I went to the dealership today after a while and they were pushing financing on me like crazy. What the actual fuck? Cash has always been king. If you have enough cash why on Earth would you drag yourself into APR bullshit? You can't possibly be thinking about investing into something so risky that it could outperform an 8% rate, can you?
>>29061959They push finance because it's makes the bank a profit through interest and it lets the dealership sell a more expensive car
>>29061962More specifically dealers push financing because they get kickbacks from banks and can push a higher interest rate on customers than what the banks they work with would have charged. For instance:>You go to your local bank/credit union and get pre approved at 5.99%>go to dealership and tell them that you’re pre approved at the 5.99%>they say “let me see if I can beat that”>they run your credit>one bank shows them an approval at 4.49%>they tell you “good news, I can get you a 5% interest rate! You just have to finance through us and not refinance it for at least 90-120 days”>you are happy>they get a kickback (a tip, as a thanks for getting the back a customer) from that bank>they collect that extra half a percent of interest for the life of the loan>you have no idea, you’re just making a lower payment It happens every single day, boys and girls
>>29061962>>29061999They're not called "stealerships" for nothing
>>29061959Never Buy New, Always Buy Used (NBNABU). its fun restoring a used car anyways if you like wrenching
>>29061959My credit union is 3.89% for 36 months. 4.29% for 60 months. Paying cash is losing you money in the long run.
>>29061959I’m pretty sure I used to know a guy who was named Cash King but I’m not 100% sure.
>>29061999checked and this. stealerships make their money in finances. cash hasnt been king in 30 years. maybe when they could cook the books some when you paid cash, but not anymore.i recently bought a $30k truck, i told them I was going to finance with them (lies, i was paying cash, and if I had financed, i would have paid the loan off immediately)anyway, they gave me zero discount, even after I walked away. nothing, not even $500 off, they didnt even consider that one of the tires had a slow leak and all 4 tires were near the wear marks. they discounted nothing.in the end it was still the best deal after shopping around and i just wrote them a check.stopped by with the truck off at costco and got 4 new tires for $960 on my way home. got an alignment the next day.got home and changed all the fluids.i was really hoping to get at least $1500 off, but nope. sellers market.
Is this like 2 boomers and 2 AI's having a thread? What the fuck is even happening here?
>>29062276*Sips*Yep it ain't like how it used to be I tell ya hWut back in my day you'd hand the dealer (a WHITE American man) a nice check for $5k and he'd give you the keys to your brand new Camaro, 1k off sticker of course. Now rajesh wants you to finance 80k at 16%. Yep.
>cash is kingretarded boomer phrase. it's about opportunity cost.
>>29062116This.My 401(k) return is twice the rate of my last car loan. I made money by using the banks money.
>>29061959As a cashtard we're frugal, know about cars and are super picky. We will just spend 5k to 30k on a reliable car and salesjews know this. The prefer debtard customers that only look at monthly payment amount and screen size so that they can sell them some 80k 1.5L eggshit pod that will explode in 6 years.
>>29062298>It's much better to spend my capital on a piece of shit with no warranties and negative return hehboomer post
>>29062294you could’ve secured that discount ya know?
>>29061959financing as fine as long as the interest rate isnt retardedly high, and you aren't going into a car that is way above your means
>>29061959Never go to a dealership for financing you fucking retard
Spending more than 15k for a car is a retarded waste of money. At that point you should finance. Anything under 15k should be bought with cash
>>29061959If thier willing to negotiate deeper on the price if financed just make sure their are no restrictions on payoff and pay it off right away. While they can put early payoff restrictions on loans they usually don't. They dont give a fuck if you say your going to pay off early because they know most people that claim it will not follow through. They ofter get their vig on the loan up front from the bank, and when you pay off early they actually get a charge back where the bank recalls their little financing reward.
>>29061959Finance with a very low interest rate. Save the cash for emergencies.
>>29062323Im not OP.Ive never paid more than ive wanted. Theres another dealer 10 miles down the road. Ive walked out of 2 or 3 dealers everytime ive bought a car. There are very few models that have limited availability.My last car I actually went to another state for (im relatively close to the border).
My last purchase was cash. I walked into a main dealer, told them the car I wanted and they sourced one. No haggling, my price.Job jobbed.I do tend to keep enough money to buy a pos car in hand (a float) because you never know when you'll need a car.
>>29061959Any financing you get from a bank or credit union is guaranteed to be better than financing you get from a stealership. You don't understand something: This is where they make their actual money, tricking idiots into taking a car out the door for a monthly payment on a loan and then jacking up the rates on that loan
>>29062267>sellers marketThat's why the keep going out of business, lol. Stealerships are genuinely hurting right now
>>29061959Dumb fucking boomer tard gets reality check. Realizes he doesn't know how the world works.
>>29061959>I went to the dealership today after a while and they were pushing financing on me like crazyFinancing is how they make most of their money. What you wanna do is refinance with your credit union. If you choose to finance at all.Under 10 grand I'd honestly say the opportunity cost of paying in cash is negligible, so do that.
>>29062755Simmer down debtslave
>>29063488>Boomer calling anyone else a debtslavelmao even
>>29062755Why do you hate cash so much, kid? You've never seen it in your life?
>>29061959>Cash has always been kingHaven't been true for decades.You get the best deals and are treated better when financing because the dealerships make more money when financing.The most financially savue move is to:1.) Have enough cash to buy the car outright2.) Negotiate the best loan you can by leveraging your cash (high down payment, threatening to buy it outright instead of financing etc. etc.)3.) Put in X amount of cash that gives you the best deal for a loan4.) Put the rest of the cash in investments that average a higher return percentage than whatever the loan percentage is5.) Lower what you normally invest monthly by the amount needed to make the monthly loan payment6.) That money taken from your monthly investment budget is used to pay the loan
>>29063567That's an elaborative advice. Thank you, anon!
