jcsperson

One more time; aren't cash buyers doing the same thing? Didn't they buy instead of leasing and don't they own a depreciating asset?

Skid Row Joe

You missed the point(s).

The guy who loses his home and his car, have neither. The cash buyer will have the luxury of a paid for car.

Your guy, has neither.

Skid Row Joe

When you lose your home and car, because you mortgaged your home to finance the car, if you can't make the payments, the next stop is a cardboard box under the overpass. It can happen to people that thought they knew it all regards credit.

jcsperson

Didn't miss anything. My premise all along has been based on someone who has the cash and chooses to keep the money and finance the car. I feel like this thread has started over like the movie Groundhog Day.

witch hunt

Walt---I agree with most points and ideas I see you make on the forum, but I'd like to believe it'll be a pretty long while before I make payments on a TV. Just as soon put it on a card, take the "bonus points" and pay for it when the bill arrives. One other thing, on a retail purchase of an appliance, high-end TV, HVAC items, etc, you may be surprised at the discount you can get simply for asking and paying cash for the item or service.

John Ulrich

Very interesting money management practices. I'm going to bed .......no worries, no bills, nothing to remember.

yeller z06

Ain't that the truth!

People need to lighten up. About everything.

JerryU

Wondered how all those folks could get loans for new homes and then defaulted on payment during the recent “subprime mortgage crisis.” Financing a new car ($50,000 trucks around here) were a key problem.

Existing home owners could get loans for their new vehicle as a 2nd mortgage based on their home value. Banks gave loans based on over inflated house value. Some folks over extended their ability to pay and lost there home and new vehicle!

2014C7

Mine has been worth more than I owe on it since day 1.

Good down will prevent you from being upside down.

The rates are so low now tying up the capitol in a car is an opportunity cost question.

To some owning cars outright help them sleep. Passive income helps me.

Cheers.

Skid Row Joe

JerryU et al:

I saw yesterday on a news feed somewhere online that 6 million people are in / have gone 90 days delinquent on their new car loans.

I also heard on news radio that this 2016 is shaping up to be a record sales year for the auto manufacturers.

Ppl are very confident in the economy outlook going forward.

My hope is that the economy just keeps getting better for everyone!

PetroniDE

Paid cash for both of mine (about 4 years apart). If I buy another one it will also be cash. Staying debt-free as retirement approaches is first financial priority.

Roadrogue

All I can say is if it were not for credit I wouldn't have had the many motorcycles and home with the attendant experiences. Or my Vette. My life would have been so much shallower if I only bought what I could afford. Sorry Dad.

LT4_CE

Just saw this...

https://www.corvetteforum.com/articl...s-cash-new-c7/


But wasn't it already featured here:

https://www.corvetteforum.com/articl...-pay-cash-car/


This thread will not die!




And, as the OP pointed out, it's spun way away from his original intent. He was talking about comparing Corvette cash buyers to other sports cars cash buyers. Oh well, like I said before, this is the Walking Dead of threads...

2fastnow

Let's say you lease your whole life.
You're 60 yrs old and you have a leased car in the garage, nothing else
You bought cars all your life and you own 4 or 6 cars with mileage.

rbartick

I think you missed my point. I didn't say anything about financing or paying cash. Your post said:

I only pointed out that purchasing an expensive and unnecessary depreciating asset is not a good way to increase your net worth.

thrilled

I put 20k down,my FICO score was 830. I took A loan out for the remaining 30K.My FICO score went to the max 850 til I paid it off in 7 months.Then The FICO score went down to 820,10 points lower than before the loan.Go figure.I should have just paid straight cash.

zdeckich

You use alot of credit then to have a high score.

StingerBG

I think this is a great debate! Very enlightening on both sides of the coin (pun intended). I also think it has a lot to do with age. And I don't mean that in a "with age comes wisdom" sort of way. I mean that in just like a 401K investment situation, you are better off with an aggressive investment approach while you're young, then back off to a more relaxed/safe investment as you get older. While you are young, you can afford to play harder with your money, you should have plenty of time to recover. Whereas the older you get, being debt free becomes very important! With that said, I bought my C7 when I was 31 and paid cash, but that was mainly because I have many other large payments and simply didn't want another!

roadbike56

Very well said. Every investment manager I talked with advised that as one approaches retirement, reduce your debt. Yes, there are those seniors who are experts at investments, and I mean really good at predicting the markets. But for average guys like me, risk taking is not advisable.

Skid Row Joe

Sounds like you've earned the right to have your cake and eat it too! That's an enviable financial position to be in. Never forget the longer your dollars are invested, the more time they will have to grow - retirement AND non-retirement plans.

One example; in December 1981, I bought $2,100.00 in a closed end mutual fund. In 35 years, it's grown to $100,000.00. I've added no money to it. It's non-retirement monies, and I've paid CG taxes on it's growth annually. It's still part of my stock portfolio. That's probably not the greatest growth over time, but I just left it alone, and let it grow.

The earlier you put more away for yourself, retirement and non-retirement, the more you're likely to have decades down the line.