Olser
Active Member
It definitely depends on the situation. As you said, why cash out 60K in assets to buy the car in cash when you can finance for <2% in an economy with 3-7% (maybe more ) inflation. There's deffinately something to be said for never financing a luxury you cant afford to just buy outright though.I did. I bought my other two cars ('21 Tacoma TRD Off-Road & '21 Highlander Platinum) with cash, too. Not dick waving. Much like @zrk, I just can't bring myself to take a loan out for a depreciating asset. You're losing money all around. Taking out a home equity loan for a major home improvement? Likely a winning proposition (do the math, though). You're just reducing the amount of value you're getting back from said improvement based on the interest rate you're paying. However, if you're cashing out investments to buy an asset like a car, you need to consider the potential gains you're giving up converting the investments to cash. It's mostly math... there is no equation that includes the fun you'll have with a car like ours. You have to be willing to give something up for that. In my case, it was worth it.
It also helps that you get a good deal when you buy three cars with cash at one time.
Plus I play poker with the Finance Manager at the dealership.
EDIT: Please note that I did not have the income to do all this during my last seven years as a fed. Nor should I - I take that very seriously. You guys don't pay me that well. It was my previous 20 years working as a contractor and other sources of income. I'm not making anywhere close as a federal employee to what I was making in private industry.
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