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I've never had a car loan. I had one new car and one used car ---paid for in cash.
I don't care about depreciation because I drive a car until it's basically undriveable anymore -- and even then sell it for a thousand bucks.
I bought my last car, a used 11-yr old Toyota camry with low mileage, for $7500 and sold it 10 years later for $1500. During that time I did spend probably about $4000 in repairs & tires.
I don't get why you would get a loan if you have the money?
Why pay interest if you got the money saved up? You get about 1-2% interest on your money in the savings account and you pay about 2-6% interest for a car loan.
Because I have NEVER paid 2-6% for a car loan.
I have had 2 car loans, even though I had the cash... one at 0.9% and another at 0%. So why pass those up?
I have 1.9% interest rate on a car that I bought my dad for his birthday (purchased in August, 2011). I had the money saved up but decided it would be wasteful to buy the car outright. Since August, 2011, the S&P is up 24%. Had I bought the car outright, I would have lost out on 22% (closer to 17% after taxes). Seems like it's too much to give up.
Only bought used and paid all upfront. NEVER will have a car loan.
New cars are a horrible use of money as I prefer to invest in an appreciating asset, not a depreciating asset.
Those of you buying used cars should be thrilled (and not so critical!) that there are people buying new... or else there would be nothing for YOU to buy!
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