Cash vs Finance

[JeffTheViperMan]

I've noticed since I started shopping for these cars that it seems like some people frown not only on financing themselves, but on others who finance "specialty" vehicles. I had people on Ebay trying to put me down because I needed to "finance" my Viper - couldn't pay cash straight up. I got a lot of "I paid cash for every car I've ever owned."

"Yeah well good for you" was my unspoken response.

So my simple question is this - how did you purchase YOUR Viper(s)? I don't really care admitting that I financed mine. I also got a great price, so if I decide to sell, I can probably recoup all of my original loan and even then-some. However, if you'd rather just vote and not "admit it," that's fine too.

I'm just curious.

 

[Steve-Indy]

Well, Jeff...it depends on timing for us. With a long history of "liking cars", and realizing that sometimes one has to act quickly on a given vehicle, I can say that we have used several methods when purchasing speciality cars...cash, car loan, home EQ line of credit(noting that I ALWAYS lease my own daily driver)...to get the job done. True love knows no bounds. Let the world kiss your asp!!!

 

[V10SpeedLuvr]

Financed mine, paid it off a month ago! There's no shame in financing a car. I wanted a Viper but didn't have $32k between my sofa cushions. I did have enough for a monthly payment and the rest is hisssstory.

 

[JeffTheViperMan]

That's my stance - why should I have to wait until I can put cash down to get the car of my dreams? I saw an awesome opportunity to make a dream come true, made a quick phone call, and BAM - money in hand. Sure I might be "suffering" from it for a while, but I don't care - I got what I want. And hey, it'll improve my credit rating over time, so why not? I gotta buy a house some day, and my excellent history on these cars will really help me out.

 

[big-n-italian]

i was lucky. i got a loan on my car a few years back when they were handing out loans like lollipops at a bank. of course those days are over. that loan was paid off rather quickly, and now i qm considering a second car. if i do get a second car though, if i dont have atleast have 75% of the purchase price in cash, i wont be doing it.

do you have equity in your house? thats an option.

 

[V10SpeedLuvr]

I'm with ya 100%, Jeff. Why wait? If I die tomorrow, I still won't have $32k cash, but I'd have 4+ years of some kickass Viper memories! Each month when you write the check for the loan, it'll be incentive to go drive some more so you feel like you're getting your moneys worth As long as you can afford the loan without having to risk missing a house payment or other more important bills...rock and roll!

 

[Timmer]

I financed my first Viper and then got mad three months later when I reduced the insurance to fire/theft during winter storage and the Credit Union wouldn't allow me to do it.

I paid it off and then paid cash for the next 4!

 

[Stretch]

I'm with Jeff & Chad. I financed mine so I could have it sooner. Now with that said, I plan to pay it off early and get ahead of the game so to speak. I'm with Big for that one, on future cars I'd like to put a 50-75% downpayment on them to keep the month payments real low.

 

[gb66gth]

Financed both of mine. I don't see what the big deal is

 

[ViperTony]

Financed mine and paid it off in about 3 months only because the interest rate was low and I didn't want to cash out some investments to pay for it until the new tax year came in order to take advantage of some tax breaks. I think I purchased in Dec and paid it off in Feb. I don't think financing in and of itself is evil but must be used wisely IMO. I'd rather pay off my debts as quickly as possible then again my mouth isn't the only one that needs feeding at home so I guess it's all relative.

 

[V10SpeedLuvr]

I put 25% down on mine and paid it off a year early. Would've been prob 2-2.5 years early but "life" got in the way and delayed me a couple times.

 

[SquadX]

Financed mine. I like having some extra cash around for emergencies. I just try to pay my cars off early.

 

[Martin]

The determining factor for me (other than how much cash I have on hand) is the cost of the money. If you can get a loan at a rate that's close to the rate of inflation, it's virtually 'free money'. If you can get a loan at less than the rate of inflation, it's a no-brainer. Also, a HELOC can be a good loan product if the rate is low enough and you have the liquid assets to pay it down quick if the rates adjust dramatically. What I wouldn't do is get some crazy 96 month loan at 7.9% to buy anything that depreciates as fast as a car does... In that case, if you're considering a loan like that, you probably can't afford the car.

 

[Dom426h]

add another option, 1/2cash 1/2finance

actualy, i paid about 55% of it in cash so that i would technicaly own more of the viper than my bank did. lol

the idea of driving around my banks car just dosnt jive with me.
but then again, someday i'll be livin in my banks house so...

