How did you know when you wanted a zo6 bad enough to go in debt for it? I'm tight.

 

My Z is a toy, I don't go in debt for toys.

 

That's my thinking to. Just wanting one lol. Probably wait another 2 to 3 years and just buy it.

 

 

I dont understand why you cant have a loan for a Z. I do. I dont owe anything on my other cars but I have one car payment for my z. I did put money down on it to make sure if I did total it I would be covered. I do agree it is better not to have a loan but I wasn't going to wait 3 years to buy one. I guess in my case the money I would have saved for it would have just gone to something else like 4 wheelers or sleds or something. I just dont have the discipline some others do. Your call. Good luck

 

When I saw it on line.. Had to have it!

Note: Nothing wrong with taking a loan out if you can pay for it in assets and the loan amount is less than what you can earn with the money it would take out of your account, to by it outright.

Both of my cars are financed, but I could get out of them (with assets) any time I wanted.

Why should I deplete my cash accounts when the interest is less than am earning?

 

Amlarson2001 I am not sure if I can wait. I just stress over debt. I go to bed thinking how I can pay my house off faster.

Bikeriderga you make a lot of sense.

Thanks for the replys.

 

An interesting discussion... I'm in agreement with those who hold the perspective that it's a 'toy' and should be paid for in cash. That's what I did when I bought mine.

I don't mean this next part to sound high-handed, but it might... I'm of the opinion that I should save up for my toys and pay for them outright when I've saved enough. If something as financially significant (to us) as a car purchase is considered a toy (and our Vette qualifies), I've always thought that "saved/accumulated monies" for the specific purchase should be used, and in that case, it would be money that I wouldn't 'miss'--that is, the expenditure wouldn't impact my overall financial status.

My financial accountant disagreed completely. When we considered our needs to replace a second vehicle, he told me, "if you're gonna need more than $20G's, you should call me. (we were considering a large SUV; ~ $37G's) I'll set up an annuity with some of your portfolio and you can make monthly payments from it. It's not wise to deduct amounts larger than that for cash payments. We can make more than the interest lost."

Sooo... I'm still looking for the next vehicle, but I'll probably "take out a loan" for the first time in 40 years. It's a unique situation--we'll be financing our own loan. BUT, we won't pay cash, and that's the point; today, we can afford to lock a huge amount of money up in an obligation in order to benefit financially in the long run.

If I was to speak from my youth, though, when I didn't have the absolute financial stability that I do now, I'd still say that our car loan for the daily driver was still the correct (and only feasible) method for us to make the purchase. But even in that day, we could have paid cash--but we sure would have tapped into our 'assets'.

 

C5's are relatively reliable and economical cars. If you actually drive it I see no reason not to have a loan on it. It's certainly cheaper than leasing or buying most any new car.

 

I pay cash for all of my cars...no debt.

 

So now you are saying you are not going to buy one till you house is payed off! No way I could wait that long. Just remember you can always sell this car at very little loss in 5 years. (most likely) Then you can use that money towards anything you want and you will have had years of fun. My 2 cents I guess I live in the now. Might be dead tomorrow.

 

What he said in RED...

Life is too short to wait for many things. I've seen friends and family die too early lately and I'm not going to die a day after I paid off a house, to wish I had bought and enjoyed a car (or other things).

You can own a nice C5 and still be reasonably frugal/responsible with money (as long as you don't do it the way I did it). LOL

 

I took a loan out on mine but it is not financially burdening me. I don't see the problem with a loan at all as long as it's not hurting you. The idea of "paying in cash only" is silly.

Like others have said, you may save up for 3 years to buy it cash just to have something else happen. Or, you could have been driving it for 3 years enjoying it and sell it off if you need to.

The C5 isn't taking much depreciation anymore son taking a loan out on one isn't a bad move IMO. If it were a newer car and you were going to lose your *** on it then that doesn't make sense obviously.

Each deal is different IMO. Too many variables to decide what's right and what's wrong.

 

Since you are trying to figure out how to pay your house off faster, it sounds like you are financially responsible, and the fact that you are debating this is further evidence of that

I prefer to split the difference between living for now and later: I have the Z06, the quad, and the bike (car loan for the Z, quad will be paid off in three months after a couple hundred in interest, bike was purchased at 0% on a credit card and is paid for) because you never know if you'll see tomorrow, and I have retirement accounts for the future. Don't overspend in the now and short yourself in the future, and don't overspend in the future and short yourself in the now

 

You all make great points. Thanks!! My Wife says just buy one.

 

The light is green man. Go!

 

Lol.

 

It's interesting on this forum to see the huge difference in fiscal responsibility vs. other forums. Me? I financed, then refinanced to roll a race car into the Corvette's loan. I kind of hate myself for it, but I still have enough money leftover after the Corvette payment to go race the Camaro so it's not like I'm not providing for the family. Plus this way I only have one payment. Finances have been on the up and up lately and I'm hoping to finance only 1 more car in my life before transitioning strictly to cash so maybe in 5 more years I can preach from the other side of the fence. Part of it is have fun now, your health or life may not wait for you.

 

I had a loan for mine.

48 month loan paid off in 28 months. I financed 78.3% of the car.

The rate was low enough and obviously I paid it off early anyway. I paid a little money in interest but i'm glad that I had the Z for those 28 months over waiting and paying cash. Not to mention I definitely would have blown that extra interest money (highly likely more) on things almost as stupid as the interest.

Heck, a lot of credit unions give interest rates low enough that it makes sense to actually leave your cash in a money market account because it gains more than the interest on your loan....

I financed the DD (Financed 78.9%) I recently bought. I have more than enough cash to buy it outright but I'd rather have that cash in an emergency fund. I'm scheduled to pay <$500 in interest over the course of the loan IF I take the full time to pay it off. I'm not too worried about that.


Edit: Essentially, the more money you have, the more it makes sense to finance. My parents financed a car at .9%....why would you not do that? Pay your mortgage, put the money in the market - heck, a high yield online savings account can at least match that! Make money work for you rather than having all of your cash tied up in a depreciating asset.

 

About 5 yrs ago I got myself totally out of all debt and started buying things cash only.

Heres my realization with doing that....

In the past, buying a car on a loan, it was ok for me to get a $40-50K car and have that $800 car payment.. I figured I can afford it so I deserve it..

But now, when I hold myself to buying a car cash, I have a very hard time pulling that kind of money out of the bank to blow on a car.. So a few years ago when it was time to buy a daily driver, I had to figure out a number that I was ok with pulling out of the bank.. and it was $15K.. lol So I ended up buying a used Jetta TDI as a daily driver.

Its a whole different world when you actually see that money in your hands and realize youre about to blow it on an object that will depreciate like a rock!!