Reply to Example of how not to borrow for a car

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Um how is this stupid? I'm looking for a car and can get 0%, why wouldn't I put down as little as possible?[/quote]

How are you able to get 0%?[/quote]

np.  I bought my toyota highlander last year at 0% interest rate.  Toyota financing was running a special and I had good credit.  I also put my down payment on my amex so I could get the membership reward points.[/quote]

But don't you need gap insurance?  And, your credit score takes a little hit because you are financing.  Plus, the administrative hassle.  At the endvof the day why not buy it outright and be done with it?[/quote]

That's fine of course, as long as you have 12k or more to just be done with it.
Our credit score did not take a hit - in fact, revolving credit lines that are paid as agreed can improve your score.  
We had the cash to buy a car, but it was more valuable to us to keep it liquid, and/or in brokerage, in case of the unexpected, since we do not have tons of money in savings.  Especially with the 0.9% interest rate.
DH put the DP on our MC in order to get the low interest rate, we got tons of points and paid it off right away.  Win-win.

So if he has to sell the car within the next couple of years, he will take the hit just like anyone else would.  In the meantime, we have our cash if we need it.[/quote]

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