This is a long running debate in many circles. I would think even when purchasing a brand new car one should pay cash, just as they should for almost everything (Unless you use a card and pay it off every month to get those rebates). The one argument in this battle I have never understood is that the car immediatley loses value when you drive it off the lot. Yeah so, I should finance it so I can pay more for a car that is going to immediatley drop in value. Anyhow I digress.My real question here is I am planning on buying a new car in the next couple of months. Yes brand spankin' new. I know not very LBYM but I don't have much of a choice I am Overseas and don't want to spend a bunch of money on a car I can't bring back to the U.S. so I am considering buying an Audi A4. Roughly 26-30k depending on whether or not I decide to go for the AWD version.So here is my situation My wife and I are debt free, fully fund our IRA's & 401K type vehicles and invest an additional 10% of our income. Not touching any of our invested assets we can pay cash for this car and not touch our E-fund, becasue we have been saving for a large purchase, either retirement land down payment or a new car, the new car has one out because we don't know where we want to retire (talking first retirement here military).So what would you do put 50% down and Finance the rest, or pay cash and rebuild the large purchases fund by putting the ammount that we would have been paying in savings?I lean toward the latter but that large of an outlay makes me nervous even though I know we can afford it.Thoughts?Ben
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