If I could actually get 5% off my investments, then you would be correct. However I stated very clearly in the OP that I have not gotten much into investing at this point and that my cash just sitting around is making FAR less than 3%.

 

i wouldn't use retirement money to buy a car it would be money out of a savings account. but the last i checked auto loans are not 3.5 lowest I've been quoted was 11% and i work for a dealer. then again i don't barrow money so i really wouldn't no. but if you have a car payment that less money to invest each mo. also paying higher insurance rate and you get a much better deal when paying with cash. witch helps with depreciation

 

You want to pay for a car for 5 years!?

If you need the cash flow you can finance for "5 years" and pay it off at $3,000/month rather than $570. This will keep some rainy day money on hand but pay for the car in less than a year. Probably closer to 10 months.

-- Chuck

 

Well there is no right or wrong way to spend your money, everyone’s circumstances are different, there is just the right way based on their circumstances. You also have to consider, cars are one of those things that cost a lot and provide a loss 99% of the time as soon as you drive away with it, so at the end of the day you have to feel good about the purchase and be able to sleep at night regardless. There isnt any getting around the financial burden of making a purchase such as an automobile, whether its robbing your retirement, savings or monthly outgo in payments. Some people would rather have a new car all the time and also not worry about repairs so they just lease them. I cant say this is a bad approach, considering what some of these cars cost to fix down the road and what the average market depreciation is on re selling after you invest in ownership.

Personally, I hate car payments, I hate being a slave to debt in general, so that outweighs any desire I have for replacing any of my 2 cars that I own outright. My 01 S2000 and my 00 Tacoma 4x4. Thankfully both of which are fun, practical in their own right and stupid reliable, so no need to replace indefinitely. Most new cars cant duplicate what I get out of these anyway even if they were free, so its not a hard dilemma thankfully.

 

The smart thing to do is to never borrow money for anything that won't make you money. Loans should only be for real estate or business ventures. Then again you shouldn't be buying a 60k new car with only 75k in the bank. But since it's already done I saw you should pay cash. 15k should be enough for emergencies if something were to happen.

 

11%?? how shitty is your credit? you can get a 2-3% rate these days from the credit unions. idk what kind of shitty dealer you work for but something doesn't sound right. You don't get a better deal when paying cash & you don't pay a higher insurance rate. This is a $80k car, it will be fully insured regardless.

 

i disagree with most of this.


whats the grand total the car will cost you if you take a loan? say 1yr, 3yr and 5yr. theres different options than 5years and pay it all in cash.

having a car loan can help a credit score if you are in that area of need.

what do your other expenses look like? are you a home owner? if so you need more of a cushion than if you live in a condo where the HOA takes care of certain thins. Any maintenance on the house on the horizon? how old is your water heater? mine is 22yrs old...that betty is gonna go any day now.

things to consider more than anything i suppose.



EDIT: retirement money should never be considered for anything but retirement. plain and simple. once its in an account its done until youre 62. take that off the table.

 

This might surprise you, but most people finance the purchase of a new car. Many people actually buy a car which exceeds the amount of money they have in savings, therefore they have to borrow in order to buy it. I am fortunate in that I do not have to do this, hence the question I fielded to the forum.

After owning nothing but low-cost used cars for my entire life and working myself to the bone for the better part of the last decade (generally working 60 hours a week or more), I'm finally going to buy myself something nice. I don't intend to apologize to anyone or feel sorry about it.

Anyhow, thanks for the feedback everyone. I've all but decided just to pay cash for the new car.

 

I agree with you that most people do finance the purchase of a new car and most people buy cars that cost more money then they actually have. But that does not mean these are financhelly smart decisions. Im sure you and I also don't want to be like most people especially when it comes to finances.

 

You deserve it bro, I work a ton too and know what it's like