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to buy a murcie outright in cash.. its not exact but you get the jist of it.. luckily i changed his mind. well get this, you buy a used merci for 200k (i dont care what pricing is, this is just an even number).. so..200k.. you put 40k down.. thats 20%.. so you have 160k left right?? right.. so lets say for hells sake you have a 7% rate.. i'm not sure what rates are like for car loans of this amount but i duno..7% which would make your monthly payments on a 5 year term $3,168.19. that means this loan cost you 30k. well, i figure with that exta 160k you kept in your pocket (since you had someone else pay for your car for you) you could go buy a piece of property. say a 800k house. well in about two years (avoiding capital gains if you want).. in the market of the east bay area of california, your house will be worth at that point lets say 1M..which is kinda cutting it.. i've seen better stories..but lets go with the average. so you sell.. your mortgage was at a 6.0% rate which made your monthly payments 3,837.12. so at the end of two years lets say you put about 50k towards your principle in that two years.. so you've spent another 42k for that loan for that amount of time. so now you have what, 410k. you've paid off about 40k on your car in principle, so that means you have probably a 120k buy out.spend the 120k and now you have your car paid off 100% in 2 years and have 290k to do with what you want. btw..
i talked to like 5 different people on the phone while i was doing this..so i got a little sidetracked and it so it has errors but the main point is, dont tie your money up into one thing.. finance one thing, and use that chunk of change to invest in another and time it so you dont pay too much interest on either but come out ahead.. i would rather ahve 290k in my pocket and murcie paid off than just a murcie paid off
the same concept goes for you people saying not to finance a car.. keep your cash flow up so you can do other things with it.. if he did have 2.5k extra amonth, he could use that to mod his car.. no financing.. or he could finance his car through his house, buy another house and use that 2.5k a month to pay the monthly payments while making money on it from appreciation and what little crap he gets from the monthly rent
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