Need advice paying cash for new truck

Rich people aren't always as rich as they seem...

 

I paid cash for my 2016 SR5 and told them that upfront and whether or not I got a good deal I was happy with it. 32k out the door plus a beat up 2002 CRV trade in that was on its last leg and they didn't even see it and I had to get it there from another state..

 

Very true.

But those that are always lease new cars.

Only thing a rich person buys car wise is a car that goes up in value or had a predicted increase in value if sold.

 

That's a pretty general statement.

The richest guy I know drives a 13 year old accord and couldn't care less about what anyone thinks.

 

There's a difference between being 'rich' and wanting to 'look rich.' What you're describing is the latter.

 

Man you guys take things too literally.

 

The reality most of the time.. The guy with the big house, boat, new cars all the time isn't rich. He's giving the appearance of being rich, while being in huge financial debt.

 

again, not wrong.

i'm talking about those folks who actually are rich and want to drive nice cars. not the guy worth 8 figures living in a shed driving a 88 civic.

those that are truly rich and want to drive a nice vehicle lease.

personal example: my father n law is easily worth 7 figures. owns an old corvette he bought cash (whether it's an investment we'll have to wait and see), drives an old 04 TJ as a daily, and leased his 17 Pro. He also lives in a simple house on a small piece of land. Anyone driving or met him in person would have no clue to his worth monetarily. Even driving the Pro doesn't put off to others that he's rich, but he still leased it. Why, because buying it isn't putting his money to work when that same 45k could be used to invest and earn him far more back.

 

I would finance it (0% - 0.9%) and put the $33,000 or whatever in a mutual fund. See a financial planner or on the Internet to figure out the difference between investing the $33,000 and getting interest vs throwing $33,000 at the dealership. I bet with the mutual fund investment you would make more money.

 

Anyone telling you they're making way more money by financing or leasing is overstating to say the least. It's basically the same, maybe a couple hundred gained.

If you believe it's saving thousands, I've got a timeshare presentation I'd like to show you.

 

Very true. But in the long run I get a certain amount amount yearly until I die. The relative owned several car lots and property I'm good. I just want to pay cash I have no reason whatsoever to finance and If i do then i dont need it.

 

That must depend on the dealer. I wrote a personal check for $30+k when I bought my truck. What they WOULDN'T let me do is put it on my credit card with the awesome cashback deal. 3% off would have been an extra bonus, but they did let me put $3k on the card, and I wrote a check for the rest.

 

it all depends on what you're doing with the money in the account. there's so many variables that you're not quantifying in your argument.

somebody that has zero savings and buys a 50k car and leases or buys, yeah, they have no choice. Their goal should be to get the lowest interest rate possible, or even better, a cheaper car.

someone with 50k in the bank and they have it invested vs buying a vehicle outright, yes, in the span of 2-3 years they are making more money at the end of that 3 years vs having just paid cash for the vehicle. anyone who uses the entirety of their savings to pay cash to buy a vehicle is a fucking moron.

 

I've added lots of variables in my argument throughout this thread.

 

2007-2009 eh? What about since the great recession?

http://www.macrotrends.net/1358/dow-jones-industrial-average-last-10-years

Using the second greatest economic collapse in us history as an example of returns and why one shouldn't finance is silly.

 

You took one of my 20 posts out of context to call out why I'm wrong. Please read my other posts.

I was giving an example to the person who said 8k gained on 40k is likely over 12 months. I was pointing out why investing is a risk, which it is.

 

I paid cash for mine. I bought a 2016 in 2015, only had one on the lot at the time, Silver sport. Loved it.... The only mistake I made was not asking for some items to be included (bed mat, bed cover, etc) and to haggle the price down a bit more. But if you plan to mod the truck yourself, you might not need included stuff. Really don't think the cash thing is a issue, the dealer didn't know till it was time to sign some papers. At one time, cash was a good thing, but now with the low %rates, not so much

 

It is a risk. I've read this whole thread. I am not quoting every time you said the difference is hundreds of dollars, not thousands.
To me it is a comfort thing. Either you are comfortable risking it by investing, or you're not. But it's clearly not a sense thing. At low interest rates, it makes sense to use someone else's money and use yours to make more money.
Historically you are going to be thousands of dollars ahead by using low rate interest loans to buy, even after all the taxes. I just don't see this as a logical argument.

 

Geez, where to start. Generally, a bank doesn't care how much cash/currency someone withdraws, unless they don't have sufficient funds on hand. More to the point though, if currency totaling more than $10,000 is withdrawn (or for that matter deposited) the bank is required to complete a Currency Transaction Report (CTR - Form 104), just as they are required to complete the CTR if they are suspicious of someone breaking the withdrawal/deposit into several transactions to cause the bank to avoid filing of that form.

The incidental filing of the CTR (which is done electronically, with the IRS) does not trigger an investigation by the FBI.

Should one be interested, you can review the actual federal statute(s) which is Title 18 U.S.C 1956 (generally know as 'Money Laundering') or Title 18 U.S.C. 1957 (generally known as 'Structuring') which is what would be more applicable should someone attempt to just evade or avoid the filing of a CTR by breaking the $10,000 or more threshold amount into smaller increments to avoid the filing requirement.

Usually, when someone says they will pay cash for a vehicle, they don't actually mean they'll pay with currency. They mean they won't be financing, or will write a check, or bring a Cashier's Check or maybe even have the dealership draft their bank. Should someone pay for a vehicle in actual hard currency in an amount of more than $10,000, the dealership, just like a bank is required to complete a form which reports the particulars, though in the case of a dealership (or other type business) that form is a Form 8300.

My experience is that dealerships, though they really want that vehicle sold, would rather not have to deal in large amounts of currency. The issues are obvious; where to keep it until it's deposited (if late in the day this can cause additional problems), counted correctly at both the dealership and the bank, don't want to fill out the form, etc ...

 

Ok. Then I'm not changing your mind. But I'll call out anyone saying they're putting thousands in the bank while paying another bank each month.