"Great car isn't it!? Wow it really suits you! Would you like paint protection rolled into your 4...

or you could, y'know, take the money you have in the bank and buy a car you can afford with that... you do have money saved up, right?

because having more liquidity is better if you're just a working stiff. you can always surrender the car if you lose your job or get hurt.

For most people its not easy to straight up drop 30-50k on a new car.

This whole channel:
youtube.com/watch?v=kmh_UiBXgyw

This is why you drive a 3000 dollar shitbox

34k cash for my car last year... but if I could only spend 3000 while still leaving a good 'safety cushion' in my bank account, then yes, that's what I'd drive

I bet your credit score doesn't have a number, it's just "yikes" in the little box on the form

it's a fucking travesty that the government forces people by law to buy new cars that cost over 30k... someone should do something about that.

>I bet your credit score doesn't have a number, it's just "yikes" in the little box on the form
Do you even know how your credit score is calculated? Payment history and length of history are significant factors.

honestly no, I'm apparently a 'very low risk' even though all i've ever done is pay off Netflix bills on my CC as soon as I get them.

I would have thought i'd be high-risk regardless of income because I have no history paying off large loans but apparently the bank doesn't care.

>34k cash for my car last year... but if I could only spend 3000 while still leaving a good 'safety cushion' in my bank account, then yes, that's what I'd drive
Good for you

>I bet your credit score doesn't have a number, it's just "yikes" in the little box on the form
Ouch I got burned

Anything under 30k is not worth buying new. I am not a poorfag so I have never heard or known anyone to fucking take out a loan on a 6k shit box.

>>I bet your credit score doesn't have a number, it's just "yikes" in the little box on the form

Pretty much this, why lock up that money? If your returns are greater on an investment than the savings from purchasing cash then you'd end up ahead anyways.

There is such thing as high interest accounts and property. Financing a new car is about the most fiscally irresponsible thing you can do if you aren't rich. Why do that when you keep money in assets, invest, and just drive a decent used car instead of making payments with interest on a severely depreciating asset?

I boggles my mind. I can't remember where it was, but somebody on plebbit did some rough statistics about running costs of vehicles and used cars always won out especially over 5 years.

Nobody is going to reply to this because everyone on Veeky Forums is poor and for good reason

Kek. Dodged that question.

youtube.com/watch?v=t1NaDucAXIg

>$10 a week
>over 7 years
>works out to be $3640
>for paint """protection"""
>4.9% interest on it

well, there's just the basics of interest vs depreciation, too
>buy 60k luxury car
>pay say, 65k over 5 years due to interest
>on the date your last payment goes thru the car has depreciated to 45 k
>laughingmerchants.jpg

considering how ANGRY people here get about STEALERSHIPS im amazed there's a defense of financing being mounted.

I never understood people who get scammed by car dealers, you need to be retarded to fall for them.

Jesus christ, you really couldn't see anything more useful to do with that 34k than blow the whole load on a car? Mutual funds? Retirement? A downpayment on a house?

Holy shit

ive watched that shit before. i actually sat down with someone who was wanting to do a trade in. I saw the whole thing. They were basically going to take her car for no money and add the entire loan to the car they were going to buy.

Long story short the option they gave them was, we take your trade in for X amount of cash, pay out your current loan, and you buy this car for $23000.

I interrupted the guy.
>im sorry, you're saying this is the trade in value and this is the loan value right?
>yeah
>so if they bought the car straight out this would be the value right?
>yeah
>so you're not giving her nothing for the trade in because they can buy the car for 13000 and keep their current car and the debt it has, owe the same amount of money and have two cars
>silence.jpeg
>I'll be right back

Not him but I am about to spend that much cash on a car. People often already have money going towards things like that. I have been holding onto cash like crazy because I was trying to buy a house in a pricey area. After buying my house, I now have about 200k cash, and I plan to put 35k or less towards a car, the rest is going to investments.

>the """"""""""high interest account"""""""""" meme
Whats with this? Is it some special interest rate only richfags are keyed onto? My local credit union only offers like 3% at most on CDs, and they say the rate is """"tied into the fluctuations on the (((market)))""""

>6 year finance
>0% APR

I could have bought it outright, decided to keep my savings. Was I in the wrong?

>savings

While there is nothing wrong with that. You can also open an account for just payments and out the cash there pay the 6% for the privelige of time. If shot happens you have access to your money and it's not buried in a car.

There's no such thing as a high interest account.
And if you don't have significant money investing is too costly.

Go ahead and find me one single 99.9% safe easy investment like a savings account or a bond that outpaces inflation and matures in under 20 years.

They don't exist.

>mfw at my car salesman job right now
IT'S SOOO SLOOOOOOOOOOOW RIGHT NOW

FOR THE LOVE OF CHRIST SOMEONE COME BUY A RANGE ROVER

You only get high interest rates because you have shit credit and can't afford a car like that. Any time you sign a contract for a car with a / greater than 3.5% you should go elsewhere

A fucking credit union will give you a better rate

>buying a car on credit

If you cannot afford a new car, buy used.

