Author Topic: Paid for my car in cash  (Read 7936 times)

thisisjeopardy

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Re: Paid for my car in cash
« Reply #50 on: February 13, 2017, 04:44:32 AM »
we bought a 2017 Prius in cash, considered  getting cheap financing and investing the difference but $25k isn't a lot of capital and wanted to be done with it

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Just Joe

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Re: Paid for my car in cash
« Reply #51 on: February 13, 2017, 08:37:43 AM »
We're planning to do the same thing when we buy our next newish vehicle. That will make us happier than a $400+ payment each month. Still rocking a pair of $2K cars for now. Can't bring myself to sell them b/c they get the job done and we don't travel much these days. As soon as we decide to go further from home, we'll want something newish. Just can't see driving a 400K mi old vehicle cross country. ;)

MoneyMage

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Re: Paid for my car in cash
« Reply #52 on: February 14, 2017, 01:53:11 AM »
This is great and I wish this was just... normal. >_<

I got into a conversation with my dad once about buying cars and mentioned I'd paid cash for my previous car, a Camry (under $5k) and he a) was flabbergasted I had saved up that much cash to spend all at once and b) tried to lecture me that it was always better to lease "so you can build credit". Needless to say, I don't take financial advice from him, and I've never taken out a lease on a car in my life.

Metric Mouse

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Re: Paid for my car in cash
« Reply #53 on: February 17, 2017, 01:28:29 AM »
This is great and I wish this was just... normal. >_<

I got into a conversation with my dad once about buying cars and mentioned I'd paid cash for my previous car, a Camry (under $5k) and he a) was flabbergasted I had saved up that much cash to spend all at once and b) tried to lecture me that it was always better to lease "so you can build credit". Needless to say, I don't take financial advice from him, and I've never taken out a lease on a car in my life.
Yes, talking about credit to a person who pays in cash. Great strategy. I know people who take out loans for stuff just for the 'credit'. I'll never understand it, especially when 730 (? or whatever the number is) gets one the best rates available and anything over that is basically pointless.
Give me one fine day of plain sailing weather and I can mess up anything.

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runewell

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Re: Paid for my car in cash
« Reply #54 on: February 17, 2017, 06:55:22 AM »
we bought a 2017 Prius in cash, considered  getting cheap financing and investing the difference but $25k isn't a lot of capital and wanted to be done with it

I see 1.9% financing on a Prius for 72 months, let's assume that instead of parting with $25K you hang on to it, invest it, and make the $368 monthly payment.
Had you gotten a 7% after-tax rate of return during that 6-yr time period. (the same interest rate I've seen MMM use), you would have come out $5,221 ahead!

That's a very expensive price for being done with it.



Please leave Dicey out of this! Have you not been paying any attention? Trolls are not welcome here!

boarder42

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Re: Paid for my car in cash
« Reply #55 on: February 17, 2017, 07:22:42 AM »
we bought a 2017 Prius in cash, considered  getting cheap financing and investing the difference but $25k isn't a lot of capital and wanted to be done with it

I see 1.9% financing on a Prius for 72 months, let's assume that instead of parting with $25K you hang on to it, invest it, and make the $368 monthly payment.
Had you gotten a 7% after-tax rate of return during that 6-yr time period. (the same interest rate I've seen MMM use), you would have come out $5,221 ahead!

That's a very expensive price for being done with it.

agreed

w major mistakes here IMO not a badassity move in anyway shape or form
1. its a brand new car. 
2. paying cash when financing is available at those crazy low rates. 

Half the time people post stuff like this i think this goes on the antimustachian wall of shame and comedy.

a quick CL search finds me a 2014 prius with 33k miles on it for 11900 ... assume i can get it for 11k.  and used financing is aroudn 4% ... financing this and banking the 14k saved over new way more badass.
« Last Edit: February 17, 2017, 07:24:43 AM by boarder42 »
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MommyCake

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Re: Paid for my car in cash
« Reply #56 on: February 17, 2017, 02:00:00 PM »

1. its a brand new car. 
2. paying cash when financing is available at those crazy low rates. 

Half the time people post stuff like this i think this goes on the antimustachian wall of shame and comedy.

a quick CL search finds me a 2014 prius with 33k miles on it for 11900 ... assume i can get it for 11k.  and used financing is aroudn 4% ... financing this and banking the 14k saved over new way more badass.

I've never had a brand new car.  Maybe if I did, I would understand why people spend SO much money on them.  It just seems so wasteful.  I've never had any major issues buying used... just regular maintenance stuff.

actionjackson

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Re: Paid for my car in cash
« Reply #57 on: February 17, 2017, 02:57:26 PM »
we bought a 2017 Prius in cash, considered  getting cheap financing and investing the difference but $25k isn't a lot of capital and wanted to be done with it

I see 1.9% financing on a Prius for 72 months, let's assume that instead of parting with $25K you hang on to it, invest it, and make the $368 monthly payment.
Had you gotten a 7% after-tax rate of return during that 6-yr time period. (the same interest rate I've seen MMM use), you would have come out $5,221 ahead!

That's a very expensive price for being done with it.

agreed

w major mistakes here IMO not a badassity move in anyway shape or form
1. its a brand new car. 
2. paying cash when financing is available at those crazy low rates. 

Half the time people post stuff like this i think this goes on the antimustachian wall of shame and comedy.

a quick CL search finds me a 2014 prius with 33k miles on it for 11900 ... assume i can get it for 11k.  and used financing is aroudn 4% ... financing this and banking the 14k saved over new way more badass.

We're not all from the USA you know. In Australia for example secured vehicle loans are ~7% interest if you have a decent credit rating.

