Cash or Finance - Why did you choose?
03-03-2023, 10:39 AM
#46
Three Wheelin'
I was watching some show on TV about real estate billionaires and how they always use bank money when they purchase or renovate commercial properties. They have enough money to easily fund all of their purchases, but still use bank money. All sorts of reasons not to use your own money. I tend to put 50% down and finance 50%, regardless of the interest rates. I like not having huge monthly payments, but also like having access to the cash for other investments/purchases. Depending on what you do, it is possible the interest income is deductible and by having a lien/loan on the car it makes it nearly impossible for someone to seize the car should someone try. In addition, if you can earn more money with your money than the interest on the loan, it makes more sense to use that money for more profitable ventures..
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BoxKing (03-03-2023)
06-12-2023, 08:16 PM
#47
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Join Date: May 2023
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cash. for me it's more about not owing any money to anyone or company. my current investment returns are in the range of 25-100% roi so i'm not losing any sleep in walking out from a dealership with a receipt.
06-12-2023, 08:22 PM
#48
Three Wheelin'
if you are making 25-100% ROI on your investments why would you bury 250k into a car in cash? You would be making 50-250k a year (based on your ROI numbers) and you could borrow the money at 5%.
Makes no sense paying cash if you can get those returns.
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06-28-2023, 05:08 PM
#50
Paying cash was my plan.
The gains in my ‘car fund’ were growing nicely, however the rising price of the cars was keeping pace. Interest rates were low and I figured now might be the time to jump on one.
Ended up buying 50% cash, 50% financed.
The gains in my ‘car fund’ were growing nicely, however the rising price of the cars was keeping pace. Interest rates were low and I figured now might be the time to jump on one.
Ended up buying 50% cash, 50% financed.
06-29-2023, 01:30 PM
#51
Rennlist Member
I was going to do 100% finance but I bought a Taycan as well so I may do 50% down on each car. A friend of mine said Since I keep my cars 1.5 - 3 years he suggested a 1 pay lease. Is the 1 pay worth it?
11-28-2023, 08:30 PM
#52
3rd Gear
Join Date: Nov 2023
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I was watching some show on TV about real estate billionaires and how they always use bank money when they purchase or renovate commercial properties. They have enough money to easily fund all of their purchases, but still use bank money. All sorts of reasons not to use your own money. I tend to put 50% down and finance 50%, regardless of the interest rates. I like not having huge monthly payments, but also like having access to the cash for other investments/purchases. Depending on what you do, it is possible the interest income is deductible and by having a lien/loan on the car it makes it nearly impossible for someone to seize the car should someone try. In addition, if you can earn more money with your money than the interest on the loan, it makes more sense to use that money for more profitable ventures..
11-28-2023, 08:31 PM
#53
3rd Gear
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It's interesting to see how different people approach the decision between cash and financing for purchases. Your strategy of putting 50% down and financing the rest seems like a balanced approach. It allows you to manage monthly payments while still having cash available for other investments or opportunities.
I was wondering how your experience with this strategy has been. Have you found it to be effective in managing your finances and investments? If you ever need more financial advice, don't hesitate to reach out to the Mortgage Broker in Kingswood for expert guidance.
11-28-2023, 11:05 PM
#54
Rennlist Member
I recently bought a new F-150 and was prepared to pay cash, but the dealer offered 0% financing.
If you have the financial flexibility, you can consider lots of things but interest rate should be top of the list (and compared to what other things you might do with your money).
If you have the financial flexibility, you can consider lots of things but interest rate should be top of the list (and compared to what other things you might do with your money).