You own it or what?
...1) Lease, (set amount of interest, not compounding like a finance, plus your only paying for the deprecation this way, not paying the full sales tax upfront either, dont make extra payments because in 2,3,4 years you end up in the same place no matter what)
2) Finance, (cash is KING, the more liquid you are, the more freedom you have to make money on your money, although with a finance your paying mostly interest up front, so you would want to make bigger payments as to cut down the interest over the term)
3) last would be to pay cash, (the car is going down in value no matter what, so may as well keep your cash and make your payments out of your cash, so you can be earning money on your money sitting in the bank at least)
With the first 2, yes you increase your liability, however, your making money on your money, and could use that interest you made, or money you made from investing to pay for a portion of the car payments.
2) Finance, (cash is KING, the more liquid you are, the more freedom you have to make money on your money, although with a finance your paying mostly interest up front, so you would want to make bigger payments as to cut down the interest over the term)
3) last would be to pay cash, (the car is going down in value no matter what, so may as well keep your cash and make your payments out of your cash, so you can be earning money on your money sitting in the bank at least)
With the first 2, yes you increase your liability, however, your making money on your money, and could use that interest you made, or money you made from investing to pay for a portion of the car payments.
Lexus Champion
Joined: Jun 2008
Posts: 3,054
Likes: 3
From: Alberta
Advanced
Joined: Sep 2002
Posts: 531
Likes: 6
From: CA
I got 2.9% through lexus financing. I tend to finance first and then just pay it off completely if I know I'll be keeping in the long run. Plus at 2.9%, I can use the rest of my money for other things.
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Joined: Sep 2002
Posts: 531
Likes: 6
From: CA
Pole Position
Joined: Feb 2009
Posts: 256
Likes: 2
From: ca
i got mine at 1.9% for 48 months through Toyota financial services. i could get 0.9% for 36 months, but at such low rates i wanted to lengthen the term for as long as possible.
Lexus Test Driver
Joined: Aug 2005
Posts: 1,049
Likes: 7
From: VA
Having grown up (well almost) in SoCal, I learned what a "pink slip" was early in life. We used to drag race for pink slips......