Car prices!

[SchnellList]

Is it me or have car prices continued to increase like crazy!?! I have seen new M4's in $70k territory, 911 Turbos above $200k and now I found this Porsche Cayman thats priced well above a M4?

I know its a GTS but really come on it cant be that expensive!

http://schnelllist.com/car/vin/WP0AB2A87FK181061

You can have just as much fun in this 2013 M3 for $30k less than the Cayman!

http://schnelllist.com/car/vin/WBSKG9C55DJ594593


Maybe I am old fashioned and like to save my money first then buy a car with cash, but honestly how many people can put down $75k or more on a car in cash? Do most people put some cash down then finance the rest? I would be interested to find out how many people pay cash vs finance.

[From5ToM24]

If I had 75 grand or even 50 grand to put down (which I don't) I'd much rather get a conservative 8% return on an index fund or buy an investment property than pay for a car in cash which as we know depreciates like crazy. I'd rather finance it with 0-2.99% interest.

[SchnellList]

Originally Posted by From5ToM24

If I had 75 grand or even 50 grand to put down (which I don't) I'd much rather get a conservative 8% return on an index fund or buy an investment property than pay for a car in cash which as we know depreciates like crazy. I'd rather finance it with 0-2.99% interest.

Good advice! I would love to hear if more people finance their car purchases?

[RudyP]

There are enough people that can afford these prices that the cars are selling.

BTW - I havent driven a Cayman GTS (I have driven several other variants, however) but according to what I've read, it is a very fun car. Much more nimble, tossable and fun than a comparatively heavy, ponderous M3.

[Wilsel]

Originally Posted by From5ToM24

If I had 75 grand or even 50 grand to put down (which I don't) I'd much rather get a conservative 8% return on an index fund or buy an investment property than pay for a car in cash which as we know depreciates like crazy. I'd rather finance it with 0-2.99% interest.

^This is the smart thing to do if you know you won't need the money anytime soon. It's called leveraging your money. Index funds could LOSE money short term depending when you buy. Could take 3 or more years before you average an 8% return. Paying cash is equivalent to making whatever your APR would of been which is roughly 3-4% right now for cars without incentives..

You could also buy a condo, house, etc as a rental property (appreciating asset), and make an average of 7%. You could use that monthly income to pay your car payment if you wanted. This depends somewhat on where you live. There are condos around here from $50k up. You won't find that in California obviously.

I know a couple people that leverage everything. They only put the minimum required down for their house and cars. They even refinanced their house a couple times to pull out equity. Personally I wouldn't be able to sleep with that much debt, but at the same time one of them in particular could probably pay their house and cars off tomorrow if they wanted to.

[mxa121]

I would guess that MOST people finance these cars. Paying cash is just not a reality for most people. Those that CAN pay cash for an M3 often know how to use it better, as posted above.

[From5ToM24]

Originally Posted by Wilsel

^This is the smart thing to do if you know you won't need the money anytime soon. It's called leveraging your money. Index funds could LOSE money short term depending when you buy. Could take 3 or more years before you average an 8% return. Paying cash is equivalent to making whatever your APR would of been which is roughly 3-4% right now for cars without incentives..

You could also buy a condo, house, etc as a rental property (appreciating asset), and make an average of 7%. You could use that monthly income to pay your car payment if you wanted. This depends somewhat on where you live. There are condos around here from $50k up. You won't find that in California obviously.

I know a couple people that leverage everything. They only put the minimum required down for their house and cars. They even refinanced their house a couple times to pull out equity. Personally I wouldn't be able to sleep with that much debt, but at the same time one of them in particular could probably pay their house and cars off tomorrow if they wanted to.

Thanks my friend. I am a young Accountant and one thing I learned growing up rather poor is that "your only as good as your credit score." So I utilize leverage whenever possible and being that we have access to very low rates currently...I am taking advantage of it with my M. Debt is scary but at the same time I would be so nervous to drop 75 cash grand on a sweet ride that I probably be too afraid drive it.

[STooK]

I used to think BMW was very expensive until I started looking at Porsches. Even their lowest caymans and boxsters can cost as much as a fully loaded M3/4. You can't really compare them to the M3 though, totally different type of cars.