[Jessica]

We have excellent credit. Is it worth it to finance it or pay cash for the whole thing from savings?

Would be 30kish.

[Christl]

My sister got a brand new Kia, put $7500 down, so the loan financed was $18k ish at 4%.

[Mackenzie]

Only if that money you decide not to spend can earn a higher interest rate safely. It’s a pretty high rate so any investment would most likely be risky. Just remember what you are buying is a depreciating asset. You don’t want to have to pay interest on something constantly going down in value.

Also look at some Dave Ramsey videos on this. He has a rule for percentage of vehicles (things/toys with motors) against networth or household income which is worth a listen. Hope this helps!

[Aaron]

My wife and I do not finance anything except real estate. So all cars or any other type of consumer purchase for us would be cash.

[Heather]

We just went through this. I wasn’t willing to pay the 7.1% with excellent credit so we paid cash… they let me put $2k on credit cards to get points too!

[David]

Pay cash at that rate, but don’t tell them you’re paying cash until theblast minute.

[Mario]

Pay cash. This is where I agree with Ramsey on reverse engineering. If you had a $30k car would you take out a 8% loan against it to have cash on hand. My guess is probably not.

[Kevin]

I always finance and then pay off the loan early, it helps with my credit score keeping it nice and high even though this administration will penalize me for having a good credit score.

I like keeping my cash for emergencies. In case of medical, housing stuff, I have to run from the government, I have to get out of the country…., I keep it in gold and bullets in case of the zombie apocalypse….

[Author]

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