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I'll tell you where this is going later....

yep, our current (and only) car we paid in cash. Boy, was my hand shaking writing out a check for $18,000!!!! I'll be a mess if we ever get a house!

:o

Didn't vote yet because I'm not sure if you are talking about only new purchases or if you are including used cars. Many people buy used cars with cash but few do the same with a new car.

Yep, paid a lump-sum of $13,500 for mine. I'm avidly against credit cards or debts (at least for myself) and so I just did it the good ol' way.

I totally sympathize with you though, Hazel. I held my checque in my hand like it was my life!

Bought the Subaru (now paid off) with a loan. At 1.9% interest and COLA running 3-4%, I figured THEY were paying ME to buy the car.

Yup, 900 clams for the mitsubishi, 0 for the D-van :)

No. Bought Previous used cars cash, but with a better car > $10k and relatively low rates under ROI in conservative investing (and def lower than my private student loans), financing is the way to go.

that having been said, I AM paying the car note out of monthly gas savings vs my old car.

Financed every penny of it, but not for long. :)

"Yes" here - cash for used cars, but new ones are financed. I only buy when they have the low promotional rate. And my brother does better than I do - he's got two notes with GMAC - 0% for 72 months. I told him don't pre-pay unless the amount whacks your debt to income ratio. After all, it's an interest free loan! That'd possibly qualify as "almost cash".

The most recent cars (all new) have been 50% cash, 50% financed over two years through a credit union. (I was offered four years on the same terms, but refused.) But after nearly a decade of no payments, the car kitty is ready to buy the next two (self & spouse's) cars with all cash.

Got my FEH at 0% for 72 months as well. One of the few advantages to buying American! They need me more than I need them. ;)

I'm with you, Fuzzy. 1/2 cash, 1/2 financed on the newest car. It was an emergency purchase due to price of gas.

Reveling my hand: not many pay for their car with cash, which sadly includes me. :( At least I drive them for years.

The irony of many vehicles bought as a status symbol and bling-bling is a lot of people are going way into debt to pretend they have money. I have no statistics, but recall recently 60% of gas purchases are on credit, so you can imagine it's higher for car purchases.

I bought my prius used with a personal check not cash...who carries that much cash on them. I guess you meant either check or cash.

Yes - not borrowing.

I've always paid all cash for everything I own (except for the house).

Check out this video... It's not really meant to be taken too literally, but shows you what you could be doing with the car payments instead...

http://www.daveramsey.com/etc/lms/drive_free/

The irony of many vehicles bought as a status symbol and bling-bling is a lot of people are going way into debt to pretend they have money. I have no statistics, but recall recently 60% of gas purchases are on credit, so you can imagine it's higher for car purchases.

Yeah, but that 60% includes people who pay their bills every month and use credit because its faster than going inside and safer than debit.

A couple of months back when I bought my F150 (used, paid cash), the salesman showed me in passing one of the bling bling trucks on the lot. One of these trucks with the raised suspension, big tires, big thirsty diesel, all the bells and whistles. You know, the standard look at me and how much money I think I have vehicles. If I remember right the salesman said this truck was $75000 ish, and of similar trucks he has sold in the past most were financed with very little down over 5 years. Monthly payments were around $1500. Holy crap, $1500 a month for a pick up, my Volvo's barely more than that and it pays for itself.

kryten

While I'm not accounting for people that use credit cards like American Express (i.e. not leaving a balance), I'm pretty confident we have a lot of debtheads in our country. :(

Buying gas on a credit card doesn't necessarily mean one doesn't have sufficient cash to pay it off at the end of the month. Likewise, the 72 month 0% financing skews the cash vs. loan vehicle purchases a bit. Personally, I would rather not have any debt, even at 0%. I'm not confident that the market will go up in the next 72 months, either. I guess at 0%, a CD guarantees I come out ahead. Or I could get 1% back on a credit card purchase of a car (just don't be late on that payment!).

I paid $4,000 cash for the Tercel two years ago and $5,500 cash for the Civic 4 years ago. Hundred dollar bills in an envelope can really speed up price negotiations on private party sales!

