|
:icon17: Kermit, to each their own, if you are fine paying interest for 5, 6, 7 years on something that won't be worth much in the end, then start the process over with another car and you have no issue with it, no biggie then man. A basic guy 1 guy 2 analysis to show arbitrary numbers won't suffice. You are locked in a 5-7 year loan, there may be opportunity cost in terms of your credit worthiness/Asset vs Liability report if and when purchasing long term assets. Please don't imply that the guy who paid for the car cash is not also getting returns on the equity market and doing other things to get ahead.
Look man, if you can swing having consumer debt, paying interests (that could have been invested elsewhere) and that works for you :tiphat: I rather be the guy at 50 with all my houses paid for, College planning taken care of, no debt, free to roam the world as I please. Being locked in car debt is not part of that plan :tup: |
Quote:
|
Quote:
|
Quote:
|
No one has come up with good counter arguments....
Capital gains? Uncertainty? Don't make me argue with myself!... There are lots more good ones left! |
Quote:
We call these people crazy.. :p |
Quote:
Quote:
Naaa, you skipped the rational aspect. Some people do get the pleasure of having no debt. they would rather forgo having to work 6 jobs, never worry about any job loss to keep their houses and cars, rather have their money work for them so they can afford to get whatever they want by paying hard cold cash. Coming from the guy who sold a supposedly existing GTR and G to get a Raptor and to lease an Honda accord within a few months to end up with a Z. We call these people DUMB FOOOOOOOLS :icon18::icon18::icon18: Congrats on being awesomely crazy for buying your sweet 2012 370z :p |
Paid in full..
|
Quote:
Cars come and go, but the investment potential of the last 3 years has been huge. Smart people are locking up cheap long term debt right now and keeping their cash working for them. |
It's true. I'm a big anti-debt person. I would just rather pay for stuff and have nothing hanging over my head. However, given how low interest rates are, and how decent the market returns are, it makes sense to borrow investment money right now. In other words, if you bought a mortgage in the past few years it might be in the 3-4% range. Let's say you come into an extra $40K. My anti-debt brain says "throw into the house loan and get that thing finished quicker," but the smart move right now is to put that 40K into the market (even something conservative like an S&P Index Fund) and make more off of it than your mortgage is charging you.
|
Quote:
|
Investment
Quote:
|
Quote:
:iagree: Bought mine and paid in cash |
put down 20k in cash, loaned 14k, paid it off in 9 months
|
As long as the City of Virginia Beach keeps charging personal property tax I'll never actually own my Z even if it is paid off. What a scam.
|
Owe 29K lol..
|
2009 Nismo
Paid Cash....no other way to buy a car!
|
Quote:
|
Quote:
Quote:
|
Quote:
|
Quote:
At least personal property tax on vehicles is tax deductible if you itemize. Pure vehicle registration fees aren't. I think all states have registration fees, so it is semantics in wording between states and nothing more. The state with $50 in registration fees and $300 in personal property doesn't "own" your vehicle in contrast to the state with $250 in registration feels and $0 personal property. |
I lease my 2011. When the lease is up in a year, I'll either buy it, lease another one, or walk away and get something else.
|
That's only if you're a resident. I don't pay property tax. And I most definitely own mine.
Quote:
|
Paid mine in full.
|
Financing vs Cash car purchases
Dave Ramsey makes a really good case for paying cash for cars. For one thing, financing and investing the capital in the stock market should consider the substantial risk that over the time frame being considered, a net loss in the stock market is not at all an uncommon result. One is essentially financing a stock investment with a short term loan which is always fraught with risk. Basically buying on margin. If one has 30K for that new Z and puts it into the stock market while financing the Z, he may well find that 30K going down to 3K--and still take depreciation hit on the Z. Safer, if he wants to invest in the stock market, to pay cash for an older 300 or 350Z and invest the rest. Then he won't lose the car if he misses a few pay checks, even if his stock picks tank.
