Reply to How much are you paying for your car?

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[quote=Anonymous][quote=Anonymous]OP and the PP with two kids in daycare were different posters.  But, yes, I agree with PP that most of the people responding are out of touch rich people.  It is very typical for people not to have enough cash saved up to buy a car (unfortunate, but typical).

We're facing a similar question of whether to buy a new car at 0% versus used car at 2.29% or whatever the credit union is charging these days.  Do I wish we had cash on hand to buy a car without a loan?  Of course.  But we don't, and our minivan is on its last legs and not worth repairing, and I need something safe and reliable (not luxurious, not fancy) to drive my family around in.

And getting a 0% loan and keeping the cash in savings is not the same thing as investing on margin.  C'mon people...

[/quote]

Figure the cost of a new car with 0% and a used car at 2.29% and decide whichever is best for you.

[b]If[/b] you choose the new car, when you decide how much to put down and how much to finance, it [b]is exactly[/b] the same as getting a 0% loan and keeping the cash to "invest" (you choose the asset allocation) on the margin.  This has nothing to do with being rich or poor.

Similarly, choosing the size of the down payment on the 2.29% loan is the same as getting a 2.29% loan and keeping cash to "invest" on the margin on the amounts you choose to finance.[/quote]

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