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Old 10-25-2011, 10:45 AM   #59
brbauer
Scooby Newbie
 
Member#: 223200
Join Date: Sep 2009
Chapter/Region: MAIC
Location: Rosedale MD
Vehicle:
2009 WRX
Pearl White

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Quote:
Originally Posted by Steve.804 View Post
Why pay cash for a car? If you can finance for say .9%-1.9% (as most car dealerships are having special rates at this time, some are even 0%) would it not make more sense to put your money in an investment fund that is more profitable and use the banks money to fund the vehicle? If you finance a $30k car for 1.9% you're paying a whopping $570 in interest spread evenly over the course of the loan. Most people go for a 60mo term which would be less than $10 a month. I'd rather keep my money where it's at and just pay it

B/c right now the stock market is so up and down, you may not get that return. Not all places offer 0-2%....some people pay 4-7%. I'd pay cash in that case.

I've paid cash and also financed before. My wife's car we paid cash (literally, I gave the dealership a certified check....so don't say people don't pay cash for cars). And the other (my wrx) I financed b/c it was 0%. If I had to pay any interest, I'd pay it off. But since it's free, I thought otherwise.

Also - this concept of "oh just finance it!" can get you in big trouble b/c you'll spend much more on a car than you really should be. People who should be buying Honda's are buying BMW's.
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Last edited by brbauer; 10-25-2011 at 11:54 AM.
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