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Which did you do for your lambo?
Did you pay cash or finance your car?
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I voted 'paid cash' Now, I would have much rather financed it, but, as a poor, I was limited to Salvage title Gallardos. My CU didn't want to deal with an out of state car, and the salvage title didn't help. This was back when I could have gotten 2.5-3% interest too.
But, since I had the cash, it was fine, and I don't have a payment and I'm paying zero interest.
There isn't a right or wrong answer here, it all depends, on the car, the rates, the bank, the cash availability etc. If someone tells you, you HAVE to do it a particular way or else you are a (insert derogatory word of choice), don't listen to them.
But, since I had the cash, it was fine, and I don't have a payment and I'm paying zero interest.
There isn't a right or wrong answer here, it all depends, on the car, the rates, the bank, the cash availability etc. If someone tells you, you HAVE to do it a particular way or else you are a (insert derogatory word of choice), don't listen to them.
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Personally I only do cash
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I believe this. I'd imagine not just lambos but cars in general are highly financed. I understand the logic from both sides.
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Sub 3% interest rates combined with 7% inflation made that decision for me.
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Why do you think this is ? Do you think it is an EGO/PRIDE thing? To say i paid outright etc.
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Personally Cash. I think you shouldn't finance for a toy
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I think the answers speak for themselves. You shouldn't finance a toy. If you can't afford it, you shouldn't buy it. Etc. I think it is financial advice for those who need financing, not to. I think it is less about EGO/PRRIDE and more about giving advice to dreamers. ..and I am sure in many cases, the owner did pay cash. There is just no way it is 100% cash buyers all the time.
I was tempted to say I paid cash, but the truth is a little complicated. I bet this is the case with a lot of owners. I believe most COULD pay cash, but they did some financing. I had a home equity line of credit. Used the low interest credit line to take money out and pay cash for the car. I owned the car outright from day one. The interest on the money borrowed against the house was tax deductible. I had savings with enough to pay off the credit line, but it was making more return than the interest I was paying. I refinanced the house a couple years later for a better interest rate. I sold the house a few years after that. We are talking about a Jalpa many years ago, so it was not a huge amount of money.
I see both sides of this discussion as well. While I have the money to purchase outright, I choose to finance my cars for a couple reasons. The number one reason is that it keeps me diciplined in knowing I need to keep working hard and set a goal of a monthly payment or I will blow money. Number two, as the poorest person on here, I don't want to tie up all that cash at once and depleat my nest egg. I only have one payment, it's the Wheel Estate payment. It may be a new tractor next time or the wife a new car but we only tackle one at a time. House and land are mine.
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I think you misunderstood. You mentioned earlier that people pretend to have paid in cash and not financed. I was trying to say why do you think people lie about paying outright when they didn't
How do you define toy? My Civic is paid off but my Lambo is partially financed. My Civic I thrash around like a rag doll and don’t care if it gets beat up. My Lambo is pampered and is not treated like a toy at all. Does this mean I’m following your general rule?
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I think you are right, it's an ego thing. Look at the marketplace FS ads. Someone says 'that's too high priced' the immediate response is 'you're just too poor to afford it' then they reply 'no I own 7 Bentaygas, a private island and a private jet' then the other guy asks for proof, and everyone is trying to one up the next out of ego, prind, tiny dick syndrome, I don't know. I don't understand it. I go into every conversation/situation KNOWING I'm the poorest, dumbest, least attractive, and least endowed person in the group. Can only go up from there.
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I agree with a lot of that,but for certain group of customers finance is just a strategy for certain period.For example If you have а small or medium business,you maybe work with little more than half million or 1,5 million cash money and if you pay 300 000$ for your dream toy , sure your activity will be hit very hard by this expense.Also If you have family,kids,housing expenses the situation will get out of a control after short period of time. If you were born into the money 💰 and you have in the bank account 20,30 or 50 millions,Yes you can be the big "Boss" which pay always in cash.In Italy more than 80% of the clients finance or paying normal lease for all exotic brands(Ferrari, Lamborghini, McLaren)
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Both are valid, depends on how you handle your personal finances.
I paid cash for my Gallardo, but thats mostly because its an old car that no one wants to finance, and the places that do did not have favorable rates. If I was able to get a good rate I would have done that even though I had cash since theres the opportunity cost of using the cash in other ventures.
If I were buying new and could get a 5% or lower rate, I would probably go with financing. At that point its likely you can pay for the interest with your investments of the same cash value.
I paid cash for my Gallardo, but thats mostly because its an old car that no one wants to finance, and the places that do did not have favorable rates. If I was able to get a good rate I would have done that even though I had cash since theres the opportunity cost of using the cash in other ventures.
If I were buying new and could get a 5% or lower rate, I would probably go with financing. At that point its likely you can pay for the interest with your investments of the same cash value.
2022 Urus, 2022 F8 Tributo, 2022 Taycan Turbo S, 2022 x5, 2022 Shelby Super Baja, 2019 Model 3P
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I think if you can get around 2% interest rate I would take that as you can easily make 5% with your cash in an FDIC insured CD. The last car I financed in 2022 (a Taycan Turbo S) was at 1.79% so the 200K over 4 years will make me about $27,000 which is the equivalent of a 13.5% discount on the car's MSRP.
However many lenders are quoting 5-8% rates now in which case Id pay cash (like I did for my F8 in December).
However many lenders are quoting 5-8% rates now in which case Id pay cash (like I did for my F8 in December).
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It is a satisfying feeling to pay with cash in full. Yes there may be some optimization you can do by financing and investing, but it’s also nice to feel like you don’t really need money that badly to be bothered with that.
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