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If you have good credit get yourself a nice low interest loan so the cost of borrowing the money is lessened. If you were going to spend the cash then invest it, and at the end of your loan period ask yourself, am I better off now or was buying the outright maybe a bit stupid? You'll have a paid off car and even more money in the bank. Cars are a loss no matter what and Corvettes are depreciating assets as well.
I could have paid cash for my car but I make lots more money on my investments than I pay in interest. Better to leave the bulk of the money in the investment earning more money and drawing out what's needed and pay the measly loan interest than drawing the entire amount and lose that income that could be earned. It isn't rocket science, just simple math.
I could have paid cash for my car but I make lots more money on my investments than I pay in interest. Better to leave the bulk of the money in the investment earning more money and drawing out what's needed and pay the measly loan interest than drawing the entire amount and lose that income that could be earned. It isn't rocket science, just simple math.
I think that is good advice. Hate making a car payment but that's what I' m doing too.
3rd corvette, first corvette owned outright. I agree with alot of peoples answers and for me owning the car outright is not as good as i thought. Its depreciating every day and i could use the money to invest and make money instead of essentially paying myself the car payment every month.Also if someone wrecks me there goes the **** too. According to KBB My trade in value was about 46 but i know stealerships don't use that. I might be getting rid of her soon as its just my desires are starting to change.
I have been fortunate in this life to be able to pay cash for all my cars for the last thirty-five years including my new 2016 Corvette. Then again, I have kept each my cars for 15 years so that certainly helped.
I could have paid cash for my car but I make lots more money on my investments than I pay in interest. Better to leave the bulk of the money in the investment earning more money and drawing out what's needed and pay the measly loan interest than drawing the entire amount and lose that income that could be earned. It isn't rocket science, just simple math.
95% of Americans either don't have the discipline to invest or know how to invest so it's easier said than done.
Anytime that you can get a loan that has interest rates lower than a savings account today you are crazy not to do it. Investments at 3.5-4% make financing a car an easy thing to do, not like the late 90's but still putting cash in your pocket while the car is taking it out of your pocket.
For those of us that are on a "fixed income" financing is an easy choice. I set my income and use that as my guide as to what I can afford, guarantees money for the future and keeps me comfy now.
In what world do you get more than 1.5% guaranteed? Please share.
Anything more involves risk.
At no given time would I have 100% of my cash in a risky investment, so there is always some in a savings account where the bank in effing me.I would use this to buy the car.
Also the way the amortization schedule works, is you pay most of the interest in the beginning of the loan. If for some reason you pay it off early you can easily have paid a lot more interest for the time you had the loan.
Banks are all about effing the consumer one way or another, so I try not to do business with them.
Just my 2 cents.
at less than 2% I'm financing it and keeping the cash on the side. Just have it auto draw and I stay liquid.
This is exactly what I'm doing. I've always wanted to pay cash for a new Vette. When I went to my financial advisor and told them what I wanted to do they said it would be financially better, since the banks want to lend the money at a low rate, to borrow the money and set up and automatic withdrawal to make the payments. That way my money is still making money.
Maybe the next time I buy the interest rates will be higher and then I'll pay cash!
I'm curious how many C7 drivers own their car vs have a auto loan.
A Corvette used as a daily driver and can get millage reimbursement can have a loan on their Vette. If it's your toy, I would not purchase it unless you can pay for it.
06-11-2016, 05:37 PM
