[Panda]

@Panda not everyone gambles on stocks or all that related stuff or lives on passive income, you have the guy who works puts money in the bank every week and when he has enough goes out to buy want he wants.

Furthermore what helps tremendously, one guy told me once if you can work with your hands it's worth gold. If you don't need to hire contractors to fix your own house (to code!!) or hire a mechanic to fix your vehicle (most car repairs) then that's very valuable.

Literally the stable income part of my rant as well as the whole point… different paths and ways to financially achieve these toys. And while I agree you save a lot being your own GC, that isn’t Lambo money. Maybe a payment here and there but if it’s Lambo money you’re saving you need to be starting your own GC business and charging the appropriate market fee. Also it tells me you need to not be a sucker for those prices. Everyone differs, just saying it’s interesting to see how different walks of life and experience molds expectations and viewpoints.

 

[coltonmarko]

Great point that I hadn't thought about before - Age. A large sum of cash to someone with 30 years of compound interest ahead of them means a lot more than to someone on the verge of retirement. It may swing them to finance and invest that difference instead of locking it into a poor "Store of Value". Looking at market investments only here.

 

[Jr Mint]

Age is a huge factor. It's hard to compare what's better when you have 30 year olds and 65-70 year olds commenting. Being wise with the purchase is required regardless of age, but risk at 30 isn't the same as risk at 70. Far riskier portfolios at 30 than at 70.

 

[Panda]

Age is a huge factor. It's hard to compare what's better when you have 30 year olds and 65-70 year olds commenting. Being wise with the purchase is required regardless of age, but risk at 30 isn't the same as risk at 70. Far riskier portfolios at 30 than at 70.

Hit the nail on the head my man. The risk I take now would probably make the 65-70 year olds think millennials are beyond stupid, lol.

 

[B-Dub]

Bought my 2004 Gallardo in January. Paid cash, which is not something I normally do for a car. When finance rates are low (like 1-2%) and my money is earning me 8+%, it makes more sense to finance.

However, given our current disaster of an administration and high interest rates and plummeting markets, I pulled the cash out to buy the Lambo, which was a VERY good deal. So I'm looking for the Lambo to appreciate in the coming few years to make up for losses in the market.

 

[Blacktop_Mods]

In the mid 2000s I knew a "Kevin" who worked in finance. "Kevin" bought a brand new Gallardo with a banknote. One day "Kevin" asked to borrow $60 so he can take a girl out on a date. I recommend not be that "Kevin".

Last year, a Ferrari, two Bentleys and a Range Rover were repo'ed from a local steakhouse's parking lot. I also recommend not be the people who dine at fancy restaurants yet can't make car payments.

Sometimes, it's being prideful: i.e. all my toys (including the Lambo) are paid in full. Sometimes, it's business: i.e. I financed my new airplane b/c I don't want to outlay that much cash. So I got an airplane partner and we put 25% down and financed the rest at 3.25%.

At the end of the day, to each's own...I just like to sleep well at night.

Hey, my name is Kevin and I resent the analogy.. ha hah ahah hahahaha hah a

 

[Buy&Hold]

I just saw this discussion listed in my trending posts email. I took a break from work and enjoyed reading all of the comments. I quickly noticed the comments I gave thumbs up received thumbs up from the same members over and over. The comments supporting financing and the YOLO crowd get the thumbs up from their camp. I can only speak from my experience that has worked for me. I haven't borrowed on a car for over 20 years. I haven't borrowed for my business in over 15 years. Ironically, years ago when I felt like I wanted to borrow money for my business there were not any lenders interested and this put a real chip on my shoulder. My business grew and the banks came knocking. I decided I would receive interest, never pay it. I know I could have borrowed money and sped up the growth of my business but I also know I would have not been able to sleep well at night, and that is priceless to me! I paid off my home in 2018 and was told it was not a savvy move. I know 100% of foreclosures happen on houses with mortgages. I also know that if I get tired of not having a mortgage a bank would be eager to lend. So far in five years I haven't missed the mortgage. When I paid off my house I was guaranteed a 6.5% rate of return on my money. I hear folks constantly talking about investing their money in lieu of paying off their house or borrowing for a car to do the same thing. What I never hear about is the RISK! Apparently everyone that invests their money instead of paying cash wins..... Not! This is no different than making investments on margin. Margins calls are up and lots of folks are losing right now. I came from humble beginnings and because of that, I focus on generational wealth. For my situation being "YOLO" years ago would have been too selfish and would have derailed my goals. I think the best part of zero debt and a solid net worth is the generosity and goodwill we spread.

 

[Jr Mint]

I just saw this discussion listed in my trending posts email. I took a break from work and enjoyed reading all of the comments. I quickly noticed the comments I gave thumbs up received thumbs up from the same members over and over. The comments supporting financing and the YOLO crowd get the thumbs up from their camp. I can only speak from my experience that has worked for me. I haven't borrowed on a car for over 20 years. I haven't borrowed for my business in over 15 years. Ironically, years ago when I felt like I wanted to borrow money for my business there were not any lenders interested and this put a real chip on my shoulder. My business grew and the banks came knocking. I decided I would receive interest, never pay it. I know I could have borrowed money and sped up the growth of my business but I also know I would have not been able to sleep well at night, and that is priceless to me! I paid off my home in 2018 and was told it was not a savvy move. I know 100% of foreclosures happen on houses with mortgages. I also know that if I get tired of not having a mortgage a bank would be eager to lend. So far in five years I haven't missed the mortgage. When I paid off my house I was guaranteed a 6.5% rate of return on my money. I hear folks constantly talking about investing their money in lieu of paying off their house or borrowing for a car to do the same thing. What I never hear about is the RISK! Apparently everyone that invests their money instead of paying cash wins..... Not! This is no different than making investments on margin. Margins calls are up and lots of folks are losing right now. I came from humble beginnings and because of that, I focus on generational wealth. For my situation being "YOLO" years ago would have been too selfish and would have derailed my goals. I think the best part of zero debt and a solid net worth is the generosity and goodwill we spread.

