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1.49% loan for 60 months at Stanford credit union

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I will never pay cash for anything again. I paid my primary house cash, my rental cash etc etc. I probably can make multiple Plaids $ in the period of the 6-5 year loan. If my Tesla trade in goes well I will lose $2.5 on my Model 3 Performance after 3 years.
Considering tax, you’ll be lucky to only lose $10,000 over the three year period. M3P trade is not going to be $60k.
 
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Pretty confident that people buying $80k+ cars understand that new vehicles depreciate, and it's a loss we're willing to accept to have the latest and greatest. As mentioned above, I'd much rather finance the whole price of the vehicle at 1.5%, that's essentially free money and you can easily outperform it with relatively low risk S&P Index funds over the lifetime of the loan.

If you buy a LR @ $80k, put zero money down, at an interest rate of 1.5%, you end up paying $3,704 in interest over the life of the loan. If you put $16k down (20%), you pay $2,963 in interest, so savings of $741. Now, if you do the zero down, and put that $16k into an index, which on average returns at about 9.8%, you end up making $12,000. Minus the interest, and you're actually up $8,296...which helps curb that depreciation. This is why down payments are dumb if interest rates aren't absurd.
Dunno, assuming 9.8% return? Most invest gurus, whatever they are, would use 6 or 7 over many yrs. 9.8 for a 5 yr loan window period is optimistic imo

I have a MS LR, RN 1148, on order. I was going to pay cash but I did see other posts about 1.5% rates. I applied to 3 and looked into Stanford CU also. The best offer was 1.9, rest were 2.5. I suppose to get 1.5 I needed to open accts there which I didn't want to do.

Don't forget about the 25k at Stanford, you park your money there at probably a low rate so you are also loosing money on that 25k.

I still decided to pay cash, my parents always stressed saving and avoiding debt. That's one major reason I can pay this in full, imo. As a country we are too quick to borrow. Yes 1.5 prob makes sense but it leads to a borrowing mentality, not everyone is disciplined to avoid excessive Borrowing. Asian countries save 30% of their pay, its admirable but maybe a bit high.

The hassles of saving a few k over 5 yrs was not worth it to me in the end. But I understand how 1.5 can be attractive
 
Considering tax, you’ll be lucky to only lose $10,000 over the three year period. M3P trade is not going to be $60k.

That's why love South Carolina haha.

I have the Model 3 Performance Stealth and if got $7500 incentive and bought FSD for $5k or $4k after credit card signing bonuses. Tesla offered me $53200 for my car $2500 less than what I paid 3 years later and 21k miles. And again I would never consider paying anything cash at the current interest rates.
 
Dunno, assuming 9.8% return? Most invest gurus, whatever they are, would use 6 or 7 over many yrs. 9.8 for a 5 yr loan window period is optimistic imo

I have a MS LR, RN 1148, on order. I was going to pay cash but I did see other posts about 1.5% rates. I applied to 3 and looked into Stanford CU also. The best offer was 1.9, rest were 2.5. I suppose to get 1.5 I needed to open accts there which I didn't want to do.

Don't forget about the 25k at Stanford, you park your money there at probably a low rate so you are also loosing money on that 25k.

I still decided to pay cash, my parents always stressed saving and avoiding debt. That's one major reason I can pay this in full, imo. As a country we are too quick to borrow. Yes 1.5 prob makes sense but it leads to a borrowing mentality, not everyone is disciplined to avoid excessive Borrowing. Asian countries save 30% of their pay, its admirable but maybe a bit high.

The hassles of saving a few k over 5 yrs was not worth it to me in the end. But I understand how 1.5 can be attractive
It’s all in how you leverage your assets. Every person is different. Asian countries may save 30% of their income while living with their parents (no idea where that info comes from). Glendale and Burbank area is filled with people who cram families into apartments and drive their $100k cars around all day bc they have nowhere to go and nothing to do. Their money is typically laundered. See? Everyone has different scenarios.
 
That's why love South Carolina haha.

I have the Model 3 Performance Stealth and if got $7500 incentive and bought FSD for $5k or $4k after credit card signing bonuses. Tesla offered me $53200 for my car $2500 less than what I paid 3 years later and 21k miles. And again I would never consider paying anything cash at the current interest rates.
So 1.49% does make sense to you? I thought you felt the opposite before.
Credit card signing bonuses?
$7500 tax incentive included, might as well include gas savings and tell us all you’re breaking even?

anyone can say anything online. What’s the point? ✌🏼
 
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Not everything in life is about making money/saving money. I presume you make your own coffee vs going to a coffee shop to save 3 bucks, never go out to eat to save the money and invest the difference, don’t have a nice watch, don’t have nice clothes , never go on a nice vacation?

some people like a new car, with the latest tech, safety, driving dynamics etc.

