We've done this too on the wife's car once. PITA, but it was worth the discount.

It's amazing how much commerce is based on trying to get people on payments for the rest of their life. A credit union we're phasing out has closed down branches in our area, laid off people, and only seem to care about getting desperate people's car loans. Sleezy business model.

I have a very risk adverse mind set on financial things like home and cars. I try to pay cash always, with that said when you look at the current 6.5 % inflation rate, I’d hold on to that cash for a few years. It's to cheap not too. With that said you are getting rapped on vehicle prices right now so it probably evens out.

My 2 cents,

While I completely agree with your line of thinking, your example is flawed. First off, there are very few 84 month loans originated (most are 72). Second, there is absolutely no such thing as a guaranteed 9% average return in the market over the course of that loan. Third, the vast majority of the US population does not have the credit to qualify for low interest rates on vehicles. Fourth, there are often manufacturer rebates that offer an incentivized interest rate for those who qualify OR a rebate (meaning the price of the vehicle is less if the buyer doesn't take the incentivized offer).

Here's two I'm currently considering:

https://offerings.passiveinvesting.com/self-storage-fund

https://offerings.passiveinvesting.com/las-palmas

I have others, but I'm not sharing them.

It doesn't matter the term of the loan...pick whatever term you want. You can change it to 72 months or 36 months or even 12 months and the end result is almost always the same.....paying cash almost always costs more. I've looked into it backwards and forwards and done all of the calculations. If paying cash made me more money, I would do it. There's obviously a lot of variables, so this does not work for everyone because everyone's situation is different. But in general, if the interest rate is under 7-8% you will come out behind by paying cash over the long term. Of course this does not apply to someone who is paying a high interest rate, which I didn't think was a consideration in this thread.

You are correct, not a guaranteed return, but over time the market returns 9%, which is why I used an entire lifetime as my example. Obviously, as the delta between the investment rate of return and interest rate shrinks, the difference is less.

Imagine being the guy who paid cash for a car 1, 2 or even 5 or 10 years ago. Ouch. They lost way more than that 9% per year.

Again, not for everyone, and no right or wrong....just another perspective.

You have been pretty spot on about money issues in the past

Great points.

Doc, as we've discussed, I am 'the guy' you mention, and I haven't had a vehicle payment in many years...I also haven't become an 'accredited investor' (as required by the examples you noted), fell for any bum investments, had a heart attack trying to keep up appearances, hired any investment firms, advisors, cpa's, bookkeepers, attorneys, etc...I can assure you I have no idea about 9% this or that I've gained or lost since I adopted the 'pay as you go' method of dodging stress, bankruptcy attorneys, debt collectors, repo's, etc. due to over-extension and/or those infernal catastrophes folks invariably suffer in life...I'd say that for me personally, I'm all for folks making all the market money they ever hoped for and I hope we're all in positions to be thrilled with the life we're blessed with regardless of how we subsidize it...I'm a simple dude with a simple life and I can't speak to the complexities I perceive in other's lives compared to my own, but I'm all for each and every one of us succeeding and living out our string with powerful pride and satisfaction with the way we did it...

That boarders on the one percenter game, but it does prove your point.

$50k minimum investment....about the same as paying cash for a new truck. Less if you drive a full size SUV or 4x4 crew cab.

I was looking at the required collateral/income on top of that.

I like me the way you think, You can buy re-insurance on Airplanes too but not real sure that's we are being relevant.. If someone is already accredit and beyond it's a different risk status .

Agree. I forgot about the requirements. There are more out there though if someone did some digging....

My problem is I spend too much time thinking about these things....I'm fairly unlucky so I have to spend a ridiculous amount of time researching, number crunching, studying, reading, looking at deals, looking at properties, etc. to figure out how to maximize it. My brother on the other hand could take a dump in a paper sack and in 6 months it would be a diamond, he's the luckiest sucker I know.

Great quote, Doc! The sage book "The Harder You Work, The Luckier You Get" will assuredly apply in your case in due time, and your steady rise to the Forbes 400 list is visible on the horizon - I applaud you for your uncommon diligence and rabid pursuit of your dreams!

As you unofficial THF/craigslist financial advisor. Give him access to an account and pay him .5 % (cash) on gains at end of the year.

If he beats 10% I'll give him .75 % to do mine also

Thank you, Sir. I'll never make it that far, but one thing is for sure I am trying to do my best to maximize what I can. I just want to leave my family in a good situation and provide for them the best I can. Plus, I truly enjoy Giving so as a Believer I feel it's my duty to use any talents or knowledge I have. Cheers to you as well, Pappaw.

There's a reason I haven't done that....problem is he is lazier than a pet coon, but he can sell ice to an eskimo. If he had any motivation and self discipline he could conquer the world, but he doesn't get it. He is wired completely different than both me and you.

In today's car market there are not many incentives, especially with the higher end, new, popular vehicles. If you can find one, you're paying MSRP at the LEAST. Most have mark-ups over MSRP.

Some can do this , other's would call you crazy. OR, you could wait two years for your auto to be built.