Saving Money on Fuel Isn't So Easy

[OffTrac]

How do you figure it's cheaper to finance rather than pay cash? You can't be serious. Lol

 

[mounted]

Its simple math really. I don't know about you but I invest my cash into things that make more money. Mutual funds is a good example. I made 8% this year on my mutual funds. If I had taken that money and bought a car I would have lost money due to depreciation.

Cars don't make you money, they depreciate in value every single day and every single mile, so if you can finance them at 1.9% you'd be a fool not to.

You go ahead though and drop $30k on a new truck and I'll put $30k into mutual funds. In 6 years you sell your car and tell me how much money you made, and I'll tell you how much I made. My guess is you'll have a whole lot less money than I do.

Houses aren't a bad thing to buy with cash but even investment loans are down around 4% for those with good credit. I can make far more than 4% on my money so I'd be stupid not to borrow it from someone else.

 

[OffTrac]

People who finance cars typically don't have $30k to invest so it's not an either/or situation. People finance cars because they want something they can't actually afford. Can't tell the neighbors that, though.

 

[mounted]

People who finance cars typically don't have $30k to invest so it's not an either/or situation. People finance cars because they want something they can't actually afford. Can't tell the neighbors that, though.

Just saying if you can afford to pay cash for a vehicle you're better off financing that vehicle at 2-5% and investing your money in something that makes more than 2-5%. If you suck at investing and aren't good with your money then by all means dump it into a vehicle that depreciates every time you use it.

 

[OffTrac]

I prefer to pay cash and put monthly allotments into savings/investments. Six of one, half dozen the other. Most people do neither though. For those not saving OR investing, cash purchases are wiser.

 

[Jstcruz]

I baught a Cavalier for $300 and sold it for $700 after driving it for 20,000 miles. I Dont think its a good idea to buy a new vehicle regardless, but I do all my own work and dont worry about paying someone to do it. Its your own opinion, but I agree on buying things outright and not having to pay for something you already have. I dont understand why you would want to pay out every month if you could pay outright and be done, but, I'm not good with money honestly.