I have no statistics, but recall recently 60% of gas purchases are on credit, so you can imagine it's higher for car purchases.

There are people like me who buy everything they can on credit cards and pay them off at the end of the month. I've done this for at least 20 years and never carried a balance.

Why?

- One of them generates miles for free tickets for air travel, which I use. I used to use the air travel for a side business (expenses for which I also charged on the card), now I use it to visit family and for vacation travel.
- The other gives me free shipping from LL Bean, and I use it only for that (no yearly fee).
- Been thinking about getting a gas card that gives me a gas discount, but thanks to this forum I'm using a lot less gas!
- I look at the balances as a free loan from the bank each month.

It does require keeping mental track of how much I spend and delaying purchases if I've spent too much. Internet access to the accounts these days helps a lot.

Yes it's very very easy to get into trouble doing this, especially when two or more people use the same card.

Don't know how many people are doing this but it could skew the statistics. Like most others here, I'm much less eager to take out a loan for a car or other things.

There are people like me who buy everything they can on credit cards and pay them off at the end of the month. I've done this for at least 20 years and never carried a balance.

Why?

- One of them generates miles for free tickets for air travel, which I use. I used to use the air travel for a side business (expenses for which I also charged on the card), now I use it to visit family and for vacation travel.
- The other gives me free shipping from LL Bean, and I use it only for that (no yearly fee).
- Been thinking about getting a gas card that gives me a gas discount, but thanks to this forum I'm using a lot less gas!
- I look at the balances as a free loan from the bank each month.



I do the same thing. I have two cards that I charge EVRYTHING on. One gives me up to 4% cash back and the other gives me points for free products. When I get a new (newer) car I plan on charging it to the cards.

There are people like me who buy everything they can on credit cards and pay them off at the end of the month. I've done this for at least 20 years and never carried a balance.

Why?

- One of them generates miles for free tickets for air travel, which I use. I used to use the air travel for a side business (expenses for which I also charged on the card), now I use it to visit family and for vacation travel.
- The other gives me free shipping from LL Bean, and I use it only for that (no yearly fee).
- Been thinking about getting a gas card that gives me a gas discount, but thanks to this forum I'm using a lot less gas!
- I look at the balances as a free loan from the bank each month.

It does require keeping mental track of how much I spend and delaying purchases if I've spent too much. Internet access to the accounts these days helps a lot.

Yes it's very very easy to get into trouble doing this, especially when two or more people use the same card.

Don't know how many people are doing this but it could skew the statistics. Like most others here, I'm much less eager to take out a loan for a car or other things.

I do the same thing with my Cabela's visa, I just went "shopping" there last weekend and got 60 clams worth of fishin' gear for free! :)
Bought the car from a friend that cant take a credit card though..

The only thing I've ever bought which I couldn't pay for right then and there was my first house. I saved until I was 21 years old before buying my first car for that reason. When I was 6 years old I started saving my pennies at the local bank and called it the car fund =)

I feel lucky to be able to pay for them cash, but it's also been because of hard work and discipline that I've been able to do that as well.

I'm proud to say I've paid for both of my cars so far with cash. :)

I don't intend to buy a car I don't have cash for. Unless it's a discounted '11 Prius with the Li-Ion batteries that gets 100+ MPG city and 80+ on the road without trying :)

I'm starting to copy what lightfoot is doing. Put as much as I can on the cards so I get the benefits. I get cash back on one of my check cards and am working on getting a gas card.

The using-cards-to-get-points is a dangerous road. While I don't agree with *all* of his advice, well-known financial adviser Dave Ramsey says those who use cars vs. cash (when card is paid off every month) end up spending ~12% more every month.

Granted, cards should be fine for the *necessities*, ie, bills, payments, etc. Just dangerous to get in the habit of using them for discretionary spending.

I'm proud to say I've paid for both of my cars so far with cash. :)

I don't intend to buy a car I don't have cash for. Unless it's a discounted '11 Prius with the Li-Ion batteries that gets 100+ MPG city and 80+ on the road without trying :)

I'm starting to copy what lightfoot is doing. Put as much as I can on the cards so I get the benefits. I get cash back on one of my check cards and am working on getting a gas card.

