In Reply to: It's more than numbers posted by Mark on October 06, 1999 at 09:08:43:
: Paying for the car out of your weekly/biweekly/monthly cash flow may result in a better savings discipline. If not, some people might not replace their savings, instead spending the paycheck on something else.
If they don't have enough savings discipline to divert what would have been their car payments back into savings then how did they end up with the $35k in savings in the first place? If someone can save up that kind of money then I'm not going to question their saving discipline.
There are a lot of people out there who can qualify for a loan on a $35k car who shouldn't be buying a $35k car. These are the folks who will be driving this car at the expense of their retirement accounts or their kids college accounts. This isn't, though, what this thread is about.
Go *WAAAAAY* back to the beginning of this thread and you'll see that it started when a number of people called Ricardo stupid for paying cash for his car. Ricardo wasn't stupid for paying cash, in fact, the math supports doing just that.
Now, Ricardo may very well have been stupid for buying a $40k car at all! We'd have to look at his whole financial picture before we could determine that, though.