What payment option would you choose and why? Is there any right or wrong answer here? --71.207.xxx.x

Myself, I don't like making car payments so I pay cash. I also very rarely buy a new car, but I do have a family mechanic who loves looking at cars and he picks out a really good one for me to buy. There are lot of bad cars offered for sale on the used market, so you have to know what you are looking at. --76.178.xxx.xxx

CASH! Unless I got a better deal by financing, then I would pay it off after 90 days. I just ordered a new truck, and intend on paying cash, unless the dealer insists on financing, which is happening at some dealerships due to supply chain shortages. Bought a new tractor/ backhoe a couple years ago, financed it because they offered 0 percent. I don’t see the auto manufacturers offering 0 percent any time soon. --47.32.xxx.xxx

--71.207.xxx.x

As for paying for it, if you can fixed payments for fours at the 2.9% that ford advertises, I would be scooping that up. HELOCS are not at that level now a days --24.101.xxx.xxx

Used vehicles in my small town are mostly high mileage, well used vehicles. They remind me of the houses I buy,...LOL. --71.207.xxx.x

Unless you need a vehicle I think prices will level down a little in the next year. I prefer to buy one year old if I can. My 2006 Toyota Avalon had 3800 miles, had been sold so it was used when we bought bit in 2006 plus the license plate was less. --169.150.xxx.xx

In the process of buying one now. Cash. If financing were cheap we would use cash and then finance the amount we were comfortable with a monthly payment. My daughter will be buying soon but she will need to run numbers and figure out how much she can afford for a payment and then figure out how many miles and type of vehicle will work for her budget and needs. This will be her first car she purchases and she will be living at home to save money for car down payment, first, last and security before moving out with a goal of June. She is about to get a lesson in interest rates. --75.67.xxx.xxx

Cars I purchased for the wife, kids and a parent I paid cash. The vehicles I purchase for my business I finance thru the dealership. One truck I purchased new turned out to be a lemon with several re-calls. In my purchase/finance agreement, if the vehicle had re-occurring problems that were not solved, on the third time in the shop -- I would label the truck a lemon and if it was not fixed the third time, they could either refund me my money and cancel the loan or exchange the truck for another one or model and we'd adjust the payments, loan amount. --47.156.xx.xx

With the internet, there is so much competition and info. on new car prices, that the dealers have taken to depending on the financing to make their money. They want to talk only about what monthly payment you can afford, not the price of the car. --73.141.xxx.xxx

--72.231.xxx.xx

I paid cash. It was a year old and we traveled an hour for it. If the interest rate plus payment equals more than the cash price, do the math. --73.230.xxx.xx

Why is it that people borrow money and pay interest (mortgage) to buy RE with but with automobiles they don't want leverage and just prefer to pay cash for it? Is there any logic here? --71.207.xxx.x

And, Don is totally right --68.229.xxx.xxx

Also, cars cost less than houses in our area making cash purchases easier. Car negotiation only works if you pick one there are a lot of. For mine there were 3 in the surrounding states. 1 available now in a neighboring state, 1 locally arriving in 4-6 weeks for 3K more and 1 arriving by end of this month missing a few features. The 1 available now will be delivered 2 hours to NH to avoid sales tax. Not like the days my sales person husband would pit 2 dealerships against each other to get the best deal. --75.67.xxx.xxx

The last one was a leased vehicle ... dealer had 3% financing. So I left the cash where it was making more. Set the payment to auto draft and forget about it. --206.84.xx.xxx

--72.173.xx.xxx

Dealers make money when a vehicle through finance. It is better to shorter amortization if have the funds to do so. Try to get the lowest interest rate. If do not require a four wheel drive then the cost of buying and gas consumption is less. With the cost of gasoline would it be possible to buy mid size then use a trailer when more capacity is required. --68.69.xxx.xxx

I will not be buying a new vehicle from this dealer. Yesterday they quoted me $38,705 before taxes which was close to the MSRP. Today they made an attempt to add $1,000 calling it a 'Dealer Service Fee' which I refused to pay. I know it is a sellers market, but I refused to be ripped off by a sleazy car dealer. --71.207.xxx.x

I am with Tryan on vehicles. We always buy previously enjoyed. --174.208.xx.xx

Buying a new vehicle is a lot like sleeping with a virgin. You get Peace of mind knowing that you were the first and only lover,..LOL. --71.207.xxx.x

I buy used and have no problem financing them if the rate is good enough. Last loan I got was at 4%. If a car costs $ 5000 and under, I'll purchase cash. If I go a newer used vehicle, I'll spend between $ 18,000 to $ 30,000 and I'll finance. --65.221.xxx.xx

I've done this for decades with multiple vehicles. --108.201.xx.xx

makes no difference to dealer if “paying cash”…they get the cash from lender if you finance…and if they can steer you to a lender they get a cut of the rate… --107.127.x.xx

So with a CD at 3.2% as compared to a car loan rate at 3.79%, there isn't much difference. These rates are coming from my Navy Fed Credit Union so your rates may vary --24.101.xxx.xxx

I have heard that you should never get a loan on depreciating items. That said, I am not too sure that used vehicles have depreciated in the last year or two? --73.113.xxx.xxx

--47.216.xxx.xxx

In response to Roy and Dj re why people willing to pay interest on a mortgage will not on a car loan. Three reasons. One, interest on the real estate is deductible. Two, real estate costs a lot more than cars so it is not practical to wait until you save up enough to pay cash. Three, real estate can generate income to offset the interest. --73.141.xxx.xxx

Best to buy a car coming off of a 2 or 3 year lease. Cars do not depreciate in a straight line. They lose 20% as soon as the title is transferred and they drive off the lot and are no longer "new." They continue to lose a disproportionate amount of value in the first few years. Cars today go 100,000 mile without major problems, so get a 3 year old with 30,000 miles, drive it for 7 years, and sell it. --73.141.xxx.xxx

Here it is illegal on a new or used vehicle for a dealer to add any surcharges on any vehicle. It is worth to look at Nissan and some other brands to see what is avalable. If flexible then may not get the exact pick up truck where having a dependable pick up truck is important. Cruise control at one time was not standard where now AC and cruise control is common. In North Amercia it is no longer to buy a basic vehicle with roll up windows, metal rims where everything is fully loaded. It is better to tell dealer no surcharges or you walk. Some stuff sold at dealers is worthless where it is after market. Government auctions if do not need a vehicle right away. If not worried about what vehicle looks like. Most pick up trucks come with standard box where some have two wheel drive which is more common in southern states. The most important maintenace on vehicle is oil and filter changes along replacing spark plugs and air cleaner when required. I change oil and filter every 5000 kilometres. --68.69.xxx.xxx

Thanks for your reply. Yes, I need some enabling since I am in a self-indulgent mood right now. Yesterday I visited the local Ford dealership and saw a new full-size F-250/4x4/6.2 liter engine for $50K. That one made me drool. I may go back and look at that one again. --71.207.xxx.x

--47.216.xxx.xxx

My strategy is to buy fairly new from an individual rather than a dealer. The dealer offers them standard trade in... I offer $100 more, cash. --216.218.xxx.xx

--73.141.xxx.xxx

But never again - new is TOO stressful for me, I want "a couple dents in my fenders" to start with. With prices the way they are, we're waiting a year or two to replace the late 90's Tacoma with frame rot - repaired 5 times, last time this summer - the next time, we part it out and buy a good used truck. For cash. --98.115.xxx.xxx

A used truck may be almost as high as a new one right now, and with less/or no warranty...put a good down payment and dealer finance make them meet your bank rate....keep your money more some of the opportunities that will be coming up this winter. --159.100.xxx.xx