I do the same, charging everything on a GM Card and a hotel card, getting $500 a year from the GM Card and free hotel rooms from the hotel card. Gas, food, utilities (cable, phone, car insurance, etc) and everything that can be paid by credit card. I pay the balance in full at the end of the month. Like lightfoot said, if you don't keep to the budget, you can get into trouble, but I have an allowance and I stick to it. I had about $3300 applied to my last car thanks to the GM bucks, and that's not pocket change. My wife and I go on two vacations a year, and the hotel is free thanks to the points earned. If you do it right, it works beautifully.

Bought my 87 with cash a little over $23K. My 97 960 I bought back in Jan 05 for $10K cash. I will never buy a car with out paying for it the day I pick it up.
I already have the money in the bank when I'm ready to replace my 87 next spring.
You put $150 a month or $35 a week in the bank for 8 years you will have close over $18K
eight years later when you due for a new car.

Yes, $2500 for the Civic, $1 for the T&C.

Yes. I have bought both of my current cars with cash. The 2002 Mazda MPV and the 2007 Honda FIT. I am generally against credit. The only monthly credit payment I make is the house mortgage, and I can't wait to get out from under that one! However, I also have several "bonus" credit cards which I pay off every month, thus avoiding an interest payment. One is even a 5% gas discount! :)

Larry

I did a half and half approach. With my trade-in value and a little extra cash I paid half up-front and financed the rest. I figured it would help build up my somewhat limited credit history. Pay-off date is scheduled for sometime in 2011, but I usually pay more on my payments. I could pay it off now if I wanted to, but I figure I'll keep saving for a house or condo.

I paid cash for both of mine. It was rather painful with the Odyssey. :eek: I wouldn't turn down a zero interest financing deal, though.

I also use rewards credit cards - cash back. I record every transaction in our budget program, so it doesn't matter what the source is. I pay off the balance every month.

I have yet to buy a new car--ever. And there's a very good chance I never will. I like "old cars", and like the fact that they cost a lot less (in general) than new ones.

I got a loan from my grandparents for my first car. Paid cash for the second. Got a loan from the credit union for #3. The current two, 4 and 5, were bought for cash. Literally, for my CRX. A great big wad of 20s...

I buy almost everything on my cards, and pay them off when I get the bill. Which means a really monster payment this next cycle, but I digress... The Boss and I are going to fly -- somewhere -- for free on that.

-soD

1) The best solution is NOT to own a car = Save $10,000 to $15,000 per year (cost of 2 cars).

2) Next best solution if for household to only own 1 car - save $5,000 - $8,000 per year (cost 1 one car)

3) If not possible, then buy 'much less' of a car then you 'need'. I respect those who are driving Fits, Yaris, etc - because they are wiser than myself. These cars are fine for a 4 person family.

4) If not (emotionally) possible, then buy a used car

5) New Cars own for at least 10-12 years. Used Cars hold on until they are 12 years old

6) Finally - determine the cash vs. financing of the car.


Paying cash versus financing is actually much less important than other 5 items. As long as your financing costs are less than 5%

5) New Cars own for at least 10-12 years. Used Cars hold on until they are 12 years old.

A good Toyota or Honda will last twice as long as that. :)

I say drive until the wheels fall off. If it runs good and gets the job done why blow money on a new one?

If the shoe fits, wear it. And if it ain't broke don't fix it.

First car I had was an '89 VW Fox my dad gave me. Paid $1000, I drove it for 4 and half years and it cost me about that in repair/maintenance (excluding tires) during that time. I sold it cheap because the body was quite rusty and I wanted something newer.

I then got a 3 year loan for my next car, a '97 Jetta turbo diesel (non-TDI). It was fully paid after 18 months. :) I intended to keep this car for a while, but it was totalled in a crash, at the venerable age of 475000 km (300000 miles), and still pulling strong. The insurances gave me the same amount I paid the car 3 years before, and it was their first offer, didn't have to haggle (should have though). :D

With that money and the few savings I had, I bought my current Jetta, so yeah, we could say I paid my current car with cash. ;)

Yes and no...I wrote a check to the dealer for the car, but the check was drawn from my home equity line of credit, making the interest a tax deduction. At least I've been claiming it for a few years.