This is why I'll never turn in my car to a dealership

Fuckers wanted 10k for my 14k car. They were gonna put it back on their lot for 15 and I walk away with some shitty loan? No way.

>Anything under 130k is not worth buying new.
fixed that for you.
I can't think of any car really worth buying new other than exotics.
Get something 1 or 2 years old and let some other schmoo take the depreciation hit. For a low mileage used car you can get pretty low interest, less than 1% if your credit is o.k.

>I could have bought it outright, decided to keep my savings. Was I in the wrong?
No. your savings is earning interest. So by buying it outright you would have lost thousands of dollars.

Last time i was in a dealership i had run a half marathon that morning, I fell asleep like twice, i was even the one buying the car either, just there for support / advice

>No. your savings is earning interest. So by buying it outright you would have lost thousands of dollars
Doubtful. Savings accounts early barely 0.5% if you're lucky

Why is Veeky Forums so against financing a vehicle? Are you really going to be missing that $50 you set aside from your weekly paycheck?

I just bought a new car and had to go through all the hassle.
They tried to just give me a monthly payment number and not show me the breakdown. When I asked for a breakdown it had the wrong tax amount (off by thousands), a $990 dealer fee that was supposed to be included in our agreed price, an extended warranty and a paint and dent protection plan.
I told them to fix all that before I sign anything, they said OK.
Then I go in to do paperwork with the finance guy and the first thing he gave me was the Bill of Sale. He just put it in front of me to sign it without even saying what it was. I was like "let's back the fuck up, that's the last thing I sign".
That was his tactic: make you purchase the vehicle and then go over all the details. What a scumbag. Then on the little paperwork stuff like privacy policy shit he told me there's no point reading it because I have to sign it either way. I said, No I don't, I don't have to buy the truck.

Anyway I ended up getting it on my terms and 25% below MSRP.

This, inflation is like 1.5% a year so by not spending your money when it's valuable you're kind of fucking yourself more by just leaving it in a savings account

It's because most of Veeky Forums is mentally retarded and can't imagine that different people have different financial situations.

Sometimes it is not a bad idea to finance (good credit / good rate / etc) and other times it's a poor choice to finance given available funds / credit / life situations.

It also probably has something to do with the dickwaving of "hurr durr I bought muh car cash" like that's supposed to make you special.

Also kek @ the people who finance but don't buy gap insurance.

I opted for the GAP didn't see why not it was only $10 extra/mo. If I ever get into an accident my shit better get totaled though

>can't imagine that different people have different financial situations.

A used car is always going to be cheaper by a very sizable margin.

The only reason you'd want to finance a car is if you want to basically pretend that you're not poor. But is maintaining that image amongst your friends/family/coworkers worth the thousands you're going to use by financing a car?

mma is about 1.3, CD is 2.4.
Obviously you would be best to invest it in something with a better return, but assuming you may need that cash.. well 1.3 is still a few thousand over 6 years.

yeah, spending money on something that depreciates like shit is better than earning some return. Fuck sake.

>the only reason you would want to finance a car
>is to show off and not look poor
You sound like the type of person who rages when people on food stamps buy steak or shrimp instead of ramen noodles.

You never answered the question

Is it really so bad to finance if your credit is decent and you already have the money to buy it outright if you wanted?
I just want to build up more of muh credit.

Actually it's a numbers game. If the % I pay back on my credit/finanzing is lower than the % I earn from my investments, then it's stupid to take this money out of my investments as I will lose more money in the long run.

But since Veeky Forums is full of children who think every person with a little bit of money just "earned it through hard work" or "it was just given to him" noone here understands micro/macro managing your money.

I am totally not.

There is a difference between buying food and buying what is essentially a luxury you cannot afford.

You don't need a new car. It's not even going to feel any different than a 6 year old car.

Or you know I could get a 36 month zero interest loan and invest the 30k I would have dropped on the car. So I make compounding ~6-15% on my investments over 3 years and pay zero interest on the loan.

Stay poor bitch.

>Be me
>0% for 60 months no finance charge true 0%.
>get car for 900 under invoice
>say no to all extra warranty, paint erections, super jizz wax, electro nano magnetic undercoat protctor fluid etc.

Be me now after 2 years. Nice car still, ahead on my loan, car will be worth 12000 when the loan is done and you can buy it from me with the cash you saved from bottle returns.

Be me. Oh, you can't? Well, that sucks for you.

You are a God among Veeky Forums's

Seriously people. The only reason not to take a loan with extremely favorable terms is if you just don't want to use the banking system on principal (breddy guud pun) or if you don't have the credit rating for it.

Need new car? Probably not. New not feeling any different than 6 year old?

Investing money? You mean I can things with money other than spend it or have it gather dust in my account?

Hogwash i say!

Financial Analyst here, anyone who said financing was stupid, is a poor fag.

*This is not financial advice, speak to a verifiable financial advisor for real financial advice*

So I have to ask, what is this thing you people invest into where you're guaranteed profit on returns?

Literally anything that isn't a Wells Fargo checking account.

>investments

things like rental units, are great ways to build wealth while not spending a dime and in 99.9999% of cases, actually making dimes.

