How much money down y’all putting?

[Moparguy]

at least $15K, I just paid $35K cash for my current car last month, I probably gonna sell it and get the Bronco, I don't like making payments but I don't see myself putting anything more than $30K.

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[Southside_Ray]

Wh

which Credit union

Probably my local one(community choice), but maybe somewhere else

 

[Cheshire]

This. Ultra high net worth individuals leverage low cost debt to their advantage all the time, even tho they have more than enough money to pay cash. Just don’t use financing or leasing to buy more car than you can afford.
I personally hate the feeling of having debt, but saving cash for more important goals other than a depreciating asset is generally the best approach

High net worth individuals pay cash for cars. You leverage investments if you know what you're doing, but not fast depreciating consumers items.

 

[ramblinwreck]

I wonder if these numbers accurately reflect the general population. Only 4% plan to sign and drive? Doesn't VW have an entire promotion built around that? And doesn't ford motor credit strongly encourage financing 100%?

I am paying cash for mine. I find it interesting that 1/3 of Bronco purchasers plan on paying for half or more when they pick it up. I just assumed a lot less generally paid cash for cars.

 

[bluezombi]

taxes are awful here (Quebec)... it's roughly 15%... Even with a 10k cash down, i still need that amount to pay up the taxes... so I need about 20k for my built... Rough estimate since the bronco ends up being 60k for a BL.

Honestly, I might lease it then buy it afterward just to reduce my monthly.

 

[Clint]

10% + tax.

 

[DrewBronc21]

If you can’t put down 10k+ you shouldn’t be buying an expensive vehicle imo. Maybe it’s different for me since I’m getting a 4door Wildtrak at 57k but I could see the minimum being 5k if someone is going with a much cheaper model.

I can buy my Bronco cash but will put $0 down. Maybe just a couple of grand to satisfy that emotional adversity to debt. With good credit and 2% rates and investments returning double digits, there’s no mathematical, factual reason to put money down or buy cash. Everyone hold on to their cash! It will make you way more money than the $2kish in interest you will pay over the life of a 6 year low rate loan.

Anyone putting all of their cash into a depreciating asset like a car when it can be making money for you is making a mistake.

 

[DrewBronc21]

High net worth individuals pay cash for cars. You leverage investments if you know what you're doing, but not fast depreciating consumers items.

Many High net worth individuals got that way by being financially savvy and they know that the math doesn’t lie. Taking a loan @ 2% and investing the cash and making 10% on it Is better than paying all cash. High next worth individuals still finance Ferraris and Lambos. Some may be so wealthy that they simply don’t care and will pay cash for the convenience of not having to remember to make that monthly payment but for most of us that’s not the case.

As far as being a depreciating asset. The car will depreciate the same whether it’s financed or bought with cash?

Nobody can convince me that paying all cash is better than a 72 month loan @ .9%.

 

[AMK610]

Many High net worth individuals got that way by being financially savvy and they know that the math doesn’t lie. Taking a loan @ 2% and investing the cash and making 10% on it Is better than paying all cash. High next worth individuals still finance Ferraris and Lambos. Some may be so wealthy that they simply don’t care and will pay cash for the convenience of not having to remember to make that monthly payment but for most of us that’s not the case.

As far as being a depreciating asset. The car will depreciate the same whether it’s financed or bought with cash?

Nobody can convince me that paying all cash is better than a 72 month loan @ .9%.

Well said brother!

 

[Aardvark53]

I'm putting 5k down just to payments within my budget. This way I can add some aftermarket goodies.

 

[sscott87]

A million ways to slice this. Sure, investments make more than you’ll lose on current interest rates. But there’s always a degree of uncertainty in the future. Tie yourself down to a 72 month payment on a $50k+ vehicle with zero down because you can make more money on investments. Lord knows what happens during that time, while you remain far upside down on the vehicle loan. Job, economy, personal finances, etc all while toting a $900 a month car payment.

Different strokes for different folks. I do prefer to make more on investing but also keep a degree of flexibility. Personal preference is to keep payments around $500 monthly, enough down payment to both do that and to not be upside down the life of the loan. At the end of the day, I pay off my vehicles in 1-2 years anyway and keep them 4-6. Doesn’t drain the bank account greatly at purchase, keeps the payment reasonable, and still ends up being paid of quite early.

Personal preferences and balancing risks and potential growth.

 

[AMK610]

High net worth individuals pay cash for cars. You leverage investments if you know what you're doing, but not fast depreciating consumers items.

Do you know what “leverage” means in this context? “If you know what you’re doing”, working with these folks, helping them make these decisions, and managing their investments is part of my day job

 

[DrunkingtonBear]

I'm going to add this question. What are your State's taxes because some of these replies makes it seem like a lot. South Carolina is 6% capped at $500. It was raised from $300 in July 2017. I'm putting at least $7000 down and waiting to see what the interest rates are in the Spring.

I’m very glad you posted this. I recently moved to SC and their government tax page confused me but I understood it as you described. Seems $500 in taxes isn’t bad at all. Some other states don’t have a “max tax” format. So it’s a flat (up to 10% in some states I have seen) rate depending. Seems brutal. I’ll gladly accept my 1k below invoice (thanks Stephen’s) and $500 max tax.

 

[DrewBronc21]

A million ways to slice this. Sure, investments make more than you’ll lose on current interest rates. But there’s always a degree of uncertainty in the future. Tie yourself down to a 72 month payment on a $50k+ vehicle with zero down because you can make more money on investments. Lord knows what happens during that time, while you remain far upside down on the vehicle loan. Job, economy, personal finances, etc all while toting a $900 a month car payment.

Different strokes for different folks. I do prefer to make more on investing but also keep a degree of flexibility. Personal preference is to keep payments around $500 monthly, enough down payment to both do that and to not be upside down the life of the loan. At the end of the day, I pay off my vehicles in 1-2 years anyway and keep them 4-6. Doesn’t drain the bank account greatly at purchase, keeps the payment reasonable, and still ends up being paid of quite early.

Personal preferences and balancing risks and potential growth.

you have the cash because you didn’t put it down so are you really upside down? If something goes wrong, in a pinch you have that liquidity to bail yourself out

 

[Pie Grande]

Many High net worth individuals got that way by being financially savvy and they know that the math doesn’t lie. Taking a loan @ 2% and investing the cash and making 10% on it Is better than paying all cash. High next worth individuals still finance Ferraris and Lambos. Some may be so wealthy that they simply don’t care and will pay cash for the convenience of not having to remember to make that monthly payment but for most of us that’s not the case.

As far as being a depreciating asset. The car will depreciate the same whether it’s financed or bought with cash?

Nobody can convince me that paying all cash is better than a 72 month loan @ .9%.

Which bank is this offering .9%

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