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People who think they are smart because they pay cash for their cars
Posted on 11/26/17 at 7:39 pm
Posted on 11/26/17 at 7:39 pm
Your guys need to look up this Finance 101 concept called 'Time Value of Money'.
If you can finance the car at a rate that's lower than what you typically make out of your investments, you should choose to finance instead of paying cash, even if you can afford to pay for the car fully using cash.
Dave Ramsey's School of Economics is only for the simple minded and for people with no financial disciple; it should not be the norm.
If you can finance the car at a rate that's lower than what you typically make out of your investments, you should choose to finance instead of paying cash, even if you can afford to pay for the car fully using cash.
Dave Ramsey's School of Economics is only for the simple minded and for people with no financial disciple; it should not be the norm.
57
Posted on 11/26/17 at 7:41 pm to baybeefeetz
Dave Ramsey would probably say it’s a bad idea, financially, to purchase a new car.
Posted on 11/26/17 at 7:42 pm to Street Hawk
Does that take into account that I don't need full coverage if it's paid off? Honest question.
Posted on 11/26/17 at 7:42 pm to Street Hawk
quote:
Your guys need to look up this Finance 101 concept called 'Time Value of Money'. If you can finance the car at a rate that's lower than what you typically make out of your investments, you should choose to finance instead of paying cash, even if you can afford to pay for the car fully using cash. Dave Ramsey's School of Economics is only for the simple minded and for people with no financial disciple; it should not be the norm.
Except that I don't have to carry collision insurance, dumbass. That means I save thousands of dollars a year by bearing my own physical risk of loss. If you finance a car, you don't have that option.
Oh, yeah. And I get a better deal by paying cash.
Posted on 11/26/17 at 7:42 pm to Street Hawk
quote:
if you can finance the car at a rate that's lower than what you typically make out of your investments
This almost never happens unless
You get lucky with highly speculative investments or
You can take a business deduction for the interest paid.
Average baw is not likely to have either scenario in his favor.
Posted on 11/26/17 at 7:42 pm to Street Hawk
Like paying 100k cash for a car has any bearing on the financial well being for somebody that can drop 100k cash on a car.
Posted on 11/26/17 at 7:44 pm to Street Hawk
First of it all depends on the rate. The awesome car rates are for only brand new cars. Which buying a brand new car is retarded in itself. When buying a used car the best rates make it difficult for your line of thinking.
Posted on 11/26/17 at 7:45 pm to Street Hawk
No matter how much money I make I don't like having large monthly bills for depreciating assets. My cars are not factored into my investments they are factored into my entertainment.
Posted on 11/26/17 at 7:45 pm to Street Hawk
I pay cash because I don’t need to use Ford Motor Credit as a wealth builder in my portfolio.
Posted on 11/26/17 at 7:45 pm to Street Hawk
Ramsey’s rule is don’t borrow money ever. Extreme but it’s a cornerstone of his program. I don’t follow it but can understand how it’d work for the unwashed masses.
Posted on 11/26/17 at 7:47 pm to Street Hawk
Lol you’re a poor
Posted on 11/26/17 at 7:51 pm to Street Hawk
Because we all know finance companies are foreign to the concept of the time value of money.
This post was edited on 11/26/17 at 7:54 pm
Posted on 11/26/17 at 7:51 pm to Street Hawk
If you have cash on hand in today's climate, it isn't making squat interest-wise. Even a great APR of 2 percent outpaces most money market interest rates today, so you'd lose money on the financing.
The money you have in the market should not be considered cash, even though it may be liquid. It needs to stay in the market, so it can keep generating interest.
If you're pulling investment money out to buy a car, then, yes, that is dumb.
The money you have in the market should not be considered cash, even though it may be liquid. It needs to stay in the market, so it can keep generating interest.
If you're pulling investment money out to buy a car, then, yes, that is dumb.
Posted on 11/26/17 at 7:52 pm to Street Hawk
So, not having a $500/monthly bill is bad?
Posted on 11/26/17 at 7:53 pm to JudgeHolden
quote:
That means I save thousands of dollars a year by bearing my own physical risk of loss.
I don't pay close to $1,000 a year for collision
Posted on 11/26/17 at 7:54 pm to Street Hawk
Ramsey is a multitime bankrupt millionaire that lectures people on how they should save money.
He made his millions off selling books to people who are bad with money.
Basically a con man getting rich off selling his method to get rich.
He made his millions off selling books to people who are bad with money.
Basically a con man getting rich off selling his method to get rich.
Posted on 11/26/17 at 7:54 pm to Street Hawk
Yeah I get that I just don't like the burden of payments on anything.
frick that.
frick that.
Posted on 11/26/17 at 7:58 pm to pioneerbasketball
quote:
So, not having a $500/monthly bill is bad?
When you take $30,000+ out of a compounding interest account/investment to do so yes.
Posted on 11/26/17 at 8:00 pm to BeerMoney
quote:
Ramsey’s rule is don’t borrow money ever. Extreme but it’s a cornerstone of his program. I don’t follow it but can understand how it’d work for the unwashed masses.
If you look at who Ramsey caters to, you'd know why he takes extreme positions such as this.
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