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
03-08-2019, 08:39 PM
#76
Rennlist Member
Gotta have that car I cannot afford...lol
A record number of Americans are 90 days behind on their car payments
A record number of Americans are 90 days behind on their car payments
03-08-2019, 09:02 PM
#77
Rennlist Member
Leasing is SMART. As J Paul Getty said, one should BUY assets that appreciate and LEASE assets that depreciate. Too, the factory guarantees the value of your car after the lease term. You don't get that with a purchase or finance. If the residual is less than FMV, you purchase. If FMV is less than the residual, you walk.
Leasing as a company car also sweetens the deal if that's available to you, as does a chance to buy a car you ordered and/or have known since new with CPO is attractive to me also.
03-08-2019, 09:49 PM
#79
I would not pay cash for something I can finance at a lower rate than what I can get out of investing that money.
It just makes no sense paying $100K+ cash when I can finance it at 1.74%, and at the same time I can put that money in a CD at 2.4%. And that is JUST a CD. Investing in a good fund would yield way more than that.
Heck, if I can buy something that has a 0% for any number of months, I take that every time, knowing that I would have the cash at the end of the term to pay it off and then some extra from interest.
It just makes no sense paying $100K+ cash when I can finance it at 1.74%, and at the same time I can put that money in a CD at 2.4%. And that is JUST a CD. Investing in a good fund would yield way more than that.
Heck, if I can buy something that has a 0% for any number of months, I take that every time, knowing that I would have the cash at the end of the term to pay it off and then some extra from interest.
03-08-2019, 10:06 PM
#81
I can beat that, I got .75% on a car loan for part of my GTS (only reason I financed. I was planning on paying with all cash until I found this rate). I would have financed the whole thing for that rate if the credit union would have let me. Oh well.
03-08-2019, 11:07 PM
#82
Rennlist Member
Where are people getting these rates of 1.74% on a purchase of $100K and more? I have a credit score in the 800's, little debt, no credit card debt and I get mailers for credit card companies gloating about an interest rate of 10%? Of course I laugh at it while I'm ripping it up. But I can't imagine that a standard car loan would be less than 4% in today's market. But I guess that I would not know.
03-08-2019, 11:40 PM
#83
Rennlist Member
i looked a few days ago, and on a new car, or within 12 months of new car purchase, PenFed is still offering 2.49% on a 3 year auto loan 😊 and 1.49% of if you use their new car buying service 😒
03-09-2019, 12:58 AM
#84
Drifting
Leased to owned my 991.1 GTS. It was my "company car" and a tax write-off. I am going to write a check and buy my GT3T. I see advantages and disadvantages to both leasing and buying. For the GT3T, I know am keeping the car forever so I figured why not just buy it and be done with it? It will be nice not paying about $3,000 a month every month for three years - only to have a $100,000+ residual to pay off at the end of the lease if I want to buy the car. For my $140,000 sticker GTS, I paid $2,100 a month for 36 months, 5k down and I still had about $90k left to buy the car outright when I purchased the car last October.
03-09-2019, 01:57 AM
#85
I would not pay cash for something I can finance at a lower rate than what I can get out of investing that money.
It just makes no sense paying $100K+ cash when I can finance it at 1.74%, and at the same time I can put that money in a CD at 2.4%. And that is JUST a CD. Investing in a good fund would yield way more than that.
Heck, if I can buy something that has a 0% for any number of months, I take that every time, knowing that I would have the cash at the end of the term to pay it off and then some extra from interest.
It just makes no sense paying $100K+ cash when I can finance it at 1.74%, and at the same time I can put that money in a CD at 2.4%. And that is JUST a CD. Investing in a good fund would yield way more than that.
Heck, if I can buy something that has a 0% for any number of months, I take that every time, knowing that I would have the cash at the end of the term to pay it off and then some extra from interest.
03-09-2019, 09:17 AM
#86
Same here. I can easily pay cash for a 911 and would do so if the loan interest was greater than my investment return percentage .....but it’s not. My money will stay where it benefits me the most. Anyone that has over $100k making less than they can borrow money for should fire their current investment advisor....or get one if they don’t. With that said, I always put down a decent down payment since I prefer low monthly payments of $700 or less and keep the rest in the bank.
