Should You Pay Cash Or Finance The Car? #Finance

don’t you just love the smell of a new car i don’t think there’s much that’s better than getting a brand new car driving it off the lot with you know zero miles putting that first smile on it and just that amazing smell all right that smell that you’re smelling

in the new car let’s face the facts i’ve always heard that it’s actually glue so maybe we’re huffing glue which we were told not to do in kindergarten what are we doing with our lives right now we’re getting that brand new car and huffing this stuff but it is nice to

have a brand new car if we haven’t met him eric with jazz wealth managers i want to dive right in today is is totally different than our general fin tips CashNews.cos i want to talk about buying a car and financing it or paying cash but from a whole different perspective because the idea of

paying cash for the car is something that dave ramsey talks about and he really pushes at home now he’s not the only one because i personally actually have cars that are paid for right this second and the fact is is that i i hate the idea of payments but there is a whole financial side of

things where it’s totally different because i could truly run the numbers and generally speaking i could show you that you were better off financing the car and investing that lump sum of cash and just making a payment so that is a whole nother side of it but what what about just what’s

best for you and that’s where this comes into play because i was talking with a client of mine and they’re in an awesome situation they’re in their 40s they’ve done very well for themselves they’ve followed the dave ramsey model and they’re completely out of

Debt now the gentleman drives a quite old vehicle and he was talking about you know we’re in getting to a point where we’re gonna need a new vehicle and should we pay cash for it and we’ve got the cash to pay for it or should we

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance it and it got me thinking about things because they’ve always done something a certain way that allowed them to get to a great financial position and what would happen if

i say well go Finance the vehicle invest the cash well that’s great for me because as a financial advisor i can then you know manage the Assets make

money off of that as well but that’s not what i wanted to look at with them that wasn’t the case you know dustin actually did a CashNews.co for our clients that talked about the idea of financing a vehicle and the math behind it if you were to actually be able to always stay in a

payment but never have that payment increase you would always have a break even and the idea was pretty much to find a vehicle that was at least two years old the reason for that was the fact that if you drive a car off the lot he had shared that you know a vehicle is going to depreciate 19 right

then well in today’s society that’s a little different just because of supply and demand and the craziness with the vehicles but in general that’s the averages so you’re going to lose you’re always going to want to buy a car barely used well if you buy the barely used

car then from there you always look at using only 12 of your Income for the monthly payment and the Insurance on the vehicle so anything that comes into play there only using up to 12 percent of your Income and only

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance the car for 48 months once you get past the 48 months the depreciation of the car continues to fall and you get yourself into a bit of a pickle now there’s a lot of

science and math behind all of this and it’s really cool but again not everything is Finance numbers there’s the psychological side of it and that’s you

know somebody who dave ram the one who dave ran or you know the dave ramsey guy gosh if i could get that out dave ramsey that’s really what he pushes on is the psychological side not as much of the actual numbers and so with this client and what i really want to want you to pay attention to

is instead of trying to give you these these solid numbers and tell you exactly what you should be doing here’s what you have to realize if you have always modeled your life to pay off the car pay it off right away pay cash for it that’s not the wrong thing to do it’s okay

especially if you are already on track for your retirement years and you have the cash and you hate the payment on the other side if you need the car you have to Finance the

car and you’re able to be saving still for retirement that’s okay too the thing that has to come into play though is that psychological factor and this is exactly what i told this client and this is what i want to tell you that really brings home everything when it comes to this

CashNews.co this client has always been working on this dave ramsey strategy and is used to that unfortunately old habit old habits are hard to break be very careful if you get yourself into another payment i can show you the numbers how financially it might be the best thing for you but

financially long term it could be a bad thing if you get to a point where you’re comfortable with Debt again and you continue on with that process because if this client were to go buy the brand new vehicle and bold; color: #1a73e8; text-decoration: none;">Finance it and they had had struggled in years past with running up Debts if they get into that comfort of that payment and then also in the comfort of the new car in three years again going out and getting another new car

and saying well you know what i’m going to continue this cycle then you’re locked into this payment now if you have surplus Income and you want to pay a payment on a car whatever good for you but if you’re trying to achieve your goals and make sure that

you’re finding excess money that you can put away to reach your retirement goals then there’s a good possibility that you really need to evaluate you personally to make the best decision instead of trying to figure out well dave ramsey says this or the financial guy says this it truly

does all come down to what’s best for you thanks for watching if you want to watch more fintips CashNews.cos click here be sure to like and subscribe also