How much downpayment required?
Team Owner
Joined: Sep 2005
Posts: 29,113
Likes: 2,194
From: Big Bend Country, TX
St. Jude Donor '06-'07-'08-'09-'10-'11-'12-'13-'14-'15- '16-'17-‘18-‘19-'20-'21
NCM Lifetime Member
I believe he said deposit. Sorry, I don't have $5k laying around and I'm not going to put it on a CC. Notice I didn't say that I didn't have $5k, it is just being invested.
The big down payment or no down payment is a good arguement though. I know I can invest $35k and make more then 5-6%. Even if it made 3% that is 3% more then if I used it for a down payment. (The interest rate I was given.) Say if we both get into accidents (it happens to the best drivers) and I bought GAP insurance. Our car value has sunk to below what insurance would give you. GAP insurance covers me up to 125% of the value of the car. They give you what the car is worth. You just wasted the difference between the value of the car and what I owed on it. It usually doesn't matter who was at fault either. Another insurance company is only going to give you how much your car is worth.
Of course if I had tons of money around the house I wouldn't care about paying cash.
The big down payment or no down payment is a good arguement though. I know I can invest $35k and make more then 5-6%. Even if it made 3% that is 3% more then if I used it for a down payment. (The interest rate I was given.) Say if we both get into accidents (it happens to the best drivers) and I bought GAP insurance. Our car value has sunk to below what insurance would give you. GAP insurance covers me up to 125% of the value of the car. They give you what the car is worth. You just wasted the difference between the value of the car and what I owed on it. It usually doesn't matter who was at fault either. Another insurance company is only going to give you how much your car is worth.
Of course if I had tons of money around the house I wouldn't care about paying cash.
Team Owner
Joined: Sep 2005
Posts: 29,113
Likes: 2,194
From: Big Bend Country, TX
St. Jude Donor '06-'07-'08-'09-'10-'11-'12-'13-'14-'15- '16-'17-‘18-‘19-'20-'21
NCM Lifetime Member
