Finance or Cash?
 

I searched and didn't really find anything on this subject. I was just curious, who paid for their Z with cash in full, compared to who financed the Z?

We are fortunate enough to pay cash in full for our vehicles that way to prevent debt, but I have also noticed that the deals that you get are much better that way also.

Just curious as to what everyone was able to do in this economy. Thanks.

Cash. If I can't afford it I will not get it. Why pay thousands in finance charges when I could be buying mods or saving up for the next vehicle, etc. ad nauseam.

Cash. Always.

I think you'll find that most people financed at least a portion of the car. When I bought mine I decided that I would only finance a small portion to help build credit.

cash unless your money is in some stocks that you believe would return higher than the financing charges.

I financed about half the cost of the car to build credit. Interest rate was 2.99 so it isn't too bad to finance. It is a no brainer to finance if you can get low interest rates. Of course 2.99 isn't that low but I just needed to build credit.

I don't know what deals you could find to make financing a better decision, since it adds thousands of dollars to the price of the car over the term of the loan.

Cash if you can afford it, financing for broke suckas like me.

Yeah, I can see why people would finance 5-10 thousand to build credit. The low interest rate wouldn't affect it enough to make a huge difference.

2/3 cash 1/3 financed to build credit as my next big purchase will be a home. Oh yeah, I'm also paying 2x my monthly payment right now bc I can afford to and I would like to own the car flat out sooner than later.

@cell - 2.99% is def low, the best I could get even putting 2/3 down was 4.99% and for what credit I do have its all good, nothing negative in there. I'm a nazi about paying bills on time and in full.

Yup 2.99 is low but wish it was lower. I got the loan from penfed. The customer service is excellent. My credit is real good too considering I am also the same like you with paying bills.

I guess this thread is over now since you invoked Godwin's Law. :icon17:

PAY IN FULL!! s*** if I could I would. If YOU can make that kind of money then If payed in full, you can mod like crazy and have no worries. You could also get even better insurance having no car payment and also insure part on the car in case of accidents.

Cash + trade-in

^^^even better

Cash is the way to go. :tup:

It depends on your risk tolerance. The stock market is expected to have another good year for 2011. So, if you can stomach the risk you could probably earn a return that beats the interest you pay on the car loan. (Of course, this depends on your credit rating and the basket of risky assets that you purchase.)

I paid cash for my 2009 Z and own it outright. I can mod all I want and not worry about any issues from the bank.

I also paid cash. The only way I would finance is with 0% interest.

I paid cash for mine, but would probably finance with 1-2% interest, since I could comfortably beat it in investments.

Cash is obviously the better choice but most people will never have that option.

I was hoping to pay cash but we'll see what happens in the coming months. I could either have a sick Z or end up sleeping under a bridge. :D

Cash in full is the way to go, why pay interest when you don't have to? Sure you can build credit if you finance, but having credit cards would help you achieve the same thing. Just pay on time, keep the balances low, and good credit will come.

I paid more than 2/3 in cash and financed the rest through my credit union. I could have paid in full, but that would've left me with no cash for insurance and bills.