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Paying cash for a car

 
Old 03-31-2015, 08:15 PM
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Originally Posted by s.hasan546 View Post
Originally Posted by cleenyc99' timestamp='1427155715' post='23551880
i wouldn't use retirement money to buy a car it would be money out of a savings account. but the last i checked auto loans are not 3.5 lowest I've been quoted was 11% and i work for a dealer. then again i don't barrow money so i really wouldn't no. but if you have a car payment that less money to invest each mo. also paying higher insurance rate and you get a much better deal when paying with cash. witch helps with depreciation
11%?? how shitty is your credit? you can get a 2-3% rate these days from the credit unions. idk what kind of shitty dealer you work for but something doesn't sound right. You don't get a better deal when paying cash & you don't pay a higher insurance rate. This is a $80k car, it will be fully insured regardless.
11% was years ago idk what the rates are right now. he didn't say 80k car till after I posted this comment to start. 2) you cant get 80k from credit union 3) you shouldn't be buying a brand new car any way so you don't have to buy it from a dealer and if you do they will work with you on the price. 4) unless you make 160k a year why would you ever even look at 80k car. 5) all car dealers are shitty

I own my home and all my toys out right. I have 6 figures in a checking account on top of investments and if you ran my credit score it would be a 0. I don't borrow money simple. credit scores mean nothing other then you like giving banks money.
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Old 03-31-2015, 08:17 PM
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Originally Posted by riceball777 View Post
Originally Posted by deepbluejh' timestamp='1427573625' post='23558330
[quote name='riceball777' timestamp='1427445569' post='23556505']
The smart thing to do is to never borrow money for anything that won't make you money. Loans should only be for real estate or business ventures. Then again you shouldn't be buying a 60k new car with only 75k in the bank. But since it's already done I saw you should pay cash. 15k should be enough for emergencies if something were to happen.
This might surprise you, but most people finance the purchase of a new car. Many people actually buy a car which exceeds the amount of money they have in savings, therefore they have to borrow in order to buy it. I am fortunate in that I do not have to do this, hence the question I fielded to the forum.

After owning nothing but low-cost used cars for my entire life and working myself to the bone for the better part of the last decade (generally working 60 hours a week or more), I'm finally going to buy myself something nice. I don't intend to apologize to anyone or feel sorry about it.

Anyhow, thanks for the feedback everyone. I've all but decided just to pay cash for the new car.
I agree with you that most people do finance the purchase of a new car and most people buy cars that cost more money then they actually have. But that does not mean these are financhelly smart decisions. Im sure you and I also don't want to be like most people especially when it comes to finances.
[/quote]

agreed. most people are broke to
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Old 04-02-2015, 03:55 AM
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Originally Posted by cleenyc99 View Post
11% was years ago idk what the rates are right now. he didn't say 80k car till after I posted this comment to start. 2) you cant get 80k from credit union 3) you shouldn't be buying a brand new car any way so you don't have to buy it from a dealer and if you do they will work with you on the price. 4) unless you make 160k a year why would you ever even look at 80k car. 5) all car dealers are shitty

I own my home and all my toys out right. I have 6 figures in a checking account on top of investments and if you ran my credit score it would be a 0. I don't borrow money simple. credit scores mean nothing other then you like giving banks money.

1) He said Brand new cayman S in the first post, which equals $65-$80k.
2) Yes you can get $80k from a credit union. You can get $100k max usually.
3) Why shouldn't you be buying a brand new car? Just because of some depreciation? big deal.
& Like i said cash vs. finance price is no difference. If anything they prefer you finance through them because they can make money on the back end.
4) He probably does.
5) ehh i'd say 99% are. The 1% that I've dealt with that aren't, are the ones i always go back to.

Having a nonexistent credit score isn't something to be proud of. I have had too many toys lol. I own commercial real estate. I own a smaller multifamily. I have more than enough savings. But my credit score is in the 760+ range. Thats only bc i started at 18 building my credit. From my shitty first car lease, to my first credit card. My credit has made me more money than my salary over the years. If you ever want to build a business or invest in things like real estate, you'll regret not building your credit sooner.
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Old 04-02-2015, 08:57 AM
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Originally Posted by deepbluejh View Post
Originally Posted by riceball777' timestamp='1427445569' post='23556505
The smart thing to do is to never borrow money for anything that won't make you money. Loans should only be for real estate or business ventures. Then again you shouldn't be buying a 60k new car with only 75k in the bank. But since it's already done I saw you should pay cash. 15k should be enough for emergencies if something were to happen.
This might surprise you, but most people finance the purchase of a new car. Many people actually buy a car which exceeds the amount of money they have in savings, therefore they have to borrow in order to buy it. I am fortunate in that I do not have to do this, hence the question I fielded to the forum.

After owning nothing but low-cost used cars for my entire life and working myself to the bone for the better part of the last decade (generally working 60 hours a week or more), I'm finally going to buy myself something nice. I don't intend to apologize to anyone or feel sorry about it.

Anyhow, thanks for the feedback everyone. I've all but decided just to pay cash for the new car.
Given the scenario you described, I'd say this is the better choice. A good option B would be to place the amount you finance into a mutual fund or invest to offset interest + gain 2% + over the 5 years.

I personally make sure I pay for all my "toys" up front.