Personally, I'm an expat - best rate I was offered on arrival to the US was 15% - because no credit rating.

Metric Mouse

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Re: Paid for my car in cash
« Reply #58 on: February 24, 2017, 08:02:13 PM »
we bought a 2017 Prius in cash, considered  getting cheap financing and investing the difference but $25k isn't a lot of capital and wanted to be done with it

I see 1.9% financing on a Prius for 72 months, let's assume that instead of parting with $25K you hang on to it, invest it, and make the $368 monthly payment.
Had you gotten a 7% after-tax rate of return during that 6-yr time period. (the same interest rate I've seen MMM use), you would have come out $5,221 ahead!

That's a very expensive price for being done with it.

agreed

w major mistakes here IMO not a badassity move in anyway shape or form
1. its a brand new car. 
2. paying cash when financing is available at those crazy low rates. 

Half the time people post stuff like this i think this goes on the antimustachian wall of shame and comedy.

a quick CL search finds me a 2014 prius with 33k miles on it for 11900 ... assume i can get it for 11k.  and used financing is aroudn 4% ... financing this and banking the 14k saved over new way more badass.
Meh. $14K over the life of a car is what, a 75 dollars a month? As the op stated; it's not that much capital.
Give me one fine day of plain sailing weather and I can mess up anything.

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Livingthedream55

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Re: Paid for my car in cash
« Reply #59 on: March 02, 2017, 09:58:37 AM »
Saving for a car for DD now. She's currently living at college but will commute starting in the fall.

So after not paying for next year's room and board and paying cash for a reliable used Corolla or Prius I'll still be close to $6,000 ahead!




nouveauRiche

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Re: Paid for my car in cash
« Reply #60 on: March 02, 2017, 02:33:46 PM »

I've never had a brand new car.  Maybe if I did, I would understand why people spend SO much money on them.  It just seems so wasteful.  I've never had any major issues buying used... just regular maintenance stuff.

+1  I've never bought a brand new car & neither has DH.  At this point I think we never will.  We buy reliable used cars and keep them a decade or more.

Livingthedream55

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Re: Paid for my car in cash
« Reply #61 on: March 10, 2017, 12:52:27 PM »

I've never had a brand new car.  Maybe if I did, I would understand why people spend SO much money on them.  It just seems so wasteful.  I've never had any major issues buying used... just regular maintenance stuff.

+1  I've never bought a brand new car & neither has DH.  At this point I think we never will.  We buy reliable used cars and keep them a decade or more.

I have bought 2 new cars in the past ( in my foolish 20's and 30's) - at least paid cash and kept 10 years or longer -  BUT - what I can tell you was (1) the negotiation process was awful and (2) I was so nervous about getting the first scratch that it took a lot of pleasure away. So I have no desire to ever, ever, ever buy new again.



kitsuneleah

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Re: Paid for my car in cash
« Reply #62 on: March 11, 2017, 03:19:46 PM »
My first car was a 2001 PT Cruiser, bought used from a coworker for $3,000... I was 17, and I'd managed to put away some cash from working since I was 14, so it was all paid by check.

At 128k miles now, I'm still driving that car, and I've fallen in love with the hatchback design! I moved across the country with all my belongings in that thing, even (with room for a copilot!).

Metric Mouse

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Re: Paid for my car in cash
« Reply #63 on: March 12, 2017, 04:02:00 AM »
My first car was a 2001 PT Cruiser, bought used from a coworker for $3,000... I was 17, and I'd managed to put away some cash from working since I was 14, so it was all paid by check.

At 128k miles now, I'm still driving that car, and I've fallen in love with the hatchback design! I moved across the country with all my belongings in that thing, even (with room for a copilot!).
Jealous! When I took off after highschool graduation I fit all of my worldly posessions into a 2 door Alero. A hatchback would have been fantastic.
Give me one fine day of plain sailing weather and I can mess up anything.

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GreenEggs

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Re: Paid for my car in cash
« Reply #64 on: March 12, 2017, 08:32:31 AM »
the time finally arrived for us to purchase a family car and we did it all in cash.

You literally walked into the dealership with a suitcase full of cash?

It's always been my dream to conduct such a transaction. Also - if I had enough money, I'd like to buy a small plot of land in the fancypants neighborhood where homes cost 5X what they should, just so you can say you live there. Then I'd proceed to get a mobile home delivered and live in it. Maybe do some deer skinning/gutting in the front yard or work on an old rustbucket car in the driveway while people drive by in their Mercedes.


I'm living in that scenario, except the double-wide was there before the 8200 sf houses started being built all around.  We don't skin & gut game out front, but we have a tractor &  a "less than new"  boat & jet skis parked out front.  Dad has been here, on the lake, since 1976 & bought a couple of trailers across the cove.  He gave us one last year, and I've been caregiving for him ever since (he's vision impaired & going through cancer treatment...so,strings were attached to the gift).  It is funny to be farming in the front yard as the exotic imports ride by.  All the other yard workers come in with their trailers in the mornings, but I'm living here.  It's not as much "fun" as it sounds.  They're friendly enough, but we don't have the same values or lifestyles.  We look like peasants & they look like hungry land vultures lusting over our properties.  When dad passes away we'll be selling and moving to a less developed lake, like things used to be here 40 years ago.  We just don't need the golf course or yacht club.  Fortunately my little double-wide has been a great investment, and we be able to swap it & the 1.2 acres it sits on for 80+ acres on another lake a couple hours south & still pocket over 4x what dad paid for the place.  Talk about the power of saving, investing, and buying & holding!  ;)