Who finances 40% of a car and pays that off in two months? Just write the check.


Also, if you’re rich, you’ll just write a check for the car, because you’re at a point where 12% gain on a $150k car doesn’t move your needle.

 

Yeah the pay 40% and then pay off rest in two months has to be a typo it makes so little sense...

 

You are assuming that all 911 owners are in a high-income bracket. That is not always the case some people have low income but high net worth.

 

Some of us have low income AND low net worth.

 

Ugh. As an individual (not a business needing a fleet that can take advantageof tax laws) the only time you finance a vehicle is if the automaker is stupid enough to give you 0.00% financing. Other than that, you pay cash. I'm old school, but I believe if you can't pay cash for a car, you can't afford it. A car is typically the world's worst investment because no matter what, your going to lose money sooner or later, and why would you add to that loss by paying interest?....unless you happen to be trading in multimillion collectible cars, and if that the case, you wouldn't even be asking the question.

 

^THIS!

 

I agree with a lot you say but this sentence. This would mean the current car sales in US would plummet to maybe 5% of what it is. Half or more of 992 owners would not be here and I would venture to say most of them are doing just fine not paying cash.

 

High net worth even with low income (retiree?) should mean having an FA unless your net worth comes only from your primary residence, which is maybe not the best place to be if you are buying a 992.

 

Pre-covid, this used to be a strategy to get a point or two off the final price. When you finance through the dealer, the finance company pays the dealer some $$ as long as the loan continues for at least a few months. The dealer kicks back some of that to you as a price reduction. Then you pay off the loan. You and the dealer win. Finance company not so much.

 

When I ordered my car, dealer wanted me to finance for a few months in order for them to give me a 3% discount. I wanted to pay cash. He said it will help the dealership but the deal isn’t contingent on it.

I was prepared to finance and pay 99% of the loan on day 1 and hold the remaining balance for a couple months with minimal interest and pay it off completely just to save thousands. Luckily when my car came in, finance guy said he doesn’t care and I just wrote him a personal check. If this was the only way to get a discount, I would have financed it and paid it off quickly.

 

Not a good investment IMHO, but I will definitely enjoy my 992S more than my investment accounts on a daily basis. I drive a 911 because I love the car….no other reason. If I lose money or make money….oh well.

 

I thought it was never borrow money to pay for an asset that depreciates so you are not paying interest on an item that is losing value?

 

No, the No.1 rule is never listen to any financial rule on Rennlist.

 

But do listen to Rennlist when it comes to spending $12k on Exclusive interior.

 

I'm aware that in the past, you would have to make that deal. But the dealer isn't getting their kickback when a buyer pays off the loan in two months. @bayareanady on IG discussed this in his stories last month. The SA would get their cut, but it would completely screw the dealership.

My response was simply because it seemed like an odd flex, to finance 40% of a car for two months, and then say I pay it off because you can't stand paying interest on a depreciating asset. As if it's some newfound thing that cars depreciate.