It is funny how one hears the stock market spoke of as if it were a sure thing when it is setting new record highs and cursed as a gambling den run by thieves when it crashes. . |
I would never take responsibility for encouraging anyone to borrow money or to get married.
|
Quote:
Dave Ramsey specifically said don't finance a car at 0%? I've never heard him say that, but it wouldn't surprise me. He advice is best for the sheep of the world, not the lions. |
I will gladly admit I don't own my Z. USAA owns my Z for the next 4 years. I figure why not just build my credit to the max. It is not like I am getting screwed with the APR I got a low APR so regardless I don't even see the money come out my check. I am use to not seeing it for the last 2 years that is don't even phase me.
Dave Ramsey is a smart fella. |
I threw down some money when I sold my 350 and financed the rest. I did 5 years at 1.9% but always pay and extra $100. Goal is to have it paid off in 3 years.
|
Quote:
The taking the low interest rate and investing the difference is a sound practice to a point, and certainly makes the most sense at 0%. However, first, your average consumer will not invest the difference, your average consumer will do exactly that, consume it. Anything other than 0% interest aside, your average consumer will be better off avoiding non-tax deductible debt when possible. Second, as I've read the last few pages of this the other assumptions made on the strategy are higher returns in the market like we've had the past couple years. If you've already forgotten we've had two pretty huge busts over the last dozen years or so. I can tell you first hand the heavier equity players have been having a freakin shopping spree the last 4 or 5 years at the expense of the heavily leveraged "lions" who have been trying to avoid bankruptcy when their investments dropped well below their leverage and they had to pay the piper. |
Quote:
He is great for the folks that need serious help managing money |
I payed 29K for blue sport pkg. 09 leftover with 350 miles in January of 2010, it felt good to pay for all of it, hope I never have to finance again.:bowrofl:
|
Quote:
|
When the stock market falls 40%, unemployment doubles, and the boss decides this is a good time to treat the employees like crap, it is the man with no debt and several months of living expenses in cash who can calmly lick his paw like the King of Beasts and say "You talking to me punk? I don't have to put up with this disrespect"
Been there and it is a damned good feeling . Not arguing. Each picks his own game and his own victory conditions. A grown man does so by his own lights without manipulation by other's labels. I don't care as long as I don't get their bill. Too many lately have been sending me their bill. |
Traded in the suburban that I got in the divorce. Financed the rest. Owe just under 10K.
Oh, as my name suggests. Military. Job Security forever. |
Quote:
A number of posters here seem to believe there is only two scenarios. You either pay it off completely, or you finance at low/no interest and blow the cash. Either blow it on stuff or put it in the "risky stock market". No, there is the 3rd option. People that know what they are doing lock up the historically low debt rates and put that cash to work to build true wealth. Those are the lions. If this concept seems completely wrong to you, you are right to not follow it since you aren't a lion. |
Quote:
Your continued "sheep" and "lion" comments are completely silly and show a lack of wisdom. You sound like a young man without enough experience to have seen multiple economic cycles. Very few wealthy people finance cars unless the interest rate is 0% and and I do not. If that makes us "sheep" in your eyes so be it. |
Quote:
Why are cash rich tech companies taking on debt right now? 2 reasons - 1. Debt is so cheap they can "make money" on borrowing and putting it to use. 2. Tax reasons because a bulk of their money is offshore But the point is smaller investors shouldn't ignore this historical moment. Locking up cheap debt today in a 0% auto loan, 3% mortgage, or low interest business loan creates the opportunity to generate wealth. Of course there are no guarantees in life. There are no guarantees that if the economy collapses that a pile of cash will be worth more than toilet paper either. |
Quote:
|
Quote:
As a dumb sheep, I did what my grandma who never finished high school taught me, keep things simple and easy. If you make X, live on X-Y-Z. That system worked wonders for me THANK GOD. If you come on top leveraging through debt your property purchases as well as cars purchases, power and reps to you :tiphat: |
| All times are GMT -5. The time now is 08:58 PM. |
Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2025, Jelsoft Enterprises Ltd.
Search Engine Optimization by vBSEO 3.6.0 PL2