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Anyone else pay cash for their truck?


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My truck looses value every day and makes no money. It is worth less today than yesterday and will be worth less tomorrow than it was today and it hasn't even moved. At age 33 I have $250k net worth. Fully funding 401k, Roth IRA, and 529s for the kids. My 401k is making 17% ytd. My vehicles including SxS are all paid for. My land is all paid for. I'll be worth close to a million by age 40 of the stock market keeps killing it. It's amazing how much of my money I get to use when it doesn't get paid out to anybody else and stays in my pocket.

 

i got a buddy that thought the same as you. Then he got hurt and almost lost everything he had. Work comp doesn't make up the difference regardless of what someone tells you. He got me started on this path 8 years ago. I hate to say I am glad he got injured but it was an eye opener for me. I'll take being risk free and if something happens knowing the legacy I leave my family.

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1 hour ago, kswaterfowler said:

My truck looses value every day and makes no money. It is worth less today than yesterday and will be worth less tomorrow than it was today and it hasn't even moved. At age 33 I have $250k net worth. Fully funding 401k, Roth IRA, and 529s for the kids. My 401k is making 17% ytd. My vehicles including SxS are all paid for. My land is all paid for. I'll be worth close to a million by age 40 of the stock market keeps killing it. It's amazing how much of my money I get to use when it doesn't get paid out to anybody else and stays in my pocket.

 

i got a buddy that thought the same as you. Then he got hurt and almost lost everything he had. Work comp doesn't make up the difference regardless of what someone tells you. He got me started on this path 8 years ago. I hate to say I am glad he got injured but it was an eye opener for me. I'll take being risk free and if something happens knowing the legacy I leave my family.

Lol... it's one truck... slow down turbo..  My net worth is in excess of 1 million at age 34... I am good thanks.  What you seemingly miss is how I already have the cash to pay for the truck...it was in my account and not a borrowed amount of money.  I can cut them a cheque.  But if I finance the thing and make 5000 on the balance in the mean time why not.  I'm not borrowing anything beyond against myself lol.  Whether I paid for the full price today... or have to pay it off 2 years from now I'm out the same amount I would have been if I paid cash... except I made interest on it in the cash I held back for the last 2 years lol.  

 

Let's use your example... I get hurt or can't work whatever.  So I have a loan and I owe let's say 30 grand on the 50 grand the truck cost me.  I have to pay 30000... except I was able to make 6000 on the 50000 I set aside for the truck when I bought it.  I still have the principle of 50000 minus the payments they took at the time of loss(so 20000) but now I am up 6000 and have 36000 left instead of 30000.. So instead of giving them a 50000 cheque at time of purchase I took that money and invested it in my own portfolio and made money...  I literally took 50000 and put it in financial investments instead of giving it to GM at time of purchase...Its 50000 I had in the bank...not borrowed money from some lender lol.  

 

But whatever... do as you wish lol.

 

If your "friend" was like me he would be fine... but he isn't and spent every cent he had just making payments like the average numpty does lol.  In other words your friend bought a truck... and instead of investing the cash and making money on it he spent it on buying something else.  That's not how this works lol. 

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That’s right I don’t keep that much cash around. I have rent houses I keep enough liquid for repairs and pay towards the last house purchase. I only keep about 30k out, so I take a low interest load on my ride. Just this passed summer I replaced 3 ACs that where my cash goes. I made a ton since December on my ira, thank you Trump. Much better than paying cash for my ride.

 

 

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6 hours ago, SierraHD17 said:

Your loss then lol.   I have the cash (liquid) and am just investing it as I would anyway.. not borrowing it.  But instead of just making money on the cash on hand I use X amount to pay off the truck.  I know what you mean but it backwards way of looking at it.  Paying cash is cool but I like making money with money that I don't need to actually work for lol.  If you want the truth the truck makes around $65000 a year on it's own before expenses from what I charge for it.  But hey..... if I can make that $70000 or more.... why not.  The truck is a 100% write off down to depreciation..... it's just easy money.  If the bank gives the money away for nothing you may as well do something with it just as they would with you. If I was penalized on price well of course I wouldn't do this but hell... previously negotiated cash price and 0%.... sure.

 

Or I can just pay a lump sum to GM and let them invest in their operations costs and profits portfolio.

If they did they wouldn't be in business. No free lunch and no free money. Preference given to a low interest loan over a cash buy is like telling your father your going to spend yourself out of debt. Hello!! Borrow or cash you are still buying the truck with your money. Tax write offs are nothing of the sort which is what a depreciation is. You get taxed about a half dozen ways to Sunday on money you earn and again when you spend it. Zero percent and depreciation? That's like thinking the guy that robbed you is making you money because he slipped you a fiver on the way out the door. :lol:

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11 hours ago, SierraHD17 said:

It's also more intelligent than still buying the truck and handing over a lump sum at once and getting nothing. 

:lol: Well I didn't "get nothing" I got a debt free truck. :P 

 

Hey, it's okay. Have a chuckle and a cuppa and do what ya do. I'll do what I do and it will all be fine. Seriously. Its okay. 

 

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  • 3 weeks later...

I am in finance and it is different for everyone.  I NEVER paid on credit in the past. Including $300k in new cars in one year.  However in this day and age, "if " you can make more on the same amount and you have that amount making that then yes pay cash. this is about almost no one. 

Think about it you need the full amount in NON  TAXED CASH that is earning you the same as the financed amount plus the cost of inflation and future tax. So say 17% If so you are claiming taxed exempt or capital gains or off shore loop hole with $105k back in un-taxed. 

If you can do that or know the few loop hole, and yes there are many, go for it if not you lose. Tax loop holes are like trust, company, exempt from tax, off shore  It isn't a asset and will never pay you back. Yes it is a living expense that for some is needed, but again to what cost. 

