Pay cash or finance?

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#2
Beyond my deposit, I will have access to and am also setting aside funds to have about a 20-25K (maybe more) down payment which makes it totally doable to get optioned up to about 50K and financing the rest.
 

LUXMAN

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#3
I've got $8,000 saved up now and plan on saving $1,500/month for the next two years. Would this be wiser than financing at 1.79%?
Some would say leverage your money and make more in the market. I personally always save up and pay cash if I can. Sure you can possibly make more on investments but the market doesn't always work on your time and crashes just when you need it. Or maybe that just happens to me :oops:.
But how so we know what interest rates will be in 2 years? The most likely will be low but maybe not that low.
 
Joined
Apr 19, 2016
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#4
My plan is to have about $15k-$20k to put down on the vehicle, and finance the remaining ~$20. Really I just hope to keep monthly payment at or below what I pay for my current car so I won't have to start changing budgeting for the vehicle lol
 
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#5
I plan on putting 20 to 25 thousand down and finance the rest. I want to keep the payments at $600 or less on a 60 month loan.
 

Ed Woodrick

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#7
I've got $8,000 saved up now and plan on saving $1,500/month for the next two years. Would this be wiser than financing at 1.79%?
You didn't really say what you were buying. I think that 1.79% is a really good rate right now.

The answer is easy. All you have to do is go through the loan tables and figure out how much 1.79% is going to cost you. It may be $500 or $3000, just need to figure out what it is and if you are willing to pay that.

Also, don't forget to include the total cost of purchasing the car, tax, title, tag, as well as plug installation.
 

Ed Woodrick

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#8
Also, don't forget that if you get it by the end of the year, that you can get up to $7500 tax credit (up to the amount of taxes that you actually pay) and in two years, that will either be about $1800 or $0. Any credit probably pays for the interest.
 

AutopilotFan

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#9
You didn't really say what you were buying. I think that 1.79% is a really good rate right now.
The thread is from 2016. I don't think anyone can get 1.79% anymore. If I could, I'd have done it -- I get 1.8% in my savings account now!

I also paid cash. I've been saving for this since 2005 when I bought my Prius. In cash. :)
 

Jay79

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#10
I never sink large sums of cash in a depreciating asset, my money is better served staying in my bank account or in other en-devours. 1.79% is very low and you will pay minimal finance charges, plus you can always pay extra per month and lower your total finance charges considerably, and usually with no penalties if you went with a good finance institution. Do what feels right at the end, you know your situation better than any of us.