What is the limit for what you should put down on a vehicle?

[Anonymous]

Looking at a Hybrid CR-V. Out the door is about $41K. I am retiring next year so want to keep the payment low. $20K down payment will get it to $390/month.

Some people say hold on to my cash and put less down, but I sleep at night better with less monthly obligations. Sadly, car interest rates have gone up in the last few weeks and with the possibility of tariffs, worried thay six months from now is going to be a car buying disaster. Thanks Trump.

[Anonymous]

There is no limit. Why do you want to pay 7-8 percent interest if you have cash?

[Anonymous]

Anonymous wrote:There is no limit. Why do you want to pay 7-8 percent interest if you have cash?

+1 I'm retiring soon too and bought a CRV this year. We paid cash. I've budgeted for our car replacements in our retirement savings so it wasn't a problem and I'd rather do that vs adding to monthly cash flow requirements. Sure, if I could have gotten a very low interest rate I might have made a different decision but I'm glad to not have a car payment.

[Anonymous]

Cars are a depreciating asset. Unless you get some kind of discount for financing and a low rate, there is never a reason to finance if you don't need to.

[Anonymous]

Anther new CRV owner who paid in cash

[Anonymous]

Sure, let’s blame Trump for the fact that you can’t pay cash for your car. Why aren’t you blaming your employer for not paying you enough?

[Anonymous]

Pay cash if you can! Why take out a loan??

[Anonymous]

Anonymous wrote:Pay cash if you can! Why take out a loan??

I’m getting a car loan for 3%. My 401k is earning minimum 8%.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Pay cash if you can! Why take out a loan??

I’m getting a car loan for 3%. My 401k is earning minimum 8%.

What does this have to do with your 401k? Are you draining it to pay for the car? Regardless, if you can get a loan at 3 percent and invest the proceeds in the stock market you are likely to come out ahead in 5 years. But it is not guaranteed so if you want to sleep better just pay cash for the car.

[Anonymous]

I got my car at 0% in May 2024 with 0% down. I actually got rid of a Honda. I sold it and put the cash in the market where it has already doubled.
I also wouldn't buy a $41k car. $33k was my max. As a retiree, where do you need to be driving?
It's contradiction to me that you are overbuying, overpaying for interest rate, not getting any return for the $20k cash while going for a more expensive car. I wouldn't sleep at night either.
As a retiree, I'm really not driving much.

[Anonymous]

Anonymous wrote:Looking at a Hybrid CR-V. Out the door is about $41K. I am retiring next year so want to keep the payment low. $20K down payment will get it to $390/month.

Some people say hold on to my cash and put less down, but I sleep at night better with less monthly obligations. Sadly, car interest rates have gone up in the last few weeks and with the possibility of tariffs, worried thay six months from now is going to be a car buying disaster. Thanks Trump.

If you sleep better with less monthly obligations, why not pay cash for a used one that has already depreciated? Tariffs are for cars made outside the US. Where was the CRV made?

[Anonymous]

I buy all our cars with cash, unless it’s a 0% loan.
Don’t get used to car payments. Invest that money instead

[Anonymous]

Good car brands are not giving low interest rates right now. Pay cash.

[Anonymous]

Anonymous wrote:Cars are a depreciating asset. Unless you get some kind of discount for financing and a low rate, there is never a reason to finance if you don't need to.

If the deal includes no interest might be ok to refinance.

[Anonymous]

Anonymous wrote:

Some people say hold on to my cash and put less down,

Ignore these people. There is always someone giving their opinion and thinking that they know everything. Just go with your gut.