I know interest blows, but I still have a hard time parting with this much money at once. I feel like I should invest in other areas and finance rather than depleting a big chunk of my savings all at once. I still plan to pay the truck off in 6-12 months so interest doesn't kill me.
Is it better to pay cash for a truck or finance?
byu/Kooky-Ad-5880 inpersonalfinance
Posted by Kooky-Ad-5880
8 Comments
It would help if you told us the interest rate, cost of the car, and how much of your savings it would be.
What interest rate can you get when financing?
What emergency fund do you have left you pay cash?
This is a numbers problem. You didn’t give any. It’s better to pay cash unless you can get a very low interest loan. If you can’t, and right now is harder even with good credit, you’re throwing away money. Not wanting to watch money disappear is a terrible reason to pay interest and lose even more money.
What’s the interest rate? Would the entire amount deplete money you set aside to purchase the vehicle or your emergency savings? These two details are important things to know.
I just bought a car where I put $10K down as a down payment. My first car payment isn’t until Mary 25th or something like that. That will give me time to figure out if I just want to make payments for 4 years or pay it off before that first payment is due. But I’m lucky to have that choice.
It’s one of the things I hate most about big purchases. You have to decide right then and there and sometimes you need time to think about what you want to do.
Sorry I didn’t answer your question LOL
Why do you need a truck? They are more expensive to buy and more expensive to operate and maintain. Unless you run a business where you actually need a truck (e.g. lawn care), don’t buy a truck.
Slow down. Buy used, let someone else take the depreciation hit. Put the extra money into another property. Repeat. Classic, millionaire next door method. Dont try to be the man.
I got a deal financing my truck, got 8k off the price due to dealer financing kickbacks. Once the loan was completed I paid it off immediately. So I paid like $90 in interest to save thousands.
Dirty tricks, but financing then paying off can save you.
Sounds like a bad idea that’s a little bit less than half your yearly income.. I would save more if you really want it.