goldNSX said:
I don't think it a good idea to finance an NSX or any other car. Just pay it cash and you know what you have. Buying an NSX is one part, upgrading it is the other.
"I'm with goldNSX on this one. If you need financing on a 13-14 year old car better not get one." - Bart Geerts
TRM04 asked about financing to get a car, not if he
should get the car. In addition, I know what I have, even though I financed it.
What are you really trying to say here? Seems to me you're trying to say that you have that kind of cash. So, if I don't have the cash, I shoudn't buy one? What if I'm 26, and my wife and I stock away the maximum legally allowed combined into our 401k's each year. On top of that we invest on a dollar cost averaging plan into an allocation of stocks, a small amount of bonds, and an even smaller amount of cash. Seems that my assets are growing at a faster rate than my car is depreciating.
Although I don't agree with some of the statements made, I respect your opinions, including the one by goldnsx. However, financing a depreciating asset @ 6% is not a bad thing,
unless you just don't like making payments. Instead of paying cash for something at that rate, why not take that lump sum and invest it in an allocated asset portforlio of stocks, bonds & cash? The average return for the last 70 years of this 60/25/15 (respectively) split has yielded over 10% annually, after fees and expenses. Check the stats.
So, let's say you have the cash, but opt for the financing route. You are paying 6% on 50k, 40k, 30k, or whatever your NSX was, but you're earning 10% (average of any 10-year period) with the same amount in a brokerage account.
Buying cars will not be a profitable venture most of the time, unless you do it very well. In order to enjoy the things we love, some of us buy toys knowing that we'll lose money over time. It doesn't matter whether you pay cash or finance.
