I Have the cash.....But should I finance?

[Daddy Long Stroke]

Guys. I am ready to buy my first Viper. I have sold all my other toys and I am just looking for the right car and the right deal. Of course, I still haven't decided on a GTS or SRT-10, but now I seem to be leaning towards a SRT-10 lol

I have about 55k. in cash from all my sells, and I was wondering what you think the best thing to do is- Buy cash, or have that big payment and invest my cash and somehow to try and make some $$$$. For the record, I have the rest of my savings (my "non toy" money) in the stock market, although, as of recently I have 80% of it sitting on the sidelines. I'm feeling cautious right now for some reason. The london bombing scared me a little bit. I hate to miss a tech rally, though! WHAT TO DO....WHAT TO DO....

Any opinions?

 

[acrdakota]

If you finance it through your credit union what type of rate will they give you? If it's very low and you feel you can make more with safe investing then thats a pretty simple answer. If not then pay for the car cash. I've never made a habit of financing toys unless the deal was just too good to pass up, 0% interest etc.

 

[Daddy Long Stroke]

4.75% financing. The one thing I think about is that it would be nice to have the cash around....But it would be dissapearing quick at a $1000 a month payment!

 

[29OUTLAW]

4.75% financing. The one thing I think about is that it would be nice to have the cash around....But it would be dissapearing quick at a $1000 a month payment!

Finance it at 4.75%!!! You can then take that 80K cash and invest it at 12%. Looks like the market is starting to pick up steam.

I think lots of guys take pride in being able to say they own their Vipers outright. I think it's silly. I take pride in making money.

 

[edretti]

Totally agree with outlaw, if you have tons of cash laying around thats one thing but if you don't make your money work for you! Buy stock options or something. That's my thoughts...

 

[Dakota Viper Collector]

Do remember the interest you pay on the car is not tax deductible but the money you make in any investment will be taxed. So you must make a fair sized return to off set the difference. I would pay off the car and save the amount I would have paid on payments and invest that. Just my two cents worth!

 

[29OUTLAW]

Do remember the interest you pay on the car is not tax deductible but the money you make in any investment will be taxed. So you must make a fair sized return to off set the difference. I would pay off the car and save the amount I would have paid on payments and invest that. Just my two cents worth!

Borry the money for your car by means of a home equity loan. Then the interest becomes tax deductible.

 

[Casey]

Finance $30k of it, and send your New Viper to Heffner for a TT upgrade!


Seriously, the "IF" part of the stock market makes me suggest paying cash for your Viper. Especially, since you have money in the market already.

The better investment would be a GenII right now, as they seems to be holding their value very strong these days!
In saying that, if you get into a SRT10 for $55k, I doubt you will see much depreciation from that price also.

Good luck!

OH, there's also the idea of Real Estate. Buy a place and rent it out! Then you can drive your New Viper to check on it every once in a while!

 

[Brian E]

In saying that, if you get into a SRT10 for $55k

Casey, you are killing us SRT-10 owners!
55k for a SRT-10?
You just need to find a TT Heffner SRT-10. That would push you over to the dark side.

 

[Shelby3]

4.75% financing. The one thing I think about is that it would be nice to have the cash around....But it would be dissapearing quick at a $1000 a month payment!

Finance it at 4.75%!!! You can then take that 80K cash and invest it at 12%. Looks like the market is starting to pick up steam.

I think lots of guys take pride in being able to say they own their Vipers outright. I think it's silly. I take pride in making money.

Where can I invest at 12%?

 

[29OUTLAW]

4.75% financing. The one thing I think about is that it would be nice to have the cash around....But it would be dissapearing quick at a $1000 a month payment!

Finance it at 4.75%!!! You can then take that 80K cash and invest it at 12%. Looks like the market is starting to pick up steam.

I think lots of guys take pride in being able to say they own their Vipers outright. I think it's silly. I take pride in making money.

Where can I invest at 12%?

The only reason I said 12% is because that's what my T. Rowe Price Mid-Cap Growth Fund has made over the last 12 months (11.87%). The sad part is that I'm about as dumb as they get when it comes to investing and even I can find 12%.

(That fund is 13.59% over the past 3 years)