Our last car, we purchased brand new. We financed it all because the interest rate is 0%. No need to part with my cash. I don't see the point. Payment is $800.

Paying cash vs financing for us has everything to do with if there are favorable loan options.

Anonymous wrote:we bought at $60K car (excluding taxes, etc) and put down around $10K. got a 5 year loan at a very low rate for the rest and pay around $1000/month.

Insane waste of money.

$265 at 1%, we'll own it next year.
$525 for a lease that will end next year as well. Next larger vehicle will be around $350/month to buy over 60months.

We also pay cash and then begin saving for the next car purchase. We drive our cars as long as we can.

*cash*

Ok, am I the only one who thinks it just plain stupid to pay cash for a car if you can get 0% financing?

Why loose the opportunity for you money to earn even a tiny bit of interest ? I'm not saying don't have the cast in reserve, but why not take advantage?

Anonymous wrote:When you pay cash for a brand new car, don't you already lose the depreciation as soon as you drive it off the lot?

The depreciation happens regardless of the financing.

Add us to the list of $0 payment. Pay cash and drive car as long as you can. I am not someone who "needs" a new car every few years. If mine works, then I drive it.

When you pay cash for a brand new car, don't you already lose the depreciation as soon as you drive it off the lot?

It is a depreciating asset, so of course we try to pay cash for as much as possible. Then we save up for the next car. We buy new Toyotas as they tend to hold value so much that it doesn't make financial sense to buy used; if would just get to the repair years a bit faster.

Currently have a $380 payment on a highlander @ 0%. We put $15k down. Shopping for another car right now and planning on another 0% loan and a car payment under $400/mo.

I usually let the financing dictate. If I can get a better deal by paying in cash, I take it, if I get a better deal on total price at 1.9%, I finance it and then pay if off after six months or so, figure it looks great on the credit rating.

Have done this for the past 5 or 6 cars we have owned. While there was at time when we had payments, now we are never buying one that we couldn't pay cash for if we needed to. We have 3 cars and they are normally no more than 4-5 years old so we are always buying or selling one of them.

I also buy cars new (Hondas) and drive them into the ground - keep them at least 10 years. Currently, we are paying $140/month on a Civic we put $8k down on (so we financed about $8k at less than 1% for 60 months).

For our next car, which we'll need in about a year once the Civic is paid off, we are budgeting more like $400-500 a month for the payment, but that is because we want a larger car and won't have a lot to put down.

My brand new 2015 Mazda CX-5 costs me $314.50/month. I put $8k down. 0% interest loan.

Anonymous wrote:

Anonymous wrote:$0

Always buy for cash.

+1 (actually 2, since we own 2)

+ 2 we have two cars 2014 and 2012. Have been paying cash for last 5 purchases.