how do you guys pay for cars?

[Demon]

This is correct. Credit is there to use it. Use it.

You need hard, cold money to make money... don't give it to the banks all at once. Use their money instead.

This would apply to investments which you are confident will yield a return. I used $50K in bank credit to fund my am campaigns when I didn't have that much in the bank at that time. There was risk but it was the right move. However, using credit to buy a luxury you can't afford is stupidity, don't rely on your current stream of income, especially in an industry as volatile as this.

 

[Godspeed]

3rd page...

 

[ebtek]

Paying cash for an expensive car is a complete waste of money. With the economy where it is it's not hard to find a dealer that will lend to you at 0% interest. Throwing $20,000 in cash on something that loses 15%+ of its value the moment it leaves the lot is ridiculous.

0% interest is typically in lieu of a cash discount.

a car is $50k with 0% financing may yield a ~$42k cash purchase price

the difference between the 0% financing price and the cash purchase price varies between manufacturers, but in my experience ive calculated it at approx 6%apr

 

[cryptix]

Buy a your house. Lease your car.

BWAHAHAHAH ^^^^ This is sooo full of WIN!

 

[ddosing]

buy what you can afford

quoted for troof

 

[stack paper]

buy used and if your doing IM its gonna stay parked most of the time unlike 9-5r's

This.

 

[TLWrite]

Hmm. I purchase my vehicles off Craigslist. Very reliable. Guaranteed to break down in 6-8 months without missing a beat so I'd have to hit them back up for another. It's the life of a broke ass mofo.

 

[kingfish]

Yep buy what you can afford in cash. Vehicle payments are for chumps.

 

[invisible777]

Those making $10 million+ per year, almost always finance purchases such as a home, etc...that they could afford to pay for in cash. Why? Because they can make more by keeping the cash in hand. Example, 6% interest mortgage, while they make 9% per year on the cash.

9% a year... ?

 

[BlueYonder]

I was reading a book review about the "big hat, no cattle" syndrome that the OP suffers from, and thought of this thread. Here's the book (not an aff. link):

[ame="http://www.amazon.com/Stop-Acting-Rich-Millionaire/dp/0470482559"]Amazon.com: Stop Acting Rich: ...And Start Living Like A Real Millionaire (9780470482551): Thomas J. Stanley: Books[/ame]


To summarize: Trying to look rich makes you poor. Very interesting.

 

[coolplay]

People really need to start understanding the difference between good debt and bad debt.

Read Robert Kiyosaki's Rich Dad Poor Dad book series.

 

[supersundas]

Dont buy a car in cash, worst investment ever to put $50k into a chunk of metal that will just lose value every day....finance it then when it gets old swap it for a new whip.

 

[papajohn56]

The place I'm in right now was purchased for $690,000 a few years ago, my neighbour is selling their identical place for a listing price of $438,000. I'm glad I'm renting

you're throwing your money out the window then. if you bought on the upside of a bubble, you really didn't do your research. Rent money goes nowhere, and you never see a dime of it ever again. Plus interest on my mortgage is tax deductible, as well as writing part of the house off as a business expense if you're making money in IM.

 

[papajohn56]

9% a year... ?

stocks maybe, or some other form of investment.

 

[86badtips]

Cash. I own both of our vehicles outright and don't plan on ever making a payment again for any vehicle. Granted, I don't own baller vehicles, but I'm 34, married with kids. A nice car is just going to get messed up. Still, it feels great to know that no matter what happens in life, I don't have a car payment.

I agree!!

Paid off is the way to go

 

[Mill]

Back in the day I had shitty credit. Probably still do. I remember putting 8k down on an Ford f150 lariat ( nice 4x4 with leather and loaded ). I had the cash to buy it right out. The sales manager knew my credit was shitty so he told me to put 8k down and make payments on it for 14 months then pay it off. It raised my credit score 100-150 points. Since then I have not used credit at all.

I agree you can have the cash making you more money, but couldn't if you had the credit simply buy the car in cash and use your credit to get an AMEX card or something to fund your Marketing costs?

The best buys for vehicles are the 1-2yr leases. There was a book I read called " The Millionaire Mind " where it shows that the average millionaire drives a car that costs less than 35k and they never buy them new. They on average didnt pay more than 1500$ for a engagement ring, The average millionaire buys his home in a Down Market etc etc, It is a damn good read.

I would say look for the car that fits your wants and at the same time you can pick up as a lease return. The depreciation will be out of the cost and you get the car you want with 24k miles on it and save 10-20k. Like others stated in this business the people who have been doing it a while know that it's kind of cyclical. You have great months and then drops other months and every now and then real shitty months. You do not want to put yourself in the position to be on the hook for monthly car payments, house payments etc and be at risk of losing it all.

It is amazing the stress it takes off of you when you know all you have to pay every month is your utilities and cell phone bills + grub. I pay everything up for 6 months at a time ( insurance etc).

And I agree all of Robert Kiyosakis Books are great reads. But in the end it comes down to your mindset and learning from your experiences you have already been through in your online ventures.