[Damage Inc]

Originally Posted by Loft23

Sold my 2014 M5, paid off and title in-hand within 3 years, with 24k miles just before they announced the F90 M5 for $60k to a friend. Used that money towards a 2018 911 Carrera S and financed the remaining $75k @ 2% interest rate for 48 months. Used the $75k cash I had and invested in several ETF's and mutual funds, netting me 12% YTD. Invested $4k play money into Litecoin and Ethereum and turned it into $20k.

Cash is not King if you can take it further on investments. I don't like buying used, and I accept the fact that it is a depreciating asset. Why not offset the depreciation with an appreciating investment? Put enough down to make your payments comfortable and put in extra principal if you want to pay it off earlier and save on interest.

I put any extra money I have into a "car fund", basically a steady growth mutual fund / ETF that I keep feeding. After 4 years, you'd have a good chunk of money to go towards a new car in addition to the trade-in if needed.

This.

Cash has not been king for the past 6 years. If you held cash, or had your $$$ sunk in a "paid off car" you're down about -200% vs ETF's.

I put down enough DP to keep my payments close to the depreciation cost of the car. This way my "monthly payment" is the depreciation cost. I then invest the rest. When I sell or trade in, I usually owe about what the car is worth. I pay the bank for depreciation on my car, while I make more than that in investments.

I calculate the cost of my cars as total acquisition cost - amount paid divided by number of months. I drive pretty nice cars for around $500 a month including M3's, 911, etc.

I've paid cash for too many cars in the past to my cash deteriorate in the car.

G/L.