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Cash Vs Bank

Weld3z

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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
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kodiakisland

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

BeerForMyHorses

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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 won't have enough cash on hand to buy it outright even with the wait, but the fact I have to wait at least a year for it, I'm okay with it because the more I can save for a down payment, the more my wife gets okay with the lower monthly financing

My plan: After add-ons, I'm expecting my cost to be closer to 45K, and I'm doing 25% and financing the rest. I'll be doing that 25% by saving and trading in the old college car which isn't worth much. I don't really have a choice though, unless I buy a winning lotto ticket. I'm younger than probably most in this forum so I'm just starting out. First ever brand new car!
 

Jhuff

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For me, it all depends on the interest rates at the time of signing.

If these cheap (or cheaper) interest rates are still around at that time, I might finance more than I normally would in order to keep the extra cash for any unexpected opportunities or investments that might pop up.

As of right now, I am planning on a trade-in plus about 20% Down.
 

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kodiakisland

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@kodiakisland
@millsra13

Not me but many people disagree, they prefer to keep their cash in the bank and take a loan even if they have more than the required amount !!

The only reason to do that is if your cash is making more than the interest you'd be paying. For most people that isn't reality. If it is reality, you're not looking on here for spending advice.
 
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Weld3z

Weld3z

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I won't have enough cash on hand to buy it outright even with the wait, but the fact I have to wait at least a year for it, I'm okay with it because the more I can save for a down payment, the more my wife gets okay with the lower monthly financing

My plan: After add-ons, I'm expecting my cost to be closer to 45K, and I'm doing 25% and financing the rest. I'll be doing that 25% by saving and trading in the old college car which isn't worth much. I don't really have a choice though, unless I buy a winning lotto ticket. I'm younger than probably most in this forum so I'm just starting out. First ever brand new car!
Good luck.. try to build your score so they accept the transaction
 
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Weld3z

Weld3z

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For me, it all depends on the interest rates at the time of signing.

If these cheap (or cheaper) interest rates are still around at that time, I might finance more than I normally would in order to keep the extra cash for any unexpected opportunities or investments that might pop up.

As of right now, I am planning on a trade-in plus about 20% Down.
What rate is good for you ?
 

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Mke_80

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I see that many want to pay in full cash, I am not a dealer but I know that most dealer make the money on the commission for the financing so paying might not get you the best price at the dealer ... It might not be true in USA but in Canada it is.

You can always apply for the finance and pay in full after ... Closing before terms without penalty.

To me it all depend on the rate and the terms.

I would prefer keeping 50k and make 5-6 % interest with it at the bank and pay a 2.49% finance.

If you don't have the money at the bank and need to apply for a loan . your credit score will influence the rate at the bank but not at the dealer. ... only the approval at the dealer not the rate.
Edit: unless you are a second chance loaner. then the rate also.

Bank now are playing on term. you can apply for a 96 month loan where I live at the bank at the same rate as a 60 months

Dealers will limit the term to the specific contract they have with the bank 72..or 84 months

If you are uncertain about loan you can always ask for the true cost of the loan.. its the total cost interest and insurance, you will see how much the loan cost.

Bank are stores... they sell money the interest is the price of that money. You deal your car price , you can also deal the price of the money.

I will finance in full where i get the better rate and term.
 
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Weld3z

Weld3z

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The only reason to do that is if your cash is making more than the interest you'd be paying. For most people that isn't reality. If it is reality, you're not looking on here for spending advice.
If something emirgancy happen and you need the cash you well pay more for personal loan !!
 

Jhuff

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The only reason to do that is if your cash is making more than the interest you'd be paying. For most people that isn't reality. If it is reality, you're not looking on here for spending advice.
Things will definitely be different at the time of signing, but if the purchase were to happen right now, there are too many bargains in the commodity and equity markets for me to ignore, and my cash would be there.
 

kodiakisland

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If something emirgancy happen and you need the cash you well pay more for personal loan !!

Unplanned for expenditures are a fact of life. You either have them covered or you don't. Again, those who have enough not to worry are not on here looking for advice. The fact is many car buyers will finance and make as high a payment as they can afford without going hungry.

You either have or have not.
 

VTBronco

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I won't have enough cash on hand to buy it outright even with the wait, but the fact I have to wait at least a year for it, I'm okay with it because the more I can save for a down payment, the more my wife gets okay with the lower monthly financing

My plan: After add-ons, I'm expecting my cost to be closer to 45K, and I'm doing 25% and financing the rest. I'll be doing that 25% by saving and trading in the old college car which isn't worth much. I don't really have a choice though, unless I buy a winning lotto ticket. I'm younger than probably most in this forum so I'm just starting out. First ever brand new car!
Same with me, first new car! Still debating what I can/can’t afford - will have to wait until B+P is unveiled. I’m also young (24) so luckily I got time on my side. Trying to put down at least 25% in cash/trade in.

Side note - love your username haha
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