If you can qualify for the Clunker program and still get the price on the car you want then why should it matter what other people think about paying cash for a car? As far the dealership goes, don’t tell them you’re going to pay cash until you have your price agreed upon. Many dealers will give you quotes over the phone and will try to beat competitor quotes. If a dealer won’t do that, move on, they don’t deserve your business. If you walk in with your quote and they try to play games, say thank you and walk out.

Dealerships might be playing games with their pricing because of the Clunker program. The government giving away free money will artificially increase prices and you might end up paying closer to MSRP. I haven’t really been looking at prices, but if you can get a car close to Invoice and qualify for Clunkers, then that sounds like a good deal to me.

We paid off my wife’s car back in December and I’m paying off my loan early. It doesn’t make since to put money in savings (1.5%) when my loan is at 5%. Once both of our cars are paid off, some of that extra money will go to savings to pay cash or get close to paying cash for our next car.

Also, the value of the Clunkers $4,500 is reduced by your old cars potential resale value. If you can sell your old car to a private party for $3,000, then you’re only realizing $1,500 in savings. If your old car is worth more than $4,500 then you are actually losing money trading it in under Clunkers.

If you’re starting out like I was then a car loan really isn’t a huge deal. Making the monthly payments should have a positive impact on your credit history. It also depends on your situation, if you can buy the car outright how much does that leave in savings? It might be better to get the loan and keep that money tucked away just in case (preferably in a 3-4% savings account).

My post was trying to get at the problem of instant gratification and what it could potentially cost over a lifetime. You sound like you’ve got a pretty good handle on things so I would say go ahead and get the loan, the cost will be pretty low. If you were looking at a $30k loan then that’d be a whole other story.

I’m trying to weigh the difference between buying a car outright and getting a loan for a couple of thousand dollars that I can pay off relatively quickly.

The reason for the loan is to get a good credit record added to my credit report and so that I won’t be looked at as a first time buyer if I ever want to get a loan for something in the future.

Do you know how to value that additional credit rating and status versus the cost of the interest for the loan?

I wasn’t intending to question your judgment or insult you, but I’m sure I did.

The truth is I have SERIOUS issues with that hospital due to my grandmother’s untimely death after arriving there for care of a broken leg…

Yes, I’m very upset with that place and I know that I just automatically bash it every chance I get.

I don’t remember specifically what I said but I’m it wasn’t the proper time to mention it. For this I am sorry and I truly do wish you well and look forward to seeing your baby on the outside!

Well now I see what you snapped because I really wasn’t trying to be mean posting here. I was failing to see a practical / real-life use for all the number crunching and I had an honest question… to which Andrew gave a great example to further explain his post.

Nathan, I know you enjoy arguments and I’ve seen you be mean and freely express your opinion in comments on other blogs, so I guess your opinion and right to have fun are more acceptable than mine.

I’ll admit there are times where I will post a silly comment knowing it will provoke an equally silly argument (like the funny cat pictures post on here, that was a fun one!)

I don’t see what the big deal is, it’s a blog!

I’ll make sure before I post a comment or opinion I double check and re-think it I guess I broke some blog etiquette?

I’m glad to know what the real cause was now. I’ll consider this done and thank Andrew again for posting the original post and apologize for mucking up his comments.

I call a truce.

No big deal.

You’re right, that’s both not a question and I did say it. But I do think the line below that statement was a question:

“I was curious, what specifically do you plan on putting into practice when you purchase your next car?”

Which Andrew answered well and even provided an example. It really did help to bring clarity to his post.

Andrew, thanks for answering my question.

Also, I guess I should be sorry for being negative (really?) and for my “comprehension problem”

So here’s another question. Nate, why are you so angry with me asking for further clarification?

“It’s an interesting word problem though I doubt many people will be patient enough to wait 50 years to buy a car!”

That’s not a question, so I guess it’s just a comprehension problem.