Did you pay cash for your Z?

370Zsteve

Originally Posted by JoeD
Paying cash makes sense...if you can't manage your money.

I don't think it makes much sense to tie up a liquid $40K when you can get a much higher rate of return properly invested/traded than what you pay on a car-loan. Of course, I do that for a living so others might not have the means and know-how to make money in the markets daily, but I can guarantee you almost all broad-based ETFs and non-speculative US equities will rise significantly more than 5-6% within the next year, roughly the APR one would pay on a car-loan.

With every car I've financed, however, I've put down 50% rounded up to a nice, whole number. That is of course if there isn't a good promotional lease-offer from the manufacturer, as depending on the circumstances, leasing is the best way to go...


LOL, big +1 for earwicker7

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SOLD MY Z MARCH 2018 - another Core OG moves on - new ride 2019 Z Corvette Grand Sport - no mods necessary but already have eyes on HFC and intakes LOL IT NEVER ENDS.

Matt

Since I've been investing, my 4 investment accounts have all averaged above 8%, 2 of them above 14% over the last 10 years.

The interest I pay on my car is 3.9%.

I'm no mathematician, but it appears that there are better places to allocate my capital than to a car.

370Zsteve

Impressive, Matt. You manage your own portfolio?

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SOLD MY Z MARCH 2018 - another Core OG moves on - new ride 2019 Z Corvette Grand Sport - no mods necessary but already have eyes on HFC and intakes LOL IT NEVER ENDS.

Matt

I'm not a professional investor by any means. I'm a self-taught investor, and only know enough to keep good debt in check and bad debt far away. I tried day-trading for about a year, and lost my *** on it.

I don't really "manage" much. I researched which funds had the potential for the gains I wanted, at the risk that I can afford (being 26 years young). I have a few accounts with Royce, T. Rowe Price, and Fidelity, as well as a 401k with 100% match at 6%.

I wish I knew as much as some of those guys in the off-topic area that discuss investing.

370Zsteve

You are one smart 26-yr old investor, don't talk yourself down. I started when I was 25 yrs old. Your attitude and ability alone will make you a ton of money over the years. Good luck to you.

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SOLD MY Z MARCH 2018 - another Core OG moves on - new ride 2019 Z Corvette Grand Sport - no mods necessary but already have eyes on HFC and intakes LOL IT NEVER ENDS.

Matt

That's great to hear that you were able to start young as well. I work with guys that are all in their 40s and early 50s, and they are playing catch-up in terms of retirement. It's sad, but you gotta spend your first 40 years planning for your last 20, if not...you'll be in rough shape.

Thanks for the well wishes. Same to you!

Matt

I just reread this.

I think you are confusing good debt and bad debt. You do know that credit can be a good thing right? When you apply for a home loan or even a job, do you think they care about how much cash you have in your pocket? Or do they care about your credit score?

And yes, paying interest is sometimes better than NOT paying interest, depending on what your gains could have been with the money you spent avoiding the interest.

Of course, if you have the disposable income to write a check for a Z, it probably doesn't matter what anyone says....you're wealthy enough to do whatever you want! More power to you!