Should You Pay Cash or Finance Your New Car? finance or buy a car

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Should You Pay Cash or Finance Your New Car?

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Should You Pay Cash or Finance Your New Car?

Should You Pay Cash or Finance Your New Car?

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Should You Pay Cash or Finance Your New Car?
finance or buy a car
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18 comments

bdcountry1 23/12/2021 - 3:15 Chiều

Like they say, there isn't anything wrong with getting a car loan but you have to be smart about it. Buying a new car for $50K when you only have $2K to put down on an 84 month loan at 4.9%, you'll be in debt forever with that car and upside down. On the other hand, if you buy a used car and save up over half of it as a down payment, get a 36 month loan and pay it off within a year, that's perfectly fine. It seems some people are very much anti-debt and some people use debt like its life support, there IS a happy medium here people lol

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Snow Glider 23/12/2021 - 3:15 Chiều

This is BS I never fix any engine light on my car and i do the minimum on maintenance. This allows me to retire the car more faster. From financing prospective. I used to pay cash and now I finance. The reason I invest my money and take the difference as a payment to the car.

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KirarinUploads 23/12/2021 - 3:15 Chiều

Just found your content the other day and I've been loving it so far, but heavily disappointed in the racist phrase "Chinese Fire Drill" used casually.

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Bee 23/12/2021 - 3:15 Chiều

How do I decide what car to finance? An older used car with lower mileage or a newer car with higher mileage? What makes more sense ? A more expensive one that I will drive until the wheels fall off or an older one? I am currently trying to decide between a 2012 Crv with fairly high mileage that I can easily pay off in a year and a half or a 2013/2016 with lower mileage that will take me longer to pay off, but still within the 3 year range

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savoryflan 23/12/2021 - 3:15 Chiều

Car depreciation rates are well known. In 5 years luxury brands depreciate about 70%, average brands about 50% and reliable brands like Toyota only depreciate 30% in the same time.
The best way to buy a car these days is getting a low mileage 1 to 3 years old used car. That way you dont pay for the first year of depreciation which is the highest.

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Juchanan 23/12/2021 - 3:15 Chiều

So I have no credit, should I finance just to build credit?

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mikaela3183 23/12/2021 - 3:15 Chiều

no more car loans…… cash only

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MrThermostatic 23/12/2021 - 3:15 Chiều

Forgive me if this is a stupid question but does "cash" in this context mean actual CASH, or just that you're not financing it and will pay it out immediately?

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In and Out There 23/12/2021 - 3:15 Chiều

Based on my own experience paying cash is good but you loss a lot of additional potential income. If you don't have a better way to grow your money, then you should be only pay cash for a car (or for anything that depreciates in value) But if you are good at growing your money to more than the monthly and interest payments of the car, then don't buy and pay in cash. In the Philippines where the car and the property are with in the same price range or a little more for the property, it is better to buy a good rental property in cash (Location Location Location) and use the rental income to pay for the car. By the end of the payment schedule you have a car worth 50% of its purchase price and a property worth more than 30% of its original value, and a rental property income to buy another car (just like the car in my video, it is the second car my property rental income bought). That is what I did. If your not good (Lucky) at properties try any business you're good at, If your not good (lucky) at growing your money, just pay in cash, a 1 to 5% savings p.a. in interest is better than no savings at all.
Active income are for needs only, wants are to be paid off by Passive incomes.

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Wandering Music 23/12/2021 - 3:15 Chiều

I just purchased a used 2017 toyota camry! Had 4k cash and got an interest rate of 1.99! I got an employee discount on the warranty which covers me for 90k miles or 5 years. Total price was 23.300ish! I think I did okay 👌🙂 car had 20k miles on it and everything clean!

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Danaya Amalia 23/12/2021 - 3:15 Chiều

I turn 18 in a few months and debating whether i should finance or pay in cash for a car. If i finance a car, the price of that car would be around 10,000. idk which i should do. I also have to pay my own insurance, although on will be on my mom's insurance

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Chris 23/12/2021 - 3:15 Chiều

Car payments are for stupid people.

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billy 23/12/2021 - 3:15 Chiều

I've bought seven cars in my whole life. I was trying to build credit with my first two purchases as I was only 18 years old for the first and 22 for the second and had zero credit. I paid them off in one year. For my next five cars, cash… It's the way to go and makes a deal easier to see what you're actually paying. I don't expect to buy another car.

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tomj528 23/12/2021 - 3:15 Chiều

I've never had a car loan and now only buy new, modestly priced vehicles like our Subaru Forester. Just drove home tonight in freezing rain/snow and it was a champ…heck of a deal for $23k (2015). We drive them for at least a decade and at these low prices we can afford to buy dozens of them if we wanted so no worries…most likely we'll only have to buy 2 more in our lifetimes anyway. The real benefit of not having a car payment is that it's another part of a low cost lifestyle that allows us to eliminate our income taxes because our spending allows us to pump so much income into our retirement accounts and rock the maximum form 8880 retirement savers credit.

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Bret 23/12/2021 - 3:15 Chiều

Never owned a car without the check engine light on 24/7…
Then again, I knew why and did all the maintenance religiously. – Even oil changes every 3000 miles, yes 3000 miles.

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MO Hunter 23/12/2021 - 3:15 Chiều

People don't really care about what you drive folks, so quit being concerned about image and make smart decisions. Financing $30k for a car is lunacy for the average household. Be secure enough with yourself to pay cash for an older car that has 80-100k miles on it that looks good, and max out your investments. The Jones's are broke, don't be like them.

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Not A Nomad 23/12/2021 - 3:15 Chiều

I paid cash for a nice Corolla IM that was discounted $2,500 because it was end of the model year. Of course that discount only applied if paying cash. Of course they wanted me to finance it but I refused so they then put some pressure on for all these add-on's and extended warranty. Nope, I just want the car. I couldn't find a decent used car with a 3 year warranty for what paid. Now we have 2 Corollas and they're rock solid simple cars with no issues so far. Take the savings and build up your investments or 401k.

Now our cars are out of warranty so I change it on my own twice a year for less then $30.00 for full synthetic.

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Ranger1589 23/12/2021 - 3:15 Chiều

I am a firm believer in paying cash for a car and only buying used for the most part (if you have the money buy new if you like, but if you are making payments you really couldn't afford it). New cars are not worth the money you pay for them; hence, why when you finance they ask (tell) you about GAP insurance. (Gap insurance helps pay the gap between the depreciated value of your car and what you still owe on the car.) This should tell you the car you are buying is not worth what you paid when you drive it off the lot. Cars are Not as asset; they are a liability if you define as asset as something that makes you money (investments), a liability cost you money such as cars and insurance. Most folks are not going to finance a car for 12 months to 36 months and pay it off early. You also have to maintain full coverage insurance on a financed car. The idea that you can make more on investments and finance at say 1.9% is good in concept but the reality for most folks is they get the low interest loan, pay it as agreed and buy a new car once this one is close to paid off and never invest the savings. That's reality. Just my opinion; people will always do what they want to do regardless of information provided.

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