Leasing vs cash purchase - advice needed
02-28-2023, 09:59 AM
#31
Thanks folks. Also spoke to my financial advisor. Advice is similar - buy unless I need a new car every 3 years. Especially, given 911s hold their value, it’s a better argument to buy. The dark horse is value destruction due to an accident, but that’s an unknown like most things. Appreciate all the advice!
I like it when the OP follows the post and gives his final thoughts
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02-28-2023, 11:31 AM
#32
Racer
OP, if you have cash just sitting around in a bank, I think it makes sense to purchase the 911. Then, trade it in or sell it before the 4 year warranty expires. If you are driving < 8,000 miles per year, it should hold its value well. Whether you are leasing or buying, you will still need to maintain it in good operating order.
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pc99 (02-28-2023)
02-28-2023, 11:57 AM
#33
Drifting
I'm just ballparking but I don't think it's that far off- my porsche dealer told me current interest rate is 6.99%.
If you plug in $120k loan into 5-year loan calculator at a rate of 6% you'd pay $19k in interest over 5 years. At 6.99% that's $22.5k in interest.
Probably can get a lower rate at a local credit union but even at 4% that's about $13k in interest. I think it's a personal decision and if one feels they can do better with the opportunistic investment that's reasonable. I just didn't think I could achieve that personally.
If you plug in $120k loan into 5-year loan calculator at a rate of 6% you'd pay $19k in interest over 5 years. At 6.99% that's $22.5k in interest.
Probably can get a lower rate at a local credit union but even at 4% that's about $13k in interest. I think it's a personal decision and if one feels they can do better with the opportunistic investment that's reasonable. I just didn't think I could achieve that personally.
Anyway, the likely outcome is that it won't make much difference - buy for cash or take a loan.
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adrianp89 (02-28-2023)
02-28-2023, 12:26 PM
#34
Rennlist Member
Do you know why banks have drive thru windows? So cars can visit their rightful owners.
02-28-2023, 01:55 PM
#35
Pro
You can get over 5% on totally safe government bonds at this time - yes its a small spread over the best credit union loan rates but its in your favor. The other thing the loan gives you is the ability to pay off the car with future dollars, which will be worth less than they are right now because of inflation. Your principal is still yours, and should rates rise even more down the road - you have the capital in hand to take advantage of it.
Anyway, the likely outcome is that it won't make much difference - buy for cash or take a loan.
Anyway, the likely outcome is that it won't make much difference - buy for cash or take a loan.
02-28-2023, 03:04 PM
#36
OP, if you have cash just sitting around in a bank, I think it makes sense to purchase the 911. Then, trade it in or sell it before the 4 year warranty expires. If you are driving < 8,000 miles per year, it should hold its value well. Whether you are leasing or buying, you will still need to maintain it in good operating order.