Also, enjoy the car please share about it in car talk so we can vicariously experience it through you.
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Old 04-02-2015, 05:15 PM
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do as you like. but it always smarter to pay cash or banks would go out of business.

a business it would be with cash. I own real fico score only goes back 12 mo. if you close all credit accounts in 12 mo. your score if 0 ask me how I know. also if I was to open state I paid cash. if you like paying interest go ahead. I just find it funny people try to build credit like its a good thing. you borrow money so latter you can borrow more money.
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Old 04-02-2015, 05:31 PM
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Originally Posted by s.hasan546 View Post
Originally Posted by cleenyc99' timestamp='1427861709' post='23562167

11% was years ago idk what the rates are right now. he didn't say 80k car till after I posted this comment to start. 2) you cant get 80k from credit union 3) you shouldn't be buying a brand new car any way so you don't have to buy it from a dealer and if you do they will work with you on the price. 4) unless you make 160k a year why would you ever even look at 80k car. 5) all car dealers are shitty

I own my home and all my toys out right. I have 6 figures in a checking account on top of investments and if you ran my credit score it would be a 0. I don't borrow money simple. credit scores mean nothing other then you like giving banks money.

1) He said Brand new cayman S in the first post, which equals $65-$80k.
2) Yes you can get $80k from a credit union. You can get $100k max usually.
3) Why shouldn't you be buying a brand new car? Just because of some depreciation? big deal.
& Like i said cash vs. finance price is no difference. If anything they prefer you finance through them because they can make money on the back end.
4) He probably does.
5) ehh i'd say 99% are. The 1% that I've dealt with that aren't, are the ones i always go back to.

Having a nonexistent credit score isn't something to be proud of. I have had too many toys lol. I own commercial real estate. I own a smaller multifamily. I have more than enough savings. But my credit score is in the 760+ range. Thats only bc i started at 18 building my credit. From my shitty first car lease, to my first credit card. My credit has made me more money than my salary over the years. If you ever want to build a business or invest in things like real estate, you'll regret not building your credit sooner.
if you deflated on a car loan that goes away in a few years you don't have to waste money building credit. you can get a mortgage with out a credit score and the rates are the same as a hi credit score. you just don't want a low credit score.
if you owe on your commercial real estate you don't own it. I would get that paid off because if your tenants stop paying you go under and the bank takes it. if you have the cash to cover that why wouldn't you pay it off and stop paying the interest I just don't get your logic. I own rentals in NYC and they where bought with cash.
I'm very proud that banks don't like me and I will keep it that way.
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Old 04-07-2015, 06:11 AM
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Cleenyc99,
I get what you're saying. And if not having a crest score and not having loans works for you...then so be it. That's great! seriously, it is. However, I think what you're failing to understand is that there's another side to the coin (pun Intended). Not everyone is living in the same situation as you are. There are plenty of times where having a high credit score, and a little debt/loan, are absolutely beneficial to your financial gains. I'm not sure what the big surprise is there? Regardless of the scenario, there's a time when acquiring a loan is the best move for someone, as well as a time where buying outright is best. There's plenty of variables that need be considered. Hell, many a pauper have turned their lives around due to a loan they were able to obtain. Debt can be a money maker.

But now we're getting a bit sidetracked.

In other news: Pay it off outright topic starter. Just make sure you don't make a living of doing this without building up more reserve. Or you can get a loan, take that money you have in savings, , invest it in oils, then down the road when you're still paying on that loan, take the profits you make from the oils and pay the car off. Then you'll have spent little to no money for the car, and let the market buy your Cayman. However, if it doesn't work...you didn't hear that from me. Fwiw, I've significantly amped up my oils and they are outperforming my whole portfolio without even making a big move yet. The markets due for a corrections. If there's anything you can bank on...its that gas wont forever remain cheap, the Saudis won't flood the market for Obama to thwart Russia infinitely, and that the oils will rise again, soon enough. But again...don't take my word for it!!!

Disclaimer: don't buy into any of which I've said. What's good for the goose, isn't always good for the gander. Such an investment can be volatile. Im personally betting it's not...but that's just me. However, I've been wrong before.
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Old 04-12-2015, 01:07 PM
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Originally Posted by cleenyc99 View Post
if you deflated on a car loan that goes away in a few years you don't have to waste money building credit. you can get a mortgage with out a credit score and the rates are the same as a hi credit score. you just don't want a low credit score.
if you owe on your commercial real estate you don't own it. I would get that paid off because if your tenants stop paying you go under and the bank takes it. if you have the cash to cover that why wouldn't you pay it off and stop paying the interest I just don't get your logic. I own rentals in NYC and they where bought with cash.
I'm very proud that banks don't like me and I will keep it that way.
lmao you have no idea about what your talking about. You say stupid stuff like rates are the same for no credit scores as a high credit score or car loans are 11 %
I'm sure you own rentals in NYC. I work in CRE Finance. EVERYONE uses debt. Debt = leverage = higher profits. Leverage is how wealth is created and how it is destroyed.

You want to see my logic? my 6 cap invested, levered is closer to 10%. thats why. If my tenants stop paying, i kick them out, take their 3 months deposit, and get another tenant. I'm not new at this so please stop bullshitting.

Originally Posted by Kirk180 View Post
Cleenyc99,
I get what you're saying. And if not having a crest score and not having loans works for you...then so be it. That's great! seriously, it is. However, I think what you're failing to understand is that there's another side to the coin (pun Intended). Not everyone is living in the same situation as you are. There are plenty of times where having a high credit score, and a little debt/loan, are absolutely beneficial to your financial gains. I'm not sure what the big surprise is there? Regardless of the scenario, there's a time when acquiring a loan is the best move for someone, as well as a time where buying outright is best. There's plenty of variables that need be considered. Hell, many a pauper have turned their lives around due to a loan they were able to obtain. Debt can be a money maker.
I don't think he has any idea about what he's talking about. Just BS's a lot
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Old 04-24-2015, 06:39 PM
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^good luck with that hope it works out for you. you cant just kick people out does not work like that here. wish it was so easy. but back to the original topic if you have the cash pay cash or don't buy it simple.
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