borrow till you're broke :p

this was supposed to be a poll but it won't let me create a poll here in the lounge.

11k down, $305/mo for 60 mo. for the rest. By the way i3man, I have the same car as you, Ti-Grey 6 speed with sport package. I bet I have different tires and wheels though, 17" ASA's with Dunlop M3 snow tires!

Traded in my Miata, dealer financed.

Man, 20 posts per day, ur the next mikeb. :p

Originally posted by oi812
By the way i3man, I have the same car as you, Ti-Grey 6 speed with sport package. I bet I have different tires and wheels though, 17" ASA's with Dunlop M3 snow tires!

My snow tires won't be coming out of the closet until hell freezes over ;) I feel sorry for you guys that need to have 2 sets of tires for winter weather.

I had my company put down 50%, and then financed the rest personally over 2 years. Figured it would improve my credit rating ;)

I can pay the balance off at any time.. which I plan to do asap depending on my next work contract (~2005).

cashmoney. 35k in straight bills



Ga-Ga-Ga G-UNITTTTTTTTTTTTTTTTTTTTTTTTTTTTTT

umm.....a lot a month, for a long time.

Free money 0% convenience checks until March 2004, thanks to Bank One and MBNA. Wheeeeeeee.... :D :D :D

Ummm.. then I have to come up with REAL $$$$! :eek: :eek: :eek:

Cash!! With banks paying so little interest. This way I at will not lose the money in the the stock market.Topgun

Originally posted by Spin9k
Free money 0% convenience checks until March 2004, thanks to Bank One and MBNA. Wheeeeeeee.... :D :D :D

Ummm.. then I have to come up with REAL $$$$! :eek: :eek: :eek:

Then in March you look for a new credit card with 0% convenience checks until June 2004 and use those to pay off the other ones :p

I purchased my 8 with approximately 1/3rd cash, 1/3 trade in & 1/3rd 2.3% loan

Cash. I've never made a car payment in my life and I don't intend to, ever.

SGC

Cash plus a '99 Miata.

-Dave

Originally posted by SGC
Cash. I've never made a car payment in my life and I don't intend to, ever.

SGC


I shudder to think what I would be driving without the wonderful world of financing. ;)

Traded a '93 Grand Cherokee (yes, I used to have two of them), $10K cash, and financed the balance.

Originally posted by SGC
Cash. I've never made a car payment in my life and I don't intend to, ever.

SGC

Either you were born with the silver spoon - in which case, would you buy me one? ;)

or else you're good at managing money and saving - in which case, could you teach me? :D

No seriously, good for you.

Borrow, why the hell would i give up 30k of my own CASH from the start when there is a high potential for the car to be smashed into by some ass or for the thing to turn into a lemon. Hell atleast i have only given up some of my own money if something does go badly wrong. HELL NO, i could never give up that much cashi in one shot there is just too much risk in not having the car for as long as haveing the cold hard cash in my pocket would be worth.

£6000 deposit, traded my ZX6R in (£3500), Trading my MX6 in (£1300) and borrowing the rest.

Spend Spend Spend, if you run out....borrow some more !!!!!

You come into this world with nothing, so if you go out owing, then you have made a profit !!!!!!

Also, if you're not living life on the edge, then you're taking up too much god damn room !!!!!!!

Live fast, die young, and have a great looking corps !!!

Originally posted by Jhouse
Borrow, why the hell would i give up 30k of my own CASH from the start when there is a high potential for the car to be smashed into by some ass or for the thing to turn into a lemon. Hell atleast i have only given up some of my own money if something does go badly wrong. HELL NO, i could never give up that much cashi in one shot there is just too much risk in not having the car for as long as haveing the cold hard cash in my pocket would be worth.

It depends upon the interest rate. From what I understand if you get a low interest rate you are better off investing your money and making the payments. If you have a high interest rate you are better off paying off the loan as quickly as you can.

It also depends upon the car you buy, though. If I buy a $2,000 used car and I can afford to pay it off up front, I won't bother financing it because it's a relatively small amount of money.

ten thousand down financed the rest.

Counting my equity in my Mustang, it roughed out to about $10,000 down. Financed the rest over 4 yrs. My father-in-law offered to buy the note at a drastically reduced interest. It's about half of what I got from my bank and about double what he's getting on the money where it's sitting currently. Might take him up on the offer.....

Originally posted by FamilyGuy
Either you were born with the silver spoon - in which case, would you buy me one? ;)

or else you're good at managing money and saving - in which case, could you teach me? :D

No seriously, good for you.

I actually paid off my car with cash, and I'm 26. Had money saved up from stock daytrading the last 7 years. Thanks to 4Kids Entertainment.

