Buying a car in cash is stupid?

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FireBurn

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FireBurn
May 13, 2019 63 Comments

I just bought a car in cash. My friend says it is always stupid to buy things in cash. Is that true?

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  • 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.
    May 13, 2019 3
    • 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.
      May 13, 2019
    • Amex and others have programs with websites dedicated to helping you find dealers that’ll let you put at least some amount of the car purchase on your credit or charge card.
      May 13, 2019
  • 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.
    May 13, 2019 2
  • New
    EKPg16

    New

    EKPg16
    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.
    May 13, 2019 1
  • You're friend is an idiot.
    May 13, 2019 0
  • Google
    bo o

    Go to company page Google

    bo o
    your friend is stupid.
    May 13, 2019 0