Enjoy your life the way you want it, no one needs to hear your critical judgments on how we live ours

enjoy your day
Thats me! Almost. Starbucks has made about $20 off of me in my life of 50 yrs. But I have about a 15 watch collection, nothing overly expensive. Expensive restaurants and vacations for sure but at a lower frequency.
A cup of coffee is peanuts to me but the thought of making my own for 50 cents!
A watch or a car or even a nice meal I can't make so don't mind splurging.

You can be wise with money but also enjoy life. My EDD is Sept 18 to 30!
 
It’s all in how you leverage your assets. Every person is different. Asian countries may save 30% of their income while living with their parents (no idea where that info comes from). Glendale and Burbank area is filled with people who cram families into apartments and drive their $100k cars around all day bc they have nowhere to go and nothing to do. Their money is typically laundered. See? Everyone has different scenarios.
True about living with parents, until they get married I have many coworkers in Korea or Taiwan who earn modest salary (60k to 80k equiv now but lower when they were younger ) and are about to put away close to 1M when they retire. If you do the math thats a very high savings rate but they do have lower taxes.

The idiotic statement about money laundering? Where the heck did that come? Do you know any working person in other countries or just like to make broad idiotic statements.
 
That's why love South Carolina haha.

I have the Model 3 Performance Stealth and if got $7500 incentive and bought FSD for $5k or $4k after credit card signing bonuses. Tesla offered me $53200 for my car $2500 less than what I paid 3 years later and 21k miles. And again I would never consider paying anything cash at the current interest rates.
Ur lucky, they offered me 39k for my dual motor M3, 10k miles, blue, no FSD.
 
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Oh my god dude. Just because you might be right about a few things in theory doesn’t mean that’s how everyone else lives their life and doesn’t mean you don’t sound freaking intolerable, and you sound pretty freaking intolerable.

Not all money is a damn investment. No kids, not looking to leave anything to anyone when I die. You enjoy building up that nut for the great beyond, I’ll have fun on my way there.. You sound like the kind of guy who wouldn’t pay for good tickets to a show or for a first class flight or a decent hotel room because of the lack of ROI. Had a friend like that I used to travel with until I realized everything was about save-a-buck and the trips were miserable - I don’t go anywhere with him anymore.

The thing you don’t seem to get is that’s not the point for a lot of folks. If it makes you happy, good. Having something new and not buying someone else’s problems is worth at least 1.49% to me. Being a chiseler isn’t a virtue to everyone.

You know you’re on the Tesla Model S forum, right? Ain’t nothing going on here about “needs”. A Toyota Camry is quite sensible, why don’t you take your holier-than-thou routine to those forums?

And JFC lighten up a little, you may find it’s better for you than that cash buried in your backyard.
Wrong dude! I Need my MS LR, hurry up Telsa!
 
So 1.49% does make sense to you? I thought you felt the opposite before.
Credit card signing bonuses?
$7500 tax incentive included, might as well include gas savings and tell us all you’re breaking even?

anyone can say anything online. What’s the point? ✌🏼

Do the math is not that hard. Yes $7500 tax incentive and $1k credit car bonus and I am out of $2500 after 3 years. An incredible deal.

1.49% is nothing. I used to pay cash before but it doesn't make sense anymore.
 
And with hyperinflation coming, that 1.5% loan will be eroding itself away every year afterwards. I mean $100k will be enough for a Toyota Corolla in 5 years. :D Make sure your cash is invested and not sitting in a bank account.
 
Whenever I see threads like these I always wonder why people get so worked up over how others spend their money. If I went out and set a Benjamin on fire, why should anyone care?

It’s like if a tree falls in the forest and no one is around to hear it, does it make a noise? Great question! But also who gives a ****

I used to be judged my many co workers for spending so much money on a car and I just for the life of me couldn’t figure out why they cared.
 
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I am all for buying used with cash, but if no one bought new there would be no used cars to buy. Plus there would be no auto industry.

Also taking a holier than thou attitude about the sins of getting a below inflation loan is just silly (used or new).

Finally OP never had an agenda used vs new or cash vs loan, just sharing he found a low interest loan with others.
 
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Always get a loan if you can better use the cash elsewhere. I mean why not? The only time you wouldn't want that is if a mortgager is requiring additional insurance on the asset that you don't want to carry, or imposing some other restriction. If you have no other use for the cash, pay with cash. Cash should not be sitting in your bank account anyway during this time of near hyperinflation.
 
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