Ever paid cash for a new car?

[csandste]

Originally Posted by StevieC
Although I finance because interest rates are ridiculously low I could buy it cash but would rather keep the money in investments.



Expect some of those low rates will disappear as interest rates return to normal spreads, but, yes. If you can get five years at zero percent it would be silly not to take it.

 

[old1]

Only car I ever borrowed money for was a new Chevelle in 1964. I borrowed the money from my dad and paid him back. Since then I have always paid cash for all the cars I had. Bought a 97 Pontiac in 98, then a new PT cruiser in 2005, then a 2005 mustang, then a new 2014 Fusion, then a few month ago the 2017 Nissan Frontier. Same with houses, borrowed for 1st one in 1969, never since then.

 

[Zee09]

I have purchased many that way but I will go against the grain here and say that I'm not so sure it is a great thing to do.
Nothing better than paying as you go during the zero interest days and I'd take that car money and use it for things that actually make
me money like machine tools and some great land deals. In the 80's when interest was over or near 20% with great credit, cash was king.
There is no investment potential in a new car or truck- seriously. So why unload big $$$ for a waste of time and money.


Of course tax code 179 has been great to me.

 

[TTK]

generally pay cash for new cars, unless the finance rate is less than the interest I get on savings accounts. In that case, paying cash cost money.

 

[rshaw125]

We were going the cash route on my wife's new Edge. But after I got the price way down I thought I would ask for the 0% interest. Much to my surprise they said yes. Financed the whole $$ for 0% for 5 years. Bank account makes the payment automatically each month.

 

[AZjeff]

Originally Posted by rshaw125
We were going the cash route on my wife's new Edge. But after I got the price way down I thought I would ask for the 0% interest. Much to my surprise they said yes. Financed the whole $$ for 0% for 5 years. Bank account makes the payment automatically each month.


Bonus is the bump in your credit score by doing this. Win/win.

We went to buy the truck with cash but a credit union was giving a $1000 spif if you financed $15k so we did then paid it off in 2 months. It's nice to get to the point you can drive decent stuff and not have payments. Drove my share of clunkers.

 

[StevieC]

Originally Posted by csandste
Originally Posted by StevieC
Although I finance because interest rates are ridiculously low I could buy it cash but would rather keep the money in investments.



Expect some of those low rates will disappear as interest rates return to normal spreads, but, yes. If you can get five years at zero percent it would be silly not to take it.

Anything less than 8-10% I'm getting in my investments currently still makes it worth it. Example: The Caravan is financed at 0% (And yes I know it's not really 0%, it's added to the cost of the vehicle in some way but still better than the 5% over at Toyota)

 

[SirTanon]

When I bought my previous car - a 2003 Mercury Sable LS - back in 2008, I paid cash for it. Well, a check to be precise. Then again I was able to get it for $4000, so it wasn't a difficult outlay.

Not a "NEW" car, but still new to me. Not a bad car for the 6 years I had it.

 

[Lyman]

Never bought a new car before. I paid cash for a new Harley in 2004. Almost $24,000 OTD for an Electraglide Classic.

 

[tig1]

I have paid cash for all of my vehicles for the last 20 Years or so.

 

[Eddie]

If I don't have the cash to purchase then I can't really afford the vehicle. However if I'm getting 6% on my guaranteed CD and the manufacture is offering 0.9% like on my last car then that's a no brainier. Ed

 

[chainblu]

Originally Posted by NYEngineer
... my bank was doing a double points thing with their Visa. They had a fit and would only do it as a debit or they would have had to pay a fee.


I've often wondered what would happen if you whipped out a credit card. Some of the new CC offers I'm getting in the mail now-a-days are offering 12-24 months 0% interest.

 

[JeffKeryk]

Generally put a ton down or pay cash. Depends on interest rate; for example Honda oftentimes offers cheap factory $$.

Now, we leased the 2018 RX450h because the offer was so good and as a hedge against technology shift.
Was planning on buying outright.

Since cars are a depreciating asset, there are better things to put you $$ into.

 

[Nyogtha]

No but I only purchased one new car in my life so far and I don't plan to repeat the experience.

 

[philipp10]

My motto is if I don't have the cash for a car, I don't purchase that expensive of a car. Never had a car loan, never will.

 

[ecotourist]

Originally Posted by chainblu
I've often wondered what would happen if you whipped out a credit card. Some of the new CC offers I'm getting in the mail now-a-days are offering 12-24 months 0% interest.

They'll only allow you to pay a few thousand on your credit card. I've asked, and done it.

I bought a new Toyota Celica in 1981. Right at that time my father was very ill (and died soon after). When I took him for a ride in it he wanted to know how much the payments were. I told him there had only been one payment. He said I "must be doing all right". I kind of liked that comment. I've only paid cash for new (or new to me) cars ever since.

Come to think of it I've always paid the price difference for new to me houses in cash since then too. One of our best financial moves ever was to pay off our first house as soon as possible; we haven't had to make a payment on anything ever since. Not having payments makes a lot of things possible.

We use our credit card frequently but pay off the balance every month. I understand that people who do that are called "free loaders" in the industry. I'll wear that badge with honour.

 

[demarpaint]

Originally Posted by ecotourist
Originally Posted by chainblu
I've often wondered what would happen if you whipped out a credit card. Some of the new CC offers I'm getting in the mail now-a-days are offering 12-24 months 0% interest.

They'll only allow you to pay a few thousand on your credit card. I've asked, and done it.

I bought a new Toyota Celica in 1981. Right at that time my father was very ill (and died soon after). When I took him for a ride in it he wanted to know how much the payments were. I told him there had only been one payment. He said I "must be doing all right". I kind of liked that comment. I've only paid cash for new (or new to me) cars ever since.

Come to think of it I've always paid the price difference for new to me houses in cash since then too. One of our best financial moves ever was to pay off our first house as soon as possible; we haven't had to make a payment on anything ever since. Not having payments makes a lot of things possible.

We use our credit card frequently but pay off the balance every month. I understand that people who do that are called "free loaders" in the industry. I'll wear that badge with honour.

The credit card company doesn't want to be a lien holder. When I sold cars people often asked if they could buy a car in full with a credit card, the answer is no as you stated. Also the dealer is giving up a % of the amount charged on the card to the credit card company, they aren't about to pay a fee on the entire selling price of the car.

I wear that free loader badge of honor with pride too. In over 40 years of being a credit card holder I haven't paid a cent in interest or late fees.

 

[parshisa]

Bought my Civic with a check in February 2017. Finance guys was little disappointed and asked my why inpay cash. I said cuz i can. ‘16 pilot was initially financed (i got ripped off due to first time buying car in US) but paid off in full earlier this year.

 

[2strokeNorthstar]

Never bought new. Savings is significant on a used still under warranty car. New enough for me

 

[Kruse]

" Ever paid cash for a new car?"

When you say "cash", are you talking about actual paper money? Because I think the car dealer legally has to notify the IRS with cash (paper) transactions over a certain amount. They don't have to when it is written with a bank check.
Not that it would bother all people, but it would bother some.