 

Please anyone with any better way let me know.........

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On 10/29/2017 at 5:03 PM, kswaterfowler said:

My truck looses value every day and makes no money. It is worth less today than yesterday and will be worth less tomorrow than it was today and it hasn't even moved. At age 33 I have $250k net worth. Fully funding 401k, Roth IRA, and 529s for the kids. My 401k is making 17% ytd. My vehicles including SxS are all paid for. My land is all paid for. I'll be worth close to a million by age 40 of the stock market keeps killing it. It's amazing how much of my money I get to use when it doesn't get paid out to anybody else and stays in my pocket.

 

i got a buddy that thought the same as you. Then he got hurt and almost lost everything he had. Work comp doesn't make up the difference regardless of what someone tells you. He got me started on this path 8 years ago. I hate to say I am glad he got injured but it was an eye opener for me. I'll take being risk free and if something happens knowing the legacy I leave my family.

Get with a GOOD financial agent. There is no way your 401K is maxed out. If so what was your roll over, trust, non tax flip......???? Young so you have time but watch as there are laws that state you need to Roth that 401k so now you lost 1/4 easy on taxes.  and non trust the inheritance tax leaves you with 20-30% at best but wait there more then those people spend it and are taxed. OH shit a lot is now not so much right!!! Just saying.

 

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On 10/29/2017 at 2:46 PM, Loco-diablo said:

If I can make 8-10% on my investments, vs paying 2-4% on a short term auto loan, I’ll take the low interest loan. As long as I’m working and the money keeps coming in I’m fine with it. If I were to lose my job I can always pay the loan in full. That being said, I never take an auto note beyond 36 months.


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Please understand those are NOT the real numbers. Too many people look for a bottom line and that is what it is. Even more so when they like the number they see. This is why american and the retired are broke. 8-10% SUCKS, what is your  income and then your tax bracket? You don't need to answer. FACT you will lose more than than on tax and inflation alone. In most cases 3 times that. What is you agent fees I see 1.5-3.0%? 

Money is the simplest thing in the work to obtain. But it is also allusion. Few if any really understand it.  

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On 10/29/2017 at 10:58 PM, Grumpy Bear said:

If they did they wouldn't be in business. No free lunch and no free money. Preference given to a low interest loan over a cash buy is like telling your father your going to spend yourself out of debt. Hello!! Borrow or cash you are still buying the truck with your money. Tax write offs are nothing of the sort which is what a depreciation is. You get taxed about a half dozen ways to Sunday on money you earn and again when you spend it. Zero percent and depreciation? That's like thinking the guy that robbed you is making you money because he slipped you a fiver on the way out the door. :lol:

Both make good points. It is a hustle so it "said equipment " makes money. Then run all that against overhead costs and see said "profits" 

 

Don't agree with tax write off as depreciation. Tax code is different with business expenses whoever there are way better and larger tax loop hole than that. 

I will agree with one thing 0% AND a good deal is 9 out of 10 times the way to go. But understand it is allway what your money can do for you that is important. 

PLEASE people stop listening to Ramsey. It isn't the mans fault. But human nature is to want the fast and easy answer. Cash only! This is crap. He isn't wrong but what he says isn't going to work for 1/3 of the poorest and is straight bullshit for the upper percentage. FACT is he is in loop holes that he isn't talking about on air, but with tons more money.  Yes it is true but his "people" can't afford that anyways. 

Credit score is important but total BS. There are companies and people in 40 days(one credit cycle) can crank you up 100-200 points. Still credit to debt and income matter and that is a 40 day score so what you going to do? 

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Ok, while you guys are paying cash for your rides that I can get for 0 percent interest, I’m saving my money to pay cash for rent houses. One house is my fun house it pays for my fun stuff. My other rent houses pay for the last condo I bought in Myrtle Beach. When I drive there I get to write the trip off while driving the car I’m paying 0 percent interest that I’m writing off. I love using other people’s money for free. And yes I still get the discounts, I buy last years model. I have over an 830 credit score, yes It matters.

 

 

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2 hours ago, KARNUT said:

Ok, while you guys are paying cash for your rides that I can get for 0 percent interest, I’m saving my money to pay cash for rent houses. One house is my fun house it pays for my fun stuff. My other rent houses pay for the last condo I bought in Myrtle Beach. When I drive there I get to write the trip off while driving the car I’m paying 0 percent interest that I’m writing off. I love using other people’s money for free. And yes I still get the discounts, I buy last years model. I have over an 830 credit score, yes It matters.

 

 

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Your buying last years model new or used? Can't say I've ever seen zero percent interest on a used car loan. Hey, but I don't get out much. (Out of the cab that is). You know where I'm going with that, right?

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12 hours ago, 1SLOW1500 said:

Both make good points. It is a hustle so it "said equipment " makes money. Then run all that against overhead costs and see said "profits" 

 

Don't agree with tax write off as depreciation. 

That's not tax write off AS depreciation. It's AND as in nothing. And not depreciation as in on your taxes but as in driving off the lot with a owner title. I see I wasn't clear when I reread it. Sorry for the confusion. 

 

BTW, your avatar....:lol: Michigan! Now that's funny. 

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Your buying last years model new or used? Can't say I've ever seen zero percent interest on a used car loan. Hey, but I don't get out much. (Out of the cab that is). You know where I'm going with that, right?

I own 5 vehicles total. The one we go on our trips is financed. The trip one I only put about 100K miles. The last three, 14 GMC, 15 Santa Fe, 17 Camry. All were bought new, and I don’t get of the cab much. The other 4, 92 Chevy truck lowered, stroked,blown, custom interior. 01 Acura intagra type R, Genesis sedan, and if I’m worried about parking an Elantra. All get driven regularly.


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