Do you count the Porsche as an asset? Is it added into your net worth? Do you hope to make money on it? Is it an investment. NO!. Its a car, it depreciates, every day, every mile. Every time I see a car in someone's net worth its way over valued. It's a Toy!
There are people that have been taught their entre life to borrow every penny they can. Use other peoples money. Good luck with that.
Everyone beats the market, everyone makes more then the interest rate, How did that work out in 08? 99, 83...
This thread has turned into a questions of "can you afford a Porsche". Whether you take a loan or pay cash does not indicate if you can afford it. People should be asking what's your net worth when you purchased a Porsche. My guess is there are a lot of people that can't afford the cars they buy.
People reading this thread should not get their financial advise from Porsche owners.
03-09-2019, 10:30 AM
#87
You're talking from both sides of our mouth. First you say borrow because you can make more interest with your money. Then you say you like to make a large down payment because you like small payment. Foolish. Did you add in the rate your "advisor" changes to the cost of that money, did you add in taxes?
Do you count the Porsche as an asset? Is it added into your net worth? Do you hope to make money on it? Is it an investment. NO!. Its a car, it depreciates, every day, every mile. Every time I see a car in someone's net worth its way over valued. It's a Toy!
There are people that have been taught their entre life to borrow every penny they can. Use other peoples money. Good luck with that.
Everyone beats the market, everyone makes more then the interest rate, How did that work out in 08? 99, 83...
This thread has turned into a questions of "can you afford a Porsche". Whether you take a loan or pay cash does not indicate if you can afford it. People should be asking what's your net worth when you purchased a Porsche. My guess is there are a lot of people that can't afford the cars they buy.
People reading this thread should not get their financial advise from Porsche owners.
Do you count the Porsche as an asset? Is it added into your net worth? Do you hope to make money on it? Is it an investment. NO!. Its a car, it depreciates, every day, every mile. Every time I see a car in someone's net worth its way over valued. It's a Toy!
There are people that have been taught their entre life to borrow every penny they can. Use other peoples money. Good luck with that.
Everyone beats the market, everyone makes more then the interest rate, How did that work out in 08? 99, 83...
This thread has turned into a questions of "can you afford a Porsche". Whether you take a loan or pay cash does not indicate if you can afford it. People should be asking what's your net worth when you purchased a Porsche. My guess is there are a lot of people that can't afford the cars they buy.
People reading this thread should not get their financial advise from Porsche owners.
Last edited by Dr. Ice; 03-09-2019 at 11:17 AM.
03-09-2019, 11:33 AM
#89
Rennlist Member
Same here. I can easily pay cash for a 911 and would do so if the loan interest was greater than my investment return percentage .....but it’s not. My money will stay where it benefits me the most. Anyone that has over $100k making less than they can borrow money for should fire their current investment advisor....or get one if they don’t. With that said, I always put down a decent down payment since I prefer low monthly payments of $700 or less and keep the rest in the bank.
I've learned over the years that there is another advantage to having a loan - if you have to lemon a car, having a lien holder on your side can help the process as they don't want the asset any more than you do.
cheers!
03-09-2019, 12:00 PM
#90
This is the approach I take as well. If the rate + depreciation is lower than I can make on my investments, then borrow the money and take home the float. Have been doing it for 20 years successfully (though I usually buy CPO demonstrator cars with very low mileage - the 911T was my first new Porsche). I tend to also want to keep payments down, so I usually end up with a large down payment.
I've learned over the years that there is another advantage to having a loan - if you have to lemon a car, having a lien holder on your side can help the process as they don't want the asset any more than you do.
cheers!
I've learned over the years that there is another advantage to having a loan - if you have to lemon a car, having a lien holder on your side can help the process as they don't want the asset any more than you do.
cheers!
If you make money on the float you should take every penny you can in a loan. But you don't, you say you don't want a big payment? But you make money on this money, the payment is already covered and then some (the float).
As I stated earlier, it all comes down to net worth, if ask, what can I cash flow or what's my net worth. People love to see a high bank account. So If I pull $100K out of my account, it might not look as good, but it looks great if I have a $100K and a Porsche. They like to just ignore the loan. It's being cashed flowed with my pay check, keep the payments low.
I'll say it, those who pay cash are on the road to financial freedom (or already there).