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Xithras

(16,191 posts)

43. Financing a car is nearly always a terrible idea, unless you can do 0% for the full term.

Mon Jun 27, 2016, 07:52 PM

Jun 2016

My wife loves new cars, and she's one of those people who would buy a new car every year if she could. Rather than waste money on interest payments, she pays $350 a month into an aggressive growth mutual fund. When the fund balance gets high enough, she taps enough money out of it to pay cash for a new car. Not only does that save her many thousands of dollars in interest charges, but she gets to leverage her own money with the Vanguard fund to profit and buy a new car even faster.

The idea was dreamed up by our investment adviser over a decade ago and it works pretty freaking well. She ends up paying about the same amount of money she'd shell out on a car payment anyway, but the investment angle saves us a huge amount of interest.

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As long as you can afford it, do you prefer to buy new when you buy a car? [View all] Tobin S. Jun 2016 OP

We've been buying new for a while now. CaliforniaPeggy Jun 2016 #1

It's definitely cool to have a new car. Tobin S. Jun 2016 #2

I think you have your priorities straight. CaliforniaPeggy Jun 2016 #3

Do what my parents do, then. Chan790 Jun 2016 #7

I've heard good things about doing this NewJeffCT Jun 2016 #22

Still live in Central CT? Chan790 Jun 2016 #25

Thanks NewJeffCT Jun 2016 #32

used at a dealership Kali Jun 2016 #4

Since I can't fix cars, I buy new TexasBushwhacker Jun 2016 #5

Used. Only Ever. And here's why; underahedgerow Jun 2016 #6

Cars almost always decrease in value regardless of whether you finance them or not Major Nikon Jun 2016 #14

Financing a car is nearly always a terrible idea, unless you can do 0% for the full term. Xithras Jun 2016 #43

It doesn't necessarily have to be 0% Major Nikon Jun 2016 #44

thinking your preferences reflect objective truth is a bad way of thinking. Taitertots Jun 2016 #27

My current--and previous two cars--are BMW's that I bought when they were 2 years old mnhtnbb Jun 2016 #8

This. MissB Jun 2016 #9

My oldest learned to drive on my BMW convertible--manual transmission--and to this day mnhtnbb Jun 2016 #37

Unless I'm some lottery winner, I'm never buying new again nt MrScorpio Jun 2016 #10

Yeah, if I could afford it, I'd buy new... Wounded Bear Jun 2016 #11

Depends on your definition of "afford." noamnety Jun 2016 #12

Use whatever definition you wish. I left that open to whatever people's conceptions are of that. Tobin S. Jun 2016 #30

I liked the 'certified' program that many car makers have! LynneSin Jun 2016 #13

We bought used for years and so much in repair $$ nadine_mn Jun 2016 #15

Our last new vehicle was in 1998 Windstar van benld74 Jun 2016 #16

I will very likely buy my next car new for cash OriginalGeek Jun 2016 #17

I bought a new car once when I was young and cocky. I won't do that again. hunter Jun 2016 #18

I cannot tell you how many times in the last few months someone has almost backed into me mnhtnbb Jun 2016 #19

No, why take the depreciation hit? haele Jun 2016 #20

We bought a car from Hertz--out of their 'retired' rental car fleet mnhtnbb Jun 2016 #21

When I was in the car business we used to buy from Enterprise for our used car lot. Hassin Bin Sober Jun 2016 #35

There you go! mnhtnbb Jun 2016 #36

Used. My Good Babushka Jun 2016 #23

New mainstreetonce Jun 2016 #24

Do I buy a new car-or used?! Definately a 1st world question. And my guess is that MOST of us here jonno99 Jun 2016 #26

What's your point? Tobin S. Jun 2016 #31

I usually buy a year old leased car. trof Jun 2016 #28

i have an 05 caravan too shanti Jun 2016 #40

'08 Prius is our other car. I love it. trof Jun 2016 #42

I like to buy new Generic Brad Jun 2016 #29

i prefer older vehicles John_Doe80004 Jun 2016 #33

Mildly used. Laffy Kat Jun 2016 #34

lifelong beater driver, but mopinko Jun 2016 #38

Bought new once blaze Jun 2016 #39

I prefer NEVER to have to buy a car again! elleng Jun 2016 #41

I've done both AwakeAtLast Jun 2016 #45

Never have; never will. It loses half its value the second you drive it off the lot Recursion Jun 2016 #46