As I described a few weeks back in my opportunity knocks part 1 and part 2 posts, I was given the opportunity to purchase a Jeep Wrangler from my brother. I took the opportunity and financed the vehicle with a used auto loan instead of paying with cash. Yes, I did have enough cash to pay for the Jeep, but I went with the loan instead. I detailed my reasoning for getting an auto loan in part 2 and I thought that would have been good enough.
Well, I was wrong!
Apparently, my decision was a very poor financial one. The option to get an auto loan pissed off quite a few readers. While they chose not to comment on the post (not sure why), they did decide to email me personally. I do enjoy getting emails from my readers, no matter the tone. Good thing for me is that I can take what they say and turn it in to a post. I don’t plan on citing exactly what they told me, but I will play it out for you here.
Only One Option
A few emails went into depth about why cash is the only option to purchase a car. While I do agree that cash should be used if at all possible, you have got to be kidding me that it is the only option. Why does it have to be that way? Is that because someone told you that and that means it’s right? It must be on Wikipedia or something.
When I hear that there is only one option, I automatically go searching for alternatives. Why do I do this? Easy, I don’t like just accepting what is always told to me. This pissed off my parents when I was younger, but they understand it now.
Let me explain why paying cash for a car is not the only way. It is simple. BECAUSE IT IS NOT!
I am sure you are aware of why there are options available for purchasing a car. You can either pay cash, finance, or do a combo in order to make a vehicle yours. I am not including leasing, because that only applies to new cars.
Dealers make these options available because if only one was available, they probably wouldn’t make it very far in the business world. When was the last time you went to a business that didn’t accept credit cards or another form besides cash? I know it has been a very long time for me. Businesses accept other forms of payment in order to provide as many potential customers a way to pay. It makes business sense.
Not only are their options to pay, but there are also many options to get a payment. There are so many places to get an auto loan that it can make your head spin. This is because people like to have options. That’s right, we all like options. If you wanted to get an auto loan, you could reach out to a credit union, traditional bank, or service like Lending Tree and Applewood Finance in the UK.
Choose What Is Right For You!
The point of this post was to show my detractors that there are options for people looking to buy a car, no matter new or used. The other point was to show that personal finance is in fact personal. Why do some people forget that? Your decision might not be a good one for me and vice-versa. While I got a used loan for my car, that might not work for others.
I chose an auto loan because it gives me the greatest flexibility with my money. I got an extremely low rate that will cost me almost nothing over the course of the loan. It allows me to keep my money liquid. I get to continue to invest into my Roth IRA and my other investment accounts. The little that I will pay over the course of the loan in interest fails in comparison to what I will earn from my investments.
The reason I chose to finance my used car was because it was right for me. It doesn’t have to be right for you, but if you want to tell me that I am not helping people by letting them into my world, then get lost. I don’t want you here. I work hard to provide both sides of the argument when it comes to finance. Each person has their own opinion with regards to money. There are some basic fundamentals when it comes to finance, but that doesn’t mean that everything is so cut and dry. That is why I love the personal finance space. There are so many opinions and none of them are wrong. The differing opinions come from people that found what works for them. They share it and hopefully it will work for others.
So, to those that emailed me after reading about my auto loan purchase, here is your reality check. While I understand your opinion, it doesn’t mean that I am hurting others by sharing my story. I am sure that my story has helped others through their debt issues. I make my decisions based on myself and my family. If my ideas can help one person, then I have accomplished my goal. Your negativity doesn’t stop me from sharing my story, it only pushes me harder to help more people, so thank you for that.
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