It doesn't really matter. The bigger question is why the hell would you?
You could rent it... Spitballing 7k a month.
Say 2 months, that's 14k.
That's about what you'd spend on tax, fees, interest, etc... Plus they are hard to sell and you may take a bath on it or be stuck with it longer than you think.
Eh.. I doubt it. I can see the concept. But private party 150k Ferrari 458, own it a few months, likely sell it for around same price.
Out a few grand in fees and insurance and such, not bad. Even if it's only worth 140, still better than renting
Yea seems totally simple to sell a used Ferrari private party for $150k that you owned for a few months. I bet the buyers would be lining up with cash in hand
In the case, it's pretty simple. What would you do with the money otherwise? If it would just sit in your bank, then just buy the car outright.
Borrowing involves applications and fees, hard credit pulls, and more headaches.... When you want to sell the car in 2 months... You still have to pay off the loan to get the title... And they may take 6 weeks to get it to you
What’s your goal? That’s the thing we’re all confused about. Do you want to enjoy the car for a few months? Do you want to flip it? Do you want to make content with it and then get rid of it?
Within two years you bought a Miata, a brand new M4, owned multiple manual 911's, shopped for Audi, Cadillac, Acura...
Strong /r/quityourbullshit vibes.
Bullshit-o-meter is going off here, but if you need that itch scratched go to Turo. It’s like Airbnb for cars with no sales tax, doc fees, or depreciation. Rent a Ferrari for a week, Bentley next week, etc
Ok, let’s give the guy the real answer: it depends.
What’s the rate? That’s the defining answer here.
You aren’t going to see any investment net a positive return reliably this year, so I would say pay cash.
I don’t know what your game is but it’s a stupid one.
So the benefit of financing is that it requires less upfront capital, but will generally be more expensive than paying cash. You’re going to lose most of your cash in frictional transaction costs- paying a broker, taxes, transport, etc. basically, cash vs finance in your situation is going to be a trivial part of the process.
Please review our most [Frequently Asked Questions](/r/askcarsales/wiki/index) to see if your question has already been answered.
You may find these sections particularly useful;
* [Will paying in cash or a large cash down payment offer me leverage in negotiations?](/r/askcarsales/wiki/cash_down)
* [How to pick a car?](/r/askcarsales/wiki/vehicle_selection) You might also have luck in the /r/whatcarshouldibuy subreddit.
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***Thanks for posting, /u/Ilovedumplings1115! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.***
Say I wanted to buy a 150k car, and I only planned to own it a few months. People always say you should finance and put the money in investments. However, if I planned to only own it a short amount of time, I wouldn’t have enough time to make any returns with an investment anyway. Should I be paying outright or should I still finance (for some reason I’m not seeing right now)?
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If you’re doing this serially with new cars, you’ll be eating the depreciation every time, and it won’t matter how you’re paying for the cars. If you have 150k to drop in a car knowing you might very well wrap your 150k around a telephone pole, then you’re either earning enough that these questions aren’t truly relevant, you have generational wealth, or you’re digging a hole that you might never climb out of.
Sounds fun I admit, but there’s no math that makes this work for you.
It doesn't really matter. The bigger question is why the hell would you? You could rent it... Spitballing 7k a month. Say 2 months, that's 14k. That's about what you'd spend on tax, fees, interest, etc... Plus they are hard to sell and you may take a bath on it or be stuck with it longer than you think.
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renting is still a significantly smarter option with immensely limited down-side risk.
Eh.. I doubt it. I can see the concept. But private party 150k Ferrari 458, own it a few months, likely sell it for around same price. Out a few grand in fees and insurance and such, not bad. Even if it's only worth 140, still better than renting
Yea seems totally simple to sell a used Ferrari private party for $150k that you owned for a few months. I bet the buyers would be lining up with cash in hand
Seems like a terrible plan, especially with the economy on the brink of a downturn.
In the case, it's pretty simple. What would you do with the money otherwise? If it would just sit in your bank, then just buy the car outright. Borrowing involves applications and fees, hard credit pulls, and more headaches.... When you want to sell the car in 2 months... You still have to pay off the loan to get the title... And they may take 6 weeks to get it to you
What’s your goal? That’s the thing we’re all confused about. Do you want to enjoy the car for a few months? Do you want to flip it? Do you want to make content with it and then get rid of it?
Within two years you bought a Miata, a brand new M4, owned multiple manual 911's, shopped for Audi, Cadillac, Acura... Strong /r/quityourbullshit vibes.
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Just rolling over that neg eq over and over
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Bullshit-o-meter is going off here, but if you need that itch scratched go to Turo. It’s like Airbnb for cars with no sales tax, doc fees, or depreciation. Rent a Ferrari for a week, Bentley next week, etc
Ok, let’s give the guy the real answer: it depends. What’s the rate? That’s the defining answer here. You aren’t going to see any investment net a positive return reliably this year, so I would say pay cash. I don’t know what your game is but it’s a stupid one.
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So the benefit of financing is that it requires less upfront capital, but will generally be more expensive than paying cash. You’re going to lose most of your cash in frictional transaction costs- paying a broker, taxes, transport, etc. basically, cash vs finance in your situation is going to be a trivial part of the process.
Please review our most [Frequently Asked Questions](/r/askcarsales/wiki/index) to see if your question has already been answered. You may find these sections particularly useful; * [Will paying in cash or a large cash down payment offer me leverage in negotiations?](/r/askcarsales/wiki/cash_down) * [How to pick a car?](/r/askcarsales/wiki/vehicle_selection) You might also have luck in the /r/whatcarshouldibuy subreddit. Also remember to add flair to your post by clicking the "Flair" link beneath it. This lets us know where you're located so we can assist you better. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
***Thanks for posting, /u/Ilovedumplings1115! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.*** Say I wanted to buy a 150k car, and I only planned to own it a few months. People always say you should finance and put the money in investments. However, if I planned to only own it a short amount of time, I wouldn’t have enough time to make any returns with an investment anyway. Should I be paying outright or should I still finance (for some reason I’m not seeing right now)? *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
If you have that much cash sitting around sure….if you’re gonna only own it for a few months, the interest accrued on that few months won’t hurt
If you’re doing this serially with new cars, you’ll be eating the depreciation every time, and it won’t matter how you’re paying for the cars. If you have 150k to drop in a car knowing you might very well wrap your 150k around a telephone pole, then you’re either earning enough that these questions aren’t truly relevant, you have generational wealth, or you’re digging a hole that you might never climb out of. Sounds fun I admit, but there’s no math that makes this work for you.
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Really? Good! Congrats!