Originally posted by Outlaws eXtreme
I actually paid off my car with cash, and I'm 26. Had money saved up from stock daytrading the last 7 years. Thanks to 4Kids Entertainment.

4Kids Entertainment? What's that?

George Bush and the nice dictators of the middle east paid for mine while over there for a year. The sand sucked but the tax free income and extra hazard pay was a nice thank you for my trouble. :D

Taking it out of Mortgage and I still continously feeding - expect to finish the quest in total of 5 month.

Originally posted by Jhouse
Borrow, why the hell would i give up 30k of my own CASH from the start when there is a high potential for the car to be smashed into by some ass or for the thing to turn into a lemon. Hell atleast i have only given up some of my own money if something does go badly wrong. HELL NO, i could never give up that much cashi in one shot there is just too much risk in not having the car for as long as haveing the cold hard cash in my pocket would be worth. If something "bad" were to happen to your car, what would be your situation?

I have a 3.49% loan. My "pocket" (money market account) earns 2.60%. 3.49 - 2.60 = 0.89 I'm loosing money at 0.89% while I'm paying off the loan.

If something "bad" were to happen to my car, my loan company won't give a rat's behind about it. They expect to get all of their money back @ 3.59%. Period. Insurance will either fix my car, or total it, and if it were to be totaled, the loan company, you know, the one with the lean on my insurance policy, will get their FAIR share before I see a penny of it. If that weren't enough to pay-off the loan, guess what? I would still be required by law to pay-off whatever the remainder of the loan there still might be.

I have an obligation to pay-off the loan, nomatter what situation may arrise. Even if I die or be raptured-up, my estate would still be liable.

How's it go with yours? I'm at a loss to comprehend. :confused:

Originally posted by Racer X-8
If something "bad" were to happen to your car, what would be your situation?

I have a 3.49% loan. My "pocket" (money market account) earns 2.60%. 3.49 - 2.60 = 0.89 I'm loosing money at 0.89% while I'm paying off the loan.

If something "bad" were to happen to my car, my loan company won't give a rat's behind about it. They expect to get all of their money back @ 3.59%. Period. Insurance will either fix my car, or total it, and if it were to be totaled, the loan company, you know, the one with the lean on my insurance policy, will get their FAIR share before I see a penny of it. If that weren't enough to pay-off the loan, guess what? I would still be required by law to pay-off whatever the remainder of the loan there still might be.

I have an obligation to pay-off the loan, nomatter what situation may arrise. Even if I die or be raptured-up, my estate would still be liable.

How's it go with yours? I'm at a loss to comprehend. :confused:

I think he was assuming the use of a long term investment with a pretty good rate of return, instead of a money market account.

Let's say you have $30,000. For the sake of argument, assume you financed the whole $30,000 car at 3.49% for 5 years, payment about $550 a month. You have an investment that gives a 6% annual rate of return.

If you pay off the car with the money you have and invest $550 a month, in 5 years you get about $38,000. If you invest the $30,000 you have and make the car payments, in 5 years you get about $40,000. If the annual rate of return is 10%, the numbers are $42,500 and $48,300.

Either way you have to pay off the loan, but when the percentage rate it low you are better off investing your extra cash than accelerating repayment.

Originally posted by FamilyGuy
If you pay off the car with the money you have and invest $550 a month, in 5 years you get about $38,000. If you invest the $30,000 you have and make the car payments, in 5 years you get about $40,000. If the annual rate of return is 10%, the numbers are $42,500 and $48,300. Can you clarify something here? In your scenario "If you invest the $30,000 you have and make the car payments, in 5 years you get about $40,000.", are the $550 monthly payments coming out of the $30,000 investment? (What's that called? A declining annuity?) (If it's just $30k sitting in an investment for 5 years, then it's not correct to compare, it's just another $30k that you have invested somewhere for 5 years.) We gotta be talking about the same $30k that will eventually, one way or another, be spent on the car.

I don't know of an investment like that (liquidity-wise) @ that high of an interest rate. If there is, then no doubt, put your $$$ where the investment works better for you than the loan works against you.

$5000 cash, ripped off on my Mazda protege5 trade, 5.9% rate need I say more?

Originally posted by Racer X-8
Can you clarify something here? In your scenario "If you invest the $30,000 you have and make the car payments, in 5 years you get about $40,000.", are the $550 monthly payments coming out of the $30,000 investment? (What's that called? A declining annuity?) (If it's just $30k sitting in an investment for 5 years, then it's not correct to compare, it's just another $30k that you have invested somewhere for 5 years.) We gotta be talking about the same $30k that will eventually, one way or another, be spent on the car.

I don't know of an investment like that (liquidity-wise) @ that high of an interest rate. If there is, then no doubt, put your $$$ where the investment works better for you than the loan works against you.

