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/biz/ - Business & Finance

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53564048 No.53564048 [Reply] [Original]

If I can pay cash, does it make sense to buy a car with cash or get some amount of financing?

Debating on buying a 21k car. Could definitely cover that.... But feels like I could do better to throw it all in the market and letting it ride while I finance maybe half of it. Any thoughts?I can probably get the loan at 7-7.5% of course not that I exactly need one.... But I'm 28 and been driving the same shitbox since I was in HS. Opportunity cost is very important here to me anyways
>inb4 flooded by MUH DEPRECIATING ASSET gang

>> No.53564207

>>53564048
i am in the same box as you, i have $40k cash, $10k crypto, $10k 401k

I am thinking it is best to put a $10k downpayment on a $20-30k car, take out the difference as a loan and then dump my savings into an IRA this year so I can use it as a downpayment for a home loan later on

>> No.53564272

>>53564207
Personally wouldn't use an IRA for a home down since you can never deposit that money back. I prefer just to let my retirement accounts do their thing. I'm personally ~$250k crypto, $30k stocks, $10k bonds, $30k retirement, and another $30k cash right now and just been DCAing the dip (with 66k of student debt lmao).

>> No.53564406

>>53564272
And for the full color context -- I'm 28 driving a 1990 Buick kek

>> No.53564553

>>53564048
How's your credit score? Are you looking to finance to build credit, is there another loan that might more sense to do that, if so then buy the car outright? That's what I would consider honestly. You can adjust the loan to your own comfort level.

>> No.53564574

>>53564048
Only if you get 0% financing, have bad credit, and have 100% of the cash(e.g. A nigger who sells drugs for a living), cause then you can do
>buy 20k car with 0%
>put 20k in HYSA
>make payments from HYSA
>get paid to build credit
>Pocket whatever interest is left from HYSA when car is paid off
But this is a lot of work to do if you're a non-brown when you can just buy it and not think about it again. You might be stuck having to do it this way anyway though since a lot of dealerships won't even let you buy the car with cash

>> No.53564884

>>53564553
About 760. MAYBE. I might be considering a primary mortgage to buy my mom a place, would the impact on my credit be that severe?