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Originally Posted by theclay
I agree that leasing is stupid unless you can write the lease off at tax time. However buying outright is the smartest way to go unless you enjoy giving banks your money and paying much more for the car in the end. I financed about half the cost because I didn't want to totally deplete my savings but I intend to pay off the loan early so as to avoid most of the interest.
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NE1 that pays $42k cash for a car is stupid. When I say stupid I mean "bad financial decision". Why someone would put that much money into a depreciating asset that will most likely (regardless of your current intentions to keep the car for "years") be sold within the next 3-6 yrs is beyond me. The only reasons I can think of as to why someone would buy at car of this price #1 Has tons of excess cash (ie. makes $150k/yr), #2 Must drive 15k miles or more on a yearly basis.
As for financing your purchase..Here's a good rule of thumb, but you have to be extremely honest with yourself. My golden rule of auto financing is....If you can't payoff the loan in 48mo's without drasticaly(sp?) altering your lifestyle, you can't afford the car. period.
carry on.