Poll - How should I pay for a car?

asujbl · 07-20-2021, 08:48 AM

Let's say the car is in between $35,000 and $45,000 after I trade my current car in.

Interest rate if I finance for 60 months is 1.9%

If you finance for longer than 60 months it's at "market" rate based on credit etc...

I know those details aren't pretty basic. Just assume that if I paid cash it won't bankrupt me and if I financed I'd probably still put a decent chunk down to get the payment per month where I want it. Although that isn't a given.

There is no prepayment penalty. That does matter I suppose.

I ordered the car yesterday, it goes into production end of August, so should be here right around Labor Day

So I have 6 weeks to run the numbers

Whodey14 · 07-20-2021, 08:50 AM

Is there a rebate if you don't use the 1.9%?

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corndog · 07-20-2021, 08:51 AM

Cash out Ohanti before he tears something.

asujbl · 07-20-2021, 08:54 AM

Quote:

Originally Posted by Whodey14

Is there a rebate if you don't use the 1.9%?

Sent from my SM-N960U using Tapatalk

There is not. Since I'm ordered a 2022 it's basically MSRP. They aren't doing anything special at the moment since they don't even have an actual car to sell me yet.

Quote:

Originally Posted by corndog

Cash out Ohanti before he tears something.

I could ask if they'd take Ohtani items in trade.

JMarchand1981 · 07-20-2021, 08:54 AM

Why be out the cash? Finance at 1.9% and take the rest of the money and invest it to earn more than 1.9%

asujbl · 07-20-2021, 08:56 AM

Quote:

Originally Posted by JMarchand1981

Why be out the cash? Finance at 1.9% and take the rest of the money and invest it to earn more than 1.9%

Oh I know - that's the obvious answer - I mean you're looking at like $2,500 in interest over the 60 months so I should be able to make that back by taking the cash and just investing it

But I also like the idea of just being done with it... even if that's not the rationale response

Hess687 · 07-20-2021, 09:01 AM

Quote:

Originally Posted by asujbl

Oh I know - that's the obvious answer - I mean you're looking at like $2,500 in interest over the 60 months so I should be able to make that back by taking the cash and just investing it

But I also like the idea of just being done with it... even if that's not the rationale response

This is my answer. I hate owing people money. I had a fence installed with interest free financing for a year and I paid it off in the first month because I hate the thought of paying monthly installments when I already have the cash on hand.

Whodey14 · 07-20-2021, 09:02 AM

Quote:

Originally Posted by asujbl

There is not. Since I'm ordered a 2022 it's basically MSRP. They aren't doing anything special at the moment since they don't even have an actual car to sell me yet.

I would look to see what market rates are available to you. I've seen some 84 month terms around 2% lately. Still more total dollars of interest paid however it will drop the payment a good amount and allow you to make more off your money.

Another option would be to look at a lease. See if the money factor is a better or comparable rate, money factor multiplied by 2400 to equate to an apr. Only furthering your ability to hedge your bets. Also gives you the ability of freedom after the term to walk away if for any reason you no longer want it. I see you're mentioning a trade, idk if the trade is considerable but it may allow you to one pay the lease and have no payment. It would give you a reduction upon the money factor, or withdraw your equity in cash since as we've discussed the rates are low.

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bradical · 07-20-2021, 09:44 AM

Lease.

Never buy a depreciating asset.

babyfaceposey · 07-20-2021, 09:44 AM

Keep your current car if you can. If not cash.

letsgocapitals · 07-20-2021, 09:46 AM

All depends on your financial situation, and your financial discipline, yes?

sethc1020 · 07-20-2021, 09:57 AM

Personally if I had the money I would put about 30-50% down, finance the balance and use the left over cash to re-invest.

BGT Masters · 07-20-2021, 10:16 AM

I'm a "just be done with it" kind of guy. If I had the cash and didn't have a more pressing, immediate need, I'd just pay it off.

asujbl · 07-20-2021, 10:27 AM

Quote:

Originally Posted by Hess687

This is my answer. I hate owing people money. I had a fence installed with interest free financing for a year and I paid it off in the first month because I hate the thought of paying monthly installments when I already have the cash on hand.

Same. I don't like owing money even if I know the math makes more sense

Quote:

Originally Posted by Whodey14

I would look to see what market rates are available to you. I've seen some 84 month terms around 2% lately. Still more total dollars of interest paid however it will drop the payment a good amount and allow you to make more off your money.

Another option would be to look at a lease. See if the money factor is a better or comparable rate, money factor multiplied by 2400 to equate to an apr. Only furthering your ability to hedge your bets. Also gives you the ability of freedom after the term to walk away if for any reason you no longer want it. I see you're mentioning a trade, idk if the trade is considerable but it may allow you to one pay the lease and have no payment. It would give you a reduction upon the money factor, or withdraw your equity in cash since as we've discussed the rates are low.

