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There is no such thing as a 0% loan. Companies are getting the interest in the price somehow someway.
Again, Not true. you can haggle on price 1st. Many people get ripped of on 0%, some don't. Sometimes they give 0% for cars they mass produce to unload them. of course they will make money of you, you can get 0% without getting screwed. Go read the entire Dave Ramsey thread so we don't all have to repeat our selves. don't make blanket statements, It never works.
For example. I just picked up a 2016 Honda Accord Sport on a lease. The deal was for no money down, but I had to pay around $1800 in taxes, dmv and document fee ($75).
Again, Not true. you can haggle on price 1st. Many people get ripped of on 0%, some don't. Sometimes they give 0% for cars they mass produce to unload them. of course they will make money of you, you can get 0% without getting screwed. Go read the entire Dave Ramsey thread so we don't all have to repeat our selves. don't make blanket statements, It never works.
yoi still paying.for something that is not yours, you're maintaining something that doesnt belong to you, can you guarantee you will be employed for the next 5 years? nothing is guaranteed in life
of course, people here are gonna be against paying cash, otherwise they wouldnt be able to.drive more than they can afford. If it wasnt for credit, most people would be driving beaters They dont have the patience and pride to wait or drive something not cool and.new
the whole point in paying cash is to own without having to live in fear and uncertainty, what if
OK, so take that cash you were GOING to pay for the car that you took the 0% loan on, put it in a high interest savings account that you don't touch with the exception of payments for said loan, and you're even better off than having written a lump sum check, because you're making that interest.
I'm all for paying cash, but it's no always so black and white like you say.
I have seen vehicles advertised as 0% APR or $2k off MSRP. Supposedly it's one or the other, you can't get both. If you're a good haggler though I'm sure you can negotiate the price and still get the 0%.
I get the feeling the OP isn't talking about new cars though, he's probably saying everyone should buy a $3k beater to drive around in.
Cash is king. Payments are for chumps and the ignorant. Anyone who can buy outright should. The whole financing process is a mess and they look at EVERYTHING including how much money you make, how long you have been at your job, whether you pay rent, live free or mortgage, your credit report needs to be flawless.
If someone is willing to fill out the forms and qualifies, why is this a problem for them?
Quote:
Originally Posted by Dinero
You are expected to pay a downpayment, but what if 1 year down the road, you lose your job? Good bye car and down payment down the drain.
If you didn't have a good emergency fund this could happen. But buying outright would not solve the problem as you would have forsaken all your liquidity and need to sell the car to pay your other bills when you lost the job. Either way you would be out the car.
Quote:
Originally Posted by Dinero
Let's say you want a Camaro, Mustang or $20,000 type of car, and your credit and income doesn't measure up?
You cannot afford it and it will leave you frustrated, but with cash you can buy ANY car you want, you are not constrained by their stupid rules, you simply have to be patient.
All you're really arguing for is that people who can't get financing for a particular vehicle pay cash (no duh!). This, however, is a straw man argument in regards to those who advocate the use of financing in situations for which it is offered to the buyer in question.
Quote:
Originally Posted by Dinero
They say with financing you usually buy a "better" car than you would have while using cash, but in reality, with financing you usually buy a more expensive car than you can afford. When you commit to a long term payment over paying cash, you are not factoring risk. When you pay cash, you pay for what you can afford, but when you finance, you typically commit to more than you can afford.
Typically =/= always
Quote:
Originally Posted by Dinero
Paying cash for ANYTHING is always better than being in debt! I don't care what someone has to argue. The whole point of being in debt is OWNERSHIP! Until you've paid off the debt, you don't own a damn thing. Miss a couple of payments and see who winds up with it.
If someone can get 0% finance after having already negotiated a price, this should be a non-issue, they simply can put their money in an interest bearing account and pocket the arbitrage. They won't run out of money by pulling from that account to cover payments unless they also pulled from the account for something else. However, if they did that, then buying outright would not solve the problem as they would have had to sell the car to cover the same expense that would cause them to miss the payment if they financed. Either way, the end result is they end up not having that car.
Quote:
Originally Posted by Dinero
If you are a smart saver (that means you know how to manipulate living below your means), then you shouldn't concern yourself with driving right away. a smart saver is fine with waiting or even knows how to earn extra cash to expedite the saving process. Problem is, we live in a society of entitled people who think that just because they have a job and good credit, then they are entitled to have a new car.
No wonder there are so many repossessions in this country and these are people who had great credit, otherwise, they wouldn't have been able to get financed. They think that just because they have been at their jobs for some years, everything will be fine, NOTHING is guaranteed in life and NOONE is irreplaceable. This is even worse if you pay down payment, and then it gets repossessed.
I'm not really sure what you are trying to argue here, apart from not getting in over your head or going without an emergency fund.
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