Alright, so I'm lookin to buy 40K car I have multiple options and can't really decide.
Please help me decide.
Thanks
I was plannin the same finance/lease and put the cash into some ETF
Finance the car and investing the cash in high-performance assets would be financially justifiable.
Such an irresponsible financial advice. Why stop with the car, why not refinance your home and put all your equity in stock market? It literally can't go tits up right?
In that same spirit, that is just plain silly. 😂
Put it all on red and double your money instantly. Then you can buy the car and keep the capital.
As you say “can’t goes tits up right?”
As Rektrading declares, it’s “justifiable”
🤦♂️
OP only had 3 options to choose from.
But yes, a drawdown using an existing loan with a 2% interest rate would be better than getting a new 5Y loan at 5%.
The 30Y repayment period is also good for risk management.
good point but unfortunelty i have my home loan as fixed.
Such an irresponsible financial advice
Never expect anything less from rektrading.
Only 3 options.
Assuming if OP has $40k in cash then they are not getting a lot of return for cash then use cash.
I'm just doing my part to ensure that the lending machine never stops running.
The higher the leverage in the system, the higher the chance of mass liquidations.
The GFC gave birth to the hardest money known to man. A GFC 2.0 would destroy all fiat money in an instant.
@rektrading: So basically giving bad financial advice to help destroy the system. Guarantee for having money but a pitiful life.
@netjock: The current system caused the GFC that rekt 99% of people while the top 1% bought up all the cheap assets. The same system made 0.01% even richer in 2020 when the rest of the world suffered.
Billionaires got 54% richer during pandemic, sparking calls for "wealth tax"
BY AIMEE PICCHI
MARCH 31, 2021 / 7:01 PM / MONEYWATCHThe world's 2,365 billionaires enjoyed a $4 trillion boost to their wealth during the first year of the pandemic, increasing their fortunes by 54%, according to a new analysis by the Program on Inequality at the left-leaning Institute for Policy Studies.
Between March 18, 2020, and March 18, 2021, the wealth held by the world's billionaires jumped from $8.04 trillion to $12.39 trillion, according to the IPS' analysis of data from Forbes, Bloomberg and Wealth-X. Amazon.com founder Jeff Bezos, the world's wealthiest person, saw his fortune soar to $178 billion from $113 billion, or 57%, during that time, the study found. All told, the total wealth of the world's billionaire class grew 54% during the pandemic year, IPS reported.
https://www.cbsnews.com/news/billionaire-wealth-covid-pandem…
It's time to change the system.
The current system caused the GFC which rekt 99% of people while the top 1% bought up all the cheap assets
And you think crypto isn't based on people with big money "whales" and insider trading. It isn't as grass roots as you think it is.
I have no idea what you mean by change the system as crypto hasn't changed that much. Just a bunch of people in western countries who might have got rich.
"Banking the unbanked" in poor countries, I don't see them having bank accounts nor sharing riches of bitcoin or whatever crypto.
@netjock: I've friends in underdeveloped countries that have quit their crap paying fiat jobs to work part-time and full-time in this industry. They're getting paid between 3x to 5x the minimum daily wage WFH. Many of them don't even have a bank account but can get paid using a hot wallet.
They can now do more than just pay bills and put food on the table. They can save their time in a hard asset which wasn't something they could do before.
So yes, this industry is helping the unbanked and giving them the opportunity to escape poverty.
The rich get richer, while the disadvantaged get less poor.
I've friends in underdeveloped countries that have quit their crap paying fiat jobs to work part-time and full-time in this industry.
Sounds good when these friends you are talking about are your crypto mates that make up like 1% of people in underdeveloped countries. I don't see Afghanis decide to mine crypto instead of growing opium. Talking about living in a bubble.
@netjock: A 1% adoption is better than 0%.
Inside Afghanistan’s cryptocurrency underground as the country plunges into turmoil
PUBLISHED SAT, AUG 21 20218:31 AM EDTUPDATED SUN, AUG 22 20217:51 PM EDT
MacKenzie Sigalos
@KENZIESIGALOSChainalysis’ 2021 Global Crypto Adoption Index gives Afghanistan a rank of 20 out of the 154 countries it evaluated in terms of overall crypto adoption. And when you isolate for its P2P exchange trade volume, Afghanistan jumps up to seventh place. That’s a big move in just 12 months: Last year, Chainalysis considered Afghanistan’s crypto presence to be so minimal as to entirely exclude it from its 2020 ranking.
https://www.cnbc.com/2021/08/21/bitcoin-afghanistan-cryptocu…
"Gradually, then suddenly." E.H.
A 1% adoption is better than 0%
Better depends on what kind of bad financial advice you're selling.
Chainalysis’ 2021 Global Crypto Adoption Index gives Afghanistan a rank of 20 out of the 154 countries it evaluated in terms of overall crypto adoption
Well that really helps. Check how the statistics are made up. If the best country is Vietnam at 1.0 then 20th is pretty bad. Afghanistan is still better known for opium than crypto. Just because you got a place on a table it doesn't mean much. It is like university rankings, change the weight on criterion and universities go up and down.
@rektrading: You are the guy who is borrowing at 1% but getting 7% on DeFi right?
So you are telling OP 5% interest rate on $40k is nothing. It doesn't seem like you go around offering to borrow at 5%.
@netjock: OP has 3 options. I tried my best to suggest a solution that was as close as possible to the options. A solution that will result in a net gain in 5Y.
I would be happy to suggest something different if OP can add a 4th option. However, this option will have a higher counterparty risk.
Which Camry version is it?
Camry would be a perfect gold digger repellent wouldn't it?
Apparently he already looks like an uber eats driver… (I'm picturing that "Forever Alone" meme right now!)
If it were me, I'd use the cash to push the price down … go to a few dealers and set the price "oh, the ticket price is 40k, i've got 35k cash and can sign the paperwork today"
It's to my understanding that it's more beneficial for the dealership to get customers to sign up for finance than taking cash payments.
@spackbace would know.
Yeah last car I bought I was like "cash, right now" - I got an approx 6-7% discount off RRP for a car in stock. A few days later I watched a YouTube video explaining why they most often prefer non-cash customers and how by revealing you're paying cash removes some of your biggest bargaining chips from the table.
To Lease Car or Finance or Just Pay Cash?
Credit card.
I’d rather pay 40k cash now than more than 40k over a longer period of time for a depreciating asset
borrowing is always more expensive than using cash unless
Think 0% finance deals have gone due to it being just a subsidy for higher selling prices.
Best I have seen is like 3.9% at Toyota.
Why not half n half pizza it
50% cash. 50% finance but for 3 years. 5 is quite long
Also look at buying the car through a broker like Autoexpert.com - if he can get a significant saving on the cost of the car it changes your equations.
Maybe consider a high yield investment car purchase instead?
Did you end up buying a car back in May this year or Nov 2019 (when you said you could've bought 11 of them!)…. or May 2017?
no everytime i get promotion i tempted to buy but cant justify, i end up buying an invesement property in 2017
Just do it! Although it seems like you've picked the worst time!
Dealer make more from financing the deal than selling the actual car.
A new $40,000 car might be only $2,000 profit margin for them, but writing a loan for $40,000 means they could be paid up to 10% as a commission i.e. $4,000.
with lease always ask them for the effective interest rate, 9/10 they will say it is a lease and therefore there isnt an interest rate, if that is the case just pull out a repayment calculator and solve back for the interest rate.
A 5% APR on $40,000 is nothing.
Finance the car and investing the cash in high-performance assets would be financially justifiable.