Who REALLY owns their Z???

dAvenue

Financing a car will not protect you from inflation. Inflation is not limited to the value of a single item; inflation occurs when the value of the dollar goes down as a result of too many dollars in circulation (like when the Fed prints money to pay off its debts or "stimulate" the economy). This affects the cost of everything...not just a car...because it takes more of those dollars to buy the same item.

A car is a depreciating asset. Its value will always go down. It will not yield a profitable return regardless of its status being paid-in-full or financed. You will always lose money on it.

If you don't want to tie your money up in an asset like this, or if you just want it now, the more sensible option would be to lease the car. You only pay for the current value of the asset plus interest over the course of the contract. You simply pay for what you use and move on. Leases are more appealing to some because the rates are considerably lower than the traditional auto-loan.

I chose to pay in full because I actually wanted to own this car and I did not want two other things to happen: 1) money thrown away on interest which literally saves me $4,500 over the course of 60 months (nobody was offering 0% financing on Z's at the time and I doubt they are today), and 2) a car payment lingering over my head every month.

ImportConvert

Nope, your financed amount of $35K will never go up. You will just pay it off with worthless money at the same rate as before. Complete protection from inflation on that purchase, and the bank eats it.

I don't mind a car payment lingering, it's just pulled out of my check every 2 weeks. It's like making $1K less per month and I don't mind. It's a good trade for me. I never see it as it's all automated, and don't miss it. I bought my car for me to enjoy, not to sell again, although resale value is always in mind, as EVERYTHING is a liquid asset after it's paid off. Who knows? I might want a C7Z when they come out. Keeping this one in good condition with low miles for the year matters in that regard.

dAvenue

It does not protect you from inflation. The bank "eating" it does not make much sense at all because it begs the question "why are they even in the business of loaning money?" if all they do is take losses. If you mean the principle of which you financed is locked-in and will never go up, that is true only on a 0% interest loan. Good luck finding one of them for a Z!

ImportConvert

If you can finance even at 1-2% on principal on a 370Z (lots of CU's will do 1.9 from what I hear), then you will still save money at the current inflation rate. Auto loans are fixed, interest on principal.