Sent from my SM-N960U using Tapatalk

Definitely not looking to lease. I drive my cars into the ground. The car I'm purchasing will end up going to my daughter when she turns 16 (she is about to turn 11)

Quote:

Originally Posted by bradical

Lease.

Never buy a depreciating asset.

See above

Quote:

Originally Posted by babyfaceposey

Keep your current car if you can. If not cash.

I can... I just feel like it's time to upgrade. My current car is fine but it lacks a lot of stuff that most people would now be considered basic.

Quote:

Originally Posted by letsgocapitals

All depends on your financial situation, and your financial discipline, yes?

Not a problem

Quote:

Originally Posted by sethc1020

Personally if I had the money I would put about 30-50% down, finance the balance and use the left over cash to re-invest.

I'm debating that route. I could put say $15,000 down instead of buying outright, finance the balance, and if it starts driving me nuts I'll just pay it off (since there is no penalty)

Quote:

Originally Posted by BGT Masters

I'm a "just be done with it" kind of guy. If I had the cash and didn't have a more pressing, immediate need, I'd just pay it off.

That's the situation I'm in, I don't have any other needs, outside of investing it instead.

babyfaceposey · 07-20-2021, 12:27 PM

I gotcha. I could care less about the new basic stuff in a car. I drive a 2012 Honda CRV. 95k miles. So needless to say will probably drive this for the next 10 years. Wife has a 2018 GMC Sierra. Fun car is a 66 GTO I just picked up.

Links242 · 07-20-2021, 01:35 PM

Getting a Tesla?

Also recommend leasing a car.

asujbl · 07-20-2021, 01:36 PM

Quote:

Originally Posted by Links242

Getting a Tesla?

Also recommend leasing a car.

Nope. Just standard wait time at this point if you want something specific. Haha

Leasing isn't really an option. I just added it to the poll.

Probably should have clarified that in the OP for me specifically

letsgocapitals · 07-20-2021, 02:20 PM

If money isn't a problem, you pay cash.

Branesergen · 07-20-2021, 02:37 PM

I'm in the boat of bigger down and finance some just to have it on your credit. I'm sure a couple points wont matter to you but I always take an up arrow on my credit lol

ssbledsoe · 07-20-2021, 03:18 PM

Confirm the car you want is from a dealer listed as an AMEX small business. Open an AMEX Platinum card through Resy using their link. Buy the car with the AMEX Platinum. Bank the 500,000 Membership Rewards points and pay the AMEX bill in full when it shows up.

Easy $5k back on AMEX Travel or a poop load more in value if you know what you're doing with transfer partners.

Whodey14 · 07-20-2021, 03:37 PM

Quote:

Originally Posted by ssbledsoe

Confirm the car you want is from a dealer listed as an AMEX small business. Open an AMEX Platinum card through Resy using their link. Buy the car with the AMEX Platinum. Bank the 500,000 Membership Rewards points and pay the AMEX bill in full when it shows up.

Easy $5k back on AMEX Travel or a poop load more in value if you know what you're doing with transfer partners.

Admittedly not familiar with the Amex small business aspect of this scenario but as someone who works at a dealer we aren't accepting a credit card for $50,000. That may be all the difference but had me curious.

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coachnip13 · 07-20-2021, 04:17 PM

Quote:

Originally Posted by letsgocapitals

If money isn't a problem, you pay cash.

Take the near zero interest rate and let your cash go to work for you. 1.9% is nothing.

GreatAlbert · 07-20-2021, 04:20 PM

Quote:

Originally Posted by JMarchand1981

Why be out the cash? Finance at 1.9% and take the rest of the money and invest it to earn more than 1.9%

My thoughts to a T. Too many people just throw money out the window doing this.

coachnip13 · 07-20-2021, 04:21 PM

Quote:

Originally Posted by Whodey14

Admittedly not familiar with the Amex small business aspect of this scenario but as someone who works at a dealer we aren't accepting a credit card for $50,000. That may be all the difference but had me curious.

This is true. We tried to make the down payment on our daughter's Jeep with a card in order to get points, and there was a maximum they would put on the card, and it wasn't much.

Whodey14 · 07-20-2021, 04:22 PM

Quote:

Originally Posted by coachnip13

This is true. We tried to make the down payment on our daughter's Jeep with a card in order to get points, and there was a maximum they would put on the card, and it wasn't much.

5k max for me, try to avoid that much when possible.

