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finance or cash


dethfire's Avatar
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WI

06-27-07, 03:30 PM   #1  
finance or cash

Buy a car with cash or finance it and throw the cash in stocks?

 
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stickshift's Avatar
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06-27-07, 04:28 PM   #2  
Depends - APR on the loan exceeds the expected return on your investment, pay cash. Other way around, finance.

 
marksr's Avatar
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06-27-07, 05:16 PM   #3  
IMO it's always best to be debt free [or as close as you can ] I'd pay cash for the car and then invest the monthly payments you aren't making


retired painter/contractor avid DIYer

 
thezster's Avatar
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06-27-07, 05:32 PM   #4  
Get the best of both worlds.... get zero interest financing...


In actuality.... as you're entering my world (I trade stocks for a living) - I'd have to warn you that the average/typical individual who wants to "play the market" - ends up losing (to people like me).... Not sure what typical interest rates are on new cars now... but the market, as a whole, tends to return around 8 - 9%/yr - after comissions, before taxes.......

 
Gordman's Avatar
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07-19-07, 01:17 AM   #5  
Definitely finance... Cash is more vulnerable to all kinds of changes.

 
mjd2k's Avatar
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07-22-07, 04:06 PM   #6  
As mitch said,....depends

If I had cash, I would hate it sitting in something that is just depreciating. Surely I could be making money on it somewhere! I just can't call a vehicle an assett!. Personally, I buy the cheapest, best vehicle I can. I pay cash but never with all the cash I have on hand. That would bother me.

Recently I had some cash from a house sale. I bought a 98 voyaguer van, in mint shape for 5,200. I can depreciate it yearly because I have rental houses and a few other sideline businesses. After I bought the van, I still had 5k which I put into oil/gas stocks with a junior exploration company. My immediate tax writeoff was about 2300.00. The stocks are only worth about 2,000 right now but overall I havent lost much and I could make some money.

That worked for me.

 
skarney's Avatar
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08-12-07, 07:33 PM   #7  
As an accountant, depends on your entire financial situation. Do you owe money on anything and at what rate of interest? If you have credit card debt - get rid of it - they can change in a heartbeat of what you have at the moment from one late payment at 10% int to next month at 28% interest...

Do you have kids to feed and a family or just yourself? So many questions - google it and fill out a template question form and it will tell you what works for you.

Great question though. Think about how it makes you feel to have debt, pay a monthly payment, or not make payments - which is not financial but based on what type of habits your have... in tihs economy you do have all the options suggested above - yet zero percent interest for the entire payment plan requires good credit. If this is not you - look at the return on a solid CD returning a 5% - or more vs interest rate - always a numbers game and then the habits you have to consider. Like a healthy diet is a great idea, but if you can't eat the food on the diet and do not like the taste of it - it does not work for you~

look at your spending habits, what makes you feel good about yourself - some like to see money in their account and others like to have no debts - and most like both so figure out how that would happen. If you are not good about saving money - like oh I will take the car payment and save it ~ will not work for you. Sounds good - but you will not do it.
Ok...I could write a paper on this - so I will stop. Need any help, please email me.



goes on and on and on...

 
skarney's Avatar
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08-12-07, 07:40 PM   #8  
yes stock can rock. I have a my eye on an ipo at the end of August --and i know what the product will do, does do, and will be. Problem is I only have $5K to invest. My personality is not someone to borrow to invest in stock. Wish me luck though - I know it will go up in price. I know this one. No one is paying attention in the media except a few stock jocks that mention it-

we will see - i know companies that are using the product and it takes so much off the bottom line that maybe the offering price will be out of my reach - i know it has to be a 50% profit - well I don't know - but I believe it will be because of what it does for huge corportations and the fact they are already changing to using the product based on my knowledge of researching it.

 
dozzi's Avatar
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08-14-07, 10:46 AM   #9  
Do you need a car? Do you have good, bad, or no credit?

Hey,

If you looking to buy a car, truch or whatever; you should check out this website. They will help you get a auto loan and the site has a cool auto loan calculator. Here is the link: http://xxxxxxxxxx.xxx/

The people at xxxxxxxxxx were committed to assisting me in getting the best approval for the auto loan. They have nationwide network of dealers will allow you to recieve the special financing needs tailored to your needs.

I was at my last end trying to get a car and they helped me. I got a low mile newer car, and now I am on the road to restoring my credit score.

Respectfully,

Dozzi


Last edited by DIYaddict; 08-14-07 at 10:49 AM. Reason: Soliciting is not allowed.
 
skarney's Avatar
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08-14-07, 11:43 AM   #10  
pay cash after the above entry - unless you have great credit. Don't pay high interest rates at all. The interest rates with good credit are zero, so don't be the one that goes out and pays 12%. The end, the truth, pay attention in life. It changes quickly.

 
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