 

[adamlotus]

im on my 5th viper i paid cash for the first 3 the 4th i finaced and the 5th i leased which was a big mistake what was i thinking

 

[Nine Ball]

I paid cash for my '06, but mostly because I don't like having payments on toys. I typically put 50% down on most of my new vehicle purchases, but those are the daily drivers. I tend to pay cash for toys, especially the classic cars. I don't see anything wrong with financing a Viper. People who look down on others because they might be in a better financial position aren't people I could give a crap about anyways.

 

[goldcup]

Alot of guys do not like to pay payments on toys but I do not have many toys and I couldnt afford to pay cash so I financed.For me it was cheaper financing versus raiding the brokerage account due to the low interest note.

 

[Affatica]

Who really cares what anyone else thinks! I financed mine and had it paid off in less than 4 years and I am damn proud to own it. As long as the seller gets paid, shouldn't make any difference to them.

Everybody's situation is different, so go w/ what works for you and best of luck.

 

[plumcrazy]

saved up and paid for mine in cash. and did the same with the mods.

i personally think toys should be paid for, not financed but that me. i certainly hear the argument for financing one though. and to be honest, i've thought about selling mine + some cash and financing the rest of a Merci..... just cant bring myself to sell it.

then i have the whole issue of DLM financing the TT's for it.......

 

[WANTED]

I normally pay cash for my cars, dont like payments. However I love great deals. When
I purchased my Jeep Commander I did my homework on the price then they offered
0% financing for 5 years ( plus no payments for 6 months ). Well I was able to finance
the entire purchase plus tax and tags at 0%. ( NO BRAINER )
I also was able to get 0% for 3 years on my wifes Escalade which I took full advantage
of. So to me if the financing is a steal, I will do it every time.

If you have to finance it just find a great rate and go for it.

 

[Cop Magnet]

I put 25% down on mine and paid it off a year early. Would've been prob 2-2.5 years early but "life" got in the way and delayed me a couple times.

I have a feeling if ******* shut down you would be driving an all-cash ACR right now.

 

[VicTxV10]

I have a feeling if ******* shut down you would be driving an all-cash ACR right now.

Now that there is funny!!

 

[NorthernSnake]

Financed. I always want to be financing something as i move up in the world. I pay cash for my motorcycles and finance my cars. When i can pay cash for my cars i'll probably be financing a yacht...and when i can buy a yacht cash i'll probably be financing a jet...the toys just keep getting bigger.

I do have a rule though...i only allow myself to finance one toy at a time. If i want something else that needs financing then i either have to pay off the existing loan or pay for the new toy cash. Its kept me from getting over my head.

lastly...i borrowed money to finance my viper at 6.5%...in my business i make 25-100+% returns on my $$$ (my last acqusition netted 350%)...in my mind it hurts business to tie up cash in toys in big chunks.

 

[redtanrt10]

Jeff, don't worry what people tell you to do, everyone has their own priorities as well as their own money management strategies. I've bought 5 vipers and own two. With most of them I've borrowed against my home equity line, with cheap rates and tax deductions. On my 08 I put a ton of money down and leased it with the intention of buying out w/cash or hit the equity line. I've also used 0% credit cards to finance a good portion on 3 of them (the good old days!). Not to change subjects but 4 of the 5 I bought used including the 08.

 

[QUICKSRT10/SRT8]

i put $20,000 cash down financed $40,000 for my 06 first edition with 2000 miles. my payment is only $670.00 i thought that was cheap for this type of car. 5.9% interest

 

[Blazeone]

Put $55k down and financed $25k. Should pay it off this year.

 

[NI-KA]

All of the above.

Recieved some inheritance monies, therefore cash down and financed the balance. I could have purchased outright but didn't want to tie up a bunch of cash. Especially during a down economy. It is always good to keep some cash around in case the job situation becomes dicey.

 

[FrankBarba]

i have been very lucky...My wife purchased mine...

 

[Darbgnik]

Bought mine with a line of credit.

Bought used, so I saved the depreciation right up front, cross border shopped when our dollar was high so saved another 10 grand Canadian, relative to what I'd pay here.

Made a deal with myself that if I quit smoking (costs $300 a month in health conscious Canada) I'd make better use of the money. The interest cost on the Viper is less than half the cost of smoking.

Year and a half later, still quit. And still have the car.

 

[Martin]

Bought mine with a line of credit.

Bought used, so I saved the depreciation right up front, cross border shopped when our dollar was high so saved another 10 grand Canadian, relative to what I'd pay here.

Made a deal with myself that if I quit smoking (costs $300 a month in health conscious Canada) I'd make better use of the money. The interest cost on the Viper is less than half the cost of smoking.

Year and a half later, still quit. And still have the car.

Congrats on quitting smoking!! You just gave yourself many more years to enjoy your car!!