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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I don't get it, why pay cash? Our money has been giving us 12% returns in the stock market. I'm sure this whole thing is going to collapse soon, but whenever a stock has done well, we have cashed out, stashed away the profits and reinvested our initial investment.

One stock in particular that I was watching closely, I sold when it doubled, that took about 8 months.  Quickly turns a car I would have spend 35K cash on into 35K of profits.
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Because your 12% is high-risk investing. If you can consistently get 12% returns, you should quit your job, and start being a fund manager -- that outperforms the majority of fund managers on Wall Street.

Your point is well-taken though -- if you have the cash, and can get a 0% loan, it's better to take the loan. That's what we did on our last car purchase. 0% financed by GM (Ally Bank) and we put the money in an FDIC-insured account at 0.85% interest. Yes it's not a big payoff, but it's also risk-free.

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My only critique is that at 0.85% interest you're not keeping up with inflation so you're actually losing money in real terms.  Paying off the car is the better choice in this case.  But inflation has been real low, in economic terms, but in practical, local terms if you take the any of the toll roads on a regular basis, or need to rent an apartment (or even buy) prices have gone up considerably.[/quote]

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