Anonymous wrote:Of course. The rich don’t get car loans.

The rich i know lease cars!

The car is cheaper, generally, if you finance it. Pay off the loan with cash the next month.

It’s probably good if you’d use that money for frivolous items or if a high interest rate. There’s a big psychological component too. If you’re paying outright probably less likely to overspend on a car you don’t really need luxury wise. Our car loan is currently 0% and we use that money instead to invest in our business.

I always paid cash, but they were giving 1.9% financing last time I bought in Jan 2022. I took the free money, my savings account earns more than that! It’s no hassle at all, it’s call automatic payments lol

This is all about your loan APR and what you presume that you can get for a return in the markets over the term of the loan.

It all depends what you are comfortable with.

I would never bother with the hassle of a car loan. Just pay cash.

Anonymous wrote:I hate buying cars and paid cash for every one I bought. I was raised really poor and learned early that debt keeps poor people poor.

This, we pay cash, save toward the next one.

I hate buying cars and paid cash for every one I bought. I was raised really poor and learned early that debt keeps poor people poor.

We have done this twice. Looking to do it again in the next year as, now, we can't even try to talk ourselves into a high interest rate.

Having no car payment is great. I think it might also help with insurance rates, but I'm not sure about that.

Anonymous wrote:Of course. The rich don’t get car loans.

The Old Money family I married into sure does. They put at least half down and do a loan for the rest as long as the loan has a low APR.

Anonymous wrote:Of course. The rich don’t get car loans.

Correct, but we also buy certified pre-owned (aka used cars).

I’ve was taught as a child that the best thing to do is buy cars with cash and then drive them as long as possible.

But I also never questioned this wisdom and the source is for sure unreliable.

Of course. The rich don’t get car loans.

Why or why not?