Best financing route to take

[Rio Lobo]

Is it too soon to start shopping for financing if the car won't be delivered for another 2 months? I don't really want to start making payments before the car even gets here but I'm guessing they could modify the loan to accommodate that somehow.

You can't get a loan on the car until a VIN is issued. Then there's the manf statement of origin needed for the title that the lender must be put on. All that paperwork is available when the car hits the lot. Basically you can't get the loan until the car is ready to be delivered.

If you're going to make payments on a car that isn't here yet, pay it to your savings account.

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[Skye]

The discussion reminds me of...

While shopping around and getting quotes, see if you can get information on things like fees, penalties, and other aspects of the loan.

Rate-for-rate, one loan might involve processing fees that are hefty. Another provider might not allow you to pay it off early, or they will, if you pay a penalty. Those kinds of things.

 

[Apeman]

You've got awhile before the car gets here. Ask your dealership about their options, and do a little research for yourself. Take everything you're putting into the transaction (down payment, trade-in) into consideration.

I'm personally going to be checking with my bank first, but will likely check some other lenders as well.

 

[Mspider]

Avoiding financing, just going to proceed with cash.

Some of us are high earning young people who want to enjoy life. I am sure for 55+ years old paying cash for a sports car is a lot easier. I mean this in a respectable way not trying to come off as mean.

 

[Skye]

Everyones' situation is different. And their comfort level.

I prefer having some cash sitting in a Money Market account. Immediate needs for the next six to 12 months, big ticket items I suspect blowing up in the next 1-3 years (because I don't know when they will actually blow up).

And remember 2008. IDK about other Members, but when 2008 happened, a lot of people used to getting consistent pay for the foreseeable future found themselves staring at the Help Wanted ads in short order, myself included.

Shit Happens. For immediate (less than a year or so) needs, park those funds in a Money Market account or other short-term, interest-bearing instrument and take comfort in that. The rest is up to you. If considering something of greater risk, long-term, many/most advise go in with the idea you'll not touch it for 3-5 years.

 

[sir5574]

Having that much cash doing nothing is throwing money away. If not invested, depending for how long, you would have missed out on much more than whatever the couple thousand the financing would've costed in the end.

So yeah, holding cash as it gets eaten away by inflation is worse.

Retirement accounts already maxed for the year, pay 1k a month on top of mortgage towards principal. Rest of funds sitting in a high yield savings account giving me ~$300 a month in interest.. To me the only logical thing to do with the cash is buy another rental property... but I kinda want a mustang and to enjoy life some a little bit. Tomorrow is never promised.

 

[unfairslide]

Everyones' situation is different. And their comfort level.

I prefer having some cash sitting in a Money Market account. Immediate needs for the next six to 12 months, big ticket items I suspect blowing up in the next 1-3 years (because I don't know when they will actually blow up).

And remember 2008. IDK about other Members, but when 2008 happened, a lot of people used to getting consistent pay for the foreseeable future found themselves staring at the Help Wanted ads in short order, myself included.

Shit Happens. For immediate (less than a year or so) needs, park those funds in a Money Market account or other short-term, interest-bearing instrument and take comfort in that. The rest is up to you. If considering something of greater risk, long-term, many/most advise go in with the idea you'll not touch it for 3-5 years.

Having some liquid emergency money is never a bad idea. Especially if it's earning good interest. A money market account is a good way to go

Main problem is when people hold cash "under the mattress" so to speak, that money is just losing value all the time.

 

[unfairslide]

Retirement accounts already maxed for the year, pay 1k a month on top of mortgage towards principal. Rest of funds sitting in a high yield savings account giving me ~$300 a month in interest.. To me the only logical thing to do with the cash is buy another rental property... but I kinda want a mustang and to enjoy life some a little bit. Tomorrow is never promised.

Nice! You seem to have your finances sorted. I was just mainly talking about a situation of having all your cash in a checking/saving account.

Enjoy your Stang

 

[sir5574]

Some of us are high earning young people who want to enjoy life. I am sure for 55+ years old paying cash for a sports car is a lot easier. I mean this in a respectable way not trying to come off as mean.

What do you mean, and what qualifies as high income young people lol? I mean if you're high income, it doesn't matter how old you are then you should be able to pay cash. not just being 55+ lol

 

[sir5574]

Nice! You seem to have your finances sorted. I was just mainly talking about a situation of having all your cash in a checking/saving account.

Enjoy your Stang

haha I mean all of my liquid cash is in a high yield/savings account. But yeah.... I like cars too much., even though my brain is like... just buy another rental... and let the tenant pay for your mustang lol

 

[93-Oct Mayne]

Not much point in trying to beat 7-8% APR loans with safe investments, unless you forgo the car altogether and buy a house with the money

 

[Ng1nyr]

and paying 8+% APR on a depreciating asset is??

If you can invest the $60k-$80k with a potential to earn 10% and above per year, then yeah. Financing would be the way. Especially in this uncertain economy where it benefits you to have cash around in case of emergencies or opportunities.

 

[Mspider]

What do you mean, and what qualifies as high income young people lol? I mean if you're high income, it doesn't matter how old you are then you should be able to pay cash. not just being 55+ lol

There is a big difference between having a high salary and high net worth. Older people probably have a house paid off and or do not need to keep money in the markets as long as younger people. There kids might also be moved out of the house. Not to mention a couple of decades saving longer. A young person simply has not had enough time to build a emergency fund AND enough for a expensive car to be paid in cash. Although they could have a huge salary with no expenses. A car payment of 800 bucks would be doable even with investing/saving every month.

If you are someone in your 20s or 30s making lets say 75-150k and you have about 3-6 months of living expenses in a emergency fund lets call it 15-60k. Any money after that is going into investments. Your income can easily support a car payment but you cannot pay cash for a 40-50k mustang. You won`t have any money in your emergency fund left. Plus you would rather keep that money in the market anyways.

 

[erocker]

Avoiding financing, just going to proceed with cash.

Same here. I've saved a bit and I'm dipping into the retirement fund. I'd rather make that money back than pay a bank in any kind of interest. Debt free is the way to be!

 

[mcky2011]

I just talked to my credit union manager, their current rates are 4% for 48 months and unpredictable for the future.

On the positive side of it I made a large deposit into a 3 month CD earning 3.9% which is the positive side of the same financial position we are all in.

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