re: What’s your car payment?

Zero.

Two vehicles under 6 years old and paid cash.

I laugh and cry for people financing expensive arse new cars. Total waste of money.

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$0 - If I can't pay cash I can't afford it. That goes for all things except for house.

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You think this makes you sound smart, but it does not. It is a waste of opportunity cost.

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Yup. I recently bought a truck and got a rebate to finance through Ford at an insanely high rate. Decided I'd just pay it off immediately. Found a 2.75% rate through my credit union. Asked my financial advisor what I should do and he didn't hesitate to tell me to keep it refinanced and leave the money in my portfolio. If you have a high income it's not an insane number, although I think both of my notes are sub 400. It is crazy that 523 is the average when average household income is 50-something thousand per year though.

Wife car $699
My Tahoe - 0 "(wrote check for it in 2006)

Me $0; Wife $0

Wife can't stand the thought of new cars so I get off easy. I don't care about expensive cars/trucks so I generally buy something new and reasonably priced and pay for it in full - and then keep it for a long time. Hate car notes.

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Never cheaper to borrow than pay out.

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It worries me that some people are this dumb with their money.

My last two vehicles, gmc canyon and f150, were both financed at 0%.

Please tell me how it's more expensive to pay off a vehicle interest free over several years versus plopping down cash on the table.

I'm addition, you will almost always get a better price by financing. Dealers don't give a shite if you bring in a bag of money. They get incentives for getting people to finance.

Nothing. Pay cash for your car

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We bought an accord this year, I could have written a check, but got 0% so financed it, payment is $528.

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I hope everyone bragging about their “0% interest rates” rates realizes that they really just prefer-paid the interest up front and it’s bundled into the price of the car.

To prove this it’s bundled , ask them if they will give you that same rate on another vehicle you don’t buy from them. Of course they won’t.

It’s fine to do this, but just underneath that it’s a sales trick.

Because there is always risk in the market that it will go down 20%. Also do a study on millionaires and I guarantee most of them would say they didnt get that way by keeping a car loan of hundreds of dollars a month around their neck. When people pay cash they buy a reasonably priced vehicle they can afford. When people finance a vehicle they spend way over what they can afford and do so by justifying their great financial knowledge of getting a zero or low interest loan. You act as if those same people will be investing the same amount of money in the market but in reality they are spending it all at starbucks and eating at chiles every day.

Also a new vehicle is a horrible depreciating asset which means you are borrowing money on something that is worth way less then the price you borrowed the day you drive it off the lot. It is amusing watching you and others get so butthurt by people paying cash for vehicles. It's ok we aren't worried about your terrible financial advice.

I’m not sure if anyone has mentioned the best strategy. One should finance through the major automaker in order to get all the rebates. This will often be a fairly high interest rate. Then immediately refinance it through your credit union or wherever you can get the lowest rate. The only way to get those zero percent interest deals is to forfeit all of the rebates. As an example, it’s much better to finance through Ford at 7% to claim all the cash back money. Then refinance at 2.49%. I’d rather keep cash in hand and invest it than to pay cash for a vehicle. The long term rate of return in the stock market is much higher than 2.49%.

This thread has turned into a discussion where everyone is trying to make the smarter decision but not suggesting the smartest decision.

Buy a vehicle used. At least 5 years old. Pay cash.

Listen, we all waste money. Some on alcohol. Some on travel. Some on clothes. Some on too big of a house.

And - Some on a new car.

Paying cash for a new car is wasteful.
Financing a new car is wasteful.
Leasing a new car is wasteful.

No need to argue about who of the three is being the “least wasteful” with his money. All three are.

But if you love driving a new car, love how it makes you feel, love how it makes you look - then go for it. You can’t take money with you into the next life. But don’t try to convince others that it is a smart decision. It’s not.

When I took my family to Europe for two weeks - it was wasteful. But I loved every minute of it. So glad we shared that memory. But I am not going to try and tell anyone it was a good financial decision.