Did you pay cash for your Z?

datsunguy · 10-06-2009, 12:55 AM

Just wondering how many owners paid cash for your car? Years ago I started saving for a new car and paid cash. As soon as I get a new car I start saving for the next one. It's like reverse car payments.

The benefits are no interest, better more straight forward bargaining on a new car at trade in time, I can pick any deductible on my collision or no collision at all after a few years, plus I just like having the title in my hands.

I've done this for the last 5 cars I've owned and keep them about 4 years before trading. Am I the only person that thinks this is a good Idea?

Trips · 10-06-2009, 01:36 AM

I put 75% down after getting rid of my car. finance was easy and low payments. I got a very good otd price, you think they wouldn't.

Z'sZ · 10-06-2009, 01:40 AM

put 50% down

JoeD · 10-06-2009, 02:11 AM

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...

davidyan · 10-06-2009, 02:17 AM

Quote:

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...

I paid cash for mine. I don't necessarily think its a bad thing. If what you're saying is that investments will likely rise
5 - 6% and if thats equal to a good APR, then paying cash for the car is sounder because its a guaranteed avoidance of the 5 - 6 % interest expense whereas with the equity investments, you'll gain 5 - 6% only if things turn out as planned, there's always some downside risk, even if its minimal. If you pay cash for a car, you should have enough reserve cash for investing anyhow.

370Zsteve · 10-10-2009, 01:36 PM

Quote:

Originally Posted by davidyan

I paid cash for mine. I don't necessarily think its a bad thing. If what you're saying is that investments will likely rise
5 - 6% and if thats equal to a good APR, then paying cash for the car is sounder because its a guaranteed avoidance of the 5 - 6 % interest expense whereas with the equity investments, you'll gain 5 - 6% only if things turn out as planned, there's always some downside risk, even if its minimal. If you pay cash for a car, you should have enough reserve cash for investing anyhow.

Um, not to mention the capital gains tax................

370Zsteve · 10-10-2009, 01:37 PM

Oh, and in just a couple of weeks, there will be a new 370z sitting in my garage, and it will be paid for in cash.

azn370z · 10-06-2009, 02:19 AM

I'm saving up money now and planning to finance 10k early next year then pay it off after 6 months.

BrianZ · 10-09-2009, 12:09 PM

Quote:

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...

No offense, but if you can do much better putting your money elsewhere, why would you put 50% down? Why wouldn't you borrow as much as you possibly could - my credit union will finance 110%.

To answer the OP's question, I paid cash because debt is a dumb thing to have. Debt = risk.

earwicker7 · 10-10-2009, 01:28 PM

Quote:

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...

I'm sorry, but this makes absolutely no sense. Paying interest is NEVER better than not paying interest. If I had a dime for every banker/broker/con man who "guaranteed" that something was going to rise by x% in the next year, I could pay cash for a Ferrari

.

And, yes, I did pay cash for my car. There is no way in hell I'm paying someone money for the purpose of keeping a car that I don't own; this is the same reason I don't "own" a credit card... if I can't afford to pay cash, I don't need it.

370Zsteve · 10-22-2009, 12:17 PM

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...

Quote:

Originally Posted by earwicker7

I'm sorry, but this makes absolutely no sense. Paying interest is NEVER better than not paying interest. If I had a dime for every banker/broker/con man who "guaranteed" that something was going to rise by x% in the next year, I could pay cash for a Ferrari

.

And, yes, I did pay cash for my car. There is no way in hell I'm paying someone money for the purpose of keeping a car that I don't own; this is the same reason I don't "own" a credit card... if I can't afford to pay cash, I don't need it.

LOL, big +1 for earwicker7

Matt · 10-22-2009, 12:22 PM

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.

alexanderb · 10-06-2009, 02:28 AM

I paid cash for my touring/nav/sport. I really had no choice as I had the car shipped from the US to me and you need to pay cash for that.

Trips · 10-06-2009, 02:42 AM

Quote:

Originally Posted by alexanderb

I paid cash for my touring/nav/sport. I really had no choice as I had the car shipped from the US to me and you need to pay cash for that.

no finance option there?

alexanderb · 10-06-2009, 04:27 AM

Quote:

Originally Posted by Triple's

no finance option there?

Hi Triple's. I wish there was. To export a vehicle from the US you need to go through an export brokerage firm as they will buy the vehicle for you and ship it to you. They will only deal in cash as I cannot get financing because I am not in the US...

10-06-2009, 12:55 AM	#1 (permalink)
datsunguy Base Member Join Date: Jan 2009 Location: Nashville Posts: 27 Drives: 09 370Z PG/B 7AT Rep Power: 17	Did you pay cash for your Z? Just wondering how many owners paid cash for your car? Years ago I started saving for a new car and paid cash. As soon as I get a new car I start saving for the next one. It's like reverse car payments. The benefits are no interest, better more straight forward bargaining on a new car at trade in time, I can pick any deductible on my collision or no collision at all after a few years, plus I just like having the title in my hands. I've done this for the last 5 cars I've owned and keep them about 4 years before trading. Am I the only person that thinks this is a good Idea? __________________ 09 370Z Platinum Graphite/Black Touring Sport 7AT 93 Pathfinder SE V6 4x4 winter driver

10-06-2009, 01:36 AM	#2 (permalink)
Trips Administrator Join Date: May 2009 Location: Disneyland, Ca Posts: 8,732 Drives: 🔰 Rep Power: 10	I put 75% down after getting rid of my car. finance was easy and low payments. I got a very good otd price, you think they wouldn't. __________________

10-10-2009, 01:37 PM	#7 (permalink)
370Zsteve A True Z Fanatic Join Date: Sep 2009 Location: Gold Coast CT Posts: 10,599 Drives: 2019 Corvette G.S. Rep Power: 43	Oh, and in just a couple of weeks, there will be a new 370z sitting in my garage, and it will be paid for in cash. __________________ 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.

10-06-2009, 02:19 AM	#8 (permalink)
azn370z A True Z Fanatic Join Date: Nov 2008 Location: Seattle Posts: 1,722 Drives: z34 - R1 Rep Power: 490	I'm saving up money now and planning to finance 10k early next year then pay it off after 6 months. __________________ 2010 k23 H&R sport springs / Spc rear camber arms / SSR SP1 / Berk cbe / Varis cf lip / Nismo S-Tune side skirts

10-22-2009, 12:22 PM	#12 (permalink)
Matt A True Z Fanatic Join Date: Oct 2009 Location: Augusta, GA Age: 42 Posts: 1,680 Drives: 2010 Avalanche LT Rep Power: 19	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. Last edited by Matt; 10-22-2009 at 10:50 PM.

10-06-2009, 01:40 AM	#3 (permalink)
Z'sZ Base Member Join Date: Apr 2009 Location: H.B.,California Posts: 27 Drives: 370Z Rep Power: 16	put 50% down

10-06-2009, 02:11 AM	#4 (permalink)
JoeD Banned Join Date: Aug 2009 Location: CA Posts: 495 Drives: Z Rep Power: 0	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...

10-06-2009, 02:28 AM	#13 (permalink)
alexanderb Base Member Join Date: Apr 2009 Location: Manila Posts: 171 Drives: PG 370 Tour/Sprt/Nav Rep Power: 270	I paid cash for my touring/nav/sport. I really had no choice as I had the car shipped from the US to me and you need to pay cash for that.

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