Sold my H2 put just a little cash with it. So absolutely paid cash. Now I just have to change my driving habits.

Paid cash for mine. I regret it though, because it doesn't do anything for my credit. :shakes head:

I financed $237,759.84

Come on Matt, a guy with your financial savvy knows that mortgage interest is tax deductable. :)

The house could definitely fall into the area of "good debt". The car definitely falls into the area of "bad debt", just like credit cards.

I think it depends on the loan terms and the person's overall financial position on whether or not a car loan should be considered "bad debt" or just simply "debt".

Someone who chooses a 84 month term at something like, I don't know, 10% or higher, certainly has crossed the line into the "bad debt" arena.

But take someone who just doesn't have the means to save 40,000 cash while investing nearly 20% for retirement and paying their mortgage. Would financing that car, especially at 36 or 48 month terms at 3%, be considered bad debt? How is that even in the same neighborhood as a credit card with an APR of 15%+?

I see the argument that it's not "good debt" when compared to a mortgage. I just can't agree that paying cash for a car is better than financing, unless you're pulling 40k out of a 3 million dollar retirement account or inheritance.

Even if I personally had 40k in my bank account right now, I still would've only put 20k down and financed the rest over 36 months.


EDIT: This sounds like I'm getting a little defensive....please don't take it that way. Perhaps I'm just jealous I'm not wealthy enough to write the check some of you were able to. :)