How will you pay for your Lightning?

[SmoothJ]

I actually thought it was automatic now. Last few leases I had included it off the bat. Probably depends on leasing company, so yes always ask and get it. Came in handy when I had a leased BMW stolen awhile back.

On leases in certain states, yes. However usually not on standard loans and I don’t believe it’s in FO.

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[Deleted member 9341]

On leases in certain states, yes. However usually not on standard loans and I don’t believe it’s in FO.

Good to know. Thx!

 

[Oneand0]

Selling my Model Y and I love that vehicle. ?

 

[TheRealDlo]

Be sure to get GAP insurance… it’s included with the RCL but not FO.

GAP depends on how much money u put down and your LTV at close of deal.

If you are putting a large % down, like $5000+ you may not need gap. Depends on each deal.

 

[SmoothJ]

GAP depends on how much money u put down and your LTV at close of deal.

If you are putting a large % down, like $5000+ you may not need gap. Depends on each deal.

True, but almost all vehicles never appreciate, but depreciate in value. It never hurts to have extra insurance on something you owe 60K+ on.

 

[gtotco]

Since interest rates are so low these days, it doesn't make much sense to dump all our cash into a new car. Instead, take a loan and put the cash in an index fund.

So everyone always says this but nobody says take out a home equity loan on your house or max out your margin borrowing and reinvest it because the rates are low.

I can see specific circumstances where you might use a HELOC or cash out refinance just to diversify your portfolio. I would for instance be okay taking one of our rental properties up to 50-60% LTV on a cash out because it’s more or less converting investment classes from real estate to equities/bonds.

Taking out a margin loan just to juice returns with a bit of increased leverage would be bananas to me though which is more or less how I see taking out a car loan to pick up maybe a few hundred dollars a year in expected return.

I don’t care if people take out car loans because they can’t afford something now. $50-$100k is a lot of cash to spend - it’s a 20% down payment on a house in a lot of markets. The justification that people should always take cheap money to juice a bit of return is asinine to me though. Consumer debt is for exactly that - financing consumption, not investing in risk assets.

I pay cash because I spent my 20s sitting on student loan debt and never having more than a few thousand dollars in my bank account because I was keeping up on those payments. I worked hard to pay that off in my early thirties and don’t really have debt now (we have a house and two rental properties all leveraged below 50% at this point) and it’s been great for making savings easy. If you don’t have any payments to make you have more cash flow to dump that money into savings/investments rather than paying down debt. I don’t think people appreciate how much easier not having debt makes things in terms of building a balance sheet. We pay cash for our cars and it makes future saving a lot easier! Being able to add an extra $1k a month to savings because I don’t have a payment is great.

Again - don’t get me wrong I don’t think car loans are bad for financing consumption. It’s relatively cheap money and saving up tens of thousands dollars for something that is a basic necessity in our society is hard. I just don’t buy the “it’s smart from an investment perspective”.

I work in finance and work around a lot of smart finance people and almost everyone minimizes debt in their personally lives because they can and it works well for them to minimize consumption debt.

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