If you finance a car or take out a loan, but you have the money?

[Anonymous]

Like you technically have the money to pay for it, but you finance something, are you actually taking on or going into debt?

Taking on maybe, yes, because that’s still money held over your head, but when you HAVE the money, it’s not like you’re going in the hole either.

[slatyb]

The choice is to spend money now, losing the possible income from investing that money, or to take out a loan and pay interest. If interest rates are low, then a loan is more attractive. With auto loan rates as high as they are now, it might be better to pay cash.

[Asker]

Yeah I’m having second thoughts about buying a car right now. I still have a good amount to save up still, and the car I want does seem to hold their value quite well, so it seems low enough risk, but knowing how quickly things can change, I think it’s best to hold off. The entire economy just feels so unstable, and so much propaganda like everything is just going to collapse. I haven’t a clue what next month is even gonna bring.

[Astarlessnightsky]

You just increasing the price for the car you pay, as loans or financing always add a couple of percents to the money you took. Which is unnesesary if you got the money.

[Anonymous]

Yeah in balancing terms if you have $20k the you are $20,000 but if you take a loan of equal value then you rate as $0