Agreed. Otherwise, what's the point of posting in this thread - their post doesn't even address the OP's question. Perhaps they should just change their signature or avatar instead.

 

^^i disagree. i think some of them are trying to be helpful in mentioning WHY they bought outright. eg: interest, choosing insurance coverage, etc. they are giving reasons why they bought verses leasing.

 

Really? I just see 5 or 6 "Cash is king" posts with no real qualification.

Look, I'm not trying to pick a fight with your or anyone else posting on this thread, but the posts I'm referring to offer no help to the OP so what's the real point of them?

I have a few friends that always pay cash for their auto purchases simply because they don't want to be bothered with monthly payments and because they can write the check without blinking and while that's fine.....their choice....it has nothing to do with the OP's question.

I also feel that anyone who knows how to properly invest their money and has a good enough credit rating to get a reasonable interest rate is better off keeping their money working for them rather than paying up front for a major purchase.

Let me give you an example:

I financed my 997.2 about 3 months ago at a rate of 5.25%. I put down $10K. That left me with aprox. $70K to keep liquid and play with in the market. About the same time that I purchase my C2 I bought 35,000 shares of Ford stock at $1.20 for around $50,000. I sold the stock 6 weeks later at $3.19.

So I used that money to make $70,000 in a little over a month.

Knowing how to work the market and being a day trader as a hobby, I'll never understand the perceived value of using liquid assets to buy a car when those assets can be put to work for you rather than for someone else.

Paying cash sounds great in a warm and fuzzy kind of way, but in reality it is rarely sensible use of your liquidity.

 

Kurt and Brand --

No one is trying to brag . If one pays cash the monthly cost can be determined on the sale date .

As for investments --being up 20 percent or down 20 percent is a possibility .

As for "not knowing what to do with money" -- Porsches generally NOT an investment . Whether one pays cash or owes financing charges it's a depreciating item.
Those beautiful marble floors of lenders are not built by those who pay cash .

 

I for one could have paid cash for my car but it would have put a hurting on my savings. As a previous post said earlier, if Porsche relied on their buyers to buy the cars outright without financing they would be out of business along time ago. I have no problem leasing my cars as I get a good tax advantage from leasing vs. buying and I like new cars every 3 or 4 years so leasing makes sense to me.

Dave

 

If I read this thread this must be the only forum where Americans do not buy anything on credit

 

I know people that bought shares for 6€ / piece, which now are down to 1€ due to circumstances nobody could predict, and will never get to 6 again.

They would have been better off paying their cars cash.

Face it, it is impossible to have that kind of return on investment on the stock market, all the time. (We all know what happened to the guy that promised others that it is )

 

1) A "good enough credit rating" is measured by how well one pays what he borrows from the lenders who profit . They monitor the payments and determine the interest rates from the credit reports --establishing a credit score and a FICO score .

How nice.

Building "solid" credit is established but how well one is at staying in debt and keeping himself afloat .

What a nice concept designed to keep people believing they have something great when in reality they dependent on the lender , monitored by the lender , and graded by the lender.

Aren't those lenders so very nice . And what of the financial pundits who tout this -because many do ? Well they write books and plant themseves on TV to gain their pay by promoting this agenda .

If everyone paid cash --they would have crappy scores and the lenders would be out of business . Not good for them (lenders).

2) 50K placed in Ford stock at a 1.21 sold at 3.19 . Yep that's 70K and all those other people who lost along the way are just bad investors I suppose but you showed them that you can GAMBLE and win big .

Do this all the time and you'll buy lots of Porsches.
But most don't.

In fact --35000 shares places significant financial exposure at the slightest move of that stock . This type of high risk betting in a volatile stock market is not investing . It;s not even a winning streak but in my opinion it's an interruption of a losing streak .

 

We can all agree that cash is king. With interest rates at an all time low and the future of our economy uncertain, I would keep the cash in the bank and make payments. I can appreciate owning your car out right. It must feel great to have it paid off but imho I would rather have the 90k in the bank and the same car in the garage. Any thoughts on the future values of the 997.2. Not sure if it is going to be a classic like the 993 or 911s. With that said it is not an investment and you will probably loose half your value in the next few years. Why pay cash? Instead of paying 90k for a 997.2 find yourself a 06 C2S with 10k miles for 55k. Just a thought.

 

Love your last line in particular!! Even though we disagree on some points I have to say...... that is priceless!

 

I told this to my father and he told me.... like hell i dont deserve it I bust my a at work and I wanted this car to be paid off by the time i retire... I answered with why not save the money per month and buy your self the car for retirement present? wouldn't that be more rewarding....


I paid every car cash since 17 so for 9 years i have paid cash and then all of a sudden i started listening to the "Jones" and Now I have 2 payments.. so the TDi is for sale so I can go back to no payments.. I slept better with no payments!

 

my thinking i guess is if you can spend it you can save it!

 

I've financed my toys.
But I'll be the first to say I believe buying toys outright is very smart.
And for two major reasons:

1. It ensures you are in a financial position great enough to afford the vehicle. Anyone can finance/lease just about anything, so it all comes down to a judgment call. As we've learned, Americans don't make these well. If you force yourself to pay cash, you can just about rest assured that you are in good enough financial health to afford it.

2. Toys are not assets. Sure you can finance them at 1% and invest your money. (and this is not a bad line of thinking) But your investment money is never guaranteed and there is always the chance that something catastrophic happens that wipes out a substantial chunk of your investment leaving you with a payment and nothing to show for it. I'd prefer to be safe than sorry.

But again, this isn't the route I've taken, but I certainly understand it.

 

+1. Good luck, take a look at sites like cars.com, you can get a feel of what's out there and can also calculate you possible payment option. Remeber it's not an investment in appreciation, it's an investment in fun, with the way the economy is, it's hard to put a price on fun, especially with 6 figure losses. So enjoy the pcar, I do on a daily bases, I have purchased cars cash, finance and leased, for me leasing to later buy has worked out. This is very individualized. The fun is driving and enjoying, few material things in life can be this enjoyable....

 

Baby Doc, you nailed it with USING the car. Life is short, have some fun.