Again, you mention risk but not age. I imagine from your posts you are deep into your 50s, possibly 60s. I think later in life it’s important to think your way. Early in life choices are made thinking about long term. Yes, there could be a short term loss in markets, which is fine. With 30 years ahead of many to invest, short term market losses don’t mean much. The most important factor is job security, not immediate market returns.

now, leverage traders, over extenders, and so on…that’s a different ball game.

 

[noallegiance]

The cash camp is just not in touch with the reality of the situation on the ground . It’s great to hear these thoughts but it should synch in with what really happens in the real world …

 

[Buy&Hold]

Again, you mention risk but not age. I imagine from your posts you are deep into your 50s, possibly 60s. I think later in life it’s important to think your way. Early in life choices are made thinking about long term. Yes, there could be a short term loss in markets, which is fine. With 30 years ahead of many to invest, short term market losses don’t mean much. The most important factor is job security, not immediate market returns.

now, leverage traders, over extenders, and so on…that’s a different ball game.

I am early 50's and had solid generational wealth for my kids and if they have kids by my mid 40's. Cars did not retain value in the 90's and 2000's they were wealth killers. You are correct,
"Early in life choices are made thinking about long term" and fortunately I invested early when time was on my side instead of doing YOLO purchases.

 

[Jr Mint]

Also it’s important to point out there are groups.

group A pays Cash. Whether they have just enough or a lot of money is irrelevant. They paid cash.
M

group B has the money in the bank, but chooses to finance.

group C does not have the money in the bank, has to finance, but can afford the payment.

group D does not have the money in the bank, can just squeak by and afford the payment, but one mishap and they are screwed.

I am a mix between A and B. I choose wisely based on market conditions what to do and sometimes I decide on the fly. I’m a unique situation since I buy 8-10 cars per year and am always changing, so I also do what’s convenient.

If you’re in group D, be careful. If you’re in group C, also be careful.

 

[Buy&Hold]

The cash camp is just not in touch with the reality of the situation on the ground . It’s great to hear these thoughts but it should synch in with what really happens in the real world …

Kind of ironic the "cash camp" has cash and the alternative has earning power and credit..... In the "Real World" money talks....

 

[Jr Mint]

Kind of ironic the "cash camp" has cash and the alternative has earning power and credit..... In the "Real World" money talks....

I don't know the exact stat as it's impossible to measure, but I presume most buyers do not pay cash. I do not consider leveraging investment vehicles to pay for cars "paying cash," I put that in the financing while investing category. In all reality, what paying cash mostly does is give peace of mind. It is absolutely not the smartest use of the money. One big variable is how much cash you have. ie: if you have 150 million dollars, then 250k is chump change. If you have 10 million, 250k is not, and better served working for you. We can debate this one all day long, as everyone's philosophy is different. The commonality amongst us all is that we've all gotten to the point where we can afford the car one way or another.

 

[Lambo8888]

^^^^^I gave a similar example in previous comments.If you have small business and you work with only 1-2 million $ cash money, better to finance(or lease) vehicle in the price range of 200-250$k

 

[Ohlgren]

Age discussion is interesting to me. I was really conservative about spending money on an exotic when I was younger. Strongly believed in spending cash for a car. Everything else came first.

I was able to comfortably afford my Jalpa, but the cars I really wanted were a little out of my comfortable reach.

At 27, I could have stretched my finances and bought a Lamborghini Miura P400 for $85,000. Didn't do it. At 35, I could have stretched my finances and bought a Countach 5000S for $70,000. Didn't do it.

I don't know if I was smart, or a total idiot!

 

[Noxious Bull]

I had the money to pay cash, but instead I chose to finance mine because the interest rate at the time was so cheap. I used that money to fund a development that now pays itself and the car passively.

 

[jimmy-j]

Has anyone ran an age vote/survey before? Would be interesting to see what the demographics are

 

[Jr Mint]

Age discussion is interesting to me. I was really conservative about spending money on an exotic when I was younger. Strongly believed in spending cash for a car. Everything else came first.

I was able to comfortably afford my Jalpa, but the cars I really wanted were a little out of my comfortable reach.

At 27, I could have stretched my finances and bought a Lamborghini Miura P400 for $85,000. Didn't do it. At 35, I could have stretched my finances and bought a Countach 5000S for $70,000. Didn't do it.

I don't know if I was smart, or a total idiot!

This is where age is interesting. Imagine you were 27 and you were making 175k a year. Now imagine at 35 you were making 250k a year. Age matters, but earnings and net worth(separate from primary residence) matter as well.

A 35 year old with a million dollars worth of liquidity and a 55 year old with 3 million worth of liquidity will make decisions differently. Those 20 years mean a lot when it comes to investing and this is why there is nothing wrong with taking free(3-5%) money to borrow against a car.

 

[Ohlgren]

Priorities and choices...

 

[Luzifer]

Priorities and choices...

What car is that?