I meant that the $550 monthly payments are separate from the $30,000 investment - you have $30,000 saved up and you also can afford $550 out of your monthly paycheck.

If we're just talking about the money to pay off the car (with a declining annuity):
Financing a $30,000 loan for 60 months at 3.49%/year will give about $550 in the monthly payment and $33,000 total. Assume you have $33,000 available the day you get the car.

If you pay all $30,000 up front, you are debt free and you have $3,000 to invest for 5 years. If we use my previous example of 6% rate of return, you end up with $4,015.

If you invest the $33,000 at 6% and withdraw $550 a month to pay the loan, in 5 years the car is paid off and you have $6,090.

OK. Now we just need to find that declining annuity @ 6%. ;) (Not trying to be smart with you) Do you know of any?

Not for me though, I'm OK with my 36 mo. loan. Maybe someone else reading this could take this & run with it...dunno...

ps. Good numbers-crunching there FamilyGuy!

$200 cash big money :D
2000 mercury cougar
and a 5 year lease.

I have to be the poorest person with this car LOL

You cash people make me sick. But hey I'm only 23 and lived on my own since I was 16, I pay my own way through school and haven't received a penny from parents/family since I was 16.

Originally posted by FamilyGuy
Either you were born with the silver spoon - in which case, would you buy me one? ;)

or else you're good at managing money and saving - in which case, could you teach me? :D

No seriously, good for you.

Stainless steel spoon; I had to pony up my own work money for a '79 pinto in high school. Since then my theory has been to not pay interest on anything besides a mortgage and never buy a car that I couldn't buy two of or that I wouldn't love driving for 5 years. The RX-8 is one of the few "5 year" cars out there.

SGC

In December '69, I inhereted a '65 Corvair that, after taking a righthand turn, you had to open the doors to let the oil smoke out.

One day the engine actually fell down onto the pavement, the throttle started racing, the ignition wouldn't turn off, the emergency brake cable snapped, I couldn't get it out of gear, the steering would not go straight (slightly to the right was the straightest it would go) & I stood on the brakes & stopped it about 4 feet from hitting a telephone pole!!!

I then upgraded to a '66 Corvair that was actually kind of nice. That got rear-ended while parked late at night & was totaled. Insurance co. ripped me off (thank you Ralph Nader :mad: )

I wound-up with a '61 Olds F85 POS!!!! The engine let-loose after about a year & I was down to bumming rides or riding a bicycle.

Then I got my Associates degree & a "real job" & I bummed a ride to the Fiat dealership & bought a brandy-new '73 124 sport spider for a whopping $4,000, just in time for the gas crunch. I have no idea what the downpayment was - very little for sure.

God, I loved that car! (I feel strangely the same way again with this RX-8.)

btw, I was 19 and that was the year the apron strings were cut.

Ummm.... The same way most paid for their 8... Through the nose.

Cash, refinaced the house and took out some equity to buy the car, at least the interest is tax deductable :)

Originally posted by Zoom2X
Cash, refinaced the house and took out some equity to buy the car, at least the interest is tax deductable :)

Isn't that the same as having 15 or 30 years of car payments with interest? :confused:

where do you people come up with this money, i'd sure like to come up with 30,000 dollars cash to buy this car

Originally posted by Rick
Isn't that the same as having 15 or 30 years of car payments with interest? :confused:

Yes, but you can probably get a better interest rate on a home equity loan than on a car loan if you have a lot of equity, and like he said the interest is all tax deductible.

Originally posted by FamilyGuy
Yes, but you can probably get a better interest rate on a home equity loan than on a car loan if you have a lot of equity, and like he said the interest is all tax deductible.

Curious, the interest rate on my house is 6.25% over 30 years and the interest tax deduction is (I think) 30 % not 100%. The interest rate on my 8 is 2.3% over four years. Correct me if I'm wrong but I dont think it would be wise of me to refinance my house to pay off the 8.

my dad passed away so i am selling his house and getting my z8 and paying on college.

Originally posted by P Daddy
$200 cash big money :D
2000 mercury cougar
and a 5 year lease.

I have to be the poorest person with this car LOL

You cash people make me sick. But hey I'm only 23 and lived on my own since I was 16, I pay my own way through school and haven't received a penny from parents/family since I was 16.

5 Year lesase? What are your payments and what is the residual value?

Originally posted by Rick
Curious, the interest rate on my house is 6.25% over 30 years and the interest tax deduction is (I think) 30 % not 100%. The interest rate on my 8 is 2.3% over four years. Correct me if I'm wrong but I dont think it would be wise of me to refinance my house to pay off the 8.

I'm pretty sure you are right.

I'm stealing the other kids's lunch money at school. ;)