In Reply to: Paying cash for the car (for Larry and others) posted by Anders on October 06, 1999 at 01:35:13:
Remember, though, that this thread didn't start out with me trying to convince people to pay cash for their cars. It started with people calling Ricardo stupid, and other not-so-nice names, because he paid cash. I've just been trying to point out that not only is he not stupid for doing so but the mathematics supports him in this.
There's no law that says you have to always make decisions based soley on which route is supported by the best math. All I'm saying is that those decisions should be made with full knowledge of the math so that you can make an informed decision about what you want to do.
As has been demonstrated here, many folks don't understand risk-adjusted and after-tax returns and you should understand these things before deciding if you are going to finance or pay cash for a $30k+ car.