We needed to buy a used car.
We had a home equity line of credit that was totally unused.
We had a chunk of change saved up for the car, but not enough to pay it off in full.
Interest rate on the line of credit was far below anything offered, so we wrote 2 checks, our real money and the Home Equity's and paid off the line of credit when convenient.
In negotiating the price of the car, they figured incorrectly that we would use their loan and interest.
We just asked what the best rate was, and with that, they lowered the price on the car. We never said we'd use their loan. We got a commitment on the lower price and paid "cash" for the car.

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85' 300D No inspection, No registration fees, Cheap insurance
"If my calculations are correct, when this baby hits 88 miles per hour, you're going to see some serious %$&^."

If you don't really need that car, I would recommend you not to buy it if you need to finance it. If you need to finance it's telling me you already have insufficient savings and this purchase plus all the interest you'll pay will bury you further in the hole. But if you decide to finance anyway, at least get a pre-approval online so you can get the best rate possible. I'd try Chase.
https://www.chase.com/ccp/index.jsp?pg_name=ccpmapp/caf/home/page/auto_finance_home

Also never negotiate a car's price in terms of monthly payments. That's the guaranteed way to waste money. The only thing that matters is the total purchase price.

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2004 VW Jetta TDI (manual)

Past MB's: '96 E300D, '83 240D, '82 300D, '87 300D, '87 420SEL

I've never tried those. I prefer properly-priced real estate and high-yield savings accounts.

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2004 VW Jetta TDI (manual)

Past MB's: '96 E300D, '83 240D, '82 300D, '87 300D, '87 420SEL

Actually, I could pay cash, but I prefer to run a loan for a few months, pay it off real early, and keep my credit rating in the 800's.

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95 SL500 Smoke Silver, Parchment 64K
07 E350 4matic Station Wagon White 34K
02 E320 4Matic Silver/grey 80K
05 F150 Silver 44K

Keeping a credit card and having a mortgage and never being late is good enough to have excellent credit. However I'd rather not have a mortgage and that's why I'm doing my best to pay it off as soon as possible.

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2004 VW Jetta TDI (manual)

Past MB's: '96 E300D, '83 240D, '82 300D, '87 300D, '87 420SEL

Yeah, that is how I would buy one. I would first invest the money, and use the profits from the investment to purchase a toy like that.

I recomend a local credit union. Sikorsky Credit Union was advertising 4.75%, and AFAIK they will lend on older cars.

I'm waiting to buy a new truck until I can pay cash, its killing me because I just found a dark blue 2008 Chevy 1500 with 3,500 miles on it! For $13k! Must wait, must wait.

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2016 Corvette Stingray 2LT
1969 280SE
2023 Ram 1500
2007 Tiara 3200

I am currently saving to buy a car cash. I just dont know what to buy. Newer cars really dont interest me, but I dont want to buy a clunker either.

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1984 300SD Orient Red/ Palomino
1989 560SEC
2016 Mazda 6 6 speed manual
1995 Ford F-150 reg cab 4.9 5speed manual

So is it safe to assume that those of you that are against financing have no mortgages, no credit card balances and own your vehicles outright! I am very impressed that you saved the money needed for the purchase prices of all those possesions and paid for them in cash at time of purchase. Very impressive!!!!!

a mortgage is ok. A car loan is not.

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1984 300SD Orient Red/ Palomino
1989 560SEC
2016 Mazda 6 6 speed manual
1995 Ford F-150 reg cab 4.9 5speed manual

Real estate debt is good debt.

Simply put finance assets, pay for liabilities with cash.

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2016 Corvette Stingray 2LT
1969 280SE
2023 Ram 1500
2007 Tiara 3200

Well I see you missed the point E150. My point was just someone finances a vehicle new or used doesn't mean they can't necessarily afford it! If you bought a home within the last 4 yrs. go and try to refi and see what happens in regards to the value of your house then and now. Unless you bought the home way under market your home today is a depreciating asset, and yes it has appreciation potential and trends have generally been that real estate does appreciate. Cars are depreciating assets so your are guaranteed to lose money on that expense. I realize that there are collector cars that do appreciate. I do agree that financing a car that is worth $2,000.00 is not wise, but the value of the used car was never mentioned. For all we know he could be buying a used Ferrari.

simply put: ALL debts are LIABILITIES!!!!!! Do you not understand that all debt has risk and liability no matter what its for?

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1984 300SD Orient Red/ Palomino
1989 560SEC
2016 Mazda 6 6 speed manual
1995 Ford F-150 reg cab 4.9 5speed manual

You are correct that many people can afford their payments. I just am opposed to paying interest as much as I can. After all is said and done with a car payment, one pays more than the car is worth with a typical auto loan, only to be left with a car that is worth much less than was paid for with principal and interest. And also, I do not have a mortgage yet but am saving for a sizeable down payment and also for a replacement car when I can find a car that actually excites me. I also have no credit cards or car payment and never have. And before I sound like I have done no wrong here, I have had credit cards in the past and have seen how quickly intrest and debt can get away from you. I have always tried to live in less than I make even though until recently I usually lived right at what I made and I know its tempting to get into a newer car and a big mortgage and all that. Everybody at work tells me buy a house buy a house, renting is just tossing money away. And while that is true, I am not ready yet to take on such a risk without securing a few things first. I do not want to become a statistic of this economy.

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1984 300SD Orient Red/ Palomino
1989 560SEC
2016 Mazda 6 6 speed manual
1995 Ford F-150 reg cab 4.9 5speed manual

Thanks for the money management lesson Hattie!!!! I never said real estate wasn't an asset. You missed the point, but that is ok. My point was that the op was getting told that if he has to finance a used car he can't afford it. Nobody asked hey what kind of car are you buying? Maybe he is buying a one year old or two year old Mercedes! Why would someone assume that if he wants to finance he can't afford it. It is ridiculous to assume that. I financed all three of my cars when I bought them new, so that means according to the thinking of some on this thread I couldn't afford them. I bought a 2002 in 2002, I bought the 03 in 03 and the 04 in 04. Here is how I looked at it I could have plunked down the full amount on each vehicle, but that would have seriosly impacted me financially if I experienced cash flow problems. So hers how I worked it, made sure my house was free and clear first. The cars if god forbid things got or as they are now getting bad screw the car(s) my kids need a roof guaranteed, but ill have the cash position to regroup with some other type of vehicle if need be. And please nobody say but yeah you could sell the car, anyone ever sell a car when they were desperate will tell you the vultures can smell the desperation. My comments weren't intended to offend anyone, but the responses made by some without having all of the info regarding the situation kind of stunned me. Now lets all get back to being happy and friendly. I hope nobody is taking my comments out of context or that I am trying to start trouble with anyone.

E150 I understand what you are saying, but remember this the mortgage interest is where they rape you for real. Also interest can be a good thing at the end of the year for year ask your tax preparer. I think the problem with this thread is that we don't know what type of car is being bought!! It could be a used 2008. Me personally I am against renting a home, but if that is what you have to do then do it. Many will tell you buy a house. If you are paying $600 a month for rent and utilities are included, some will say you can buy a house for that much money a month. Truth be told you can but don't forget utilities, taxes, repairs and improvements. All I can say is spend our money wisely and take your time.