As someone above stated, every person's situation is different. Some people would prefer to keep more liquid cash... even if it's irrational. For many, many, many people, money carries at least a little bit of emotional baggage.
I'm finally at a point where I could have paid cash for cars but didn't because, in some ways, financing (well... avoiding writing that huge check) is almost a habit, because for much of my life the cost of the car represented a potential make-or-break thing in terms of missed opportunity. It's not anymore, but it still "feels" weird to write a $120K check for a car, and with depreciation and gap insurance, it can be a wash if the car gets totaled so... I finance
Doesn't make a ton of sense, but I do it anyway bc of personal foibles and demons. Not proud of that, but it's the truth (and I can justify it, to myself, at least, on paper both ways in terms of risks, etc.). And I know I'm not alone...
I'm finally at a point where I could have paid cash for cars but didn't because, in some ways, financing (well... avoiding writing that huge check) is almost a habit, because for much of my life the cost of the car represented a potential make-or-break thing in terms of missed opportunity. It's not anymore, but it still "feels" weird to write a $120K check for a car, and with depreciation and gap insurance, it can be a wash if the car gets totaled so... I finance
Doesn't make a ton of sense, but I do it anyway bc of personal foibles and demons. Not proud of that, but it's the truth (and I can justify it, to myself, at least, on paper both ways in terms of risks, etc.). And I know I'm not alone...
