant help themselves and feel as if they have to justify how they purchased their 911 to others who own and drive the same car.
Unfortunately some people cant help themselves and feel as if they have to justify how they purchased their 911 to others who own and drive the same car.
05-01-2019, 04:53 PM
#175
subjective. but i do understand your point.
for me, not so much. i even told my FA years ago when i started working with him that I want to be super conservative. I was okay with making small gains as long as i had minimal risk of loss. at the time, i was super heavy in fixed income. i changed that to mostly equity when i took the loot out to purchase the second home. i was okay taking more risk once i knew i was in a safer position.
anecdotal story. when i bought my home, less than 6 months ago, i had this whole conversation with my FA. and he explained that with most of his clients, he would strongly advise against what I was doing. but for me, based on my risk tolerance, he agreed with my methodology (i took money out of the markets so that I could pay cash).
i do realize when doing the numbers it can seem foolish.
BUT, if the bottom does drop, and the markets lose 30%, the people with a lot of debt in order to have more money invested, are going to lose 30% of their investments and still have all sorts of payment to make. At that point, i will likely be buying up a lot of cheap stocks and cars and watches. as there will be a lot of folks looking to free up some cash. all moot if the markets keep doing what they are doing. But how long can that last? in todays volatile world, imho, not much longer.
i would rather have safe money, and less, than take it out too late, and lose it all.
for me, not so much. i even told my FA years ago when i started working with him that I want to be super conservative. I was okay with making small gains as long as i had minimal risk of loss. at the time, i was super heavy in fixed income. i changed that to mostly equity when i took the loot out to purchase the second home. i was okay taking more risk once i knew i was in a safer position.
anecdotal story. when i bought my home, less than 6 months ago, i had this whole conversation with my FA. and he explained that with most of his clients, he would strongly advise against what I was doing. but for me, based on my risk tolerance, he agreed with my methodology (i took money out of the markets so that I could pay cash).
i do realize when doing the numbers it can seem foolish.
BUT, if the bottom does drop, and the markets lose 30%, the people with a lot of debt in order to have more money invested, are going to lose 30% of their investments and still have all sorts of payment to make. At that point, i will likely be buying up a lot of cheap stocks and cars and watches. as there will be a lot of folks looking to free up some cash. all moot if the markets keep doing what they are doing. But how long can that last? in todays volatile world, imho, not much longer.
i would rather have safe money, and less, than take it out too late, and lose it all.
05-01-2019, 04:57 PM
#176
Pro
It's not about whether it makes sense or not, but rather about the tolerance of risk. What I'm reading is someone who has achieved financial security, and now wants to protect against downsides. I'm doing the same - the more financially secure I've become, the less risk I'm willing to take. At this point, I'd rather prioritize security at the expense of higher returns.
Last edited by Thinc2; 05-01-2019 at 06:56 PM.
05-01-2019, 05:07 PM
#177
and trust me, i believe my investment philosophy makes perfect sense. in fact, given my explanations, i am surprised that you are unable, or maybe unwilling to see that. either way...sadly, it does not help me sleep better at night.
there are a few more things i'd like to add, but i have learned not to get into pissing matches with the keyboard.
05-01-2019, 05:13 PM
#178
It's not about whether it makes sense or not, but rather about the tolerance of risk. What I'm reading is someone who has achieved financial security, and now wants to protect against downsides. I'm doing the same - the more financially secure I've become, the less risk I'm willing to take. At this point, I'd rather prioritize security at the expense of lower returns.
from a short term perspective, i might be leaving some money on the table now. but long term, it is inevitable that the markets will go through another big drop. history shows that this will most certainly happen. when it happens, and everyone with fun cars, big houses and expensive items on credit, will have lost a significant part of their net worth....but not their expenses.
i will be in the exact same space i am now. and likely in super place to get some very good deals. sounds like you will too. cheers to that!!!
05-01-2019, 05:46 PM
#179
Rennlist Member
Join Date: Aug 2016
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agree with you100%. however, along with it being about risk tolerance, i also do think that it makes a lot of sense.
from a short term perspective, i might be leaving some money on the table now. but long term, it is inevitable that the markets will go through another big drop. history shows that this will most certainly happen. when it happens, and everyone with fun cars, big houses and expensive items on credit, will have lost a significant part of their net worth....but not their expenses.
i will be in the exact same space i am now. and likely in super place to get some very good deals. sounds like you will too. cheers to that!!!
from a short term perspective, i might be leaving some money on the table now. but long term, it is inevitable that the markets will go through another big drop. history shows that this will most certainly happen. when it happens, and everyone with fun cars, big houses and expensive items on credit, will have lost a significant part of their net worth....but not their expenses.
i will be in the exact same space i am now. and likely in super place to get some very good deals. sounds like you will too. cheers to that!!!
And age 45 is not exactly get conservative time for most people.
I get the "risk tolerance" thing though. Risk is the opposite of that security blanket. I have always loved risk. That and a little investment savvy served me well.
05-01-2019, 05:53 PM
#180
agree with you100%. however, along with it being about risk tolerance, i also do think that it makes a lot of sense.
from a short term perspective, i might be leaving some money on the table now. but long term, it is inevitable that the markets will go through another big drop. history shows that this will most certainly happen. when it happens, and everyone with fun cars, big houses and expensive items on credit, will have lost a significant part of their net worth....but not their expenses.
i will be in the exact same space i am now. and likely in super place to get some very good deals. sounds like you will too. cheers to that!!!
from a short term perspective, i might be leaving some money on the table now. but long term, it is inevitable that the markets will go through another big drop. history shows that this will most certainly happen. when it happens, and everyone with fun cars, big houses and expensive items on credit, will have lost a significant part of their net worth....but not their expenses.
i will be in the exact same space i am now. and likely in super place to get some very good deals. sounds like you will too. cheers to that!!!