Mash42

This is an old thread but I came by it today and noticed the discussion around cash and borrowing. And I'd like to make 2 points. 

1. The loan is less than my personal safety net account. But I wouldn't pay from there, it's sacred. It makes me a free man. 

2. Over 5 years I pay the bank ~11% total while my worst expected investment performance over that period is in the range of ~25%

Finances aren't black and white. Do your math and do what you are confident of. 

3 hours ago, jackdd said:

Which dealer has a cash discount? Usually they want people to use finance, and not pay cash, because like this they earn commission.

That was Ford. They also had 0% interest promotion on Ford Ranger so I guess they just wanna sell. 

2 hours ago, KhunLA said:

Would think dealer would be better, as bank interest rates are silly.  If the dealer doesn't go through a bank, then probably just shop for best deal.

 

Interest rates here are silly

I think so yeah. I checked bank interest and it "starts from" 3%.

Dealerships usually have a cash discount so I figured that if banks offer the same rates (haven't checked yet) I could just take a loan and pay cash to get that discount. Does that work? The dealerships gave me offers ranging from 1-2.5% interest.