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View Poll Results: How would you pay for a new car?
Finance it - 1.9% is basically free money	28	33.73%
Cash - Just be done with it	38	45.78%
Lease - Who wants to the same car for that many years	8	9.64%
Just keep your current car	9	10.84%
Voters: 83. You may not vote on this poll

07-20-2021, 08:48 AM	#1
asujbl Member Join Date: Jun 2010 Posts: 62,720 ohiosundevils	Poll - How should I pay for a car? Let's say the car is in between $35,000 and $45,000 after I trade my current car in. Interest rate if I finance for 60 months is 1.9% If you finance for longer than 60 months it's at "market" rate based on credit etc... I know those details aren't pretty basic. Just assume that if I paid cash it won't bankrupt me and if I financed I'd probably still put a decent chunk down to get the payment per month where I want it. Although that isn't a given. There is no prepayment penalty. That does matter I suppose. I ordered the car yesterday, it goes into production end of August, so should be here right around Labor Day So I have 6 weeks to run the numbers __________________ https://ohiosundevils.smugmug.com/ Browns/Cavs/Tribe/Buckeyes/Jackets/Devils TheFrenzy - “Blowout ain't a place for normies” Last edited by asujbl; 07-20-2021 at 08:51 AM.

07-20-2021, 08:50 AM	#2
Whodey14 Member Join Date: Dec 2011 Location: Kentucky Posts: 9,760	Is there a rebate if you don't use the 1.9%? Sent from my SM-N960U using Tapatalk __________________ thesportcardking on IG

07-20-2021, 08:51 AM	#3
corndog BODA Join Date: Jul 2013 Location: From a table in McDonalds, with lovely fake flowers on it. Posts: 17,798	Cash out Ohanti before he tears something. __________________ He has no rival, He has no equal.

07-20-2021, 09:44 AM	#9
bradical Member Join Date: Jul 2008 Posts: 8,409	Lease. Never buy a depreciating asset. __________________ :turkey: :turkey: :turkey:

07-20-2021, 08:54 AM	#5
JMarchand1981 Member Join Date: Jul 2013 Posts: 34,438	Why be out the cash? Finance at 1.9% and take the rest of the money and invest it to earn more than 1.9%

07-20-2021, 09:44 AM	#10
babyfaceposey Member Join Date: Feb 2012 Location: Pensacola, Florida Posts: 8,311 Babyfaceposey	Keep your current car if you can. If not cash.

07-20-2021, 09:46 AM	#11
letsgocapitals Member Join Date: Oct 2010 Location: Southern Maryland Posts: 3,356 letsgocapitals	All depends on your financial situation, and your financial discipline, yes? __________________ Facebook - https://www.facebook.com/southernmaryland.sportscards.5

07-20-2021, 09:57 AM	#12
sethc1020 Member Join Date: Aug 2015 Location: Indiana Posts: 5,602 sethc_1020	Personally if I had the money I would put about 30-50% down, finance the balance and use the left over cash to re-invest. __________________ https://www.flickr.com/gp/151086784@N06/28H47r Last edited by sethc1020; 07-20-2021 at 10:00 AM.

07-20-2021, 10:16 AM	#13
BGT Masters Member Join Date: Apr 2010 Location: Wellsville, New York Posts: 10,184	I'm a "just be done with it" kind of guy. If I had the cash and didn't have a more pressing, immediate need, I'd just pay it off.

07-20-2021, 12:27 PM	#15
babyfaceposey Member Join Date: Feb 2012 Location: Pensacola, Florida Posts: 8,311 Babyfaceposey	I gotcha. I could care less about the new basic stuff in a car. I drive a 2012 Honda CRV. 95k miles. So needless to say will probably drive this for the next 10 years. Wife has a 2018 GMC Sierra. Fun car is a 66 GTO I just picked up.

07-20-2021, 01:35 PM	#16
Links242 Member Join Date: Sep 2013 Posts: 4,162 links242	Getting a Tesla? Also recommend leasing a car.

07-20-2021, 02:20 PM	#18
letsgocapitals Member Join Date: Oct 2010 Location: Southern Maryland Posts: 3,356 letsgocapitals	If money isn't a problem, you pay cash. __________________ Facebook - https://www.facebook.com/southernmaryland.sportscards.5

07-20-2021, 02:37 PM	#19
Branesergen Member Join Date: Mar 2012 Location: Montgomery Texas Posts: 6,901 Branesergen	I'm in the boat of bigger down and finance some just to have it on your credit. I'm sure a couple points wont matter to you but I always take an up arrow on my credit lol __________________ I will never buy a used car. I knew this one guy who bought a used car once and 10 years later...BAM!...Herpes. Did you eat the whole bowl of stupid this morning??

07-20-2021, 03:18 PM	#20
ssbledsoe Member Join Date: Jun 2011 Location: At least 500 feet from DB11 Posts: 28,596 ssbledsoe ssbledsoe	Confirm the car you want is from a dealer listed as an AMEX small business. Open an AMEX Platinum card through Resy using their link. Buy the car with the AMEX Platinum. Bank the 500,000 Membership Rewards points and pay the AMEX bill in full when it shows up. Easy $5k back on AMEX Travel or a poop load more in value if you know what you're doing with transfer partners. __________________ Drew Bledsoe is a better QB than Patrick Mahomes