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That's partly how I feel too. I bought a car out of college and took out a loan for it, and my goal with that car was to be able to pay off the loan AND save up
by kop316 7y ago
That's partly how I feel too. I bought a car out of college and took out a loan for it, and my goal with that car was to be able to pay off the loan AND save up enough money that I could buy my next car in cash. I have achieved that goal, but my original car still runs fine after 10 years, and most people are incredibly surprised when I tell them the age and the mileage. I really feel no need to buy a new car, but I am happy to know I am able to buy a car in cash when the time comes.
- vaxman 7y agoThe difference between 0% (paying cash) or 0.9% (mfr incentive rate) or %3 (preferred rate) isn't that significant on a sub-$50K vehicle over 5-7 years. When the vehicle goes back to the used car lot, there will be a hit taken and you either absorbed it upfront (by paying cash) or will absorb it at the end (by being upside down on the loan) or some combination so that it balances out. As far as driving your next car for 10+ years, the vehicles being manufactured today are almost designed not to last (because the auto industry fell on hard times a while back and vowed never again).