Did you pay cash for your Z?

TBSS2008

Pick up my 370z Sport/Touring/7spd in April 2009 for $40,950.00 (Price includes tax and title). Put down $20,000.00 on the car and will have it paid off by the end of November 2009. I only owe $7,160.00 on the loan right now. I've been throwing a lot of extra cash at my Z about $2,000.00 a month towards principal. I should have saved the money then bought it but I just couldn't wait to get one!

So my Christmas Present this year will be the Title to my 370z!

__________________
2011 Black Corvette Grand Sport 6spd | NNP Daul Mode Exhaust
2008 Trail Blazer SS Black | SuperChips Tune
2009 370Z Black 7AT Touring Sport (TRADED)

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

__________________
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?

__________________
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.

__________________
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!

Valentino

Cash is the way to buy anything. If you can't afford it in cash it's not for you.

__________________
Lou Fusz Nissan | KW V3 | SPL rear camber and toe bolt | OS Giken LSD | Nismo Diff cover | Engine Oil cooler | F.I. TDX Cat Back 18" Resonators | F.I. Resonated Test Pipes | Injen cold air intake | COBB AccessPORT | JWT Clutch Flywheel |

Matt

I knew I shouldn't have taken out that mortgage!! I should have just payed cash!

superz

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

GETU1

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

Smallywood

I financed $237,759.84

__________________

BrianZ

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.

Matt

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.