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[quote=Anonymous][quote=Anonymous][quote=Anonymous]The zero financing has a cost. In almost all cases the potential rebate you can negotiate will be lower with zero percent financing than if you are paying cash.

[b]As for the crazy that says you should borrow at three percent when you can pay cash instead, since you can get a higher rates of return by investing, I say, good luck. I hope that works out for you.[/b][/quote]

It works for many. It works for banks. It works for businesses. It works for individuals.
You remind me of a friend who insisted on paying cash for everything. He doesn't use credit cards for that reason. He is basically afraid of CCs interest rates.
I explained to him that most cards give you a 21 days grace period, meaning that this is a 21 days 0% loan. Save your cash, use the free loan and pay in full before the grace period ends. Get a CC that give you the most points and you are coming way ahead of the cash paying customer.

The same friend insisted on purchasing properties cash. Many years ago we were looking at investment properties in FL. I bought a 4 unit rental property. I took a mortgage to finance my purchases, putting 50k down on each unit. He didn't want to borrow money, so he bought just 1 unit and paid cash. This was such a bad financial move but it was [b]what he was comfortable with.[/b]
[/quote]
That's the key phrase. If he sleeps better at night because of it, it is worth all that "lost income". [/quote]

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