Is it ever a good idea to pay full price for a car up front?

[Anonymous]

Why or why not?

[Anonymous]

Of course. The rich don’t get car loans.

[Anonymous]

I’ve was taught as a child that the best thing to do is buy cars with cash and then drive them as long as possible.

But I also never questioned this wisdom and the source is for sure unreliable.

[Anonymous]

Anonymous wrote:Of course. The rich don’t get car loans.

Correct, but we also buy certified pre-owned (aka used cars).

[Anonymous]

Anonymous wrote:Of course. The rich don’t get car loans.

The Old Money family I married into sure does. They put at least half down and do a loan for the rest as long as the loan has a low APR.

[Anonymous]

We have done this twice. Looking to do it again in the next year as, now, we can't even try to talk ourselves into a high interest rate.

Having no car payment is great. I think it might also help with insurance rates, but I'm not sure about that.

[Anonymous]

I hate buying cars and paid cash for every one I bought. I was raised really poor and learned early that debt keeps poor people poor.

[Anonymous]

Anonymous wrote:I hate buying cars and paid cash for every one I bought. I was raised really poor and learned early that debt keeps poor people poor.

This, we pay cash, save toward the next one.

[Anonymous]

I would never bother with the hassle of a car loan. Just pay cash.

[Anonymous]

It all depends what you are comfortable with.

[Anonymous]

This is all about your loan APR and what you presume that you can get for a return in the markets over the term of the loan.

[Anonymous]

I always paid cash, but they were giving 1.9% financing last time I bought in Jan 2022. I took the free money, my savings account earns more than that! It’s no hassle at all, it’s call automatic payments lol

[Anonymous]

It’s probably good if you’d use that money for frivolous items or if a high interest rate. There’s a big psychological component too. If you’re paying outright probably less likely to overspend on a car you don’t really need luxury wise. Our car loan is currently 0% and we use that money instead to invest in our business.

[Anonymous]

The car is cheaper, generally, if you finance it. Pay off the loan with cash the next month.

[Anonymous]

Anonymous wrote:Of course. The rich don’t get car loans.

The rich i know lease cars!