Comments on: Was Paying Cash For A Car Worth It? http://www.thehappyrock.com/2007/09/25/was-paying-cash-for-a-car-worth-it/ Getting out of Debt, Getting off the Couch, and Getting into Life Sun, 29 Jan 2012 16:23:20 +0000 hourly 1 http://wordpress.org/?v=3.1 By: The Happy Rock http://www.thehappyrock.com/2007/09/25/was-paying-cash-for-a-car-worth-it/comment-page-1/#comment-12236 The Happy Rock Tue, 04 May 2010 02:26:28 +0000 http://www.thehappyrock.com/2007/09/25/was-paying-cash-for-a-car-worth-it/#comment-12236 @Rob, There are a couple of misconceptions in your comments. First, unless you are rich I don't see buying a new car as a smart option. Why take the 30% off the lot value hit when someone else can pay for it. With that being the case, most older car loans are 6 - 10% interest, which would is throwing a significant chunk of change away each month. Second, I would be buying a car with cash that I needed for other things. You have an emergency fund for that. Third, find a spot were cash buys you more. Cash gives you bargaining power, especially in the private market. Fourth, I don't agree that paying cash is debt. You do lose the opportunity to do something else with the money which is called opportunity cost, but it isn't debt. With debt, someone else has a right to tell you were your money needs to go. @Rob,

There are a couple of misconceptions in your comments. First, unless you are rich I don’t see buying a new car as a smart option. Why take the 30% off the lot value hit when someone else can pay for it. With that being the case, most older car loans are 6 – 10% interest, which would is throwing a significant chunk of change away each month.

Second, I would be buying a car with cash that I needed for other things. You have an emergency fund for that.

Third, find a spot were cash buys you more. Cash gives you bargaining power, especially in the private market.

Fourth, I don’t agree that paying cash is debt. You do lose the opportunity to do something else with the money which is called opportunity cost, but it isn’t debt. With debt, someone else has a right to tell you were your money needs to go.

]]> By: Kevin Phillips http://www.thehappyrock.com/2007/09/25/was-paying-cash-for-a-car-worth-it/comment-page-1/#comment-11914 Kevin Phillips Mon, 18 Jan 2010 16:19:28 +0000 http://www.thehappyrock.com/2007/09/25/was-paying-cash-for-a-car-worth-it/#comment-11914 I was shocked to read that your ford focus turned out to be a lemon. I have heard nothing but good things about them. For me personally, I prefer to buy cars with cash as well. Years ago I was in financial trouble and was looking for ways to cut monthly expenses and car loan was the first to go. This usually restricts me to buying cars 10+ years old and used, but it means no monthly payments. If you can afford to buy a new vehicle in one shot, I think that is the way to go. @myCarBuddy I was shocked to read that your ford focus turned out to be a lemon. I have heard nothing but good things about them. For me personally, I prefer to buy cars with cash as well. Years ago I was in financial trouble and was looking for ways to cut monthly expenses and car loan was the first to go. This usually restricts me to buying cars 10+ years old and used, but it means no monthly payments. If you can afford to buy a new vehicle in one shot, I think that is the way to go.

@myCarBuddy

]]> By: Rob http://www.thehappyrock.com/2007/09/25/was-paying-cash-for-a-car-worth-it/comment-page-1/#comment-11816 Rob Sat, 26 Dec 2009 17:48:49 +0000 http://www.thehappyrock.com/2007/09/25/was-paying-cash-for-a-car-worth-it/#comment-11816 If cash is king, then why would you want to give yours away? It baffles me how those who pay cash for a car feel as though they have no monthly debt. You absolutely have debt - it' s just that you paid off your debt up front. Now you have to recoup the cash you threw away on a car that is worth 20% less than what you paid for it, each and every year. By preserving your cash, you have far more flexibility with your money - that is why it costs money to borrow. If cash is king, then why would you want to give yours away? It baffles me how those who pay cash for a car feel as though they have no monthly debt. You absolutely have debt – it’ s just that you paid off your debt up front. Now you have to recoup the cash you threw away on a car that is worth 20% less than what you paid for it, each and every year. By preserving your cash, you have far more flexibility with your money – that is why it costs money to borrow.

]]> By: Rob http://www.thehappyrock.com/2007/09/25/was-paying-cash-for-a-car-worth-it/comment-page-1/#comment-11815 Rob Sat, 26 Dec 2009 17:43:46 +0000 http://www.thehappyrock.com/2007/09/25/was-paying-cash-for-a-car-worth-it/#comment-11815 Paying cash is the worst option of the three ways to finance a car. If you have the money in the bank to pay for the car, then obviously you can afford making low interest payments on a loan or lease. If you paid cash for a 25,000 car, the minute you drive it off the lot, you made your first $3,000 payment in depreciation. Your cash is gone! It's tied up in a depreciating asset. If you lose your job or need your $25,000 back for some other more pressing need, you lost far more money than you would have had you decided to make $250 - $500 monthly payments. Paying cash is the worst option of the three ways to finance a car. If you have the money in the bank to pay for the car, then obviously you can afford making low interest payments on a loan or lease. If you paid cash for a 25,000 car, the minute you drive it off the lot, you made your first $3,000 payment in depreciation. Your cash is gone! It’s tied up in a depreciating asset. If you lose your job or need your $25,000 back for some other more pressing need, you lost far more money than you would have had you decided to make $250 – $500 monthly payments.

