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

[Anonymous]

Anonymous wrote:

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?

Cars like a Honda depreciate really slowly, there was a drop in production in the pandemic so there are fewer cars less than 5 years old and the price gap between old and new doesn’t usually bear out much for total cost to own over the long term (because you have no warranty, earlier maintenance, etc)

You buy used because you can’t afford new, not for better value.

https://www.motor1.com/news/734985/used-car-prices-falling-cheaper/

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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?

Cars like a Honda depreciate really slowly, there was a drop in production in the pandemic so there are fewer cars less than 5 years old and the price gap between old and new doesn’t usually bear out much for total cost to own over the long term (because you have no warranty, earlier maintenance, etc)

You buy used because you can’t afford new, not for better value.

https://www.motor1.com/news/734985/used-car-prices-falling-cheaper/

Lol. Disagree.

[Anonymous]

I've never financed a car, even when rates were low. I don't think other people's opinions on this should drive your decision.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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?

Cars like a Honda depreciate really slowly, there was a drop in production in the pandemic so there are fewer cars less than 5 years old and the price gap between old and new doesn’t usually bear out much for total cost to own over the long term (because you have no warranty, earlier maintenance, etc)

You buy used because you can’t afford new, not for better value.

https://www.motor1.com/news/734985/used-car-prices-falling-cheaper/

Lol. Disagree.

I used to disagree too, until the pandemic. Used car prices are still being affected. In the past, you could buy a 3yo quality car (Honda, Toyota, Acura, Lexus, Subaru…) for easily 30% less than new. Now, when we recently looked the difference was much much less. It made sense to buy new.

[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.

Is that the general consensus about cars and tariffs?

[Anonymous]

Pay cash unless you can get a 0% loan.

[Anonymous]

Pay in full or no car.

[Anonymous]

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

This 1000%!! As long as you have a Fully funded EF, pay cash for the car (or put as much as you feel comfortable down). Cash is only getting you 4% now, you owe taxes on that, so why take a loan for 7-8%?

[Anonymous]

Anonymous wrote:

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.

You also saved yourself 2-3 hours of busywork once you pay off the car, tracking down actually getting the loan company to send you the title or having to spend time in a DMV to deal with that transfer.

IMO, unless you are getting 0-2% loan rate, just pay for the car with cash

[Anonymous]

Anonymous wrote:Pay cash unless you can get a 0% loan.

Worth noting in most cases, there is an option to take either the 0-2% promotional loan that the automaker is subsidizing, OR get a “cash back” rebate of a few thousand $ from the manufacturer.

OP, if you are going to pay cash, don’t roll up to the salesperson stating that early on. They prefer you finance through them because the dealership gets a commission on loans. Negotiate the out the door price first including any rebates and removing junk fees like VIN etching and $299 door edge guards…then after that pay however you want to pay.

[Anonymous]

Anonymous wrote: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?

Why are you supporting a treasonous con man?

Why are you this ignorant?

[Anonymous]

OP I would do what you did.

[Anonymous]

We usually pay for our cars without financing. We often find good deals on used cars (just a year or two old). In the last year, we’ve purchased two cars and did not find any good used car options—they were essentially the same price as new.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

You also saved yourself 2-3 hours of busywork once you pay off the car, tracking down actually getting the loan company to send you the title or having to spend time in a DMV to deal with that transfer.

IMO, unless you are getting 0-2% loan rate, just pay for the car with cash

Really? 3 cars all just show up in mail.

[Anonymous]

Anonymous wrote:We usually pay for our cars without financing. We often find good deals on used cars (just a year or two old). In the last year, we’ve purchased two cars and did not find any good used car options—they were essentially the same price as new.

Yeah we had to drop 5 years to see meaningful price drop on a Toyota, and then we have essentially shortened our car lifespan a big chunk.