- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Financing vs. cash
Posted on 7/7/12 at 8:12 pm
Posted on 7/7/12 at 8:12 pm
I am going to buy my wife a new car and thought about paying cash. My thoughts are they will drop the price quite a bit. However, I am still young (26) and want to build up my credit so I have thought about paying down a huge sum (hoping to get rid of the interest) and financing the rest. What is the best way to go in this situation?
7
Posted on 7/7/12 at 8:17 pm to EastTxTiger
I'd suggest cash if you can. There are easier ways to build credit.
Posted on 7/7/12 at 8:38 pm to EastTxTiger
This whole "I can pay cash but I'm gonna finance so I can build my credit score" thing is fricking stupid. If you have the bones, pay cash
pics?
quote:
...my wife...
pics?
Posted on 7/7/12 at 8:41 pm to EastTxTiger
You should ask this on the OT, you would fit right in
Posted on 7/7/12 at 8:41 pm to EastTxTiger
quote:
My thoughts are they will drop the price quite a bit.
You would be wrong. They make money on the financing. Pay cash and be done with it.
Posted on 7/7/12 at 8:52 pm to EastTxTiger
The biggest question I would have is what interest rate you qualify for. If you can borrow at a really low rate then I would do that and put your spare cash that you didn't use in a tax-advantaged account like a 401 or IRA. That gets you the best of both worlds. There's nothing wrong with borrowing money if you can invest what you have at a higher return, in fact that is exactly how bankers get rich.
That said, if you don't qualify for a low rate (you mentioned you're just getting started) then it may be better not to do this if you have the cash.
Another option is to go ahead and finance the car and next month pay off as much as you can. Dealers will sometimes knock money off the sticker price if you finance with them, just be sure there is no prepayment penalty in the financing contract.
That said, if you don't qualify for a low rate (you mentioned you're just getting started) then it may be better not to do this if you have the cash.
Another option is to go ahead and finance the car and next month pay off as much as you can. Dealers will sometimes knock money off the sticker price if you finance with them, just be sure there is no prepayment penalty in the financing contract.
Posted on 7/8/12 at 2:00 pm to EastTxTiger
penfed is doing 1.5% right now, no reason to pay with cash when you can get basically free money
Posted on 7/8/12 at 2:26 pm to EastTxTiger
quote:
my wife
quote:
i am still young(26)
I'm sorry
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News