Do you pay cash for your cars?

[eliquid]

The failed logic in that thinking is that is a blanket method ^^.

For someone that already has assets producing money for them, putting those revenues into fixed-income securities like municipal bonds, treasuries, and other liquid investments, using compounding interest, and such.. what your saying doesn't apply.

Why in the world go thru all what you mentioned, when it doesn't matter anyways?

If your a pentamillionaire and have your income protected with investments, spending 60k on a new Lexus ( whatever, etc ) is a drop in the bucket. I wouldnt even waste my time filling out the 0% loan they offered me.

If your only making $65k a year though and not in the same boat, then no one is going to give you a 0% loan anyways.

 

[leadsupplier]

my credit is bangin

where are these 0% interest rates?

 

[eliquid]

^^ from what I have seen, its generally a 1 time a year special that happens, like around Christmas to boost sales.

Generally though, it has special limitations like for Chevrolet, the 0% didnt apply to the Corvette and shit.

They are far and few between MOST times. The climate might have changed as I havent bought a car in 2 years, but you had to wait for the right time, the right dealership, the right car, etc.

 

[cheshire]

Sure if you're uber rich I suppose it doesn't make sense. The time spent sending a monthly payment is worth more than the price of the vehicle, but I still don't know any "pentamillionaire" that would pass up interest free money.

The failed logic in that thinking is that is a blanket method ^^.

For someone that already has assets producing money for them, putting those revenues into fixed-income securities like municipal bonds, treasuries, and other liquid investments, using compounding interest, and such.. what your saying doesn't apply.

Why in the world go thru all what you mentioned, when it doesn't matter anyways?

If your a pentamillionaire and have your income protected with investments, spending 60k on a new Lexus ( whatever, etc ) is a drop in the bucket. I wouldnt even waste my time filling out the 0% loan they offered me.

If your only making $65k a year though and not in the same boat, then no one is going to give you a 0% loan anyways.

 

[eliquid]

But are these 0% loans plentiful?

In the example above I stated I hadnt bought a car in 2 years, so i dont know the current landscape, but if the loans are hard to come by, I dont know if there are any real advantages to it.

 

[Netphase]

But are these 0% loans plentiful?

In the example above I stated I hadnt bought a car in 2 years, so i dont know the current landscape, but if the loans are hard to come by, I dont know if there are any real advantages to it.

I just looked at some random car manufacturer websites and Chevrolet, Mazda, Toyota, Chrysler, Volkswagen, Ford, and Lincoln all listed 0% APR for 60 month deals right now. Nissan is the only site I checked that didn't currently offer 0% for 60 months on anything. Their definition of "qualified buyer" might be more strict than in the past though.

 

[affiliatearmy]

I pay cash, and I don't buy new.

 

[cheshire]

But are these 0% loans plentiful?

In the example above I stated I hadnt bought a car in 2 years, so i dont know the current landscape, but if the loans are hard to come by, I dont know if there are any real advantages to it.

Low interest loans are plentiful if you have good to excellent credit. You can even get near 0% on Certified Pre-owned Cars (My recommendation). Since just about everyones credit score took a hit because of the financial crisis a "good" score is 640+, an excellent score is 690. My bank just recently offered me a personal loan at 1.89%. Now I know I can easily invest and pull 5% out of that safely and if I really want to hustle it I can make 10-12%. Why wouldn't I take it as long as I have the cash flow to service the loan? I'm making anywhere from 3-10% on money that isn't even mine.

The same applies to car loans. I don't care if I have the cash to pay for the car ... it still doesn't make sense financially when interest rates are so low. The money that I sink into a car is a lost opportunity cost, loss of capital, and loss of buying power. The car depreciates with every mile I put on it. Pay $60k for car and in 5 years I might get $20k back depending on how many miles I put on the car and how well I took care of it (which also costs money but I wont go into that). Put $60k into investments and in 5 years make $76k at a modest 5% thanks to compounding interest.

You have to have good credit to play this game but I have been essentially making money on "free" money for the last 7-8 years. OPM.

 

[jonas33h]

^ dude you are way off base on what a good credit score is. A good credit score is 700 an excellent credit score is 800 Chase won't even give you a credit card if you are at 640. . . just because people screwed there credit up it doesn't mean banks and credit agencies re-defined what good credit is, it just means we found out that there where alot more people that don't know how to utilize credit.

 

[cheshire]

^ dude you are way off base on what a good credit score is. A good credit score is 700 an excellent credit score is 800 Chase won't even give you a credit card if you are at 640. . . just because people screwed there credit up it doesn't mean banks and credit agencies re-defined what good credit is, it just means we found out that there where alot more people that don't know how to utilize credit.

If you say so. I just got my aunt with a 600 score approved for a house at 4.75% and a new car note at 4.9% within the last 6 months.

 

[AdHustler]

Finance your cars at 0%, 1.9% and take your $60k and put it in an interest bearing account and draw 3-5% on it easy.

Maybe in 2006 - Show me an interest bearing savings account with a 3 or 5% return.

 

[cheshire]

Maybe in 2006 - Show me an interest bearing savings account with a 3 or 5% return.

Savings account? Never. I currently use self directed Mutual Funds.

 

[bizkiller]

i just bought 2006 denali with 60,000 miles for 6k$, if you dont know the market just lease its better if you buy , in 2 years the price will drop and its the same thing

bullshit.

 

[bizkiller]

I paid cash for all 3 of my cars.

car 1 - $60k
car 2 - $45k
car 3 - $18k

Would I ever do it again, yes.

Not having payments = win. Make sure you dont buy shitty cars though.

what's your car1??

 

[papajohn56]

Maybe in 2006 - Show me an interest bearing savings account with a 3 or 5% return.

even at 1.3% (which is there), with a 0% loan it actively reduces the cost of the car

 

[vortex]

Leased all 4 cars.

Paying cash binds too large capital as I can invest it an other way with higher profits.

As my Chinese friends always say.

Small money goes, big money comes.



Sent from my Desire HD using Tapatalk

 

[eliquid]

what's your car1??

toyota sequoia plat.

 

[Janaic]

i buy all my cars, finance with about 50% down.

Current cars:
2008 Jaguar S-type
2011 Ford F-350 Crew cab long bed 4x4 lariat desil
1964 chevy impala SS I bought off ebay ((hit me up for pix))

Correction: it's diesel.

- I paid cash for my 2003 Dodge 2500 Turbo Cummins diesel 4x4 (used). Although, I would prefer the Ford body, Cummins motor and the Allison transmission.

 

[eliquid]

Dresden, post pics of the 64 Imp, I had a 64 4 door non post in high school with the awful 307 engine that i swapped for a 327 and a new powerglide

 

[ThePresident]

Lease.

- I can write off monthly payments
- I don't worry about maintenance or up keep.
- I am always in brand new cars.

I understand the logic of not wanting to get something you can't pay in full. But when it comes to leasing I just look at it like renting. I didn't wait to move out of my parents house until I could buy a house. I just rented an apartment.