How? At the current fed run rate of 5.25%, that credit union would be giving money away by signing 4% loans.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.
Can you please share the name of your credit union? That rate is fantastic right nowI 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.
Using cash is the best way I’ve found to never have financial worries. I’ve never had a super high paying job, but by using cash responsibly I now own several houses and all my cars with no debt. I understand the math says you can use debt leverage to make more money than using cash, but I’ve still never met anyone with the self-control to actually follow through with the investments they say they’ll make with the money they keep by financing. I’m sure a few of those super disciplined people are out there making risky investments and winning, but it’s not common. I do have a lot of friends and family that became wealthy by paying cash, budgeting, and avoiding debt.Having $60-70k just sitting in cash is definitely not the way.
What are you investing your $60k in?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.
True statement. If you have the money you can do whatever you want. I just like to see that people have a backup plan because it’s easy to forget about the risk that comes with debt.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.
Its really not that risky if done correctly. I put 20% down on my 2022 GT and sold it a year later. The dealership write ME a check to buy the car. As long as you are not underwater on your loan there is very little risk involved. Its the people who put very little down with high interest rates who find themselves in bad situations.True statement. If you have the money you can do whatever you want. I just like to see that people have a backup plan because it’s easy to forget about the risk that comes with debt.
Yeah, yours is not a risky situation. It seems like decent interest rates will be hard to find for a while though. Unfortunately, a lot of Americans don’t even have emergency funds these days.Its really not that risky if done correctly. I put 20% down on my 2022 GT and sold it a year later. The dealership write ME a check to buy the car. As long as you are not underwater on your loan there is very little risk involved. Its the people who put very little down with high interest rates who find themselves in bad situations.
Put enough money down, get a decent interest rate, have a emergency fund that can cover you for 6 months to 1 year expenses (includes your car payment). That is how you can responsibly have debt.
Yea Its crazy how most people live life.Yeah, yours is not a risky situation. It seems like decent interest rates will be hard to find for a while though. Unfortunately, a lot of Americans don’t even have emergency funds these days.
My main point wasn't cash vs finance. It was what people are doing currently with that cash. $60k lying around is a waste vs investing in almost anything else. Well maybe not options lol.What are you investing your $60k in?
I commend you for finding a solid investment >8% and actually investing that money long term if you’re able.
Some credit unions will give you pre approval without a hard inquiry. Penfed is one of them.Get preapproved from a credit union. Have your dealership try to beat your CU’s rate. (Do this all within a week of purchase so your credit doesnt take too big of a hit) Then refinance when rates go down.