@ridgebackpilot wrote:
@Save-n-Invest wrote:
FULL DISCLOSURE I have no direct experience financing a car. I've never done it. I've bought luxury cars and paid for them at the point of sale. I saved for the purchase.
That explains your lack of understanding of manufacturer financing and incentives. You've always purchased cars the old-fashioned way. I respect that; in the 1950s, most people bought automobiles that way.
Today, however, manufacturers offer financing and incentives to sell cars that were unknown in past decades. Zero percent financing is the best example; it basically amounts to free money for those who qualify. As such, it's the biggest no-brainer in the credit universe. No credit card offers such rates except for short-term promotions.
With these kinds of subsidized incentives available to credit-worthy customers, it really makes no sense anymore to buy cars the old-fashioned way by paying cash. Even without zero-percent interest rates, few people today tie up capital in a depreciating asset like an automobile. Of course, if you don't feel comfortable carrying debt, then none of this matters and you're unlikely to take out a loan under any circumstances, whether it's financially advantageous or not.
RESPONSE
BUSTED lol
Intellectually, rationally I understand your position and can offer no rebuttal.
If a somewhat important purchase can be funded with OPM do so and keep your cash on the sideline. An opportunity may present. You have dry powder and can jump in.
Why didn't I finance my current daily at 0%? I didn't want to. I toyed with the idea of financing 18k for 24-36 months just to give it a try. I decided not to as it was such a small amount why not just pay it off?
I didn't finance my first car purchase as I didn'thave credit established then. The topic never came up. The salesman needed $500 deposit to place the order so I wrote a check. At the time I did not have all the funds to complete the puchase and no clue as to how that miracle would occur in six weeks estimated for the order to arrive. I was able to pickup a few extra shifts. Someone repaid a loan. I got a call a few days later that the car was in. My dad drove me to pick it up.
When I rolled out or the dealer's lot in that car I was on top of the world. Those are the great crazy memories we can only make when youth is on our side. That car was still featured on Nortious Luxury a year or so ago.
ridgebackpilot, you're an intelligent person and know there is a psychology of money. Maybe you will be able to crack this nut. At any rate I appreciate your post. Thank you for the good memory of the 50's. I was a litte thing then seated on the rear bench armrest. I thought it was a seat for me. It was centered, elevated and the big people's heads were out of my way. Perfect
@Save-n-Invest wrote:
I would just like to mention to anyone financing for 72-84 months please ask yourself do you really need a car that costly? That's a long time to pay for a depreciating asset. Will it ever be worth the amount you owe on the loan? Low rates or 0% is tempting but do you want to be in hock that long for a ride? Letting someone put you into a payment is a fool's game. You are still obligated to pay off the loan.
Frequently I see threads started by a poster who asks if they will be able to roll thousands of dollars of negative equity into a new car loan. That just makes the next car purchase more difficult. Life happens and we can never be certain when/if a new vehicle will be needed. Just think things through before signing anything. That car will still be there tomorrow. If someone else buys it another dealer has one waiting for you.
FULL DISCLOSURE I have no direct experience financing a car. I've never done it. I've bought luxury cars and paid for them at the point of sale. I saved for the purchase. My daily now is Walmart luxury IMO but considered luxury by the carmaker of course.
If you are new to car buying do what is best for you. Don't be sold. Evaluate if you actually need the things (upsells) offered in the F&I office.
I've known quite a few people who were uncomfortable without a car payment. Seriously. When they retired the debt on one car they almost got the shakes and ran right out and went back in hock for another. The people I know like that ended up with repos, forclosures or deed in lieu, bankrupcy and ordering from McDonald's $2 menu. They bought other things the didn't need with money that hadn't earned yet, too. Their fate was not cause exclusively by car purchases.
If you need a certain type of vehicle for work that's different. I'm not referring to commuting, pizza delivery or Uber. I mean a real job/business where your vehicle is primarily a business expense.
Good luck and happy motoring!
Edit...Mods please delete.
