Buying a car in cash is stupid?
I just bought a car in cash. My friend says it is always stupid to buy things in cash. Is that true?
Depends, were you offered a no interest loan or ridiculously low interest rate? If so then maybe, else no. If the loan rate was high you could have still taken it for the rewards and paid it off inmediately for the credit bump.
Depends. You can get 2.3% yield savings accounts fairly easily - if your APR is below that, then taking the loan is pretty close to free money.
Epic sarcasm
I've never bought a car more expensive than $50k, so always paid cash.
If it is a used car, it can save you a reasonable amount of money.
You could have bought the car using a credit card and paid off, within the billing cycle. You would have received points for the transaction. Another option was a loan, if <= 2%. You could have negotiated the price of the car, since dealerships get a kickback from the bank. You could have invested the cash in a CD and made money on the Delta % ( rates are around 2.5%). You also have stocks etc, which are higher risk. So many options. You left money on the table.
Dealers aren't that stupid that they would let you use CC and they pay the fee.
Done it thrice till date with no change to the purchase price. You may not be able to swing the entire amount, but you can do a partial. Combine with a credit card with a sign up bonus to compound earnings.
your friend is stupid.
How much debt does your friend have?
It’s not stupid. You avoid paying any interest in buying a depreciating asset outright by cash. Make sure you have smartly invested the rest of your money. Avoid debt as much as you can and be invested as much as you can.
It is an excellent idea
Dave ramsey