Do you OWN your Type R?

[Gizmo]

I have been watching a lot of videos about the type R on the youtubes. A lot of the “recommendations” for similar content that keeps popping up on the feed are videos about the car payment crisis. So that got me wondering.

Personally I don’t believe in paying interest on something that depreciates. However, if you view your car as an “investment” these cars are about as good as it gets with how well these hold their value.

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[lrk322]

I was able to get a 4.1 rate through nfcu and my savings account is getting 4.5 currently. For me it made more sense to finance as it's essentially a wash.

 

[UCF120]

Put a large down payment on mine and financed the rest. I see the argument for buying a car cash to avoid interest, however, I personally can’t justify removing 50k from my bank, which has been earning significant interest the last couple years, or selling investments to pay for a depreciating asset.

although the Type R will hold its value better than other cars, at the end of the day, I plan to keep mine for a long time and put miles on it so it will go down in value. I rather keep the 50k earning me money and pay a car payment then lose access to 50k. Just my mindset on it

 

[TypeRD]

@UCF120 That makes perfect sense, especially if you can finance at a lower interest rate than your bank’s interest rate on your savings acct. AND if you pay off the financed amount ahead of schedule, the better off you’ll be all around as you cut your losses (interest on the loan) further…assuming they don’t apply a egregious pre-payment penalty for doing so.

I’m a little bit the opposite of you in that I hate paying interest and try to avoid it altogether, though I fully understand that it can be advantageous in some cases like this one.

 

[svvitch]

Cars are not investments but life is also finite. Take care of responsibilities and then have some fun. I've paid cash for cars I've financed cars just depends on what I need /have at the time. Regardless of how you're paying the R it's a fun way to spend the cash

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