Not always...if you get 0%, it's better to use thier money. Just sayin.

 

Why is it better to use their money? You still have payments so there for its YOUR money.

And try being late on one of those payments (yes it can happen, lose a job...big medical bill...stuff can happen) And then watch those ratesgo sky high.

Seems to me like your either a young guy or dont have much experience in car loans lol


You buy it in full on the lot and theres no payments.......I have a hard time understanding your logic that its better to finance than to just buy outright.....

 

I'm 37 and have owned many cars in my life. If i have 40 grand to put down on a new car i am much better off investing the money somewhere stable over the next 5 years (cd's, mutual funds, money markets, etc...) I didn't say go out and blow the money. If you lose your job, you have the money saved already. That being said, you are now earning money on your 40 grand and paying 0% interest on your new truck. It's not rocket science. Make sense?

 

If you got 0% interest on your truck, it generally means that you didn't get as good of a price on it at the time of sale. Like the old adage goes, "There's no such thing as a free lunch!"

I've looked at 0% deals on just about every vehicle I've bought over the years, and it is a very rare event when the "total cost of ownership" is lower by financing at 0% versus paying for it in full at a more aggressive price on the front end.

In most cases, if you think you're getting a good deal by going 0% it means you're not that financially astute. About the only reason I would go 0% versus paying in full would be if I needed the financial cushion.....

 

Lets be honest, the difference between getting 0% and paying cash is usually not going to be that big a difference. If you can't negotiate a vehicle for a little over invoice these days, no matter how you pay, you deserve to get ripped off. All i'm saying is the average person saves 40 grand and then puts it all into a vehicle that within a year will only be worth maybe 30, is crazy. You go ahead and do that while my 40 grand is earning interest somewhere, and i'm paying my 0% interest.

 

I might have conceded the investment point to you 10-years ago when the market was booming, but in this day and age, I don't see many folks getting the kind of market returns that would justify the compromise.

All I can say is that I can think of few things that have changed my financial well-being and sense of control as biting the bullit back in the late-90's to begin saving enough money to pay cash for my vehicles. Was it fun the few years it took to accumulate the funds? No. But the rewards I am enjoying now make that short-term pain seem insignificant.

But hey -- to each his own.....

 

I hear ya and respect what you are saying. All I have to say, and I know I took some risks, is that my investments made 36% for last year.