]]> By: Dawn http://www.thehappyrock.com/2007/09/25/was-paying-cash-for-a-car-worth-it/comment-page-1/#comment-11753 Dawn Tue, 15 Dec 2009 16:26:06 +0000 http://www.thehappyrock.com/2007/09/25/was-paying-cash-for-a-car-worth-it/#comment-11753 I'm actually planning on buying a car within the next year or so. I have thought about taking out a loan but have decided I would rather just pay cash. I feel I could also drive a hard bargain if I have cash. Cash is King after all. :) I’m actually planning on buying a car within the next year or so. I have thought about taking out a loan but have decided I would rather just pay cash. I feel I could also drive a hard bargain if I have cash. Cash is King after all. :)

]]> By: The Happy Rock http://www.thehappyrock.com/2007/09/25/was-paying-cash-for-a-car-worth-it/comment-page-1/#comment-10776 The Happy Rock Sat, 18 Jul 2009 01:28:33 +0000 http://www.thehappyrock.com/2007/09/25/was-paying-cash-for-a-car-worth-it/#comment-10776 @Tony - Pay cash for the car and use the cash flow each month to pay off debt. @Tony – Pay cash for the car and use the cash flow each month to pay off debt.

]]> By: Tony http://www.thehappyrock.com/2007/09/25/was-paying-cash-for-a-car-worth-it/comment-page-1/#comment-10760 Tony Thu, 16 Jul 2009 14:35:40 +0000 http://www.thehappyrock.com/2007/09/25/was-paying-cash-for-a-car-worth-it/#comment-10760 I appreciated the blog and also the comments. I am looking for ideas to decide the best route to take next year when I purchase a car. I think after everything that I have taken I would combine a few ideas. I like the idea of paying off your car early but also understand the nature and risk of having issues with it. Suze Orman recommends not to buy a car that you cant pay off within 3 years. I like this idea. I think I would finance since now you can finance cars with 0% APR. I dont know how long that will last of course, but then pay the amount of in 2 years. This covers most areas of risk and security is why I pursue financial independence. I appreciated the blog and also the comments. I am looking for ideas to decide the best route to take next year when I purchase a car. I think after everything that I have taken I would combine a few ideas. I like the idea of paying off your car early but also understand the nature and risk of having issues with it. Suze Orman recommends not to buy a car that you cant pay off within 3 years. I like this idea. I think I would finance since now you can finance cars with 0% APR. I dont know how long that will last of course, but then pay the amount of in 2 years. This covers most areas of risk and security is why I pursue financial independence.

]]> By: Community In Action - 5 Days Until Christmas Edition | The Happy Rock http://www.thehappyrock.com/2007/09/25/was-paying-cash-for-a-car-worth-it/comment-page-1/#comment-9466 Community In Action - 5 Days Until Christmas Edition | The Happy Rock Mon, 20 Apr 2009 14:48:30 +0000 http://www.thehappyrock.com/2007/09/25/was-paying-cash-for-a-car-worth-it/#comment-9466 [...] Was Paying Cash For A Car Worth It? @ The Happy Rock (Nov 2007) Related PostsDD’s Time Magazine GiveawayCommunity In Action - Contest EditionCommunity In Action - Daylight Savings EditionCommunity In Action - Big Game EditionCommunity In Action - Giveaway Edition [...] [...] Was Paying Cash For A Car Worth It? @ The Happy Rock (Nov 2007) Related PostsDD’s Time Magazine GiveawayCommunity In Action – Contest EditionCommunity In Action – Daylight Savings EditionCommunity In Action – Big Game EditionCommunity In Action – Giveaway Edition [...]

]]> By: Jeremy http://www.thehappyrock.com/2007/09/25/was-paying-cash-for-a-car-worth-it/comment-page-1/#comment-7190 Jeremy Fri, 05 Dec 2008 07:07:27 +0000 http://www.thehappyrock.com/2007/09/25/was-paying-cash-for-a-car-worth-it/#comment-7190 If you can afford to pay cash, you should, although I agree that debt is not necessarily a bad thing. There really are finance specialists out there that do have your best interest at heart, I'm talking from experience. If the car is not related to a business, I would never lease... If you can afford to pay cash, you should, although I agree that debt is not necessarily a bad thing. There really are finance specialists out there that do have your best interest at heart, I’m talking from experience. If the car is not related to a business, I would never lease…

]]> By: Welcome to Nashville Used Cars Guide | Nashville Used Car Guide http://www.thehappyrock.com/2007/09/25/was-paying-cash-for-a-car-worth-it/comment-page-1/#comment-6353 Welcome to Nashville Used Cars Guide | Nashville Used Car Guide Sat, 11 Oct 2008 06:10:20 +0000 http://www.thehappyrock.com/2007/09/25/was-paying-cash-for-a-car-worth-it/#comment-6353 [...] Pay Cash for Car? [...] [...] Pay Cash for Car? [...]

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