Did you finance or pay cash?

[RClark82]

I saw a thread earlier today with people comparing interest rates and it had quite a few members active in the conversation. I also had read an article talking about a high number of bronco owners paid cash. Curious what the percentage really is......

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[nd2002]

I financed mainly because of low interest rates, and being able to grow that money elsewhere.

 

[mybikeisred]

Financed, but put down a pretty hefty down payment. About half.

 

[RClark82]

I financed mainly because of low interest rates, and being able to grow that money elsewhere.

I did cash because I have lived that Dave Ramsey ( ish) life for so long that I don't have a credit score to be able to even get financing.

 

[Bituman]

Bronco not delivered yet. But when it does, it’ll be cold, hard, cash.

 

[KompressorV12]

If there are people that paid cash I'm going to question their intelligence level with penfed giving 0.99% APR loans there are literally high yield savings accounts with higher than 0.99% return. Unless you're keeping your DTI low for other reasons, have terrible credit, or enjoy throwing money down the drain it makes zero sense.

Edit: Retirement is the worst excuse one could have for paying cash for the car lol. In retirement, any income no matter how small is even MORE important than those working.

I understand this is a generational thing. Many boomers grew up to 12% mortgages and 15% auto loans, but times have changed. Borrowing money is nearly free these days, and inflation is at record levels. You absolutely should have a significant rainy day fund, but keeping tens of thousands or hundreds of thousands of dollars in cash (instead of safe CD's, high yield savings accounts, or bonds) is the best way to get left behind in 2022.

 

[carrellslake]

I did cash because I have lived that Dave Ramsey ( ish) life for so long that I don't have a credit score to be able to even get financing.

Five years ago I got a credit card to handle daily purchases, and I pay it off in full every month. It's a great way to build credit as long as you have the self-control to not overspend.

 

[RClark82]

If there are people that paid cash I'm going to question their intelligence level with penfed giving 0.99% APR loans

Yes, but often nigh net worth people and high cash on hand people have zero credit because they don't have cards or mortgage. Can't get those rates with sub 800 credit scores that come with utilization of debt

 

[RClark82]

Five years ago I got a credit card to handle daily purchases, and I pay it off in full every month. It's a great way to build credit as long as you have the self-control to not overspend.

I recently did the same

 

[Skip]

Cash. Getting ready to retire. most likely my last vehicle.

 

[KompressorV12]

Yes, but often nigh net worth people and high cash on hand people have zero credit because they don't have cards or mortgage. Can't get those rates with sub 800 credit scores that come with utilization of debt

You can get tier 1 rates generally with 720 minimum. At 760+ you are generally guarenteed tier 1 approval assuming DTI checks out. Source: I run a personalized credit repair business

 

[Scape Goat]

When My Bronco does arrive I will be putting down about 75-80% cash. I plan to pay off the remainder within a year. But, I need to check about any early payoff penalties.

 

[GreyZ]

If there are people that paid cash I'm going to question their intelligence level with penfed giving 0.99% APR loans there are literally high yield savings accounts with higher than 0.99% return. Unless you're keeping your DTI low for other reasons, have terrible credit, or enjoy throwing money down the drain it makes zero sense.

Not to hijack, but where are you seeing a Penfed apr of .99%.
I plan to finance, but haven't seen rates that low.

 

[710-oil-614]

I'm paying cash but I've thought hard about it.

My reason for the cash payment is I am not 100% certain the Bronco will be with me long term so I want the title in hand and the easiest possible transaction if I choose to sell it.

If I keep it? I'll probably wish I had that $46k back in the bank and financed at a nice low interest rate.

 

[SevenT]

I did cash because I have lived that Dave Ramsey ( ish) life for so long that I don't have a credit score to be able to even get financing.

Dave Ramey's 5 keys to gaining power over your purchases:
1. Wait overnight.
2. Consider your buying motives.
3. Never buy anything you do not understand.
4. Consider the "opportunity cost".
5. Seek counsel.

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