Cash Vs Bank

[JonD]

My friend love the old TJ was looking for 2003 -2004 the one with NV1550 5speed
110k miles
Just last year he bought it
To be honest it was clean green Jeep
Payed 12k for it

For me no way for him totally worth it and he is very happy today !

Keeps never depreciate, if they do very slowly

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[JonD]

They won’t let you use it, except for a max $5,000 down pay. The credit card fees eat into their profit....I’ve had friends who tried....and failed

True

 

[JonD]

To each their own, but you’d rather take your cash and put it into a depreciating asset? The Truck will depreciate the same whether you finance a little, half or all. With good credit a loan from a credit union should be less than 3% and you can easily make that on your cash just about anywhere you put it and you get to hold on to your cash So you’re not really in debt. You can make extra payments any time. The increased monthly payments come from the cash you kept for yourself, rather than tied up in the truck.

I respect the emotional position people take on wanting less payment, no debt, etc, but the math indicates we’d be better off taking out low interest loans with little down payment.

Then again, most of us are buying brand new Broncos, probably at a markup and will depreciate $5k by driving off the lot, so we aren’t making the best financial decision anyway

Lol...that.....is......so.....true.....5k at least

 

[JonD]

This is possibly going to be my first new vehicle purchase. I plan on putting down a big down payment, then financing the balance with my Credit Union. Where do I start first, the dealer or bank?

Bank...go in with a back up deal always

 

[da_jokker]

It depends... chances are you will get a higher rate on your money than the loan. Typically I go in, negotiate the out the door price, then ask the finance guy what would I need to have say a $250 monthly payment and put that down...

After a couple years or so I usually get tired of making Car payments so I just pay it off, or when it gets down to only a few thousand left.

I mean you can typically get 10% or more from Investments.. and car loans are like what... 5% if not less?

 

[Bronco4lyfe85]

Seriously. At $200 a month it would take me 19 years to save for a 50K vehicle. Forget that, I’ll just pay the 3K in financing costs and keep the $200 a month in my pocket for the other 12-13 years after it’s paid off.

Or $700 a month for 6 years. I don’t think about things 6 years in advance.

 

[tshaw2009]

Any one plan to save for the purchase ?
In my country banks required 20% down payment with around 2.5% to 3.5% interest rate for cars ..
My sweet spot is to pay 40% then 4 years but in this case we know we need to wait 1-2 years so what is your plan ?

Paying cash in full ?
Sell your current car ?
Trad it with the bronco then pay the deference ? ( not good idea )
Bank ? Personal loan, car loan, property loan ...


Your idea may help someone lets share it

I will have about $13K as far as trade in and about $6500 down. That along with the $1300 off invoice from Granger, I'll be getting my fully loaded 2 door Big Bend for around $23-$24K. So to answer your question, I have saved down payment and will also be trading in a vehicle.

 

[RPhillips1972]

Pay cash for everything unless you can't. Then borrow at the best rate. Pay as best you can.

saving about $3000 a month until its time to pay, looks like I'll have almost enough if it doesn't happen until late next year

 

[Locked-n-loaded]

Cash is King on a car purchase in my opinion. Unfortunately because of the excitement for this vehicle I doubt it will give us much negotiating room to walk in with a checkbook like it might have in the past on a vehicle that's not so popular but I'm still going to try it.

I'm also going to try to get the x-plan pricing from somebody like I did with my Ford Edge from blue oval.

 

[bahasad]

In my opinion, you should not use cash to purchase this car, unless you have substantial net worth, and even then it's questionable.
I think the amount of cash (say 40K-45K USD), is better to save as emergency, or to invest in something that will give you returns and not depreciate like a car will do.
This of course means having discipline to do so.
Also dealers are less inclined to deal with someone willing to spend cash.

In my current situation, I have enough liquid cash in my account to buy it outright. I am not going to do that at all though.

Your situation dictates your finances.

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