You guys are paying cash for Corvettes
10-19-2016, 06:54 PM
#21
Melting Slicks
[QUOTE=eshrink;1593289099]I have a tax deferred income account at work as well as a funded 401K, both are currently over 4%. You can also look at tax deferred annuities. Some are really good, but you must do your homework. Suggest you chat up your financial advisor. The Corvette forum is full of experts, however, I wouldn't trust my financial future to someone who buys a $100K car. LoL
10-19-2016, 07:22 PM
#22
Burning Brakes
When you are buying toys, I learned a long time ago, just pay cash. Just like when you are at an auction, if you can't afford to pay the price, you don't raise your hand. As my wife says, you don't finance the shoes in your closet!
Don't get me wrong. There is nothing wrong with 'financing' a Corvette. There are just a lot of folks out there that don't have to.
Don't get me wrong. There is nothing wrong with 'financing' a Corvette. There are just a lot of folks out there that don't have to.
10-19-2016, 07:27 PM
#23
Paid cash, just don't need to or want to bother with monthly payments.
10-19-2016, 07:29 PM
#24
Le Mans Master
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St. Jude Donor '15-'16,'18
[QUOTE=eshrink;1593289099]Excellent question. While many investments end up paying more than 4%, I am unaware of ANY GUARANTEED investment that one can get TODAY that will pay 4% or more. If there is one, I have cash to invest.
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10-19-2016, 07:39 PM
#25
10-19-2016, 07:48 PM
#27
Keep in mind paying cash usually is based on the net worth of the person, the amount of cash he may have or money in investments and or real estate.
While some people may feel it is dumb or stupid paying cash, it is strictly dependent on the financial situation of each individual and what their personal beliefs are about handling money.
..
Last edited by nmvettec7; 10-19-2016 at 07:58 PM.
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10-19-2016, 08:02 PM
#29
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St. Jude Donor '09
We financed all our cars for decades out of necessity, but have been fortunate to have saved enough to pay cash for the most recent three, including the '06 C6 and '15 C7. I hate debt.
10-19-2016, 08:09 PM
#30
Pro
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10-19-2016, 08:15 PM
#31
Melting Slicks
50/50 chance they are really smart or really _____.
10-19-2016, 08:40 PM
#36
Team Owner
http://www.cheatsheet.com/money-care...e-cost.html/7/
According to the article more people pay cash for Corvettes than other performance cars.
According to the article more people pay cash for Corvettes than other performance cars.
some gaining 15-17 percent per year right now. Then who would keep a extra 100k in the bank to buy a car? I keep mine invested.
My z06 was bought with 15,000 down and the rest comes out of my check. But I don't carry a mortgage. I would pay cash for a house but not a car.
Last edited by 3 Z06ZR1; 10-19-2016 at 08:43 PM.
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10-19-2016, 08:41 PM
#37
Moderator
If it's somebody else's money people tend to spend too much. Cash for me. If I don't have the cash, I don't buy it. Works great to control spending and useless debt.
Last edited by Zjoe6; 10-19-2016 at 08:41 PM.
10-19-2016, 08:45 PM
#39
Instructor
This is sure to be as divided as chrome vs black wheels.
First look at the article. The Corvette is the most expensive car of the seven. And the majority who buys them? Old guys! So it is absolutely expected that more people will pay cash for Vettes compared to Mustangs, Camaros and Challengers. Duh?!?
But it is interesting that everyone immediately went to the debate of whether it is better to pay cash or finance. In a low rate environment (loans of 1-2%), it is almost always better to put your money to work elsewhere. Although there are no current guaranteed returns in the 4%+ area, it would be hard to earn less than 1-2% over any given 5 year period.
Of course this assumes that one would take that money and fully invest it and not increase spending, etc.
For most (including me), the sweet spot is somewhere in the middle. The last 4 cars we have purchased were financed between 0.5% and 2%. We put half down on the 2% (Vette, highest financed amount) and the rest we financed 100%. Simply because we would rather take the chance that we could earn more money on a 60/40 stock/bond investment than we were paying as interest on these loans.
The other thing is that we keep our cars 10 years on average. We write off the value on day one. Assume it will be worth nothing when you part ways.
But we do pay off some debt early. Our last 30 yr mortgage was paid off in 10 years and this 15 yr mortgage is targeted 10 years although it is a very low 3%.
You need money to make money. The more invested the better. But the other side of the coin is that there is comfort in being debt free and working toward it faster than your neighbor. Again, the sweet spot is probably somewhere in the middle.
Thank god we are all fortunate enough to be having this debate.
First look at the article. The Corvette is the most expensive car of the seven. And the majority who buys them? Old guys! So it is absolutely expected that more people will pay cash for Vettes compared to Mustangs, Camaros and Challengers. Duh?!?
But it is interesting that everyone immediately went to the debate of whether it is better to pay cash or finance. In a low rate environment (loans of 1-2%), it is almost always better to put your money to work elsewhere. Although there are no current guaranteed returns in the 4%+ area, it would be hard to earn less than 1-2% over any given 5 year period.
Of course this assumes that one would take that money and fully invest it and not increase spending, etc.
For most (including me), the sweet spot is somewhere in the middle. The last 4 cars we have purchased were financed between 0.5% and 2%. We put half down on the 2% (Vette, highest financed amount) and the rest we financed 100%. Simply because we would rather take the chance that we could earn more money on a 60/40 stock/bond investment than we were paying as interest on these loans.
The other thing is that we keep our cars 10 years on average. We write off the value on day one. Assume it will be worth nothing when you part ways.
But we do pay off some debt early. Our last 30 yr mortgage was paid off in 10 years and this 15 yr mortgage is targeted 10 years although it is a very low 3%.
You need money to make money. The more invested the better. But the other side of the coin is that there is comfort in being debt free and working toward it faster than your neighbor. Again, the sweet spot is probably somewhere in the middle.
Thank god we are all fortunate enough to be having this debate.
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10-19-2016, 08:46 PM
#40
Burning Brakes
