Thanks everyone for your input. I really appreciate it!

I don’t need to establish credit-worthiness - I’m ok there. And my personality is such that I wouldn’t be disciplined enough to invest the money and earn more than I would spend in interest on a loan. My hat goes off to those of you who could and would manage that to your advantage.

I agree that a vehicle is a depreciating purchase, but since my M.O. is to keep a vehicle until it’s no longer driveable, depreciation never really comes into play for me.

From what I gather here, it’s probably better to write a check than “finance” the vehicle, even if the financing is free and brings no early payoff cost with it. Apparently there would be no “buffer” type benefit either, which is what I was wondering.

So thanks again! I may be writing that check soon. Appreciate having so many brains to pick in this forum!

Savier, I usually perform a bank contribution monthly to for increased outcome

It really depends on what your cash situation is. I had a coworker once who told me he took his entire cash life savings of 5 years work (he was late 20s) amounting to around $25k and bought a new car so he wouldn't have a loan. Interest rates at that time for car loans were around 3-4%.

Is it brand new or "new to you"?

I would try and find a private seller who has new one for sale with low miles and save even more. It would still have the factory warranty, too.

Regarding the finance it and invest the difference crowd; would you take a loan out against your paid off 4runner at 2%, in order to invest it at 5%? Serious question.

Curious what you thought of doing that. Investing the $25k in the last 10 yrs
he could have recouped interest on loan and gained a compounded profit.
To each his own of course.

I'm just throwing this out there...
If you take after the true inflation rate being close to 6% (shadow stats) as opposed the the stated official number of 2.3%; you would be loosing money. Nominally your account would be growing but you would be loosing purchasing power faster than your investment is making it.

If you believe the official number... you would only be eeking out .7% gains in real terms, not the 3% in your hypothetical.

Run the numbers through an amortization schedule with different rates to see the cost of the loan at each point in the game.
If rates are low I finance. They are still fairly low now too.
I am not concerned with losing value since 4Runners hold value well, so losing a bunch of money is not very likely.

I make a lot, I spend a lot. Guess that just means I enjoy life!

Question about the finance it then immediately pay it off process... wouldn't that require the lending institution be included in the title? Thus, extra hassle dealing with DMV when you pay it off to have the bank removed from title?
If done soon enough, could it pose complications - such as difficulty getting payoff paper from bank since they might not recognize a title is in their name, thus complicating your case to the DMV to remove bank from title? Just a thought that popped into my head.

A lot of truth spoken right here. Good advice!!

I keep my trucks a long time.
I paid cash and was done.

Well, at least I am trying to. I don't want to take many loans, because sometimes you don't know how payday loans work, and it can be a big disaster at the very end! I do believe people should be more financially educated.

Same here, keep trucks for a long time, but I still have to look at the cost of money. If the loan cost 4% and I can make 6% making my cash grow, I save/make 2%.

On the surface it appears borrowing money is a bad idea, until you let someone else borrow yours for even more money.

I once made a deal when buying my Acura… and then tried to charge the entire purchase to my credit card for the points.

I was going to pay it off right away anyways.

Dealership was a bit annoyed with me, but we compromised on a pretty large portion of the payment on the card. I got 3% back on points, and paid the rest by check.