The concept of Opportunity Cost is lost on many.

 

Exactly. They go for the risk adverse "It's nice to not have a monthly payment and have the titles for all vehicles", "look at my title", "sleep at night", "security" feeling instead. I would rather owe the bank money than the other way around. Fortunately we live in a country where the best, brightest and more savvy get to be the big winners.

 

GaryJR,
Hi Big Winner.

 

Excellent job insulting many folk here! This board never disappoints.

 

Don't know who you are but taking a wild guess you're a cash guy.

 

 

Ever think that one of the fruits of already being a "big winner" is not caring if you can make an extra few hundred or thousand by borrowing in order to invest, instead preferring to buy what you want and be done with it?

You'd think "big winners" would fly coach -- or drive for that matter -- and invest the difference! Woohoo!

 

Nope. You're talking about pocket change.

 

The way I see it, its a personal preference based on many things; comfort level with debt, available excess cash after the purchase, opportunity costs based on the spread between loan interest and investment interest, etc, etc. But to say that folks on a Ferrari forum would not be discussing this infers that they are more well off, and as a result would never contemplate borrowing money on such a purchase, which is simply not true. Many a smart well off person will play the rate spread and take cheap money if they can make more elsewhere. That said, just as many a smart well off person will pay cash because they can.

There is no right or wrong answer that covers everybody, but its good to understand why folks in different camps make the decisions that they make as you just never know, as confident as you may be that your way is the right way, just maybe, after learning another perspective, you may see value there as well.

 

So are you, for many in this discussion. That's my point.

 

Nope. But its ok if you don't get it.

 

Oddly enough, I was only comfortable leasing my 911 knowing I had the cash to pay it off if need be. I could have paid cash but chose not to. The only other car I financed was for 0% interest as it was cheaper to finance than pay cash.

 

Calling it chump change tells me what I need to know.

 

Okay, so you're saying that the interest on $10,000 (a first class ticket) is pocket change, but the interest on $120,000 (a 911) is real money that should be invested.

Others are saying the interest on both 10,000 and 120,000 is pocket change and the freedom of buying something and being done with it is well worth the hundreds or thousands that could be made on the spread.

I'm not arguing that either is right; I'm simply negating the idea you hold that you are enlightened and those who choose to enjoy the simplicity of buying and being done with it are somehow fearful and missing out on this great earning opportunity. Sure, there are people out there who are terrified of debt and would never use it; it's just that I doubt many people like that are buying 991s.

It would reflect positively on you to revise your overly-simplistic assessment of the motives of cash buyers. Currently it makes you seem like you don't get the fact that some people don't need to trouble themselves to make an extra bit of money on their money, if they'd rather enjoy the simplicity of writing one check and being done.

 

I'm going to put $50k down and finance the rest which will be about $80k. I'm just average guy but I'll have it paid off within 3 years. I make better percentage on my investments than what it costs to finance so that's why I'm going that route.