>buy house
>rent
>make sure rent is higher than your costs to run the home and maintain the home, or at least equal to it
>10 years down the line your house will appreciate, so u can make some profit, or ur rent will be lets say $300 more than what it costs you, that $3,600 x 10 years = $36,000 + whatever your house value increased, on top of that, you could have used the increases of your house over the 10 years to buy 4 more houses and do the same thing one after the other.

this would all be possible with like a $150k house, which is dirt cheap for a down payment and interest and etc.

simplest way is just putting it into a bank account and earning your 0.1% which is cuck level

Honestly I started with 600€ after I saved for a year. Started with some Fonds, Stocks, this kinda stuff. (My bank helped a LOT with the start since they have a free buy/sell police) and just for a year reinvested everything. (Always have to keep an eye out for tax, but in my case I didn't get enough back to even break the limit.)

Once I started getting more money, I moved on to long time Depot (in Germany state pays you some small % extra so it's actually worth it.), and started moving on to "investment" companys. Basicly they pay you to invest your money in them, works similiar to Stocks but the return is safer and more rialiable (usually 1x a week). Then I just went and diversived, not just 1-2 stocks, 1-2 fonds but going with more. Atm I get ~1700€ a month from Investments, tax already deducted and my reinvestments also deducted. So yes, taking the example of 1000€ * 60 months (700€ for myself on top, don't want to live like a dog) is 60000€ or a new BMW 3series. Just for an example.

Yes it's a lot of work, yes you can make it faster but I have a principle that aside from this 600€ initial money, I don't invest money I earn from working.

Also it helps to make a lot of charts (1/3 rule for Important Shit (Food, Car, Clothes), Housing (Rent, Internet, Phone, insurance) and Luxury.

Maybe not for everybody, but since I started I don't regrett, especially since even if I would lose my job I know I wouldn't immidiatly have to worry about it all.

The S&P 500 has historically never lost money over a 5-10 year period. It's as close to a guarantee as you can get. I think it averages close to an 8% annual return or something close to that.

If you are a neckbeard like most of Veeky Forums you are probably very familiar with Activision and EA. EA has gone up like 35% just this year.

Invest in what you know or just go the S&P route.

>has a wells fargo checking account

Fuck, whats wrong with it?

Nothing is wrong about any checking account on any bank. The problem is that most people just leave this money there, think they are investing (it's a bank lol) and don't realise every year they are losing more money through account charging, inflation, etc. than they are getting back with the 0.5% return they get annually.

>>"earned it through hard work" or "it was just given to him"

i mean what are the other options? srs question

that GET brb buying lotto tickets

If it drives, flies, or fucks... lease it.

What fucking world do you live in?
An MMA will get you less than 0.1% annually.
You need to have over $100,000 in an MMA right now to get close to a tenth of a percent in interest. If you have entry level car money sitting in one you'll earn more like 0.03%

Pic related, if you have windows 8 or 10 you have a money "app". It has nice financial tools in the late pane.
If you put 30k in an MMA it will take over 200 years at current rates to earn $2k.

this. For anyone with financial common sense loans are reserved for things like buying houses and starting businesses, in other words investments that will make you money in the long run. Cars are something you will lose a minimum of 50% on, you don't take out a fucking loan to lose half of the principal. People who finance cars are 1 step above niggers getting a sofa on lay away from PC Richardson

>liquidity
I don't think you have any idea what that means if you think locking yourself into a loan on something you can't afford as opposed to forcing yourself to live within your means applies here

also
>you can always just default on the loan
there was so much stupid crammed into such a short comment

The only thing I'm ever going to go into debt for is a house, and I'm going to make sure I have the last job I will ever need before I buy one. Fuck paying interest, but even with 0% I can't stand the idea of being in debt to a bank for any period of time.

>paint protection
>doesn't cover rock chips, door dings, scratches
>only covers factory defects that would be there when car is delivered anyway

People fall for shit like this
youtube.com/watch?v=TLbLgidnLU0

You're literally bragging and putting people down over the fact you have a good credit score.

If you were actually rich or had a fulfilling life to boot, it could be something. Even then it shows how empty you are.

This shows that you just don't know what the fuck you're talking about. Even though I can afford to buy a car in cash, why wouldn't I take out a 0-1.9% loan and keep that capital to earn me anywhere from 10-20%/yr over the same time period. Smart money is liquid.

What kind of shitty money market account is paying you .1%? I make more than that on my savings account. Typical money market accounts range from .8-1.3%.

>$400 volvo off craigslist
>No loan or stressful salesman
>Can talk directly to the owner who knows more about the car than a salesman
>Less likely to be scammed by Juan on craigslist than Jeff at the dealership
>$100 in parts and a couple hours of my time to tune up
>entire process done at my own pace

My 401k and Roth IRA get most of my 'investment' money. I just got my latest statements and they have annualized 8-9.5% over the past several years. Not counting the employer contributions to the 401k, free money there.

That being said, I took a loan for my last auto purchase and don't regret it, but don't want to take another one for a long time.