1) The best solution is NOT to own a car = Save $10,000 to $15,000 per year (cost of 2 cars).

I estimate that it costs me a total of $3000/year to own each of my cars. If I only had one, it would be more like $4000 - $5000.

3) If not possible, then buy 'much less' of a car then you 'need'.

Hmm, if I bought much less car than I have, I'd be on a mo-ped! ;)

5) New Cars own for at least 10-12 years. Used Cars hold on until they are 12 years old

Tell that to my 1990 car (made in 1989), and my 1974 car (made in 1973). :D

And I'm not giving them up, either; I intend to keep them for good. (See the first point about operating costs.) I've owned this CRX for about 8 years, and the 914 for 15 years. When (if?) the engine in the CRX gives up, I will probably try to get a 1996 engine installed so I can finally have an SG-II.

-soD

Hmm, I just did the calculations and I am glad I did pay cash for mine.

My car, with insurance, gas, maintenance, the whole shebang, costs me just under 3900/year. It's basically new, got it second hand for 13.5k.

If I had paid on credit, based on my very optimistic figures of $1000 down, $300/month @5% simple interest/payment = 3780/year for 3.6 years (which is how long it would take to pay off the 13.5k), including gas, insurance, etc = 28507 total cost to own until debt paid.

The whole price I am paying over the same time, doing it with cash-first method, will cost me a total of $27,540 in the same period it would have cost me had I paid on credit. That's about a $1000 saving!

Plus, considering I may be leaving the country soon, and the fact that my car has maintained its residual value beautifully, I could still get around $12,000 easily if I sold it today.

Now that's an investment if I ever saw one :D

The only thing I've ever bought which I couldn't pay for right then and there was my first house. I saved until I was 21 years old before buying my first car for that reason. When I was 6 years old I started saving my pennies at the local bank and called it the car fund =)

I feel lucky to be able to pay for them cash, but it's also been because of hard work and discipline that I've been able to do that as well.

Cool post! I bet you valued your first car much more that those that were given one or borrowed...

I typically buy cars on credit because I simply don't have 20-30k sitting around that I can just pull out of my pocket. I buy new cars only and for several reasons - 1. I need something reliable for work (being late is heavily frowned upon), 2. I am not a mechanic - nor do I have time to pretend that I am one.

I used to do used cars because they were far cheaper but found myself spending a lot of time either under the car with a Chilton manual pissed because I couldn't snake my arm into a tight spot to unbolt something that was originally put on by a freakin robot with a torque wrench or sitting in the gas station hoping the cost of repair would not break me ;)

Good reasons, Skid. But if you're a bit of a masochist, and enjoy the wrenching, used is a far better deal.

Having more than one car also helps a lot... ;)

-soD

Having more than one car also helps a lot... ;)
Usually...

Earlier this week, I had three with problems on the same day. It was only by the help of a friend that I got to work at lunchtime even. :rolleyes:

Usually...

Earlier this week, I had three with problems on the same day. It was only by the help of a friend that I got to work at lunchtime even. :rolleyes:

I've found that carpooling gives me more freedom than I realized. I see how I could survive with only one car. Actually my carpooling buddy has only one car. By carpooling, I can have my car worked on the day that I don't drive. It also helps to have a mechanic neighbor with a big Dodge truck. He is more than happy to drive my car into his shop to work on it, and save 2.5 gallons of gas in the process!:D

Nice! Good for him, good for you, and even good for the country's fuel consumption!

BTW, I've also had the "If I own so many cars why isn't at least one driveable" experience. Biking was my other option then. Nowadays, I could borrow Da Boss' car as long as I promise not to hypermile it... :D

-soD

Most of the cars that I have purchased in my life time have been paid for with cash. The last new car that I purchased was a 1997 Ford Escort LX Station Wagon. It was paid for with about $1700 in rebates from a credit card that gave 5% rebate on each dollar charged toward Ford products and the rest was paid in cash. I just used the credit card and paid the balance off monthly so I could get the rebate and also didn't have to worry about any finance charges or interest on the account.